China’s luxury shoppers are navigating a dynamic retail landscape, where physical stores remain dominant, but digital adoption grows steadily, and international preferences reveal generational divides. MDRi’s 2025 survey uncovers how location, generation, and digitalization influence purchasing behaviors.
In this analysis, MDRi will uncover:
- Domestic Purchases: Tier 1 Cities Hold Strong, Hainan Fades
- 88% of Chinese luxury buyers prefer domestic physical stores, with Tier 1 cities as top destinations.
- Hainan’s duty-free hubs saw a 10% drop in appeal among Chinese luxury consumers, signalling shifting preferences of domestic consumers.
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In this analysis, MDRi will uncover:
- International Shopping: Asia & Europe Dominate, But Gen Z Breaks the Mold
- Asia (64%) and Europe (59%) lead for overseas purchases, though Hong Kong shoppers favor Europe (74%) for its global brand access.
- Gen Z has a higher preference for North America compared to other generations
- E-Commerce’s Continued Rise: Luxury Goes Digital
- 63% of consumers have bought luxury goods online and this number continues to increase from 60% last year (an increase of +3%)
Domestic Purchases: Physical Stores Dominate, but Tier 1 Cities Remain Key
Majority of Chinese luxury consumers (88%, see figure 1) buy their luxury goods in physical stores within mainland China, while Hong Kong shoppers purchase from physical shops in Hong Kong.
Tier 1 cities (Beijing, Shanghai, Guangzhou, and Shenzhen) remain the top destinations for luxury purchases. In contrast, Hainan’s duty-free hubs, Sanya and Haikou, are losing appeal compared to previous years (dropped by 10% compared to last year), suggesting that consumers are seeking alternatives beyond traditional shopping hotspots. (See figure 2)
International Luxury Shopping: Asia and Europe Continue to Lead
When shopping abroad, Chinese consumers prefer Asia (64%) and Europe (59%), likely due to proximity and strong brand availability. Hong Kong shoppers, however, show a stronger inclination toward Europe (74%), aligning with their greater exposure to global luxury trends.
Interestingly, Gen Z stands out in international shopping preferences. Gen Z luxury consumers are more drawn to North America compared to other age groups. While for millennials and mature segment, they still prefer Asia more for luxury brand purchased. (see figure 3)
Steady Growth of Chinese E-commerce Market
While physical retail remains dominant in luxury purchases, 63% of Chinese consumers have bought luxury products online (see figure 4). This growth aligns with broader trends in China’s digital economy, which saw steady gains in Q1 2025, according to the National Bureau of Statistics of China.
Government initiatives have helped fuel this expansion. Total online retail sales (including both physical and digital products) hit 3.6 trillion yuan (~$499.6 billion) in the first quarter in 2025, with physical goods sales growing 5.7% year-on-year.¹This robust performance underscores the increasing comfort of Chinese shoppers with purchasing luxury items digitally.
¹ Source: National Bureau of Statistics of China: China’s e-commerce sector reports steady growth in Q1 (China’s e-commerce sector reports steady growth in Q1)