Shoppers in mainland China are vital to brands such as LVMH, Hermes and Gucci. Last year, as the coronavirus pandemic took hold worldwide, China's case numbers remained relatively low and the country's share of the global luxury market roughly doubled, according to consultancy Bain. The firm predicts that China will become the world's biggest market by 2025, overtaking Europe and the United States.
The latest government initiative — which coincides with a regulatory crackdown on industries from technology and education to gaming and entertainment — has raised concerns. But experts are divided on whether "common prosperity" will hurt luxury sales, which total hundreds of billions of dollars a year.