Given the discretionary nature of consumer spending, sales of luxury goods are viewed as cyclical. The evolution of a wealthy class in China and other Asian economies over the past three decades has provided the industry an underpinning of sustained and structural growth.
Chinese consumers increasingly dominate spending on personal luxury goods Expenditure (billion yuan)
*Expenditures for 2020 and 2025 are forecasts, shown for illustrative purposes only. Source: Statista, Inc.
Capital Group equity analyst Lauren Carter expects demand to escalate in coming years as the ranks of the consumer class expand and newcomers are attracted by the social cachet and aspirational value of luxury items.
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