Bain & Company's Xing on China Luxury Market

The video discusses the luxury market's outlook for 2023, highlighting factors affecting travel resumption, such as geopolitical tensions and visa issues. It analyzes China's market trends, noting a strong pre-2022 growth and expected recovery post-COVID. Consumer behavior changes, particularly the shift to digital clienteling, are explored. Current luxury product preferences are identified, with jewelry and beauty leading. The impact of Chinese shoppers on global markets is discussed, along with travel and pricing factors. Finally, potential risks in the market reopening, like pricing gaps and service consistency, are addressed.

What is the expected trend for the luxury market in 2023?

• A shift towards budget-friendly products

• Stagnation in market growth

• A bullish outlook with potential growth

• A decline in consumer confidence

How did consumer behavior change during the pandemic?

• Increased preference for offline shopping

• A shift towards digital clienteling and online shopping

• A decline in luxury spending

• A focus on local brands

Which luxury product category has shown strong performance post-pandemic?

• Watches

• Fashion

• Jewelry

• Home decor

What is a significant factor influencing where consumers choose to shop?

• The availability of local brands

• The price gap between regions

• The popularity of the shopping destination

• The variety of products available

What is a key risk for brands as the market reopens?

• Inconsistent service quality

• Limited advertising reach

• Lack of product variety

• High import taxes