|China Luxury Market Loses its Sparkle|
|by Tom McGregor||Thu, Jan 16, 2014, 11:10 PM|
BEIJING: In recent years, China's domestic luxury goods market has transformed into the main driver of growth for the industry worldwide. Nonetheless, times are a changing and the Chinese are no longer flocking to shops to purchase designer handbags and top-line cosmetics and jewelry.
According to the People's Daily, "Growth in the luxury goods market in China's mainland has slowed from seven percent in 2012 to around two percent in 2013, with expectations of similarly slow growth in 2014."
Angela Ahrendts, CEO of British luxury goods company Burberry, is quoted as saying that, "China's 'luxur goods' sales decline, may not be a blip, but perhaps represents a long-term trend."
As reported by the People's Daily, "Chinese shoppers now do two-thirds of their luxury shopping abroad, triggering domestic slowdowns in store traffic and store openings. Chinese remain the biggest consumers of luxury products worldwide, with purchases that make up 29 percent of the global market, a four percentage point increase versus last year according to Bain & Company's report."
Brunno Lannes, a Bain partner in Greater China and lead author of the Chinese edition of the report, is quoted as saying that, "China's luxury market has quickly changed from land-grab to steady focus on consumer experience and 'like for like' sales."
To read the entire article from the People's Daily, link here:
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