Xinhua recently reported that, in the year 2014, China’s market in luxury goods saw a one percent decline from 2013. The report was based on Bain & Company’s latest research results. The research showed that the market suffered mainly from the anti-corruption campaign, overseas spending, and the proliferation of counterfeit goods. However, in the meantime, Chinese consumers were responsible for around 30 percent of all luxury spending globally. Chinese buyers combined domestic and overseas spending increased by nine percent. This is the first time in eight years of Bain’s research history that the Chinese domestic market has declined. The decline was seen mainly in the sector of men’s products. The year 2014 also saw the highest number of luxury store closures. For example, Hugo Boss closed seven stores, Ferragamo closed six, Zegna closed six, and Burberry closed four stores.
Source: Xinhua, February 15, 2015