Why young people in China are focused on ‘spiritual’ luxury?
Luxury spending has cooled in several major markets, and brands from LVMH to Kering have reported softer demand from Chinese consumers in recent earnings updates. In China, that slowdown has helped push more young shoppers toward what local analysts and retailers describe as “spiritual” luxury, or purchases centered on comfort, identity, and emotional value rather than visible status.
What young consumers in China are buying instead
Chinese retail analysts and brand managers have used the term “spiritual luxury” in 2024 to describe spending on items that offer emotional payoff instead of traditional prestige goods. That shift has shown up in demand for fragrance, niche beauty, aromatherapy, designer toys, wellness services, and small home items, according to company commentary and market reporting released during 2024.
The scale of the change is tied to younger buyers, especially Gen Z and millennials in large cities such as Shanghai, Beijing, and Shenzhen. Rather than saving for one high-priced handbag, some shoppers are choosing several lower-cost items that still feel premium, including branded candles, limited-edition cosmetics, and collectible accessories sold by domestic and global labels.
For brands, the action has been practical. Companies have expanded entry-price products and experience-led retail formats in China during 2024, aiming to keep younger consumers engaged even as big-ticket discretionary purchases have softened.
What this means in China’s biggest consumer cities
The clearest impact has been visible in China’s top retail hubs, where luxury groups have long relied on foot traffic from younger urban shoppers. In cities including Shanghai and Beijing, the confirmed trend is not a full retreat from luxury, but a shift in category mix toward beauty, wellness, hospitality, and smaller personal purchases.
What is not yet fully known is how lasting that change will be across lower-tier cities or among older luxury buyers. Companies have discussed demand trends in broad terms, but they have not released a comprehensive city-by-city breakdown showing exactly where “spiritual” luxury is growing fastest.
For local stores, the change can affect merchandising more than store counts. Retailers in major Chinese shopping districts are giving more space to fragrance, pop-up installations, café concepts, and collectible collaborations that let shoppers buy into a brand at a lower price point.
Why the shift is happening now
The main driver is economic pressure. China’s slower post-pandemic recovery in 2024, combined with youth job concerns and weaker consumer confidence, has made many younger shoppers more careful about large discretionary purchases, according to public economic data and brand earnings commentary this year.
At the same time, younger consumers have not stopped spending altogether. Instead, many are prioritizing purchases that feel personally rewarding, practical, or mood-lifting, which helps explain the appeal of smaller luxury goods and experience-based consumption over logo-forward fashion.
For consumers, that means luxury in China now often looks less like a single major purchase and more like a series of smaller ones. For brands, the near-term response has been to emphasize products and experiences that feel intimate, calming, and identity-driven, while keeping a presence in China as the market continues to adjust in 2024.
