Chinese demand for luxury goods is projected to grow as much as 30% this year as high-income mainland shoppers drive the country’s post-pandemic economic rebound.
It’s the only bright spot for the luxury industry, which is otherwise poised to see worldwide spending shrink 45% in 2020 as Europe and the US continue to battle the coronavirus ahead of a feared winter wave of infections.
The new forecast from Boston Consulting Group is another sign of how China’s bouncing back after it largely eradicated the virus domestically, becoming the only major economy projected to grow this year.
While the surge in luxury shopping on the mainland was initially chalked up to Chinese consumers being unable to travel overseas due to containment measures, it’s now clear that the strong demand is driven by more than a transfer of spending back home.
Bored after months of strict social distancing measures and unable to vacation overseas, wealthy Chinese consumers are seeking comfort in retail therapy.