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Caution over luxury item spending amid economic woes (2)

By Sophie He  (China Daily)

13:09, September 07, 2012

Photo/China Daily)

The survey, which was conducted in June, involved interviews with 2,017 consumers who had purchased luxury items in the past 12 months. Around 15 percent of them are from Hong Kong, 23 percent from first-tier mainland cities and the rest from second and third-tier mainland cities.

"In the past 12 months the luxury market (on the mainland) was going strong but consumers are cautiously planning for the next year because of the economic news they're reading, and this could lead to a relative slowdown," says Simon Tye, Executive Director of Ipsos.

Echoing Tye's words, Elan Shou, senior vice-president at Ruder Finne, said based on what she had learned from its customers (luxury goods sellers), consumers from both Hong Kong and the mainland have already been spending more cautiously, as "there are too many uncertainties in the air".

"I don't think that they (consumers) are spending less because their purchasing power has declined...they still have the money, but they are just withholding the purchases until the economic situation becomes more clearer," said Shou.

Another major finding of the survey is that China itself has become the go-to destination for buying luxury goods in 2012 replacing Hong Kong and Europe in its last year's survey.

【1】 【2】 【3】



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