China'S "Frugal" Global Luxury Goods Sales Growth Rate Decreased By 50%

(P) with the world-renowned luxury brands Tiffany, Michael Kors and other luxury brands strong earnings and rising stock prices, the market has begun to discuss a new round of high-end products sales boom, however, it is too early to open the Tang Dynasty champagne to celebrate.

According to a new study by the world's top luxury experts, global luxury sales growth is expected to be 50% lower this year than in 2012.

The main reason lies in China.

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< p > American consulting firm Bain partners Claudia D Arpizio predicts that global luxury sales will grow between 4% and 5% in 2013.

In 2012 and 2011, this growth rate was 10% and 11% respectively.

Global luxury goods sales are expected to grow to 220 billion euros (US $288 billion) to 222 billion euros this year, up from 212 billion euros in 2012.

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< p > although exchange rate is one of the reasons leading to the decline in sales of luxury goods, research shows that the decline in sales of luxury goods from Asia, especially China, and the continued weakness in Europe have become the main factors that restrict global luxury sales, which offset the strong sales momentum of luxury goods from the United States and other Latin American countries and regions.

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< p > this research report points out that if the exchange rate changes are not considered, the sales growth of luxury goods in Asia Pacific excluding Japan will slow down from 26% in 2012 to 10% this year.

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< p > the report points out that the "thrifty wind" implemented by the Chinese government restricts the growth of luxury sales, especially high-end watches.

The study shows that Europe is still weak, and its sales of luxury goods this year will decline from 8% last year to 3%.

The report points out that China's expenditure on Europe is declining due to the shrinking price gap between Eurasia and high-end products.

The report added that some consumers had already had "travel fatigue", so they would not travel much to Europe.

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In contrast, P's demand for luxury goods is rebounding, thanks to a rebound in consumer confidence.

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