Sales of major luxury goods companies on the Chinese mainland and Hong Kong fell by 2.4 per cent year on year in the 2015 financial year, a report showed.
According to an industrial report released by global auditing and consulting firm Deloitte, the slowing economy has resulted in lower spending while the central government’s crackdown on luxury gifts in the corporate sector continues to have an impact.
Just like in emerging markets, Deloitte said prices of luxury goods in China have adjusted downwards to bring them in line with global markets. Deloitte said this was encouraging more Chinese consumers to purchase luxury brands in the domestic market.
But Deloitte said demand remained steady among the country’s expanding middle class as they continued to buy better quality products and showcase their social status with their growing disposable incomes.
Deloitte also noted that half of luxury purchases globally were made by consumers who were traveling, either in a foreign market or at the airport, especially by consumers from emerging markets, who typically do not have access to the same range of products and brands found in more mature markets. (Xinhua)