Chinese spending on luxury goods slowed sharply last year amid weaker economic growth and brand proliferation, China Daily reported, citing a new study released by global consultancy firm Bain & Co.
Shoppers spent about 380 billion yuan (US$61.13 billion) on luxury products worldwide in 2014, up 9 percent from the previous year.
About 30 percent of the purchases were made in domestic stores. However, total consumption in the domestic luxury market fell 1 percent to 115 billion yuan, the newspaper said.
The report was based on a survey of 1,400 respondents across the country, Bain said.
Bruno Lannes, a partner with Bain, cited the government’s anti-corruption and frugality campaigns for the slump in luxury sales.
Among luxury goods, watch sales fell 13 percent, the sharpest fall among all categories, while men’s wear purchases declined by 10 percent. Leather goods sales remained flat for most of last year.
Though jewelry sales grew 2 percent, sales of high-end products, especially those for women, fell sharply.
Robust sales in mid-level products helped offset the weakness in higher-end purchases, Lannes said.
Last year also saw the highest number of store closings by luxury brands in China, with men’s categories being the most affected. Hugo Boss closed seven stores in the country while Zegna shuttered six.
While most of the well-established brands remained conservative on new store openings, emerging brands were more aggressive in opening new outlets, the report said.
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