China'S Domestic Luxury Market Has Fallen For The First Time In 8 Years.

The Bain & Company consulting company, China, released its annual report on China's luxury goods market on Tuesday, January 20th. The report shows that China's luxury market has dropped for the first time in eight years, down 1% to 115 billion yuan compared with 2013, which contrasts with the fact that Chinese consumers spend a lot of money abroad, including mainland sales, purchasing and outbound purchases. The total consumption of Chinese luxury goods in 2014 is about 380 billion yuan, up 9% over the same period last year. China is still the world's largest luxury buyer.

Bain reported that the consumption of domestic luxury goods in China in 2014 was mainly due to the decline in watches, men's clothing and slow growth of luggage and bags. Outbound shopping accounted for 55% of the total consumption of Chinese consumers, which was also one of the reasons for the decline in domestic consumption. Besides, the proportion of overseas purchasing consumption reached 15% was also quite alarming.

Bain said that the scale of overseas luxury purchasing market in 2014 was estimated at 550-750 billion yuan, mainly in cosmetics purchasing, followed by leather bags.

And jewelry, which accounts for about 50% of China's store sales.

Of the 1400 consumers surveyed in the survey, 70% said they had bought luxury goods in 2014, and this figure was 59% in 2013. Another 59% said they would increase purchasing expenses in the future.

Of all the options, the price difference still takes the decisive factor, of which 68% is driven by choice.

And 48% of respondents said that 37% more products were selected because they wanted more products.

According to Bain statistics, Chinese consumers are overseas in 2014.

Consumption increased by 21%, of which Japan and South Korea were the biggest beneficiaries. In 2014, the consumption of Chinese luxury goods in these two markets soared 61%, and Europe and the United States increased by 28% and 39% respectively. Thanks to Taiwan's tourism boom, the consumption of Chinese luxury goods also increased by 32%, while the Hong Kong and Macao market increased by only 6%.

Bruno Lannes Lannes Bruno, the global partner of Bain, and the author of the 2014 luxury Research Report, said that the Chinese luxury market will also have similar trends in 2014, including luxury buyers becoming younger, mature and specialized, and committed to redefining new luxury goods, and more and more consumers are seeking a full range of experiential luxury goods.

Bain's survey found that 55% of consumers said they had spent money in luxury hotels or resorts, and 80% said they would increase their spending on leisure travel in the coming year compared to traditional shopping trips.