Austerity push hurts sales of luxury goods: report
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)