China: Why the Online Luxury Market is Increasing 2025

📊 Chinese Online Luxury Market: 7 Key Trends

1. E-Commerce Becomes the Primary Channel
   Chinese consumers are now more likely to buy luxury goods online, especially through platforms like Tmall Luxury Pavilion, JD.com, and WeChat Mini Programs.
2. Social Commerce is Booming
   Platforms like Xiaohongshu (RED), Douyin, and WeChat are blending social media and shopping, driving discovery and peer influence in luxury purchases.
3. Younger Consumers Are Leading
   Gen Z and Millennials are now the main luxury buyers. They’re highly digital, trend-sensitive, and loyal to brands with strong storytelling.
4. Focus on Experience & Customization
   Online luxury isn’t just transactional. Consumers seek immersive experiences: live shopping, virtual try-ons, and personalized services.
5. Domestic Brands Gaining Traction
   Rising interest in “Guochao” (国潮) — modern Chinese brands that blend local heritage with luxury — is shifting attention from some foreign names.
6. Sustainability Matters
   Eco-conscious luxury consumption is on the rise. Brands with transparency, circular models, and ethical sourcing are gaining favor.
7. VIP & Loyalty Programs Thrive
   Exclusive content, early access, and personalized rewards via online memberships are powerful tools to retain high-value Chinese customers.

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🧠 Expert Notes from Olivier VEROT, Founder of GMA

• “Localization is no longer optional — it’s survival.”
  Verot emphasizes how luxury brands must adapt culturally and digitally. Websites, content, and campaigns must be in Mandarin and resonate with Chinese values.
• “Chinese digital ecosystems are isolated and fast-moving.”
  Western platforms won’t work here. Success means mastering WeChat CRM, Douyin e-commerce, and RED influencer campaigns.
• “Brand storytelling is everything.”
  In China, status and meaning matter. A strong narrative, whether around heritage, innovation, or social status, is key to luxury branding.
• “You must invest in long-term KOL relationships, not one-shot deals.”
  Trust and repetition are crucial. Consumers follow influencers religiously, and long-term partnerships signal authenticity.
• “Mini Programs are the future of DTC in China.”
  WeChat Mini Programs allow brands to build full e-commerce ecosystems — from marketing to payment — within one super app.

What about the Chinese online presence?

Chinese online presence has been going up and continues to go up, with China already the world’s largest internet population, at the same time, the world’s largest e-commerce or online business market. Many Chinese locals are now buying online instead of the on-site experience given by the physical stores.

Some of the consumers’ reasons for the boom of shopping online is that they could land better deals in the internet shops, some because it’s less time-consuming, and some because the shops guarantee authentic goods from different countries. Many businesses, both local in China and international, are now taking advantage of this huge opportunity to reach the Chinese people by selling online. One market that is going big in the e-commerce world is the Chinese luxury market.

How is the Chinese luxury market?

The Chinese are synonymous with luxury; Chinese shopping is synonymous with luxury products. Chinese have been attracted to luxurious products and lifestyles like religion, especially the wealthiest. A lot buy luxury products for self-wear and use as well as for gift giving. Having a luxury lifestyle makes China upscale in the social ladder of the Chinese people.

The Chinese love going to countries of origin of the luxury brands and buying them there, because of the high tariff and sales in entering the Chinese market. Now, with the online sales of these luxury brands, a lot are really seeing the convenience and price change of these products, and a lot are very into them.

Opportunities of the online luxury market in China

Most of the Chinese buying luxury products online are using third-party sites like Alibaba’s big e-commerce platforms Taobao and Tmall. The reason is that very few luxury brands are opening their e-commerce websites or stores for the Chinese market to enjoy. The luxury brands are having a hard time entrusting these e-commerce stores in China as they fear the Chinese won’t get the full brand experience and their luxury side as well as in a physical store.

Since the start of Tmall and Taobao, a lot of luxurious branded products have been selling out like pancakes, with discount prices original brands are unknown. Some made complaints against Alibaba, but with contract agreements, Alibaba and the luxury brands are now removing gray area markets in the e-commerce store, with the condition of the luxury brand creating an official store in Tmall for sales and benefits of the brand, Alibaba, and of course, the Chinese consumer.

 

Why luxury brands should invest in the e-commerce or online market in China

     1. China’s online luxury market is already big and is continuously growing

The Chinese market will search for the best brand and product before purchase. With your brand in China’s online market, it could definitely gain more followers and in the end, more sales. China’s online and digital shopping is developing rapidly in the past recent years.

Furthermore, the trend of e-commerce luxury is gaining popularity among the youth in China not only on the national level but also internationally. China’s luxury market is 770 billion RMB (110 billion USD) today and will double to 1.2 trillion RMB by 2025, delivering 65% of 2018–25 global growth.

     2. Online luxury market among Chinese resellers

Since the start of Alibaba’s Taobao, the Chinese are buying luxury products overseas and selling them in the online marketplace at discounted prices, as luxury products from overseas tend to be cheaper than buying in mainland China. According to the “2019 China Luxury E-Commerce Report”, although more than 60% of luxury online consumption is contributed by first and second-tier cities, third to sixth-tier cities have greater development potential, and sales growth is staggering.

Areas, where no stores are opened, have huge room for development. Therefore, in the face of this huge luxury market that still has development prospects, domestic e-commerce giants Tmall, JD.com, and other e-commerce giants have also joined in. The pressure of luxury e-commerce competition is increasing.

     3. Chinese consumers are really into online luxury shopping

The numbers are already showing that 70% of Chinese consumers are openly buying luxury products online. After 2015, luxury e-commerce began to develop on a large scale. It is very important to notice the difference between the Chinese e-commerce ecosystem and other ones. Although digital marketing is a powerful tool for brands to reach luxury customers, yet there is a long way to approach the desired goals.

The rapid changes in China’s Internet environment have prevented many operational decisions from reference to past and other regional experiences. The story of luxury e-commerce in China is also a story of the ”sinicization” of European and American luxury e-commerce. However, one thing is for sure that we are going to witness a new era of the luxury world’s engagement with the digital world.

     4. What are the essential platforms for luxury branding

• WeChat – The biggest social platform
• Weibo – Ideal for luxury brand awareness
• Xiaohongshu – A comment-generated platform
• Bilibili – The must for luxury cosmetics brands
• Tmall Luxury Pavillion – The secure and elitist way to sell
• JD – The second largest e-commerce platform in China
• Secoo – China’s largest multi-brand luxury B2C website

📌 Rednotes Tips – Winning in China’s Online Luxury Game

✅ Start with RED (Xiaohongshu):
If you’re launching or boosting awareness, RED is the holy grail for lifestyle and luxury inspiration.

✅ Don’t DIY Localization:
Work with native Chinese teams or agencies to localize your brand story, user experience, and customer support.

✅ Gamify Loyalty:
Use WeChat Mini Programs to reward repeat purchases, offer AR experiences, and create interactive campaigns.

✅ Target Tier 2 & 3 Cities:
Growth is happening outside Beijing and Shanghai. Online luxury makes it easier to tap into these high-potential areas.

✅ Invest in Sustainability Messaging:
Make your eco-values part of your storytelling. Transparency and traceability are huge for younger luxury buyers.

✅ Use Video for Impact:
Short videos on Douyin and livestreaming on Tmall or WeChat Live should be part of your content strategy.

✅ Respect Guanxi (关系):
Build genuine relationships with influencers, partners, and even customers — it’s not just business; it’s personal.

Choose GMA to promote your luxury brand in China

Do you want to know more about China’s luxury market? Contact GMA, a digital marketing agency, specialized in the Chinese digital market. You will have the opportunity to discuss with our team of professionals, passionate about China and e-commerce. Our expertise in the luxury brands in China could help you settle in China and establish your digital marketing strategy. If you want to know more about luxury fashion it’s here.

• A team of 70 digital marketing specialists in China
• Experienced & Professional in supporting companies for their development in China
• With a deep knowledge of the Chinese lifestyle
• A passionate international team

Read more about luxury online in China:

• The top 10 luxury fashion brands searched online in China.
• Selling your luxury product online in China
• 8 Keys to Understand the Chinese Luxury Fashion Market