CXG’s “Understanding Chinese Luxury Customers’ Sentiment in 2025” offers essential insights for stakeholders in France & Italy
CXG, a globally respected leader in customer experience transformation and a trusted partner of over 220 luxury brands in ever-evolving markets, has delivered a pivotal new report titled “Understanding Chinese Luxury Customers’ Sentiment in 2025 and Preparing for the Future.” Examining shifting behaviors across key demographics, this in-depth study reveals key insights into the current and projected priorities of China’s affluent shoppers and how this affects international luxury brands in the region.
As two of the most iconic and internationally recognised centres for fashion, craftsmanship, and luxury retail, France and Italy remain deeply connected to China’s luxury market. This report delivers critical insights for Maisons, fashion houses, and premium retailers seeking to maintain their leadership and relevance among luxury’s most influential consumers.
In a market valued at approximately CNY 800 billion (USD 110 billion) in 2025, the report offers fresh, data-led insights into evolving Chinese consumer sentiment, which is critical intelligence for European luxury brands navigating a rapidly shifting landscape.
Economic Confidence Is Faltering and Reshaping Spending Habits
CXG’s report shows that only 55% of Chinese luxury consumers are currently confident in an economic recovery. This is a marked decline from 83% in 2023 and has led to changing patterns of wealth management. 64% of respondents say they intend to save more over the next two years, with 83% feeling the need to secure their health, 68% reserving funds for future indulgence, 49% building a nest egg for retirement, and 46% planning for their children’s education.
This cautious approach has led to heightened price sensitivity. 54% of Chinese consumers now actively seek the best prices on luxury items, and 48% have already purchased “dupes” (lower-priced alternatives), with a further 47% open to doing so in the future. The trend is particularly strong in apparel and accessories, where 67% and 64% of shoppers respectively are open to alternatives. Additionally, the weak yen is attracting luxury buyers to Japan, now the preferred destination for 40% of Chinese consumers, up from just 8% in 2023.
This does not mean, however, that the appetite for high-quality products and services has diminished. 81% of survey respondents say they intend to resume luxury purchases such as watches and jewelry as soon as the economy improves. Gen Z, meanwhile, is leading a present-day increase in spending on well-being, luxury travel, and experiential entertainment.
The Rise of Experiential Luxury
In line with global trends led by Gen Z, China is seeing a shift in preferences away from objects and toward experiences. This increases the value of travel, leisure, wellness, events, and entertainment, all of which the report indicates are likely to see an upturn over the coming months and years, regardless of the economic environment. 53% of CXG survey respondents plan to increase their spending on well-being, 49% on luxury travel, and 34% on entertainment.
For European destinations and maisons, this presents opportunities to activate adjacent lifestyle connections. Retailers not directly in the experiential space can gain relevance by aligning themselves with these experiences, making their products synonymous with aspirational living.
Cultural Nuance: The Edge for Local Brands
Though Western brands are still considered more prestigious by most, China’s homegrown luxury products are now becoming increasingly valued due to the very nature of being locally created and owned. While the primary motivation for Gen Z’s embrace of Chinese products is affordability, 75% of Millennials and 86% of Gen X respondents have cited cultural relevance as the most important factor in choosing local products over international equivalents.
With 72% of all buyers now believing China’s domestic brands better reflect their own heritage, European competitors must invest in more localised and meaningful storytelling to maintain or grow their connection with Chinese consumers.
The Store Strikes Back: In-Person Retail Still Dominates
CXG’s report also found that today’s younger generations prefer making high-value purchases in multi-sensory in-person environments rather than through more remote online channels. This is particularly the case for purchases over CNY 15,000 (USD 2,000), with tactile shopping and personalised service valued highly at this level of spending.
However, a significant finding of the report is that these desires are not always adequately met. Retail satisfaction varies significantly, with some categories scoring as low as 23-36% on customer advocacy. This presents an opportunity for European brands, especially those with flagship stores in Milan or Paris, to lead on retail experience through exceptional service, heritage storytelling, and personalised in-store experiences.
A Call to Action for Europe’s Luxury Leaders
“The iconic maisons and designer brands of France and Italy are the traditional standard-bearers of luxury, and this reputation for creativity and quality endures,” notes Christophe Caïs, Founder & CEO of CXG. “But where this prestige was once enough to capture markets like China, we are now entering a new era of value-sensitivity, cultural understanding, and a thirst for experiences. European houses must adapt if they are to remain at the forefront in China’s eventual, but inevitable, market rebound.”
CXG’s report is both a reality check and a roadmap. From immersive retail and cultural storytelling to hyper-personalisation and human-led service, it outlines clear steps for luxury brands to maintain relevance in a complex and fast-changing market.