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.
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 Co. Their return has led RBC bank to revise up its growth forecast for the sector this year to 11 per cent, from 7 per cent previously.
“China reopening is one of the key ‘mega-themes’ for the luxury sector in 2023,” RBC said in a recent note to clients.
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