Luxury goods hurt by curbs on gifts
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)