In 2017, China’s purchase of luxury goods was equal to the USA and Japan combined. By 2024, China luxury goods purchases almost to the level of the USA, Europe and Japan combined.
Consumers in China spent $118.39 billion on luxury goods in 2017. In 2017, Americans bought $81.2 billion in luxury goods and Japanese bought $37.2 billion.
The number of affluent consumers in China are expected to grow from 15 million in 2015, or 2.5% of the population in urban China, to 33 million by 2020.
E-Commerce in China
China’s e-commerce market will reach $1.1 trillion in 2018, making it the world’s first trillion-dollar e-commerce market. China’s online retail market is expected to hit $1.8 trillion in 2022, buoyed by local tech titans Alibaba and JD.com, according to a report by Forrester. Chinese online retail market will be more than double the size of the US market, which will reach $713 billion in 2022 and 10 times larger than Japan at $159 billion.
China now accounts for 83% of all online retail sales in the Asia Pacific region.
On November 11, 2018, Alibaba set a record 213.5 billion yuan (US$30.8 billion) in gross merchandise value for its flagship 24-hour retail event, a 27% increase over last year.
China’s digital economy has experienced massive growth over the last decade.
About 10 years ago China accounted for less than one percent of the global e-commerce market; today its share is 42%. In comparison, the United States’ share of the market is 24%, down from 35% in 2005.