NPD Group’s latest report says, Chinese spending on luxury clothing may increase in the current year. In 2020, Chinese consumers spent $12.29 billion on luxury apparels across the world through direct retail channels and $9.83 billion in mainland China. These consumers contributed almost two-thirds to global growth in luxury spending in 2020, despite COVID-19. Chinese consumers are also using duty-free shopping channel for its attractive pricing and the one-stop purchase experience. The Chinese government has introduced duty-free shopping in the Hainan island as part of its ‘Hainan Trade Free Port plan. Sales at Haitang Bay in Hainan, the largest standalone duty-free shopping complex in the world, grew 66 per cent in 2020 compared to 2019, the report said.

In 2020, China’s GDP grew 2.3 per cent; it was the only one of the world’s major economies that registered growth, says Stanley Kee, Managing Director, APAC, The NPD Group. This indicates a great potential for the Chinese luxury market which is expected to increase further in coming years, he adds.