The luxury market in China: trends, opportunities and digital strategies
- roccoforgione
- Feb 21
- 6 min read
Updated: Aug 26
China today represents a key reference market in the world of luxury. Over the years, the country has evolved, as have the tastes and preferences of Chinese consumers, who are increasingly demanding and seeking authenticity and personalization.
What are the current trends, and what strategies can be considered to enter the dynamic Chinese market?
Summary:
The Luxury Market in China Today
China represents the most important market for the world's leading luxury groups. After years of exponential growth, the sector experienced a slowdown in 2023 due to multiple economic and geopolitical factors.
However, the latest data confirms a recovery, albeit with new dynamics. One key factor is the return of Chinese tourists to international markets, which has shifted part of luxury purchases outside China due to economic advantages. Not surprisingly, duty-free sales at major Italian airports have seen significant revenue growth thanks to Chinese tourism.
The best-performing sectors include fashion, accessories, watches, jewelry, and luxury automobiles, with a particular focus on Western brands, which continue to be perceived as symbols of quality and exclusivity.
The New Trends of Chinese Consumers in the Luxury Sector
The behavior of Chinese consumers in the luxury market is evolving rapidly. The new generations, particularly Millennials and Gen Z, are redefining the rules of the game, prioritizing the purchase of products with strong intrinsic value and a perception of exclusivity.
Among the main emerging trends, we find:
Value-for-money and brands with high intrinsic value: Consumers are looking for products that offer real value, exclusivity, and craftsmanship, as demonstrated by the recent success of brands like Brunello Cucinelli and Buccellati, which have experienced exponential growth in China over the past year.
Storytelling: Value, exclusivity, and craftsmanship—these principles must also be conveyed effectively. Buyers are increasingly looking for brands that can shine through the storytelling of their products and identity.
Sustainability and Social Responsibility: Transparency and environmental commitment have become decisive factors in luxury purchases.
Personalization and Exclusive Services: Chinese consumers seek tailored experiences, from customized products to private events organized by brands.
The Role of Digital in the Chinese Luxury Market
The Chinese digital ecosystem is unique and requires highly localized marketing strategies. Today, the emphasis is on being discoverable on the most relevant Chinese platforms and effectively telling the brand's story through compelling storytelling.
Key platforms include:
RED Note (Xiaohongshu): social commerce that combines reviews, recommendations, and direct sales.
WeChat: essential platform for CRM, customer loyalty, and direct sales.
Baidu: the most important search engine, essential for brand visibility.
Digital Marketing for Luxury in China
To succeed in the Chinese market, brands must adopt targeted and customized digital strategies. Among the most effective ones, we find:
SEO on Baidu: optimization for the most widely used search engine in China.
Paid advertising (PPC e DSP): targeted campaigns on Baidu, WeChat, and Douyin.
Storytelling and community engagement: storytelling and engagement strategies on social media.
Private traffic and CRM: customer relationship management through WeChat mini-programs and exclusive memberships.
The Challenges of the Luxury Market in China
Entering the Chinese luxury market is not without challenges. The main obstacles include:
Regulations and regulatory barriers: Chinese e-commerce and data protection laws impose restrictions on international brands.
Counterfeiting and brand protection: Safeguarding your brand is essential to avoid losses in value and credibility.
Local competition: Emerging Chinese brands are capturing an increasing market share thanks to innovative strategies and competitive pricing.
Opportunities for Italian Brands in the Luxury Sector in China
Made in Italy enjoys an enormous reputation in China, especially in the sectors of fashion, design, jewelry and food & beverage. Chinese consumers appreciate the craftsmanship and quality of Italian products, creating a unique opportunity for companies looking to expand into the Chinese market.
Italian brands can distinguish themselves by focusing on:
Heritage and Storytelling: Enhancing the brand's history and expertise.
Collaborations with Local Influencers: Engaging KOLs to boost brand awareness.
Omnichannel Strategies: Combining physical retail and digital channels for a comprehensive customer experience.
Strategic Collaborations with Chinese Brands: Partnerships with well-established local brands in China are an effective strategy to strengthen brand awareness and boost brand recognition. Additionally, they foster strong engagement with Gen Z, a key target for the market.
How to Enter the Luxury Market in China with a Winning Strategy
In order to succeed in China, it is essential to adopt a strategic and personalized approach. The key steps include:
Market and Competitor Analysis: Understanding local demand and positioning effectively.
Strong Digital Presence: developing a website optimized for Baidu and managing a robust social strategy on RED Note and WeChat.
Integrated Communication Plans: creating targeted content and effective digital campaigns.
Local Partnerships: collaborating with distributors and platforms to accelerate market entry.
Relying on a Specialized Agency: an experienced partner like China Digital Marketing can simplify the process and maximize the opportunities for success.
Focus: China Jewelry Trends Report 2025
We have recently published the China Jewelry Trends Report 2025, a detailed analysis of trends in the Chinese jewelry market. This report serves as a benchmark for companies looking to understand the dynamics of the industry and adopt effective strategies.
Contact us for a personalized consultation
Do you want to conquer the Chinese market with your luxury brand? Trust our Italo-Chinese team, active between Italy and China, to create the perfect tailored digital strategies. Contact us today and turn your ambition into success!
Executive Summary
China is arguably the most important market for luxury today, with increasingly discerning consumers looking for authenticity and personalization.
To succeed in this market, brands must implement a targeted digital strategy that includes:
SEO and PPC on Baidu
Engagement on WeChat and Douyin
Strong storytelling
Community-building
CRM through WeChat mini-programs
Key challenges include:
Strict regulations
Brand protection (anti-counterfeiting)
Intense competition from emerging Chinese luxury brands
Italian brands enjoy strong appeal thanks to the “Made in Italy” reputation, but success requires leveraging heritage, influencer marketing, and omnichannel strategies.
Glossary of Key Terms
PPC (Pay-Per-Click): Paid advertising on platforms like Baidu, WeChat, and Douyin.
DSP (Demand-Side Platform): Technology platforms for automated ad buying based on user data and targeting.
Private traffic: Direct user engagement via brand-owned channels like WeChat mini-programs.
CRM (Customer Relationship Management): Managing customer relationships through exclusive offers, loyalty programs, or personalized content.
Omnichannel: Integrated use of both physical and digital channels to create a seamless customer experience.
Key Takeaways
China is a global powerhouse in luxury consumption, led by sophisticated digital-first consumers.
Digital presence is non-negotiable: SEO, PPC, social, and CRM work best when integrated.
Regulatory compliance and brand protection are key barriers for foreign players.
The “Made in Italy” identity offers strong leverage through storytelling and heritage.
China’s digital luxury market is booming (over 22% of retail) and full of omnichannel opportunities.
FAQ
Why is the luxury market in China so important?
Because of massive domestic demand, digitally engaged consumers, and a cultural appetite for authenticity and personalization.
Which digital strategies work best in China?
SEO and PPC on Baidu, advertising on WeChat and Douyin, heritage-focused storytelling, community engagement, and WeChat mini-program CRM.
What are the biggest challenges for Western brands?
Local regulations, counterfeiting risks, and increasing competition from homegrown luxury brands.
What enhances the positioning of Italian brands?
Italian heritage, authentic storytelling, local influencer collaborations, omnichannel strategies, and joint ventures with Chinese partners.
How important is digital in China’s luxury market?
Crucial. As of 2023, digital luxury accounts for a growing share of the market, powered by tools like WeChat, livestreaming, and mini-programs.
Practical Application Example
Scenario:
An Italian jewelry brand plans to expand into China in 2025.
Strategy Implemented:
SEO optimization on Baidu
PPC campaigns on WeChat and Douyin
Heritage-driven storytelling
CRM through a custom WeChat mini-program
Influencer livestreaming on Douyin
Expected Results:
Increased brand awareness, higher-quality direct traffic, improved engagement, and growth in direct e-commerce sales.
Operational Checklist
Optimize website SEO for Baidu
Launch PPC campaigns on Baidu, WeChat, and Douyin
Develop an authentic storytelling strategy highlighting “Made in Italy” heritage
Set up WeChat mini-programs for CRM and private traffic
Collaborate with local influencers and KOLs
Implement brand protection and anti-counterfeiting strategies
Develop a seamless omnichannel strategy combining digital and physical retail
Comments