Aus­ter­ity push hurts sales of lux­ury goods: re­port

China Daily (Canada) - - NEWSCAPSULE -

China’s lux­ury goods mar­ket slowed to around 2 per­cent growth in 2013 from 7 per­cent in 2012 and 2014 is ex­pected to have sim­i­larly slow growth, ac­cord­ing to a study.

Chi­nese shop­pers now do about two-thirds of their lux­ury shop­ping abroad, which has trig­gered a slow­down in do­mes­tic store traf­fic and store open­ings, said the China Lux­ury Goods Mar­ket Study by con­sul­tancy Bain & Co.

At the same time, con­sump­tion in China has shifted, with women’s cat­e­gories be­com­ing more prom­i­nent.

Sev­eral fac­tors have gen­er­ated the cool­ing of China’s pre­vi­ously ex­u­ber­ant lux­ury mar­ket, ac­cord­ing to the study. The highly vis­i­ble gov­ern­ment cam­paign en­cour­ag­ing fru­gal­ity and fo­cus­ing on cor­rup­tion has had a huge im­pact on gift-giv­ing, which was one of the ma­jor growth en­gines for the sec­tor. (Photo 3)

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