China's luxury goods market slows down growth

The growth of China's luxury goods market may continue slowing down in 2014, predicted the management consulting firm Bain & Co. The sales growth of luxury goods in China dropped from 7 percent in 2012 to 2 percent in 2013, Wednesday's China Daily quoted the company's report as saying. The report attributed the slowdown to more Chinese shopping luxury goods abroad. About two-thirds of luxury goods were bought abroad, it said. Another major factor to cool the market was the government campaign to curb extravagance and promote frugality, according to the report. The campaign has especially affected the sales of luxury watches and other goods favored by men, it said. The sales of watches, which makes up more than one fifth of the total domestic luxury goods market, declined by 11 percent in 2013. Menswear shifted from a booming business category in previous years to a slightly declining one in 2013. However, Chinese remains the largest nationality of luxury buyers across the world, contributing 29 percent of purchases in the global market in 2013. Comparing with a slowdown in men's category, women's spending on luxury goods showed strong momentum, the report said. The sales of luxury goods favored by women, such as womenswear and shoes, reported annual growth of 8 to 10 percent in the past few years. In 2013, women spent as much on luxury goods as men, while in 1995, more than 90 percent of spending was done by men.