With discounts, price reductions, and store closings, 2015 may have been the most turbulent year for luxury goods in China. According to Fortune Character Research Institute, 78 percent of the US$91 billion that Chinese spent in 2015 was spent outside of China. As for Western brand names in China, last week Louis Vuitton announced closure of three stores in China. In 2015 alone, 83 percent of Western luxury brands closed some of their stores. In the past several years, Prada closed 16, Chanel 11, and Burberry three. Fortune Character Research Institute predicted that the trend to close stores will continue and will be more widespread. In 2016, over 95 percent of luxury brands are expected to close some stores.
Source: The Paper, reprinted by Xinhua, November 25, 2015