Purchases of luxury goods slowed last year
The growth rate for sales of luxury goods slowed in China last year for the first time amid slowing economic growth, anticorruption and frugality campaigns and brand proliferation, according to a study.
The primary causes of the slump in luxury goods sales are the ongoing anti-corruption and frugality campaigns, factors that have undermined luxury gifting, said Bruno Lannes, a partner with Bain & Co.
Based on a survey of 1,400 respondents across China, Bain said shoppers spent around 380 billion yuan ($61.13 billion) on luxury products worldwide in 2014, up 9 percent year-onyear.
Of this, about 30 percent of the purchases were made within China from brick-and-mortar stores and online shops. However, the total consumption fell by 1 percent on a year-on-year basis to 115 billion yuan, marking the first time that the domestic luxury market has shown such low growth numbers.
Among luxury goods, watch sales fell by 13 percent, the biggest among all categories. (Photo 4)