China Luxury Market 2025: Digital Advertising, Consumer Trends, and Brand Strategies

China’s luxury market has undergone a dynamic transformation over the past decade. Despite cyclical fluctuations, it has retained strong upward momentum, with projections estimating that China will become the world’s largest luxury goods market by 2030, claiming 25% of global share. This shift reflects deeper cultural and behavioural changes among consumers, transitioning from symbolic consumption toward lifestyle expression, cultural resonance, and experiential value.

As this transformation accelerates, the strategic imperatives for luxury brands, particularly in online marketing are evolving rapidly. This insight is based on findings from the "Online Marketing Monitoring Report for the Luxury Industry (2025 Edition)" compiled by Whale Dynamic (鲸鸿动能), which offers an in-depth analysis of advertising trends, media investment, and consumer behaviour shaping the sector.

Advertising Investment Trends: Steady Growth Tied to Seasonal Peaks

In the first two months of 2025, China’s luxury sector saw a modest 1.2% year-on-year increase in online advertising investment, reaching a four-year seasonal high. This pattern reveals a clear correlation between advertising surges and major holidays, with peaks in January (New Year), May (Labour Day), and September (Mid-Autumn Festival). Brands are intensifying efforts around these critical windows to maximise visibility and drive short-term sales.

Among the top 15 advertisers in early 2025, 12 brands experienced significant ranking shifts compared to the previous year, underscoring the intensity of competition. L'Oréal Group led the field with a digital ad spend exceeding 120 million RMB, well ahead of its closest competitors. In category-specific rankings, Lancôme, Longines, and PRADA emerged as leaders in beauty, watches, and fashion respectively.

Mobile Still Dominates, OTT on the Rise

While mobile remains the dominant channel for luxury advertising, its share is gradually declining as Over-the-Top (OTT) platforms gain prominence, up by 15.5% year-on-year. Video streaming sites now account for 67.7% of all digital luxury ad placements, with full-screen and video pre-roll formats comprising over 80% of investments. These high-impact formats are favoured for their immersive storytelling potential and capacity to deliver strong visual resonance.

Consumer Shifts: Fragmentation and Experience-Driven Demand

China’s luxury consumer base is becoming increasingly segmented and discerning. A pronounced shift is taking place from ostentatious, status-driven purchases to culturally rich and emotionally meaningful engagements. Younger demographics prioritise quality, individuality, and storytelling, while simultaneously embracing rational consumption and functionality.

This evolution demands nuanced targeting. Brands must refine their customer segmentation strategies and adapt offerings accordingly. Only by aligning communication with the emotional and identity-driven needs of their audiences can luxury labels retain relevance and authority.

Marketing Ecosystem: Balancing Short-Term Gains and Long-Term Equity

In 2025, luxury marketing must walk a tightrope between capturing immediate traffic and building enduring brand value. Tactics such as holiday promotions, trend-jacking, and time-limited exclusives continue to drive short-term volume. Yet long-term success hinges on brand storytelling, sustainability narratives, and intellectual property development.

Full-channel integration is now essential. Online operations are becoming increasingly refined, while offline retail is being upgraded to deliver high-touch, scenographic experiences. This convergence fosters deeper emotional engagement and ultimately higher sales conversion.

Brand Case Studies

Rolex continues to lead in brand equity reinforcement through sophisticated cross-sector integration. Online, it invests in high-end advertising featuring craftsmanship narratives and sport/arts partnerships. Offline, it remains a visible sponsor of elite events, supported by the “Perpetual Spirit” programmes which communicate societal values and long-term commitment, thereby deepening emotional connection with high-net-worth individuals.

MiuMiu, on the other hand, has successfully rejuvenated its brand image to capture younger audiences. Through the strategic use of Gen Z celebrities, creative short films, and interactive social content during Chinese New Year, it has created viral moments that drive awareness and resonance. Immersive offline experiences such as pop-ups and limited-edition customisation events reinforce this digital buzz, contributing to both market expansion and consumer loyalty.

Redefining Luxury in China

Luxury today is about relevance. It’s about being timely, targeted, and truly resonant. The brands that lead are those that listen, adapt, and connect with purpose.

Ready to elevate your China strategy? Let’s connect and shape the future of luxury together.