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在线翻译:
szdaily -> In depth -> 
Luxury goods losing luster in China
    2014-01-21  08:53    Shenzhen Daily

    WEALTHY Chinese are likely to buy fewer luxury goods again this year after the steepest cut-backs on spending in at least five years, changing the game for high-end retailers like Louis Vuitton which have staked their growth on China.

    Overall spending by wealthy Chinese fell by 15 percent in 2013, the third consecutive year of decline, according to a survey result released Thursday by the Hurun Report. Spending on gifts in particular also declined by a quarter.

    The drop coincides with a government crackdown on corruption and gifting, as well as a growing penchant for traveling and shopping overseas to circumvent -Chinese consumption taxes on luxury goods as high as 40 percent.

    One-third of so-called high net worth individuals have already left or are planning to leave China, the report showed, a factor that has also reduced luxury spending.

    “In terms of traditional luxury — leathers, accessories, watches — this year is going to be flat if not a little bit down,” said Rupert Hoogewerf, founder and chief researcher of Hurun Report. “For luxuries like tea, healthcare, even education, we are still looking at a booming market,” he said.

    The crackdown on conspicuous spending, which began in 2012, is part of a vow made by China’s new leadership to be tougher on graft. The new leadership has focused in particular on gifts made to government officials, often in exchange for preferential treatment or contracts.

    As a result, many wealthy Chinese now buy luxury goods for themselves, rather than as gifts, Hoogewerf said.

    Products by Hermes, Chanel, LVMH’s Louis Vuitton brand, Apple and Gucci remained among the most sought-after brands for gifting, the survey showed.

    Less popular were Bulgari — another LVMH brand —Salvatore Ferragamo, Tiffany and Co. and the fiery baijiu liquor made by Chinese firm Kweichow Moutai Co.

    Luxury firms are already grappling with a slowing economy in China and a more sophisticated clientele that shops online for the best price globally and eschews in-your-face logos.

    “There will be more purchasing done overseas. For a brand that’s global it’s fine,” Hoogewerf said.

    Besides spending less at home, more rich Chinese are leaving the country. The number of wealthy Chinese who have emigrated or are planning to do so rose to 64 percent from 60 percent in the previous year, the survey said.

    Most of those leaving, or planning to, are looking for permanent residency overseas — the United States, Europe and Canada are top picks. However, very few want to give up their nationality, perhaps because their outlook for China is improving.

    The survey’s results are based on responses from 393 Chinese millionaires, or those with personal wealth of at least 10 million yuan (US$1.65 million).

    (SD-Agencies)

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