China luxury slowdown boosts second-hand market

China's luxury slowdown is pushing more shoppers toward second-hand goods and homegrown brands, adding pressure on Western fashion houses that once relied on Chinese consumers for a large share of global spending.

Mainland China's personal luxury market fell another three to five percent in 2025 after dropping as much as 19 percent in 2024, according to consultancy Bain & Company.

Bain said China's second-hand luxury market grew 15 to 20 percent in 2025. Domestic consultancy Insight & Info Consulting estimated total second-hand luxury sales at 38.4 billion yuan, or $5.7 billion, in 2025 and forecast they could top 100 billion yuan by 2030.

The shift has come as consumers cut spending. Louis Vuitton has closed five stores in mainland China in the past two years, including a chocolate boutique in Shanghai, while Galeries Lafayette shut its Beijing flagship in May.

LVMH recently cited a slowdown in demand in China for a fall in organic sales in its fashion and leather goods unit. Similar pressure is expected in results from some of its peers.

Analysts said foreign brands also face changing tastes among younger Chinese shoppers and a retail environment shaped by digital and social media trends. Chen Luo, head of China consumer research at Bank of America, said China would remain an important luxury market, although it may not be a growth engine over the next two to three years.