Luxury brands are making a significant push to recapture the attention – and spending – of Chinese consumers this Lunar New Year, hoping to capitalize on early signs of recovery in the world’s second-largest economy. From limited-edition watches to intricately designed handbags, companies like Harry Winston and Chloé are unveiling collections timed to coincide with the start of the Year of the Horse on Tuesday, February 17th, 2026. This renewed focus on the Chinese market comes as the luxury sector cautiously optimistically anticipates a rebound after recent headwinds.
The Chinese luxury market, once the primary engine of growth for the industry, has faced challenges in recent years due to a slowing economy and a downturn in the housing market. In 2024, the market was valued at approximately 350 billion RMB, equivalent to around $50 billion, according to estimates from Bain & Company. While Bain projected a contraction of 3% to 5% for 2025, analysts observed a glimmer of hope in the latter half of the year, fueled by improved stock market performance and a resurgence in consumer confidence.
Harry Winston is leading the charge with a limited-edition rose gold watch priced at $81,500, featuring diamond bezels and a delicate red lacquer horse motif. Chloé has released a capsule collection ranging from $250 silk scarves to a $5,300 snakeskin and leather shoulder bag adorned with a horse head and tail, connected by a distinctive horsebit chain. Other brands, including Loewe, Gucci, and Loro Piana, are offering horse-themed bag charms, tapping into the zodiacal significance of the Year of the Horse.
A Shift in Consumer Sentiment
The timing of this push is crucial. Bernstein senior analyst Luca Solca predicts that Chinese luxury spending will stabilize in 2026, forecasting mid-single-digit percentage growth. Even though, he cautions that the market remains significantly more competitive than it was at its peak. Before the COVID-19 pandemic, Chinese consumers accounted for roughly one-third of global luxury goods sales, a figure that has since decreased to approximately 23%, according to Solca.
The Lunar New Year represents more than just a sales opportunity; it’s a chance for brands to demonstrate respect for Chinese culture. However, simply incorporating zodiac animals isn’t enough anymore. Solca emphasizes that Chinese consumers are no longer easily impressed by superficial gestures. “A perfunctory interpretation of CNY is not going to go far,” he stated.
Beyond Literal Interpretations
Veronique Yang, who leads BCG’s consumer practice in Greater China, agrees. She notes that younger Chinese shoppers are seeking more innovative and thoughtful approaches. “Chinese young people, they respect the old Chinese culture, but to be honest, a lot of parts of it they don’t understand, or they want it to be reinterpreted in a modern way,” Yang explained. “It’s important to weave a narrative that connects the heritage with a contemporary vision.”
The trend of Lunar New Year collections began in the early 2010s, as Western brands sought to capitalize on the burgeoning Chinese luxury market. At that time, newly affluent Chinese consumers were eager to purchase designer goods, particularly while traveling abroad, where access to luxury boutiques within China was limited. Now, with greater accessibility and a wider range of choices, brands must work harder to attract and retain customers.
A More Discerning Consumer
Chinese high-income consumers have develop into increasingly discerning over the past 12 years, since the last Year of the Horse. Daniel Langer, a professor of luxury strategy at Pepperdine University, points out that these consumers have gained global exposure. “They’ve been to the best places in the world. They’ve dined in the best restaurants in the world. They’ve shopped in the best shops in the world. Their expectations towards brands are significantly higher,” Langer said. “China has completely changed from a country where there was pent up demand for luxury goods to a country of the highest sophistication.”
This shift in consumer behavior is further compounded by a change in spending habits. Pandemic-related travel restrictions and the rise of domestic luxury brands have led Chinese consumers to spend less on Western goods. Before the pandemic, approximately two-thirds of Chinese luxury spending occurred abroad. In 2025, that figure had fallen to just one-third, according to Bain & Company.
Authenticity and Immersive Experiences
Brands are responding by moving beyond literal interpretations of the zodiac animal. Langer praises Loewe’s approach, which involved adorning its signature Puzzle bags with fringes and tassels, evoking a cowboy aesthetic. Yang suggests that immersive experiences are key to connecting with Chinese consumers, particularly younger generations. Valentino, for example, hosted a three-day lantern festival in Shanghai at Tianhou Palace, a historic temple along the Suzhou Creek. Burberry launched a comprehensive Lunar New Year campaign in mid-December, featuring Chinese brand ambassadors and a pop-up boutique and ice rink in Beijing.
“There’s a lot of different cultural elements that you can integrate and build a narrative around,” Yang said. “It’s not only about animals.”
The success of these campaigns will be closely watched as an indicator of the health of the Chinese luxury market. While the Year of the Horse offers a valuable opportunity, sustained growth will depend on brands’ ability to understand and cater to the evolving preferences of Chinese consumers.
Looking ahead, analysts will be monitoring key economic indicators in China, including consumer spending and stock market performance, to gauge the trajectory of the luxury market. The next major data release from Bain & Company regarding the Chinese luxury market is expected in late spring 2026.
What do you think about the strategies luxury brands are employing to win back Chinese consumers? Share your thoughts in the comments below.
