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Luxury Industry Slows as Chinese Cut Back

Sales of luxury goods are expected to tumble this year, as China’s big spenders are cutting back. According to business consulting firm Bain & Company’s annual “Luxury Goods Worldwide Market Study”, luxury goods sales are set to rise by 5% globally this year to $275 billion at constant exchange rates, compared to 13% last year. Luxury goods sales in China are projected to grow by 8% at constant currencies, down from 30% last year. The report cites recent changes in China as affecting China’s shoppers, who make up a huge portion of the luxury industry’s growth. China’s leadership transition and crackdowns on corruption are mentioned as two factors. Yet Chinese consumers still make one in four purchases of personal luxury items in the world. China has surpassed Japan as the second larges

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