The European luxury sector is welcoming the end of pandemic lockdowns in China, as the return of big-spending Chinese tourists could sustain further growth, Agence France-Presse (AFP) reported.
Photo Insert: The Chinese accounted for "a third of luxury purchases in the world and two-thirds of those purchases were made outside China."
Prior to the pandemic, Chinese tourists visiting Europe were a major source of sales for luxury houses. The Chinese accounted for "a third of luxury purchases in the world and two-thirds of those purchases were made outside China", said Joelle de Montgolfier, head of the luxury division at management consulting firm Bain and Company.
Their return has led RBC bank to revise its growth forecast for the sector this year to 11 percent, from 7 percent previously.
"China reopening is one of the key 'mega-themes' for the luxury sector in 2023," RBC Bank said in a recent note to clients. After a drop in 2020, the luxury sector managed to surpass its pre-pandemic sales in 2021.
"The Chinese consumed, but only in China," said Bain's de Montgolfier.
"In 2022, it was much more complicated with unexpected confinements in the country," she added. Nevertheless, that didn't hold the sector back from making an estimated 22 percent jump to 353 billion euros ($384 billion), according to a November forecast by Bain and Co.