The mainland luxury market shrank 3 percent to 5 percent in 2025, recovering from a drop of 17 percent to 19 percent in 2024, and the consultancy forecast that the world’s second largest economy would remain a “cornerstone of luxury market growth”. “Brands catering to affordable luxury and ultra-premium segments emerged as winners, delivering perceived ‘true value’, the consultancy said in its latest China luxury ⁠report. Consumer confidence in China, which accounts for about a quarter of luxury spending, has been hit by a prolonged property crisis and ⁠job concerns, forcing luxury brands to rethink their strategy in the world’s second-largest economy. The consultancy ‍described 2025 as a “recalibration” year for the world’s second-largest luxury market, with shoppers becoming more selective and trending towards ​items offering “true value”. Bain said domestic spending accounted for 65 percent of Chinese luxury spending in 2025, reversing the rebound in overseas demand of the previous two years.