The Americas, Southeast Asia and Africa are overtaking China’s position in the world’s luxury goods market. A report from Boston-based management consulting firm Bain & Company shows that growth in these markets exceeded that of China, according to the Shanghai-based First Financial Daily.
The US firm said the global luxury market’s growth this year is likely to slow down from 10% in 2012 to 2%, or €217 billion (US$290 billion), a decceleration mainly triggered by a dip in the growth of China’s luxury goods market last year. Market growth slowed from 30% in 2011 to 7% in the second half of 2012 after China’s president, Xi Jinping, launched a campaign to stamp out extravagant living by officials.
Bain predicted the figure will decline further to around 4%. The market has passed the stage of rapid expansion to consolidate its current state, especially for those major luxury brands which have been in the Chinese market for years.
Increasing number of Chinese tourists also chose to buy luxury goods abroad, which also contributed to the decline of China’s luxury goods market. Over half of luxury goods in Europe are reportedly purchased by Chinese tourists. The money they spent there on luxury goods is equivalent to the whole US luxury goods market, said Bain.
Read more at WantChinaTimes