Chinese consumers buy half of global luxury goods: report

By Chen Yang Source:Global Times Published: 2014-2-22 0:13:01

Chinese remain the most enthusiastic luxury shoppers around the world, with their purchases making up 47 percent of the global luxury market in 2013, an industry report showed.

Chinese consumers played a key role in sustaining the growth of the global luxury market, which grew by 11 percent year-on-year to $217 billion in 2013, Fortune Character magazine said in a report sent to the Global Times on Friday.

A similar research result published by consultancy Bain & Company in December said Chinese purchases made up 29 percent of the global luxury market last year.

In the Friday report's breakdown, consumption of luxury goods in the Chinese mainland stood at $28 billion yuan in 2013, up about 3 percent from a year earlier, while luxury goods purchased overseas reached $74 billion.

"The Chinese government's crackdown on corruption and government extravagance has hit gift-giving and led to a slowdown of luxury consumption in the mainland," Zhou Ting, a luxury industry expert with Fortune Character, told the Global Times.

The Bain report also found that the campaign especially constrained the growth of luxury watches. Sales of watches, which make up over one fifth of the total domestic luxury market, declined by 11 percent year-on-year in 2013.

However, Chinese consumers' appetite for luxury products is still strong, with more turning to overseas purchases.

Chinese shoppers did 73 percent of their luxury shopping abroad in 2013, up 8 percent from a year earlier, Zhou said, citing price gaps between mainland and overseas stores, fast-growing e-commerce sales channels, and enhanced tastes for pursuing designs rather than logos.

Ding Juan, a 30-year-old white-collar worker in Guangzhou, Guangdong Province, traveled to Italy during the Spring Festival holidays. "Many luxury stores, especially local brands such as Prada and Ferragamo, were crowded with Chinese, and you can easily find shop assistants who speak Putonghua," she told the Global Times on Friday.

Ding said she bought a luxury brand purse for her mother, which saved her nearly 1,000 yuan compared to the retail price in Chinese mainland stores thanks to the tax refund and lower prices abroad.

Zhou expects buying luxury products overseas will still be the mainstream in the near term, but with China's move to lower import duties levied on luxury goods, the gap between shopping at home and overseas will be gradually lessened.



Posted in: Society

blog comments powered by Disqus