China’s home-grown luxury labels challenge Western giants

Chinese luxury brands are increasingly taking centre stage at home and abroad, as domestic consumers shift away from European names such as Louis Vuitton, Chanel and Gucci, according to industry analysts and market data.

Once the world’s fastest-growing luxury market, China’s sector has slowed sharply, with 2024 sales falling more than 18% to roughly 350 billion yuan (US$50 billion), the steepest drop since at least 2011, the South China Morning Post writes.

Growth has remained flat in 2025, and analysts predict a similar pace for 2026, reflecting economic caution, trade tensions, and price fatigue.

Yet amid this slowdown, domestic brands are thriving by blending modern design with Chinese cultural heritage. Labels such as Maogeping, Laopu Gold, Florasis and Qeelin are appealing to younger consumers who value storytelling rooted in mythology, art and national pride. Packaging and marketing increasingly showcase Song dynasty silk, traditional jewellery motifs, and other culturally resonant elements.

“The impact of cultural authenticity on purchase intention is significant,” said researchers tracking China’s luxury consumption trends in its top-tier cities. Bernard Arnault, chairman of LVMH, visited Shanghai in September to assess China’s emerging luxury brands firsthand.

Chinese labels are also benefiting from digital engagement, with social media platforms like Douyin and RedNote helping drive word-of-mouth influence. E-commerce innovations, including 3D visualisation and WeChat interactions, allow brands to connect directly with consumers, while AI-powered tools target buyers with highly personalised offers.

Meanwhile, China’s second-hand luxury market has exploded, projected to reach US$30 billion in 2025, up from US$8 billion in 2020. Platforms such as ZZER, Plum and Feiyu are enabling shoppers to buy pre-owned goods with confidence, reflecting a growing interest in experiential and sustainable consumption.

Analysts say foreign brands face a tougher landscape in China. Missteps that appear culturally insensitive, such as the backlash against Arc’teryx over a fireworks display in Tibet, have heightened consumer scrutiny and emphasised the importance of local understanding.

Chinese luxury brands are reshaping the market, showing that in China, luxury is no longer about joining someone else’s story—it is about telling one’s own.

By Aghakazim Guliyev