Luxury market shifts toward experiential spending and Chinese tourism trends

The global luxury market is undergoing a significant shift toward experiential consumption. According to a study by Boston Consulting Group and Altagamma, the personal luxury market is projected to grow between 4% and 7% by 2029, driven by a more balanced consumer composition and increased spending on lifestyle and experiences.

Chinese consumers are leading this transformation. Data indicates an 81% willingness to travel among Chinese consumers, significantly higher than the 74% global average. There is a growing trend toward domestic luxury tourism within China, with 59% of Chinese tourists prioritizing domestic travel this summer. This shift focuses on high-end experiences such as wellness resorts, live events, and "workation" models.

Technological integration is also reshaping the sector. Platforms like Alibaba's Fliggy are offering travel packages centered on artificial intelligence, robotics, and autonomous driving. Additionally, the luxury consumer profile is evolving, with high-spending segments growing and a projected decrease in occasional buyers, making brand loyalty and domestic-based purchases increasingly critical.