China's luxury market tumbles after five-year hot streak

Demand for pricey watches, handbags and cosmetics shrank 10% in 2022

Shoppers line up outside a Shanghai store of French luxury brand Celine at a reopened mall during the pandemic. © Reuters

PAK YIU, Nikkei staff writer

February 10, 2023 18:03 JST

HONG KONG -- China's luxury market shrank in 2022, ending a five-year growth streak as Beijing's zero-COVID policies and a slowing economy hurt demand for pricey watches and handbags, a new report says.

Chinese shoppers have long been a crucial market for luxury brands, but sales in the world's second-largest economy last year fell 10% from 2021 levels to 425 billion yuan ($62 billion), according to estimates by consultancy Bain & Co.