There’s no question that China ? once regarded by luxury goods manufacturers as the ‘golden goose’ of retail, has lost some of its luster. Much has been said about the reasons ? from China’s slowing economy to President Xi Jinping’s crackdown on corruption and the rapid knock-on effect which has seriously curtailed the practice of lavish gift-giving for favors. However, the question remains: where does this leave the key players" Does it mark the end of a highly profitable winning streak for luxury companies, or can things be turned around"
A employee puts a handbag on the display shelf in a store in Hangzhou, Zhejiang in May 18, 2013. [Photo/IC]Shopping abroad
The good news for manufacturers in the luxury retail sector is that Chinese consumers have not given up on luxury spending. Brand appeal is still strong and while they may not be buying at home, they are still buying ? albeit abroad. The pattern that is emerging in China’s growing upper middle class is that they are travelling more, and further, and when they do so, shopping is high on their agenda. JingDaily, a digital publication that focuses on luxury consumer trends in China, recently reported that in 2015, 78 percent of luxury purchases by Chinese consumers took place outside Chinese mainland. This trend reflects our own findings reported in our recently conducted Chinese Travellers survey. Put simply, the number of Chinese consumers purchasing premium products when ...