Chinese consumers are starting to rediscover the joys of buying luxury goods--but this time, only for themselves. (Photo : Getty Images)
Luxury goods retailers in China can expect sales to rebound this year, as Chinese consumers begin to revive their penchant for purchasing expensive fare in time for the Lunar Year holiday. This time, however, they should expect a different growth trend among Chinese consumers.
Chinese President Xi Jinping's austerity campaign have left luxury retailers in China reeling over the chilling effects of purchasing lavish items. But as the drive against corruption slows down, many Chinese consumers have started to rediscover their confidence on purchasing luxury goods.
Prior to Xi's crackdown, Chinese consumers have been notorious for their insatiable craving for luxury goods, which they purchase as gifts not only for themselves but also for family members and friends. Overseas shopping has been especially popular among the well-to-do in China.
Per the Financial Times, Chinese consumers are currently in the process of shifting their resourcing of their luxury purchases from abroad to China. That follows a disruption to the country's stellar economic progress that spanned a decade, which led to the rapid rise of consumerism among locals.
Bloomberg complemented that account, emphasizing that Chinese consumers has started to make luxury purchases once again as the distress caused by Xi's pronouncements subsided. This time, however, Chinese consumers have preferred to make purchases for themselves.
Such, in return, has led to the generation of a more sustainable single-digit growth rate for luxury goods purchases. The likes of Burberry and LVMH, whose fashion houses have an enduring reputation among Chinese luxury enthusiasts, are optimistic that last year's sales recovery will produce steady gains.
To enable that, the Chinese government has opened designated duty-free zones and slashed luxury goods duties to promote domestic consumption. But that comes at the expense of "personal shoppers," as customs officials have tightened measures to monitor and tax luxury goods brought home from travels.
