Affected by the pandemic and restricted outbound travel, Chinese consumers shifted their consumption of luxury goods from overseas to China. The domestic luxury market has been picking up since April. According to forecasts, it is expected to achieve a growth of 48% throughout the year, reaching a market size of 346 billion RMB yuan, with domestic sales expected to account for 70%-75% of Chinese consumers' luxury spending this year. While the global luxury goods market is expected to shrink by 23% in 2020, the surge in the Chinese market will almost double China’s share of the global market from about 11% last year to 20% this year. And the growth is likely to continue, with some forecasts suggesting that China could become the world's largest market for luxury goods by 2025. However, the drop in outbound travel also led to a nearly 35% drop in total luxury goods spending (both domestic and overseas) from Chinese consumers, ranking first among consumers around the world. The growth of luxury goods consumption in China, driven by the return of consumption, has not fully offset the reduction of Chinese consumers' consumption in overseas markets. Even after the reopening of the border, Chinese consumers are likely to remain cautious about travelling abroad, so luxury goods sales in Hong Kong, the most important consumer destination outside the mainland, are unlikely to return to pre-crisis levels. Most luxury brands believe that the domestic luxury market in China will continue to grow at a rate of about 30% in 2021 due to the continuous impact of residents' poor expectations of going abroad.