![\"China\u2019s](\"https:\/\/www.hedgeanswers.com\/images\/uploads\/\/f18b.jpg\")
It’s shinking, diversifying and buying elsewhere, says Bain & Company.<\/p>\nIt’s shinking, diversifying and buying elsewhere, says Bain & Company.<\/p>\n
China\u2019s luxury market shrank last year, a global consultancy said, attributing the decline to a national anti-corruption campaign, slowing economic growth and changing consumer tastes.<\/p>\n
Sales of luxury goods in mainland China fell`1% to 115 billion yuan ($18.5 billion) in 2014 compared to a year earlier, Bain & Company said.<\/p>\n
The consulting firm, which has been surveying the market since 2000, said it was the first time the industry had contracted.<\/p>\n
China has become an ever more important destination for luxury goods manufacturers as the ranks of its wealthy have been swelled by a decades-long boom.<\/p>\n
Swiss giant Richemont, the world\u2019s second-largest maker of luxury products, said in November that its 2014\/2015 first half net profit dropped 23 percent due to weaker demand in China.<\/p>\n
The overall decline last year was because of the \u201ccontinued impact of anti-corruption and frugality campaigns undermining \u2018luxury gifting\u2019\u201d.<\/p>\n
Slowing sales of high-end watches, menswear and leather goods contributed the most to the decline, the consultancy added.<\/p>\n
Chinese Communist Party chief Xi Jinping has overseen a much-publicised anti-corruption drive since taking power in late 2012, targeting high-level \u201ctigers\u201d and low-level \u201cflies\u201d.<\/p>\n
A parallel austerity campaign has also has sought to curtail extravagant gift-giving, banquets and other excesses in the ruling party and government.<\/p>\n
Bain added that China\u2019s slowing economic growth was \u201cexacerbating the issue\u201d.<\/p>\n
China\u2019s economy expanded 7.4 percent in 2014, its weakest pace in 24 years, official data showed Tuesday, and authorities are emphasising a \u201cnew normal\u201d as they retool the country\u2019s growth model to one they hope will be more sustainable.<\/p>\n
The consulting firm also stressed that China\u2019s luxury market is becoming more diverse.<\/p>\n
\u201cThe field of luxury brands in China is breaking wide open,\u201d Bruno Lannes, the Bain partner who wrote the report, said in a statement.<\/p>\n
\u201cBrands\u2019 future positioning and popularity within the luxury market hinges on their willingness to revamp concepts to serve the needs of the increasingly sophisticated and well informed Chinese consumers, while managing the growing diversity of sales channels, such as daigou.\u201d<\/p>\n
Daigou is a Chinese word for personal shoppers abroad who purchase luxury goods and send them to customers in China.<\/p>\n
Bain said that the daigou market increased in 2014 to an estimated 55 to 75 billion yuan, led by cosmetics, leather goods, watches and jewellery.<\/p>\n
The consultancy said that Chinese now purchase 70 percent of luxury brands either overseas or through daigou agencies.<\/p>\n
rp AFP-relaxnews<\/p>","protected":false},"excerpt":{"rendered":"
It’s shinking, diversifying and buying elsewhere, says Bain & Company. China\u2019s luxury market shrank last year, a global consultancy said, attributing the decline to a national anti-corruption campaign, slowing economic growth and changing consumer tastes. Sales of luxury goods in mainland China fell`1% to 115 billion yuan ($18.5 billion) in 2014 compared to a year […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[27],"tags":[35,86,33],"class_list":["post-4127","post","type-post","status-publish","format-standard","hentry","category-good-life","tag-buy","tag-luxury","tag-travel"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/aandcadvisors.com\/es\/wp-json\/wp\/v2\/posts\/4127","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aandcadvisors.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aandcadvisors.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aandcadvisors.com\/es\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/aandcadvisors.com\/es\/wp-json\/wp\/v2\/comments?post=4127"}],"version-history":[{"count":0,"href":"https:\/\/aandcadvisors.com\/es\/wp-json\/wp\/v2\/posts\/4127\/revisions"}],"wp:attachment":[{"href":"https:\/\/aandcadvisors.com\/es\/wp-json\/wp\/v2\/media?parent=4127"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aandcadvisors.com\/es\/wp-json\/wp\/v2\/categories?post=4127"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aandcadvisors.com\/es\/wp-json\/wp\/v2\/tags?post=4127"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}