Chinese Consumers Spending More on Domestic Local Luxury BrandsFebruary 12, 19
(IDEX Online) – Recent research has indicated that the slowing Chinese economy has not stopped consumers from buying luxury items.
However, instead of spending their money in boutiques overseas, consumers are increasingly buying their luxury goods in shopping malls at home.
LVMH, which markets brands such as Louis Vuitton and Hennessy, registered higher sales in China in the fourth quarter of 2018, in spite of the drop in economic growth. Shopping mall operators are seeing more luxury brands looking to lease space to expand their presence in China despite overall weakness in consumer spending.
According to industry insiders, a number of stimulus measures, such as tax reductions, have diminished the impact of the decelerating economy on consumers.
European brands were able to lower their retail prices in China in some categories after authorities cut import tariffs on a range of consumer goods. Experts said this was due to the Chinese government’s efforts to continue to encourage domestic consumption.