It’s been a challenging year, with economic uncertainties and a renewed sense of “luxury shame” affecting mainland China. Yet despite the softer growth forecast for luxury sales—down to mid-single digits from 12% in 2023—Chinese consumers remain central to global luxury.
Here’s the real story: While some are holding back on major purchases, the appetite for luxury hasn’t disappeared. In fact, Chinese tourists are still driving sales abroad, especially for brands like LVMH and Kering in places like Japan, where they spend 20-25% of their luxury budgets.
Closer to home, younger consumers are embracing brand extensions, from branded cafés to immersive events, proving that demand for luxury experiences is alive and well.
What to Expect from Chinese Luxury Consumers in 2025
1. The Shift to Experiences and IRL Moments Chinese consumers are increasingly seeking real-life experiences over traditional luxury goods. Think travel, fine dining, and exclusive events. Japan has seen a 117% spike in tax-free spending by Chinese tourists, and other international hotspots are seeing similar trends. Meanwhile, off-the-beaten-path destinations in Eastern Europe and Southeast Asia are gaining traction as affluent travelers seek unique cultural experiences.
2. Gen Z’s “Have Yuan, Will Travel” Mindset Gen Z is leading the charge, prioritizing food, wellness, and cultural experiences in their travels. According to Oliver Wyman, 62% of Chinese Gen Z tourists rank food as their top reason for international trips. This is a huge opportunity for brands to craft travel experiences that blend wellness, exclusivity, and culture.
3. Experiential Marketing is King To reach younger consumers, brands need to go beyond products and create immersive, engaging campaigns. Gucci’s “Ancora Red” pop-up, which earned over 1.5 billion views, and Ami’s “Le Paris Paris Bag Hunt” in Shanghai, with 17.9 million hashtag views, are prime examples of lifestyle-driven marketing that resonates.
4. Navigating Price Sensitivity and Value Perception Luxury price hikes are being closely watched by consumers. With brands like Dior and Chanel raising prices by around 50% between 2020 and 2023, and Moncler and Prada by 45%, many consumers are opting for overseas shopping or secondhand stores for better deals.
On Xiaohongshu, price-sensitive consumers actively share where and when price hikes hit, influencing buying behavior explained Jon Wang GMA
The Bottom Line 🙂
In 2025, Chinese luxury young consumers will continue to shift from quantity to quality and from material goods to experiences. Brands that understand this will thrive by offering personalized, exclusive experiences and value-added perks, tapping into the evolving luxury mindset in China. It’s all about meeting consumers where they are: valuing authenticity, prioritizing experience, and always delivering something uniquely meaningful.
Little Red Book (Xiaohongshu): China’s Go-To Lifestyle App for Luxury Brands
Little Red Book, also known as Xiaohongshu, is China’s leading lifestyle app—a blend of Instagram, Pinterest, and e-commerce, all in one. It’s the platform where trend-savvy Chinese consumers, especially younger generations, go to discover new products, explore travel ideas, and get inspired by beauty, fashion, and lifestyle content. With millions of active users, Xiaohongshu is a must for luxury brands looking to connect with this audience authentically.
Here’s how luxury brands can maximize their presence and drive impact on Xiaohongshu:
1. Leverage Authentic User-Generated Content (UGC)
- Chinese consumers trust real reviews and experiences. Encourage users to share posts about your products, from unboxings to styling tips. This organic content drives credibility and trust. For instance, a luxury skincare brand could engage customers to post their skincare routines featuring the product.
2. Partner with Micro-Influencers for Niche Engagement
- Micro-influencers are crucial on Xiaohongshu. Their audiences are highly engaged and trust their recommendations. Partnering with influencers who align with your brand image allows you to reach an authentic and relevant audience. For example, a luxury fashion brand could collaborate with influencers known for their minimalist style to reach fashion-conscious followers.
3. Create Interactive, Lifestyle-Oriented Content
- Lifestyle content reigns on Little Red Book. Focus on creating posts that show your products in real-life settings. For a luxury watch brand, share posts featuring the watch as part of an elegant lifestyle, like at a high-end restaurant or during travel.
4. Use Keywords and Hashtags to Enhance Discoverability
- Xiaohongshu’s algorithm is keyword-driven. Use relevant keywords and popular hashtags to increase visibility. A luxury brand might use hashtags like #ElegantStyle, #LuxuryEssentials, or #TravelWithLuxury to reach users looking for these themes.
5. Host Exclusive Pop-Ups and Events
- Chinese consumers are drawn to exclusive experiences. Share updates and sneak peeks of exclusive brand pop-ups, product launches, or VIP events to create buzz. For example, a luxury perfume brand could document the event setup and experience, giving users a taste of the exclusivity.
6. Engage with Lifestyle Trends and Seasonal Themes (Chinese calender)
- Xiaohongshu’s audience is very trend-sensitive, especially around holidays and seasonal events. Tailor content to match popular themes, such as Chinese New Year or Spring Festival. For a luxury fashion brand, share looks inspired by the season, or limited-edition items for holiday gifting.
How Douyin is Revolutionizing Luxury Brand Discovery in China 🚀
Douyin (China’s TikTok) is a game-changer for luxury brands looking to connect with a fast-moving, trend-focused audience. The platform’s short, dynamic video format has created a unique environment where users don’t just scroll—they discover, engage, and get inspired. With Douyin, luxury brands can reach new consumers through creative, immersive content that feels authentic and interactive.
If you’re a luxury brand aiming to make an impact on Douyin, here are 4 essential tips to get started:
1. KOL Content is Your Power Move 🔥
- Key Opinion Leaders (KOLs) are the heart of Douyin. Collaborate with influential creators who resonate with your brand’s image. KOLs can create aspirational yet relatable content, helping potential customers experience the lifestyle your brand represents. Imagine a high-end handbag brand partnering with a KOL who showcases the bag in real-life situations, like a luxury dining spot or during travel. The authenticity builds trust, making followers more likely to convert.
2. Use Ads to Amplify Your Reach 📈
- Ads on Tiktok-Douyin are a direct way to boost visibility and reach audiences beyond your followers. In-feed ads, TopView ads, and branded hashtag challenges can drive massive exposure. For instance, a luxury fragrance brand could use TopView ads to feature a cinematic video that introduces their latest scent, creating a strong visual impact and intrigue right when users open the app.
3. Build and entertain Your Community 🌐
- Douyin isn’t just about views—it’s about building a loyal audience. Brands should aim to create a consistent presence that makes users feel part of an exclusive club. Regular posting, engaging with comments, and creating series-style content can encourage users to follow and return. A luxury watch brand, for example, could post “Behind the Design” videos, giving followers insights into the craftsmanship and artistry behind each piece, deepening their connection to the brand.
4. Engagement is King 👑
- Douyin’s algorithm loves engagement, so every comment, like, and share counts. Create content that encourages interaction, whether through questions, polls, or challenges. For example, a luxury skincare brand could host a #brandUpChallenge, encouraging users to share their lifestyle using the brand’s products, with the best entries featured on the brand’s account. This kind of interactive content builds buzz and amplifies reach organically.
The Bottom Line: Douyin isn’t just a platform—it’s a brand discovery engine where luxury brands can build culture, community, and credibility. By leveraging KOLs, strategic ads, consistent community building, and engagement-driven content, luxury brands can thrive on Douyin and make a lasting impact on China’s digital-first, experience-driven consumers.
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