Spending drops on luxury apparel
Traditional well-known luxury brands experienced a decline in China last year while more affordable luxury products and fast-fashion brands turned in satisfactory results.
China’s luxury market contracted for the first time in 2014, with the total market value slightly down by 1 percent year-on-year to reach 115 billion yuan ($18.34 billion), according to consultancy firm Bain & Company.
China’s anti-corruption and frugality campaigns, and its economic slowdown, are seen as the major causes.
Bain said that rather than celebrated brands such as Louis Vuitton, Gucci and Prada, Chinese consumers have expressed a willingness to buy less known emerging luxury brands, with more than 80 percent of 1,400 polled consumers saying they had such plans over the next three years. (Photo 2)