Bain expects China luxury growth to slow

According to the forecast of Bain & Company, the growth rate of China’s luxury goods market will slow down. This forecast is mainly based on the following factors:

Base effect: China’s luxury goods market has achieved rapid growth in the past few years, but due to the continuous expansion of the base, the growth rate may slow down in the future. When the market size is gradually saturated, it will become more difficult to acquire new customers and compete for market share.

Changes in consumer mentality: The purchasing behavior of Chinese consumers is gradually shifting from conspicuous consumption to personalization and quality-oriented. They pay more attention to product quality, design and cultural connotation, rather than simply pursuing the identity symbol of the brand. This shift could lead to a reduction in consumer demand for luxury goods.

Policy and economic environment: The Chinese government has implemented a series of restrictive measures on the luxury goods market, such as anti-corruption policies and tariff adjustments. In addition, factors such as economic growth slowdown and trade frictions may also have a certain impact on the luxury goods market.

However, although the growth rate of China’s luxury goods market is expected to slow down, there are still some positive factors, such as the rise of the younger generation of consumers, the growth of online sales, and the increasing demand of Chinese consumers for personalized and customized products, etc. . Therefore, luxury brands need to adjust their strategies according to market changes, better meet the needs of consumers, and find new growth points and opportunities.