Pur­chases of lux­ury goods slowed last year

China Daily (Canada) - - FRONT PAGE -

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)

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