China spending on luxury goods to account for half global sales by 2025
Purchases of luxury goods by Chinese made up 33% of the world's total luxury goods sales in 2018, up from 32% in 2017.
Chinese shoppers have spent less on luxury goods in the United States this year because many stayed at home, according to analysts.
Staying at home may be a trend, say the analysts, and it concerns global luxury brands like Louis Vuitton, Burberry, Gucci, Ermenegildo Zegna, Christian Dior and Tiffany & Co because they are used to Chinese customers spending lavishly on their goods outside of China－some $90 billion last year.
The increase in the sale of luxury goods in China was also noted in a report in November by Bain & Co consultancy. Purchases of luxury goods by Chinese made up 33% of the world's total luxury goods sales in 2018, up from 32% in 2017.
But between 2015 and 2018, purchases on the Chinese mainland accounted for twice as much growth as spending abroad, and the share of luxury goods bought in China in 2018 rose to 9% from 8% in 2017.
Global luxury stocks were down by 11% in October, a reduction of $150 billion in market value－the worst result in a decade, Bloomberg reported. This came amid traders' concerns that Chinese shoppers have grown tired of spending on luxury items overseas, Bloomberg said.
But the Chinese are predicted to account for half of the world's luxury goods sales by 2025, according to Bain. They will spend $412 billion on luxury items, or 46% of global sales, in the next six years alone, Bain said.
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