Apple standout winner in China’s luxury slowdown
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Chinese corporates and wealthy consumers are taking gift-giving down a notch this Lunar New Year, opting for iPhones instead of Birkin bags or Louis Vuitton wallets.
The annual holiday, which falls on February 19-20 this year, is a time of gift exchange between family, colleagues and business contacts.
“The iPhone 6 has replaced luxury items as a key gift this Chinese New Year,” Shaun Rein, founder and managing director of the China Market Research Group told CNBC. “Corporates, for example, used to buy luxury products to give their high performing employees, now they are giving iPhones because they more reasonably priced and still considered premium enough,” he said.
Questions & Answers
Q.What is causing the shift in gift-giving choices in China?
What is causing the shift in gift-giving choices in China?
Chinese corporates and wealthy consumers are reducing the extravagance of their gifts this Lunar New Year. They are choosing iPhones over more expensive luxury items such as Birkin bags or Louis Vuitton wallets for their gift exchanges.
Q.Why are iPhones now a popular gift choice for the Lunar New Year?
Why are iPhones now a popular gift choice for the Lunar New Year?
iPhones, specifically the iPhone 6, are seen as more reasonably priced than traditional luxury items, yet they are still considered premium enough. This makes them an attractive option for companies rewarding employees, for example.
Q.When does the Lunar New Year holiday take place this year?
When does the Lunar New Year holiday take place this year?
The annual Lunar New Year holiday, which is a significant time for gift exchange, is scheduled to occur on February 19th and 20th this year. This period is when family, colleagues, and business contacts typically exchange gifts.
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