Lux­ury goods hurt by curbs on gifts

China Daily (Canada) - - NEWSCAPSULE -

China’s lux­ury goods mar­ket is cool­ing and the gov­ern­ment’s anti-cor­rup­tion and fru­gal­ity cam­paign is seen as one of ma­jor rea­sons.

Growth in lux­ury spend­ing on the Chi­nese main­land is ex­pected to be just 2 per­cent in 2013, down from 7 per­cent last year and a stag­ger­ing 30 per­cent in 2011, ac­cord­ing to Bain and Co’s an­nual China Lux­ury Goods Mar­ket Study.

The growth in China is mod­er­ate com­pared to global ex­pan­sion of 6 per­cent. To­tal lux­ury spend­ing of 116 bil­lion yuan ($19.1 bil­lion) in the coun­try rep­re­sented just 7 per­cent of sales world­wide.

The gov­ern­ment crack­down on ex­trav­a­gant spend­ing is ev­i­dent in the pre­car­i­ous drop in the sales of lux­ury watches and men’s wear, which fea­tured promi­nently in gift pur­chases. (Photo 5)

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