Report: Tracking Changes in Chinese Travel and Spending Patterns

Adding background to the current slowdown in luxury spending, a new survey by Oliver Wyman highlighted how Chinese consumers are changing their shopping habits andtravel behaviors.

Held in May, the research gathered input from 2,000 high-income Chinese individuals whose monthly family earnings surpass 30,000 yuan, equivalent to about $4,193.40, representing the top 7 percent of the country’s population.

As per the Oliver Wyman study, both core and occasional luxury buyers are showing increased caution in 2025. Twenty-six percent of core luxury shoppers surveyed plan to spend more on luxury items, representing a 2 percent rise from 2024, while only 11 percent of casual luxury shoppers expressed intent to increase their spending on luxury goods, marking a 15 percent decrease from the previous year. The consulting company defined core luxury shoppers as those who spend over 40,000 renminbi, or $5,591.20, and casual shoppers as those who spend under that amount.

Affluent shoppers are anticipated to boost their spending in the second half of 2025, mainly because of travel, whereas more casual buyers will remain cautious. The report stated that watches and high-end jewelry are expected to be most affected by wealthy luxury consumers.

“The high-end shopper still continues to spend, but this is a shrinking segment of customers that brands are targeting; some individuals are actually leaving the category altogether, as they are now allocating their spending to other areas,” said Imke Wouters, a partner at Oliver Wyman.

Generation Z, a significant driver of luxury spending in 2021, has reduced their expenditures as their confidence in future income diminishes.

“In 2021, Generation Z immediately embraced high-end luxury brands, allocating a large portion of their income toward them—however, they are no longer showing the same interest in luxury goods, and this is reflected in the fact that spending is once again more focused on the Millennial generation,” Wouters stated. When questioned about their general plans for luxury shopping, both within the country and overseas, a net 6 percent of Gen Z participants indicated they plan to cut back on their spending.

“When you purchase a high-cost item, such as a handbag, you anticipate a rise in income in the coming years, which makes it seem less expensive with that perspective. However, considering the current economic climate, there is more unpredictability, leading people to focus on buying smaller items instead. For instance, we are witnessing a resurgence in luxury beauty products,” Wouters noted.

The survey noted that wealthy Gen Z individuals in first-tier cities are experiencing the most significant impact from the overall decline in sentiment. Nevertheless, total per capita travel spending for the Gen Z group is anticipated to increase. “Both Gen Z and Millennials show a much greater interest in ‘bleisure’ travel, brief weekend getaways, and staycations,” the report stated.

Due to reduced travel demand, Oliver Wyman expects that luxury spending abroad will remain at approximately 45 percent of travelers’ overall expenditure this year, which makes up roughly 25 percent of China’s total luxury consumption.

Closeby travel spots like Malaysia, Japan, South Korea, and Singapore are likely to see the greatest advantages from the recovery. Oliver Wyman predicts that international travel will reach 2019 levels by the end of this year.

“Hong Kong is experiencing a decline in appeal among wealthy travelers, whereas Japan is the top beneficiary,” the report stated. “While there is still interest in Thailand, personal safety remains a significant issue for Chinese tourists,” the report noted.

Domestic travel, which was approximately 60 percent higher than pre-COVID-19 levels during the May Day holiday, has not yet completely rebounded, as reported by Oliver Wyman.

Leading domestic travel spots are Beijing, Shanghai, Hainan, Sichuan, and Guangdong, as reported in the survey.