Luxury Brands Embrace Lunar New Year to Reconnect with Chinese Consumers

As the Lunar New Year approaches, luxury brands are ramping up efforts to attract Chinese customers with exclusive collections and campaigns. The Year of the Horse, commencing on Tuesday, has prompted notable brands, including Harry Winston and Chloé, to unveil limited-edition items designed specifically for the occasion.

Harry Winston has introduced a striking $81,500 rose gold watch featuring diamond bezels and a red lacquer horse, while Chloé has launched a capsule collection that includes silk scarves priced at $250 and a luxurious $5,300 snakeskin and leather shoulder bag adorned with horse motifs. Other prominent brands, such as Loewe, Gucci, and Loro Piana, have also released bag charms inspired by the horse theme.

This year’s Lunar New Year arrives amid cautious optimism for the luxury sector, signaling a potential rebound in China’s luxury market. Chinese consumers, who were once the driving force behind global luxury sales, have significantly reduced their spending in recent years due to a slowing economy and declining housing values. According to Bain & Company, the Chinese luxury market was valued at approximately 350 billion RMB (around $50 billion) in 2024. While the market contracted by 3% to 5% in 2025, analysts have noted signs of recovery in the latter half of the year, driven by improved stock market performance and heightened consumer confidence.

Bernstein senior analyst Luca Solca anticipates that Chinese luxury spending will stabilize, projecting mid-single-digit growth for 2026. However, he cautions that the market remains highly competitive compared to its peak. Prior to the COVID-19 pandemic, Chinese consumers accounted for roughly one-third of the global luxury goods market; this figure has since dropped to about 23%.

While the Lunar New Year provides a significant opportunity for Western brands to engage with Chinese culture, Solca emphasizes the need for a deeper understanding of consumer preferences. “A superficial interpretation of the holiday will not resonate,” he states. Veronique Yang, who leads the Boston Consulting Group’s consumer practice in Greater China, echoes this sentiment, noting that younger consumers are increasingly seeking modern interpretations of traditional themes.

The tradition of launching Lunar New Year collections can be traced back to the early 2010s, as Western brands sought to capitalize on the growing Chinese luxury market. At that time, newly affluent Chinese consumers were eager to purchase designer goods, particularly while traveling abroad. However, with increased access to luxury products within China, brands must now work harder to attract new customers.

In the years since the last Year of the Horse, Chinese high-income consumers have become more discerning, having experienced the best offerings from around the world. Daniel Langer, a professor of luxury strategy at Pepperdine University, notes that these consumers have developed higher expectations, shifting from a market characterized by pent-up demand to one marked by sophistication.

Additionally, the pandemic has altered spending habits, with Chinese consumers now less inclined to shop for luxury items abroad. Bain reports that before the pandemic, two-thirds of luxury spending occurred overseas, whereas last year, this figure dropped to one-third.

The Year of the Horse serves as a prime opportunity for Western brands to connect with Chinese consumers. Langer highlights brands that adopt a more nuanced approach, such as Loewe, which has incorporated fringes and tassels into its signature Puzzle bags to evoke a cowboy aesthetic. Yang points out that while the horse symbolizes good fortune, it is particularly significant for those born in the Year of the Horse, suggesting that brands should be cautious in overemphasizing horse imagery.

To foster authentic connections with younger Chinese consumers, brands are encouraged to create immersive experiences. For example, Valentino hosted a lantern festival at Tianhou Palace in Shanghai, while Burberry launched an extensive campaign featuring Chinese brand ambassadors and a pop-up boutique with an ice rink in Beijing.

In conclusion, as luxury brands gear up for the Lunar New Year, a thoughtful approach that respects cultural nuances and modern interpretations will be essential for success in the evolving Chinese luxury market.