Six trends in China’s luxury market in 2014

Sales of luxury goods slowed in China during 2014, with the growth rate falling for the first time amid slowdown in economy and brand proliferation, a new study released by global consultancy firm Bain & Co said on Tuesday.

Based on a survey of 1,400 respondents across China, Bain said shoppers spent around 380 billion yuan ($61.13 billion) on luxury products worldwide in 2014, up 9 percent year-on-year. However, only 30 percent of the purchases were made within China from stores and online shops and the total consumption fell by 1 percent on a year-on-year basis to 115 billion yuan,

It's the eighth consecutive year for Bain & Co to release this report. Let's take a look at the trends in China's luxury market in the past year.

1 Growth decline in domestic luxury market for the first time

The slump in luxury goods sales is primarily a result of the ongoing anti-corruption and frugality campaigns, factors that have undermined luxury gifting, said Bruno Lannes, a partner with Bain. Another factor that contributed to the slowing growth is that more consumers are shopping overseas. Men's watches and clothes are the worst-hit in this slump.

People walk on a shopping street in Seoul, South Korea, Friday, on Jan 23, 2015.[Photo/IC]