Spending on luxury falls on mainland China
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China remained the world’s largest consumer of luxury products last year even though domestic sales fell for the first time due to the government’s anti-corruption campaign and increased spending overseas.
Chinese spending on luxury goods increased 9 percent to CNY380 billion (USD61.3 billion) in 2014, accounting for 30 percent of global spending, according to Bain & Company’s 2014 China Luxury Market Study.
However, sales of such products on the Chinese mainland fell 1 percent from a year earlier to CNY115 billion, the consulting firm said on Tuesday.
Questions & Answers
Q.What was the total value of luxury product spending by Chinese consumers in 2014?
What was the total value of luxury product spending by Chinese consumers in 2014?
Chinese consumers spent CNY380 billion on luxury goods in 2014. This accounted for 30 percent of global spending, as reported by Bain & Company in their 2014 China Luxury Market Study.
Q.By how much did domestic sales of luxury products on the Chinese mainland fall?
By how much did domestic sales of luxury products on the Chinese mainland fall?
Sales of luxury products on the Chinese mainland fell by 1 percent from the previous year. This decline resulted in a total sales figure of CNY115 billion within the mainland, according to Bain & Company.
Q.What factors contributed to the decline in domestic luxury sales in China?
What factors contributed to the decline in domestic luxury sales in China?
The decline in domestic luxury sales on the Chinese mainland was primarily due to the government’s anti-corruption campaign. Increased spending by Chinese consumers on luxury products overseas also played a role.