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Consumer Spending on Luxury Goods Dropped 24 Percent in March

Xinhua reported that, based on the data released by Global Blue, a tourism shopping tax refund company headquartered in Nyon, Switzerland, Chinese consumer spending on luxury products in overseas markets was down 24 percent in March, for the first time since 2010. In European markets, luxury goods spending dropped 35 percent. The data also indicated that Chinese consumers spent less on luxury goods purchase in the Asia Pacific, which was down 6 percent. Japan was the only country that saw an increase. According to the report, in March of 2015, the Chinese consumers’ spending on overseas luxury goods grew 122 percent. The analysis suggested that the reduction in this year’s amount was mainly driven by the terrorist attack in Paris and Brussels as well as the narrower price gap between Chinese and European markets which currently averages about 30 percent. The article stated that the slowdown of the domestic economy in China is also a contributing factor.

Source: Xinhua, April 25, 2016