The Chinese luxury market is expected to grow 48 per cent to reach around $52 billion by the end of the year, says Bain’s annual China luxury report released in partnership with Tmall Luxury Division. As Business of Fashion reports, driven in part by the repatriation of luxury spending and acceleration of e-commerce adoption as a result of COVID-19 and international travel restrictions, this meteoric growth is forecasted to continue through 2025.

However, growth is likely to be uneven with China’s north and northeast regions underperforming in contrast to the south, east and southwest. Categories like leather goods and jewelry will lead this growth followed by ready-to-wear clothing and shoes, beauty and timepieces.

Bain predicts Chinese shoppers to remain cautious about travel for at least a year, making domestic destinations like Hainan key touch points for brands. It also noted that shoppers from or younger than the post-’80s generation continue to drive growth and that online shopping habits adopted mid and post-pandemic will continue to remain relevant.