China Luxury Market Consumption under the Covid-19 Pandemic

Jiaqi Lin

doi:10.54254/2754-1169/11/20230569

Research Article

Open access

Published on 13 September 2023

Download pdf

Lin,J. (2023). China Luxury Market Consumption under the Covid-19 Pandemic. Advances in Economics, Management and Political Sciences,11,373-383.

Export citation

China Luxury Market Consumption under the Covid-19 Pandemic

Jiaqi Lin *^,1,

¹ University of British Columbia

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/11/20230569

Abstract

China's luxury market is becoming outstanding in the whole world industry. With the sudden outbreak of COVID-19 at the end of 2019, almost all industries have been affected to a greater or lesser extent. However, China's luxury market recovered rapidly and showed a strong growth trend from 2020-2022, following a brief downturn. Therefore, after analyzing and collecting relevant market reports and industry reports, this paper finds that consumption return, digital transformation, the rise of the new generation of consumer groups, and favorable Hainan duty-free policy can be used as four reasons to explain the rapid recovery and growth of China luxury market under Covid-19. This paper further studied the strategies of international luxury brands to cope with the pandemic situation, such as the change of channels while integrating Chinese elements and the increasing attention to environmental factors. Finally, this paper shows a positive attitude toward the growing trend of China's luxury market in the future. It gives suggestions for the future development of brands and investors in such an industry.

Keywords

China’s luxury market, digital transformation, duty-free policy, new generation power

View pdf

References

[1]. INSIGHT AND INFO. (n.d.): Global and Chinese Luxury Industry Development Status annd Market size Statistics2016-2021(2022)https://www.chinabaogao.com/detail/604415.html

[2]. Yingyiru.: China’s luxury spending jumped 36 percennt year-on-year to 471 billion yuan in 2021. (2022, January 25). https://wallstreetcn.com/articles/3650594

[3]. Lannes, B., & Zhang, J. (n.d.).: China’s unstoppable 2020 luxury market - bain.cn. (2020)https://www.bain.cn/pdfs/202012160302262674.pdf

[4]. Murray, T. (n.d.).: New genneration, new atmosphere—Current situation of luxury retail market in China. CEIBS.https://cn.ceibs.edu/gemba/story/20933

[5]. Huang, S.: Analysis of the Development status and Market size of China luxury industry in 2022 connsuption return boosts the countertrend growth of Mainnland luxuy market. Forward Industry Research Report. (2022, January 29).https://www.qianzhan.com/analyst/detail/220/220129-67a6f93d.html

[6]. From the digital prespective: China luxury market is recovering. Monstarlab | Digital Consulting and Product Development. (2022, August 3). https://www.monstar-lab.com.cn/expertinsights/wre-luxury-market-trend-dx/

[7]. Global Times.: The pandemic has made China the World’s Largets Luxury Market (2022, January 19). http://hqsxw.net/2022011913977.html

[8]. EY.: China Retail and Consumer Goods Industry 2021 Review and Future Outlook. (2022).https://assets.ey.com/content/dam/ey-sites/ey-com/zh_cn/topics/consumer-products/ey-overview-of-chinas-consumer-products-retail-industry-in-2021-zh.pdf

[9]. Chen, Y.: Analysis of global and China luxury goods market status and trend in 2021, and stronng high-end consumer demnad resilience. (2022, August 23). https://m.huaon.com/detail/830224.html

[10]. Fashion, F.: China Luxry Report 2020-2021—China is the world’s largest luxury market.(2022,January,19).https://www.163.com/dy/article/GU2OGVSH05385ELK.html

[11]. Hualizhi.: 2022 China Luxury Marketing Report: How to seize the private sector position? (2022, July, 13).https://www.163.com/dy/article/HC587ERS0519FFAI.html

[12]. Qinshuo.: 2020 Global Luxury Industry Trends (2020 China Luxury Consumption data). (2022, August, 23).https://www.msn19.cn/post/5071.html

[13]. Deloitte. (n.d.).: Future of automotive sales and aftersales impact of current industry ...https://www2.deloitte.com/content/dam/Deloitte/cn/Documents/consumer-business/deloitte-cn-cb-future-of-auto-sales-en-210113.pdf

[14]. Tax-free Policy for Outlying Island-BaiduBaike. (n.d.). https://baike.baidu.com/item/%E7%A6%BB%E5%B2%9B%E5%85%8D%E7%A8%8E%E6%94%BF%E7%AD%96/9811931?fr=aladdin

[15]. Guanghui X.: Report on Duty-free Industry: In the Post-pandemic era, How to make Luxury Brands Duty-free in China?.Financial Headlines. (2022, August 5). https://t.cj.sina.com.cn/articles/view/7426890874/1baad5c7a001013zqm

[16]. Huanran Z., Kuibai L., &Terrance L.: Global Consumer Insights 2020 China Market. (2020).https://www.pwccn.com/zh/retail-and-consumer/gcis-china-report-sep2020.pdf

[17]. China Luxury Market Continues to Grow Strongly, and Gen Z will Be the Main Consumer in the Future. (2020, January 8). https://www.bain.cn/news_info.php?id=1013

[18]. Li M.: The Covid-19 pandemic has reshaped the global luxury market. Financial News China. (2022, August 23). https://www.financialnews.com.cn/hq/sc/202208/t20220823_253967.html

[19]. Monstarlab.: Industry Insight: A Digital Perspective on China Luxury Market Recovery and Growth. (2021, August 2). https://www.monstar-lab.com.cn/expertinsights/wre-luxury-market-trend-dx/

[20]. Achille, A., & Zipser, D.: Survive the present and recreate the future -- Thinking on "anti-epidemic" in luxury industry. McKinsey Greater China. (2022).https://www.mckinsey.com.cn/%E7%86%AC%E8%BF%87%E5%BD%93%E4%B8%8B%EF%BC%8C%E5%86%8D%E9%80%A0%E6%9C%AA%E6%9D%A5-%E5%A5%A2%E4%BE%88%E5%93%81%E8%A1%8C%E4%B8%9A%E6%8A%97%E7%96%AB%E6%80%9D%E8%80%83/

Cite this article

Lin,J. (2023). China Luxury Market Consumption under the Covid-19 Pandemic. Advances in Economics, Management and Political Sciences,11,373-383.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

Disclaimer/Publisher's Note

The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.

About volume

Volume title: Proceedings of the 2nd International Conference on Business and Policy Studies

Conference website: https://2023.confbps.org/

ISBN：978-1-915371-49-2(Print) / 978-1-915371-50-8(Online)

Conference date: 26 February 2023

Editor：Canh Thien Dang, Javier Cifuentes-Faura

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.11

ISSN：2754-1169(Print) / 2754-1177(Online)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).