An employee puts a handbag on the display shelf in a store in Hangzhou, Zhejiang in May 18, 2013. [Photo/IC]Chinese consumers have been famous for their enthusiasm for luxury products in recent years, but a report said the country’s luxury market is returning to a “rational growth.”
“The past year has seen the end of the wild growth of the luxury market in China, and luxury brands are demonstrating new strength,” reveals a recent survey by the magazine Fortune China.
The survey was conducted among 45,000 magazine readers who hold senior executive positions to find out about their consumption of luxury products.
The luxury market saw a golden era in China before 2012, when many brands registered double-digit or even 100 percent growth, but the market is now narrowing down and requiring more “fine and intensive operation.” The report said that luxury brands are now trying to win over Chinese consumers by providing better services and experience, citing an example of the rare price cuts by French luxury brand Chanel in China last year.
77.6 percent of the survey respondents make luxury purchase for their own use, registering consecutive growth in four years, while those who buy luxury products for friends and as business gifts account for only 15.5 percent and 6.0 percent, according to the survey.
The earliest group of Chinese luxury consumers cultivated a better understanding of luxury goods, and become more focused on the improveme...