Luxury Goods in Hong Kong, China

Luxury goods in 2025: The big picture

Retail value sales of luxury goods in Hong Kong experienced a mixed performance in 2025, influenced by a combination of ongoing macroeconomic challenges and shifting consumer dynamics. While the gradual recovery of inbound tourism provided some uplift to the market, total sales growth was moderated by persistent geopolitical tensions and a cautious consumer sentiment among key customer segments. The gradual strengthening of the Hong Kong dollar against major currencies, coupled with a slowdown in mainland Chinese tourism due to evolving travel preferences, also contributed to the restrained expansion of the luxury goods sector. Post-pandemic, mainland Chinese consumers, historically the main source market, were no longer primarily making "shopping pilgrimages". Instead, they allocated a larger portion of their budgets towards experiential spending, such as fine dining, cultural events, and deeper local immersion, and took more frequent but shorter trips to a wider variety of global destinations. This shift meant that while tourist footfall returned, the proportion of spending dedicated to high-value luxury goods diminished, creating a headwind for brands that had relied on these consumers for impulsive, big-ticket purchases.

2025 key trends

Luxury goods in Hong Kong experienced distinct trends during 2025 that significantly shaped its development. Sustainability remained a central theme for luxury brands across various categories, with players in personal luxury and fine wines/champagne and spirits expanding their commitment to environmental and social responsibility. Transparency regarding material provenance and ethical sourcing gained greater prominence, aligning with the increasing consumer demand for sustainable practices. Personalisation emerged as a key differentiator, with brands leveraging advancements in artificial intelligence (AI) technology to offer bespoke experiences and tailored product offerings. AI-enabled tools not only enhanced digital marketing strategies but also refined inventory management, leading to more efficient customer engagement and retention, and solidifying Hong Kong's reputation as an innovative and conscientious luxury market. For instance, Rosewood Hotel uses a central AI systems that integrates data gathered from previous stays, spa visits or restaurant reservations to create detailed guest profiles, enabling the hotel to offer specific services or make recommendations.A key target audience in Hong Kong during 2025 was predominantly millennials and Generation Z consumers, whose preferences continued to drive significant shifts in luxury consumption patterns. These younger demographics favoured aspirational buying behaviour, placing a strong emphasis on the experiential value of luxury goods. Products such as fine wines and luxury spirits benefited from this trend, as consumers sought social experiences that could be shared both offline and on social media. Generation X maintained a stable presence, focusing on traditional luxury purchases, but the evolving preferences of younger shoppers decisively shaped industry strategies for engagement and product development.

Competitive landscape

In 2024, Richemont Asia Pacific Ltd retained its position as the leading company in luxury goods in Hong Kong, despite a marginal decline in its value share to sit at 6%. This resilience was underpinned by the enduring popularity of its key brands, Cartier and Van Cleef & Arpels, which are prominent within personal luxury. These brands continued to captivate luxury consumers with their strong heritage, exceptional craftsmanship, and broad appeal to both established and younger affluent customers. It was followed by Rolex (Hong Kong) Ltd, the leading player in luxury timepieces, a category that holds considerable share within personal luxury. In contrast, Tesla Inc experienced a further contraction in its share and sales overall, despite regaining some ground in premium and luxury cars. This was the result of intensified competition, especially from mainland China, and challenges in maintaining consumer interest with new product launches.

Retail developments

In 2025, the distribution landscape for luxury goods in Hong Kong remained firmly rooted in physical retail, with upscale department stores and specialists driving sales of personal luxury items. These venues, strategically located in prestigious shopping districts such as Central and Causeway Bay, offered affluent consumers immersive shopping experiences through private viewing rooms, bespoke concierge services, and in-store styling consultations. This approach resonated particularly well with the market’s preference for tailored and exclusive interactions, ensuring that physical retail maintained its stronghold. The ongoing dominance of retail offline within personal luxury reflected the enduring importance of tactile engagement and personalised service. Meanwhile, grocery retailers continued to lead the distribution of fine wines/champagne and spirits, leveraging their wide product assortments, knowledgeable staff, and opportunities for tastings to meet the demands of discerning buyers. This channel's dominance in fine wines/champagne and spirits underscored the continued relevance of in-person experiences in this category, where sensory engagement and expert guidance play crucial roles.

What next for luxury goods?

Retail value sales of luxury goods in Hong Kong are projected to experience moderate growth over the forecast period, with a 5% current value CAGR (2025 constant value CAGR of 2%). This growth will be driven primarily by a steady increase in the number of wealthy consumers, including both HNWIs and UHNWIs, reflecting the city’s position as a global financial hub and a preferred domicile for affluent consumers. The largest category within luxury goods, personal luxury, is expected to lead the way, accounting for a significant portion of value sales at HKD145 billion and recording a 5% current value CAGR (2025 constant value CAGR of 3%). This category's growth will be fuelled by the rising demand for designer apparel and footwear (ready-to-wear), luxury jewellery, and luxury timepieces, as they continue to resonate with affluent consumers seeking high-quality and sustainable products. Due to competitive pressures from emerging special economic zones such as Shenzhen and Hainan, luxury goods companies will need to innovate value propositions that blend exclusivity with affordability, while aligning with these shifting consumer preferences.