China’s luxury market declined 18-20 per cent YoY in 2024, returning to 2020 levels due to weak consumer confidence and increased overseas spending.
Hainan’s duty-free sales fell 29 per cent, while overseas luxury shopping surged, driven by pricing disparities.
The Daigou grey market grew 5 per cent, impacting revenues.
Bain expects a continued downturn in early 2025, with a stabilisation in H2.