China luxury market shifts toward secondhand goods and domestic brands

The luxury goods market in mainland China is undergoing a significant shift as consumers prioritize value over status. Following a period of economic recovery challenges, the personal luxury market contracted by an estimated 3% to 5% in 2025, following a 19% plunge in 2024.

This downturn has impacted major Western fashion houses. LVMH reported a slowdown in demand in China affecting its fashion and leather goods unit, while brands like Louis Vuitton have closed several stores in the mainland over the last two years. Galeries Lafayette also shuttered its Beijing flagship in May.

In contrast, the secondhand luxury market is experiencing rapid growth. According to Bain Company, the sector expanded by 15% to 20% in 2025. Industry estimates suggest total secondhand sales reached 38.4 billion yuan ($5.7 billion) in 2025, with projections suggesting the market could exceed 100 billion yuan by 2030.