According to a recent report by Bain & Company on the luxury goods sector, spending on jewelry in China declined between 0% and 5% in 2025, marking a notable improvement compared to the sharp drop of 15% to 20% in the previous year, amid rising gold prices.
Bain stated: “Consumers, particularly those focused on value preservation, continued to gravitate toward jewelry purchases, especially fine jewelry. The increasing price of rare metals also reinforced the investment value represented by jewelry.”
On the other hand, watches remained under significant pressure, with sales estimated to have fallen between 14% and 17%, as consumers shifted toward other investment assets and secondhand alternatives.
Overall, the luxury market in 2025 experienced a modest decline of 3% to 5%, a much gentler drop compared to the sharp contraction in 2024. Sales were relatively strong, with less spending occurring overseas. Bain noted that 65% of Chinese luxury spending took place within the mainland, compared to only 35% abroad.
Consumer confidence remained cautious for most of the year, with early signs of recovery emerging in the third quarter, supported by a weak comparison base from the previous year, stronger stock markets, and gradual improvements in sentiment.
Bruno Lannes, Senior Partner at Bain, commented: “After the turbulence of 2024, the market began to stabilize in 2025, although consumer confidence remained fragile. What we are seeing is not a broad-based rebound, but the start of a recalibration phase, with early signs of recovery emerging in the second half of the year. This recalibration is also segment-specific, with ‘very important clients’ continuing to represent a large share of the market, while younger aspiring consumers have delayed entry into the luxury category.”
Within the luxury market, beauty was the strongest performer, growing between 4% and 7%, while fashion declined between 5% and 8%, and leather goods fell by 8% to 11%.
China’s secondhand luxury market expanded by 15% to 20% in 2025, driven by its growing popularity among younger and more price-sensitive buyers. Leather goods and bags accounted for 50% to 55% of this market, followed by watches at 25% to 30%, and jewelry at 10% to 15%.
Bain expects China’s personal luxury goods market to improve modestly in 2026, despite ongoing market volatility and uncertainty.
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