The report said the watch market saw the sharpest decline, with sales falling by 20 percent to 25 percent from 2021. Fashion and lifestyle categories saw a 15 percent to 20 percent decline, while jewelry and leather goods performed slightly better, contracting 10 percent to 15 percent.Bruno Lannes, senior partner at Bain & Company in Shanghai, said three factors contributed to their success. “First, bigger brands outperformed smaller players on average.
Price hikes in the Chinese market have also helped some brands to recoup their losses. Brands’ efforts to harmonize the price between different markets pre-pandemic were thrown out of the window as China became isolated from the rest of the world in 2020. Only a few maintained a global pricing strategy during the pandemic.
Weiwei Xing, partner at Bain & Company in Hong Kong, said with luxury consumption recovering as COVID-19 subsides, mall traffic improves and, she expects to see “2021 sales levels sometime between the first and second half of 2023.”