A new Euromonitor International report predicts China and Korea will lead the Asia Pacific’s recovery of luxury sales. The agency predicts sales in these two countries will hit pre-pandemic levels by late 2021. Of the two, China will account for 41 per cent personal luxury sales in the region by 2025. Hong Kong’s luxury market has been hard hit by a combination of COVID-19, political unrest and a lack of mainland Chinese tourists, reveals the Luxury Goods 2021.

Hong Kong’s personal luxury market contracted to $6.8 billion down from $11.7 billion between 2019 and 2020. On the other hand, Taiwan’s luxury market grew from $7.2 billion to $7.5 billion, reports Business of Fashion. Only affluent shoppers in Mainland China along with Taiwanese consumers could enjoy income growth during the year. China also emerged as Asia Pacific’s leading personal luxury market during the year, outpacing Japan. By 2025, China’s luxury sales are expected to increase by 10 per cent CAGR to account for 40 per cent of the global sector.