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Chinese Luxury Spending Growth Slumps To Lowest Since 2000

Tyler Durden's picture





 

China’s crackdown on extravagance and its anti-corruption campaign appears to be having a significant impact as Bain & Co reports that spending on luxury goods is estimated to grow at only 2% in 2013 - its slowest pace since 2000 (and dramatically lower than the 7% growth last year). "The mindset among global brands [in China] is changing from 'where do we find growth' to 'how do we create growth'," Bloomberg reports as "gifting" to high-ranking officials - one of the major growth engines of the industry - has crushed luxury watch sales down 11% in 2013. Ironically, given yesterday's mall-jumping news, female shoppers are picking up some of the slack with shoes growing 8-10%. New store openings fell by 33%.

 

 

Via Bloomberg,

China’s luxury spending grew this year at the slowest pace since at least 2000 as more shoppers traveled abroad and the government’s anti-corruption efforts curbed purchases, consultant Bain & Co. said.

 

Spending in luxury goods is estimated to have increased about 2 percent in 2013, compared with 7 percent last year, the Boston, Massachusetts-based company said in a report released yesterday. Growth in 2014 will be at a pace similar to this year, it said.

 

Demand for luxury items from Swiss watches and expensive liquor have slumped since President Xi Jinping ordered officials to cut down on lavish spending and stepped up investigations into graft.

 

...

 

China’s crackdown on extravagance and its anti-corruption campaign had a “large” impact on gifting, one of the major growth engines of the industry, and that hit sales of watches and menswear the most this year, Bain said. Sales of luxury timepieces declined by 11 percent in 2013, it said.

 

...

 

Chinese consumers, who last year overtook shoppers in the U.S. to become the world’s biggest buyers of personal luxury items, account for 29 percent of global purchases, Bain said.

 


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Tue, 12/17/2013 - 22:02 | Link to Comment starman
starman's picture

what do.you expect when every time the ladies go shopping the boyfriends go.jumping off the 8th floor

Tue, 12/17/2013 - 23:43 | Link to Comment Four chan
Four chan's picture

shop till you drop slaves. welcome to the new normal.

Tue, 12/17/2013 - 22:10 | Link to Comment Yen Cross
Yen Cross's picture

     No mo spensive twinkits.

Tue, 12/17/2013 - 23:07 | Link to Comment max2205
max2205's picture

Give me that KFC and tatters

Tue, 12/17/2013 - 22:12 | Link to Comment q99x2
q99x2's picture

Communists don't deserve Bitcoin.

Send them to war. Stop shopping at Walmart.

Tue, 12/17/2013 - 22:16 | Link to Comment Zero Point
Zero Point's picture

Lol. Cut back on corruption and the economy steps off the cliff.

Looks like the Chinese ain't so different after all.

I bet this phenomena is being carefully noted in the taper war room.

Tue, 12/17/2013 - 22:29 | Link to Comment walküre
walküre's picture

Are you kidding? The Chinese have a 5000 year history. They have perfected corruption They sucked the Yids into giving them massive credit to buy real assets for their worthless production of trinkets. I didn't think it was possible, but the Chinese have outsmarted the moneychangers which is why all financial institutions in the West are cratering under their own weight of worthless paper. China will outrun and outlast the US and US hegemony in the next 10 to 20 years and there's nothing the Yids can do about it even if that means their precious little speck of dirt called Ishrael will fall into the hands of the Persians or Babylonians.

Tue, 12/17/2013 - 22:41 | Link to Comment Bobbyrib
Bobbyrib's picture

Have you been visiting this site lately? The Chinese are printing money like mad as well.

Wed, 12/18/2013 - 02:51 | Link to Comment walküre
walküre's picture

I know! Their funny paper even has old commie fart faces including Mao himself on it! And the West accepts this paper with questionable origin and of questionable quantity! Its easier to fake than Monopoly money. The Chinese are importing more gold than anyone else and they're buying entire production lines. Meanwhile our corrupt political class is spending our fake bills for their self indulgence and the pitance called SNAP.

Tue, 12/17/2013 - 22:31 | Link to Comment Yes_Questions
Yes_Questions's picture

While looking for something funny about a taper war room, I came across this (yes I did not know how to spell bankst...uh, Tapir).  No mention of war, but uncanny the beasts described below and what a Taper War Room's attendants may be like:

 

Tapirs look something like pigs with trunks, but they are actually related to horses and rhinoceroses. This eclectic lineage is an ancient one—and so is the tapir itself. Scientists believe that these animals have changed little over tens of millions of years.

Tapirs have a short prehensile (gripping) trunk, which is really an extended nose and upper lip. They use this trunk to grab branches and clean them of leaves or to help pluck tasty fruit. Tapirs feed each morning and evening. During these hours they follow tunnel-like paths, worn through the heavy brush by many a tapir footstep, to reach water holes and lush feeding grounds. As they roam and defecate they deposit the seeds they have consumed and promote future plant growth.

Though they appear densely built, tapirs are at home in the water and often submerge to cool off. They are excellent swimmers and can even dive to feed on aquatic plants. They also wallow in mud, perhaps to remove pesky ticks from their thick hides.

New World tapirs generally live in the forests and grasslands of Central and South America. A notable exception is the mountain (or woolly) tapir, which lives high in the Andes Mountains. Woolly tapirs, named for their warm and protective coat, are the smallest of all tapirs.

The world's biggest tapir is found in the Old World—Southeast Asia. The black-and-white Malay tapir can grow to 800 pounds (363 kilograms). It inhabits the forests and swamps of Malaysia and Sumatra.

All four tapir species are endangered or threatened, largely due to hunting and habitat loss.~~~Well one could hope..

Tue, 12/17/2013 - 22:22 | Link to Comment Yes_Questions
Yes_Questions's picture

 

 

Good, let them have the soulessness of too much shit.

 

And we got plenty idle workers right here in the US ready to make it for them too.

 

This is not a dig on the Chinese writ large, but I think it'd be just dandy to see some of those dollars come back from a few decades of Chinese shop till you drop.

 

Its the only "good" that could come from this.

Tue, 12/17/2013 - 23:12 | Link to Comment williambanzai7
williambanzai7's picture

KILL OR BE KILLED

QTH: Ocean Terminal, TST

The watch stores are not swarmed, but everything else is.

The only people who shop in this place are Mainlanders.

Tue, 12/17/2013 - 22:42 | Link to Comment williambanzai7
williambanzai7's picture

 

Shoppers headed back to Shenzen…

 

LO WU EXPRESS

Tue, 12/17/2013 - 23:08 | Link to Comment Constitutional ...
Constitutional Republic's picture

Debt-fuelled consumption will be the ruin of China; a repeat of the experience in every other land where rootless cosmopolitan international financiers were allowed to hold the whip hand...unless the Politburo stop it.

'A cynic knows the price of everything and the value of nothing.' (Oscar Wilde, playwrite).

Tue, 12/17/2013 - 23:13 | Link to Comment iamtheeggman wh...
iamtheeggman whooooooooooooo's picture

Very nice work on Shoppers to Shenzen!

Tue, 12/17/2013 - 23:13 | Link to Comment Evil Bugeyes
Evil Bugeyes's picture

The gift of choice for powerful party officials is no longer expensive watches. Those were so last year. The new gift is homes in Silicon valley.

Wed, 12/18/2013 - 01:41 | Link to Comment Rukeysers Ghost
Rukeysers Ghost's picture

"female shoppers are picking up some of the slack with shoes growing 8-10%."

 

This is to be expected. I hear the Chinamen aren't into feet binding anymore. It means now they have to shell out for knock off Manolos or Loubs to get around their ghost cities.

 

 

Wed, 12/18/2013 - 02:23 | Link to Comment Notarocketscientist
Notarocketscientist's picture

So is china tapering their 15 trillion print?

Wed, 12/18/2013 - 12:04 | Link to Comment kenezen
kenezen's picture

Perhaps we in America should employ the "Deng" philosophies rather than Keynesian.

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