Spend­ing for lux­ury goods de­clines: re­port

China Daily (Canada) - - NEWS CAPSULE -

Sales by ma­jor lux­ury goods com­pa­nies on the Chi­nese main­land and Hong Kong fell by 2.4 per cent year on year in the 2015 fi­nan­cial year, a re­port showed.

Ac­cord­ing to an in­dus­trial re­port re­leased by in­ter­na­tional au­dit­ing and con­sult­ing firm Deloitte, the slow­ing econ­omy has re­sulted in lower spend­ing, and the cen­tral gov­ern­ment’s crack­down on lux­ury gifts in the cor­po­rate sec­tor con­tin­ues to have an im­pact.

Nev­er­the­less, de­mand re­mains steady among the coun­try’s ex­pand­ing mid­dle class as they con­tinue to buy bet­ter qual­ity prod­ucts and show­case their so­cial sta­tus with their grow­ing dis­pos­able in­comes.

As in other emerg­ing mar­kets, prices of lux­ury goods in China are be­ing ad­justed down to bring them in line with global mar­kets, which is en­cour­ag­ing more Chi­nese con­sumers to pur­chase lux­ury brands in the do­mes­tic mar­ket. (Photo 3)

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