Lead editor at Canvas8 APAC, specializing in trend analysis across industries and award-winning arts & culture reporting.

In today’s hyper-connected globe, the meaning of national identity is no longer rigid, and we’re seeing a dissolution of cultural borders as we travel through our devices. This shift in mentality is happening against a turbulent geopolitical backdrop as countries prioritise regional allies.

Border Reorder

People are redefining status for themselves using a broad range of factors beyond solely economic ones. This new iteration of status is often based around increasingly niche and local signifiers, and status is becoming a mode of belonging and connection with like-minded people.

Insider Status

Cultural strategist Ying Jing Fly visited China a few months ago and was surprised to see just how much her grandmother’s hometown had changed. “It’s a Tier-4 city and there was this really chic cafe with very well-dressed people,” she shares. “I overheard a conversation and learned that they did pilates and yoga. It was very different from when I was a child,” she adds. 

Interview with Yi Jing Fly conducted by the author

 Many young people who have lived in bigger cities are now choosing to go back to their hometowns, bringing along the taste for rich experiences and premium products they’ve developed. And this is just one example of how much China’s luxury landscape has changed. In 2026, Chinese luxury shoppers are maturing, diversifying and asking for more. We see this in their preference for local brands that align with their sensibilities, the prioritisation of craft over logos and a desire for luxury stores built not just for sales but also for immersing in a brand’s world.

Like most things, these shifts were prompted by the stagnant economy. Because of rising rent prices, those living in bigger cities tend not to have as much disposable income as before. Now the new (and growing) luxury-loving cohort is the 小镇贵妇 (

), or ‘small-town noblewomen’ who “enjoy steady family support, flexible work, and ample time for leisure.” 

Jing Daily

 While they may have chosen to stay in smaller towns, Fly says these suburban socialites “aspire towards the cosmopolitan lifestyle of big cities,” such as meeting friends for coffee and afternoon tea. 

Interview with Yi Jing Fly conducted by author

 The size of the Chinese luxury market declined by over 18% in 2024 (down to CN¥350 billion or $48.80 billion) and continued a flat performance in 2025, but it’s actually growing in unexpected areas. 

Reuters

According to MDRi, luxury spending grew by 22% in Tier-2 cities and 9% in Tier-3 cities. 

MDRi

 Their taste is maturing too, and is now “driven by status, not big logos, and more iconic pieces that people who know the brands would know, like a Cartier love bracelet,” Fly says. 

With the rise of underemployment, many young people are also creating new jobs, often in more creative industries. They’re known as the “slash generation,” trying different roles at the same time and prioritising individuality, flexibility, creativity and entrepreneurship. 

UNESCO

 Without the limitations of office dress codes, they’re a lot more experimental with their style. “They can wear whatever they want, so then these very out there designer brands who are still able to make an iconic piece that’s recognizable really win,” Fly says. 

 On the other end of the spectrum are the Very Important Clients or “VICs,” who aren’t impacted by economic changes at all. Many luxury brands are now focusing their attention on these customers, amping up their offerings to a select few. Read: Luxury is becoming more luxurious.

When logos no longer matter as much, brands are setting themselves apart through craftsmanship. In fact, 85% of Chinese shoppers prioritise acquiring luxury products that showcase exceptional craftmanship, materials, and design. 

 At a time when people are particularly judicious about their spending, luxury brands need to present themselves – and the experience of shopping in their stores – as less transactional and more emotional and intellectual.

What defines China’s luxury fashion scene today?

There’s a reframing of the Eastern-Western dynamic. In the early 2000s up until the 2010s, when China was rapidly developing and growing, it was all about buying luxury because people had the money. They were buying things others could recognize – material wealth from brands such as Gucci, Chanel or Louis Vuitton. These days, people have less money, but there’s also a reframing of both the concept of “Made in China” and what good taste is. This was backed by a government initiative called Made in China 2025, a policy that would transition China from being “factory of the world” into high-quality manufacturing. That includes green tech, AI, those kinds of things. We’re now seeing a lot of emerging Chinese luxury brands. The way we talk about luxury is also changing; there are a lot of references to traditional Chinese culture, like the different dynasties and philosophies. All around the globe, many places are experiencing inflation, but in China there's a lot of deflation. Things are becoming cheaper and that's driven by a lot of things like tech companies (delivery apps, e-commerce) that just want to win market share, so they're dropping prices. Because of this, people are rethinking what value really means. If they can get pretty good things at cheap prices, they become much more price-sensitive and won’t just buy anything with a logo.

The young Chinese population is overeducated and underemployed. There's this desire for community and knowledge sharing, leading to a rise in seeking deeper meaning and intellectual conversations. One trend last year was called academic bar, which is going to bars but instead of just drinking, you share your thesis or make a PowerPoint lecture. Young people are also going to the theatre and opera more. People want deeper engagement and are really thinking about what luxury means for them. We’re also seeing a lot of emotional consumption for healing and comfort.

What does luxury mean to people in China today?

It’s more about the brand’s ability to create and maintain a consistent brand world. Is it actually helping you to achieve that higher level of experience and emotions? A lot of emotional consumption is quite expensive. People look at the experience, emotion, meaning, and connection to identity and roots. That's why we see many new Chinese brands tapping into traditional Chinese high culture and high art. It’s part of a movement called New China Chic that’s turning traditional silhouettes into pieces you can wear day-to-day. The brand AO YES does this and even released a collaboration with Zara for the Lunar New Year last year. International brands have also been investing in China-specific activations, like Chanel which opened a 

 in Chengdu for the release of its new city guide, where they engaged with shoppers in their own turf and partnered with local craftsmen.

There are different groups. There are very wealthy VICs who are not affected by all of this. I think Chanel has VIC-only boutiques that are very discreet and by invitation only. In times like these, brands are giving these kinds of customers even more exceptional service because experience is really important. Then there are those from lower-tier cities, where the cost of living is lower and people have more disposable income to buy luxury goods. Chanel and some big [brands] just opened a boutique in a Tier-3 city, bringing modern life and luxury to the city. In the past, people had to travel to cities like Shanghai and Beijing because that’s where the cool things were but today, more and more young people are moving back to their lower-tier city hometowns that are now developing. Another group is the fashion nerds who are really into archival fashion. These are the people who are committed to spending a lot of money on clothes and not just the handbags or accessories, because it's like a big part of their identity. 

 is a popular depot where people look for vintage and archival pieces. It’s a mix of generations, too. There are Gen Yers and Gen Zers who have pretty much given up on big life purchases, such as houses, and are just living in the moment. There are also increasingly more senior fashion influencers, who appeal to audiences because they’re confident and don’t care so much about what other people think of them.

How does the image of luxury differ across city tiers?

It’s not just between Tier-1 and lower-tier cities. Even between Shanghai and Beijing, people's preferences differ significantly. Shanghai is the fashion capital of China, so there’s a bigger appreciation for designer brands. They still care about looking good, but people are willing to be edgier. There are many luxury fashion boutiques and multi-label boutiques or concept stores that commission young Chinese designers for special collections. Whereas in lower-tier cities, people like big brands because it’s a bit safer and people tend to want to look nice. Another interesting example is Chengdu, where people are really into the Y2K hot girl style. I think part of it is that they have quite a few large commercial districts with many young brands. That's just the main style that's popular right now, so they're really into it.

What do people look for in the luxury shopping experience?

These days, people want to be inspired. Posting on social media drives a lot of people's activities in China. They want thought put into designing the whole experience and the space such as interactive games and mementos you can bring home. They also like novelty such as special brand campaigns.

Have you noticed any behavioral shifts in luxury in the last five years?

People are seeking deeper understanding. On Xiaohongshu, there’s been an increase in posts about knowledge sharing. This can be about sharing the story of a product or dissecting fashion shows. In terms of shopping, we’re seeing a shift from the department store model to brand homes. The difference with a retail store is that these are a bit more welcoming and include more storytelling about the brand’s heritage. I don't think people were as invested in brands' stories before. People are exposed to all these things on social media all the time, so they feel like they also need to be in the know, and it almost shows that they're a more cultured shopper, that the relationship is not just transactional.

What is the strongest area of growth when it comes to luxury fashion in China?

People outside of China are seeing China in a new light and Chinese people themselves have more pride in saying, “Chinese craft and manufacturing is not just cheap things. We can make really good things.” What if a brand actually had a China line with a deeper relationship to Chinese craft, while maintaining the codes of the house? That would be really interesting and I can see it as something that Chinese shoppers will really want to buy into, but also would be very interesting globally. It would be very meaningful if a storied French or Italian brand were able to take that step. A lot of brands are already doing this but I think sports is also quite interesting. In the age of AI, sports is one of those things where human struggle and emotion are still very real. We're also seeing more sports stars becoming fashion stars.

With information so readily available on social media, Fly says today’s luxury shoppers feel the need to always be in the know. It’s no longer enough to have a purse from a brand, they must also know the inspiration behind a collection, the craftspeople who worked on a limited-edition piece and the history of a brand’s house codes. 

 In fact, FT Live found that in China, people respond more to “innovation, digital presence, and cultural relevance than to discounts or promotions. 

World Luxury Chamber

 “[Knowing these things] almost shows that they're a more cultured buyer, that the relationship is not just transactional,” Fly says. 

 Forming this kind of relationship is crucial and in China, where there’s a renewed appreciation for local heritage, brands are expected to go beyond their own lore and into regional and cultural storytelling. What can curious fans learn about your brand? Can they engage and experience your story in-store and online? Are you working with local craftsmen and sharing their stories? How can your brand's DNA best blend with key cultural touchpoints such as festivals? International brands should take a cue from local ones such as 

, known for its delicate take on Chinese aesthetics. Its philosophy declares exactly what it is and who it’s for: a “brand which expresses oriental thought” for independent women.

Another key to success is catering to various demographics of luxury shoppers. Acknowledge that they are at different levels of maturity when it comes to brand appreciation and look for different things. MDRi’s China Luxury Consumer forecast 2025 reports that luxury spending in China increased by 7% YoY. Zooming in on city-tier-specific numbers reveals an even more interesting story: While luxury spending fell by 4% in Tier-1 cities, it grew by 22% in Tier-2 cities and 9% in Tier-3 cities. 

 “Capture the suburban socialite by getting closer to them and creating more lifestyle events for them to keep them engaged,” Fly says, adding the importance of including fun accessories or mementos at these events for people who are new to the brand but want to take home a taste of the story you’re telling. 

 After all, 82% of Chinese shoppers believe that luxury products offer a tangible and lasting sense of luxury and indulgence that cannot be replicated by experiences, making a case for this kind of merchandise. 

 Are you catering to unexpected luxury markets? Is your brand helping new fans understand and engage with you? Is your strategy customised depending on the clientele? Fly gives 

 as a prime example, with small leather goods that are fun, whimsical and capture the brand’s world. “They may not afford the dress or the jacket, but they can still buy something a bit special,” she says. “People really buy into those especially when it’s limited edition, tied to an event, or has strong resonance to a city or culture.” 

63% of Chinese shoppers have bought luxury products online. 

 But this growth doesn’t necessarily spell the death of brick-and-mortar stores, just a realignment of what they’re for. “Build a city strategy with less but more meaningful stores, then leverage WeChat to target customers with location-specific events and campaigns,” Fly says. 

 Is your brand using events and physical locations as embodiments of their story? Does this experience translate into your online presence? Can people engage with your brand wherever they might be? Most of the world’s biggest luxury brands are already on WeChat, but having a presence isn't enough – brands must take advantage of the platform's features and use it as an extension of their brand world, not just and store alternative. For example, Saint Laurent used WeChat Channels ads to promote its Spring 2025 runway show, resulting in over 3 million livestream viewers. Hermès had an 

 on its WeChat Mini Program during an event in Shanghai, while Cartier provided location-based store information and currency conversion tools for traveling customers. 

ABC-luxe

The size of the Chinese luxury market declined by over 

 in 2024 and continued a flat performance in 2025

 of Chinese shoppers have bought luxury products online

Many young people who have lived in bigger cities are now choosing to go back to their hometowns, bringing along the taste for rich experiences and premium products they’ve developed

With the rise of underemployment, many young people are also creating new jobs, often in more creative industries. Without the limitations of office dress codes, they’re a lot more experimental with their style

Luxury shoppers are a lot more interested in the inspiration behind a collection, the craftspeople who worked on a limited-edition piece, and the history of a brand’s house codes

China Too Cool: Vernacular Innovations and Aesthetic Discontinuity of China

. With a background in fashion design and critical and visual studies, her interest lies in understanding society through aesthetic aspirations and consumer trends. After two years of brand and creative strategy experience with a focus on the FMCG industry and SEA markets at Design Bridge Singapore, she's starting a new journey of cultural insights research and consultancy at Inner Chapter, Shanghai.

China

Luxury

Fashion and Style

China’s luxury landscape has changed, with more shoppers maturing and diversifying. They have a preference for local brands that align with their sensibilities, prioritise craft over logos, and desire stores built not just for sales but also for immersing in a brand’s world.

Analysis

Therese Reyes

Yi Jing Fly

Related Macro Behaviours

Border Reorder

Insider Status