The Alfa Romeo stand during the Shanghai Motor Show. Photo: AP
China?s luxury industry players emitted a collective sigh of relief on Wednesday as Bain and Company reported China?s luxury goods market took its biggest leap forward in sales in six years.
It?s six years that have been plagued with challenges as China?s anti-graft campaign put a plug in ostentatious purchases, a problem compounded by the country?s slowing economic growth.
The tides now seem to be changing, however. On Thursday, the BBC reported that China?s economy grew by 6.9 percent last year, and the rate has sped up for the first time in seven years, according to official data.
While that number is still being debated by analysts, it?s clear that the domestic industry seems to be doing something right to drive a rebound of 20 percent sales growth. Bain reports that part of the shift in spending stems from the Chinese government?s efforts to crack down on daigou, personal shoppers who bring luxury goods in from overseas, by promoting cross-border e-commerce. Chinese officials also lowered import duties, making room for brands to offer domestic pricing that is more on par with their overseas stores. But another key driver behind the spending trend, Bain reported, is millennial shoppers, consumers aged 18 to 35 years old. It?s this increasingly educated, style-savvy, and sophisticated group that is keeping brands on their toes in order to continue to drive momentum in the coming year.
Millennials star...