Western brands under pressure as ‘pre-owned’ luxury booms in China
AgenciesWith China’s economy still struggling to recover from the pandemic, even global fashion icons are beginning to feel the pinch as consumers turn instead to the second-hand m...
As China's economy grapples with the aftermath of the pandemic, luxury Western brands are experiencing a decline in sales, leading consumers to increasingly favor the second-hand market or support emerging domestic brands. Once a significant contributor to the global luxury market, Chinese consumers now represent around a third of worldwide spending, but economic constraints have prompted a shift in their purchasing behavior.
In response, major players like Louis Vuitton and Hermes have adjusted their strategies, closing several stores in mainland China over the past two years. This change in consumer sentiment is evident in Shanghai, where a retail space dedicated to second-hand luxury items has gained popularity among the younger generation. According to a 24-year-old dance teacher, the focus has shifted from comparing who spent more to who got a better deal and spent less.
The decline in China's personal luxury market has been significant, with a contraction of 19 percent in 2024 and a further 3-5 percent in 2025. The shift in consumer preferences is also reflected in the booming second-hand luxury market, which expanded by 15-20 percent in 2025, reaching 38.4 billion yuan ($5.7 billion) in sales.
While older generations still associate luxury with prestige, younger consumers, such as Gen Z, are prioritizing factors like self-identity, quality, and emotional value.
Written by urgent.news from Qatar Tribune Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
