The Impact of COVID-19 on China\u27s Luxury Retail Market

The Coronavirus outbreak that occurred in 2020 negatively impacted the whole world. China handled the pandemic better than other countries due to their experience with prior virus outbreaks, SARS and MERS. It is important to research how the Coronavirus outbreak affected and is still affecting China’s economy, as it is a leading role in other countries’ economies as well. Prior to COVID-19, Chinese consumers made up one-third of global spending on luxury goods. Global luxury spending decreased drastically as many were impacted financially, emotionally, and physically. However, China’s success during the pandemic has been predicted to be the largest luxury retail market by 2025. Since traveling measures were restricted during the pandemic, Chinese consumers spent heavily in their luxury retail market instead of other countries which boosted their luxury sales. China has put several measures in place to stay on the top to continue growing and taking over the luxury retail market. They used the pandemic effects to their advantage over other countries from previous experience and having to adapt to drastic circumstances