China’s luxury market is undergoing a dual transformation, driven by shifting consumer values and generational divides. On one hand, homegrown brands are gaining unprecedented traction, fueled by Gen Z who value cultural relevance and craftsmanship. On the other hand, consumers across all ages and city tiers are redefining luxury itself, prioritizing quality and practicality over traditional prestige, blurring the lines between mass, premium, and luxury brands.
In this analysis, we will uncover the luxury spending preferences of both Mainland Chinese and Hong Kong luxury consumers in 2025:
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The Quiet Rise of Chinese Luxury Brands
- 15% of Mainland consumers now source more than 50% of luxury purchases from domestic brands (vs. 4% in Hong Kong)—a 3% YoY increase.
- Gen Z (17%) and millennials (16%) lead the charge, outpacing mature consumers (13%).
- International brands still dominate (76% share), but local players brands (like COMME MOI and Feng Chen Wang) are reshaping perceptions with culturally relevant designs.
The New Luxury Playbook: Quality Over Labels
- Generational Divide: Gen Z and mature buyers prioritize quality across price tiers, while millennials cling to status-driven luxury.
- City Tier Split: Tier 1 shoppers prefer understated excellence; Tier 2 buyers mix aspiration with value-conscious pragmatism.
- Brand Hierarchy Blur: 63% of shopping budget is still with premium/mass brands, challenging the share of wallet of luxury brands.
Growing Appetite for Domestic Luxury Brands
Recent trends indicate that mainland Chinese consumers are showing greater interest in domestic luxury brands compared to their Hong Kong counterparts. Approximately 15% of mainland luxury buyers now purchase more than 50% of their luxury goods from Chinese brands compared to 4% of the Hong Kong consumers.
This trend is particularly pronounced among younger consumers, with Gen Z and millennials demonstrating stronger preferences for domestic brands than the mature segment (17% Gen Z and 16% millennials purchased more than 50% of luxury goods from domestic brands, compared to 13% from mature segment). (See figure 1)
Several factors contribute to this shift. Younger Chinese consumers, shaped by the country’s economic rise and cultural confidence, increasingly view domestic brands as equally prestigious while offering products that better resonate with local aesthetics and values. The success of brands like COMME MOI, HAIZHEN WANG, Feng Chen Wang and FIYTA in positioning themselves as luxury brands comparable to international labels has helped reshape consumer perceptions.
The Enduring Dominance of International Brands and Future Growth Potential of Domestic Brands
Despite this growth, international luxury brands still own a big share of the Chinese market. More than three-quarters of Chinese luxury consumers continue to purchase over 50% of their luxury goods from foreign brands (see figure 1). The dominance of international brands suggested that there is still a significant untapped potential for Chinese luxury brands. As consumer confidence in domestic products grows and brands continue to elevate their design, quality, and storytelling, it is expected to see further market share gains.
For international brands, the growing interest in domestic labels signals the need to further localize offerings while maintaining brand DNA. For Chinese brands, the challenge lies in building comparable brand equity and craftsmanship reputation to compete with the top tier market players
Quality and Practicality Drive Purchasing Decisions
Majority of Chinese and Hong Kong luxury consumers are Quality-Focused, prioritizing durability and craftsmanship over brand status (see figure 2). This is followed by Practical Tasteful shoppers, who seek a balance between aesthetics and functionality, and Traditional Luxury Consumers, who value heritage and prestige.
Generations show different preferences on choosing different level of products. Gen Z and mature consumers are more Quality-focused, favoring high quality products regardless of brand tier (mass, premium or luxury). Millennials, on the other hand, lean toward Traditional Luxury, appreciating the status and history of high-end brands (see figure 2).
When deep-dive into city tiers, tier 1 consumers are more Quality-Focused and Practically Tasteful, aligning with their sophisticated and practical shopping habits. And tier 2 cities consumers show a stronger preference for Traditional Luxury, Mixing Brands, and Pragmatic Shopping, indicating a blend of aspirational and value-driven purchasing behavior (see figure 3).
Luxury Brands Are Still Competing with Mass / Premium Brands
63% of shopping budget is still with premium / mass brands (see figure 4). Mainland Chinese luxury shoppers prioritizing quality over brand prestige. When they encounter well-crafted products from mass or premium brands, they are willing to purchase them. The Pragmatic nature of Mainland Chinese luxury consumers will continue to challenge luxury brands going forwards.
