Prestige beauty is outperforming entry-level luxury in China, according to a report by Inside Retail Asia. The shift reflects how cautious consumers are prioritising affordable indulgences such as skincare over higher-priced handbags.
The trend comes as Chinese shoppers temper discretionary spending amid economic uncertainty. Skincare products offer a lower-cost way to maintain a premium lifestyle, making them more resilient than traditional luxury categories like leather goods.
For retailers, the shift underscores the importance of balancing assortment between accessible prestige items and aspirational luxury. Brands that can capture demand for self-care and daily rituals may be better positioned as the market recalibrates.