Latest News:  

English>>China Politics

Frugality, anti-corruption affects luxury brands


09:23, February 28, 2013

SHANGHAI, Feb. 27 (Xinhua) -- Sales of luxury goods on the Chinese mainland, a fast growing market for the sector in recent years, are on the decline as the country fights against corruption and extravagance.

"Sales have dropped a lot," said a salesman of a Parker pens brand store on Fuzhou Road in east China's business hub of Shanghai.

The salesman, who declined to be identified, said in the past customers purchased pens as gifts and sales of the products priced at more than 10,000 yuan (1,591 U.S. dollars) were good.

But in the past month, which included the traditional Spring Festival and is usually a good season for expensive goods, salesmen of many luxury brands have felt the "winter chill" in their businesses.

Guo Ming, an expert in luxury watches in Shanghai, said "Some who had planned to buy high-end watches worth more than 100,000 yuan as presents just purchased basic fashions valued between 30,000 yuan and 40,000 yuan."

"Those luxury fashions are no longer a favorite. Low-key luxury goods have become more popular instead," he added.

Sales of some high-end watch brands dropped as much as 30 percent last year in China, industry insiders said.

China's new leadership has vowed to fight corruption and launched a frugality drive across the country. A number of official corruption scandals were exposed in recent months.

Last Friday, Yang Dacai, former head of the provincial work safety administration of northwest China's Shaanxi Province, was expelled from the Communist Party of China. Last year, luxury wristwatches which Yang wore earned him the nickname of "Brother Watch" and raised concerns about his corruption, as a public servant could not afford so many expensive watches.

Given the drop in sales, some luxury brands have reportedly decided to stop or slow their market expansion in China.

However, Zhou Ting, dean of the Fortune Character Institute, which specializes in lifestyle studies of the rich in China, remains optimistic. She said, "The anti-corruption move has had a great impact on luxury goods. But entrepreneurs in booming cities or towns are becoming luxury consumers."

The adjustment in the luxury brand market was expected given its rapid market expansion in China in recent years and the effect of the country's anti-corruption move, said Zhou.

"The effect of anti-corruption measures is big and clearly felt. The high-end goods market should brace for adjustments if the campaign continues to keep momentum," said netizen "Liangcai-lijie."

We Recommend:

How will John Kerry deal with China?

China urges respect for its territorial sovereignty

Japanese PM reiterates to mend ties with China

US looking for excuses for 'cyber army' expansion

Sino-Japan ties not easy to improve

Driving forces behind 'Chinese dream'

Email|Print|Comments(Editor:ZhangQian、Wang Jinxue)

Leave your comment0 comments

  1. Name


Selections for you

  1. An advanced military training base

  2. China's aircraft carrier anchors in military port

  3. Egypt's balloon explosion kills 19

  4. West debates China's 'leftover women'

  5. Kissing competition in collective wedding

  6. Community's fire, folk carnival in China

  7. Too much of a good thing

  8. The crazy things that you never saw

  9. Easier entry to grid may charge

  10. Media Markt to shut down all city stores

Most Popular


  1. China reserves right to appeal WTO ruling
  2. SOEs must act to avoid PR disaster
  3. Mainland hails Lien Chan's visit
  4. Party mulls personnel, govt reshuffles
  5. China must brace for impact of possible EU-US FTA
  6. Peaceful development important in cross-Straits ties
  7. "China threat" theory still exists despite Nexen deal
  8. Cross-Straits relations 'will be boosted'
  9. China 'firmly supports' BRICS
  10. Water quality a concern

What’s happening in China

Public letter calls for gay marriage legislation

  1. Suspect dies following S China bombing
  2. Frugality, anti-corruption affects luxury brands
  3. Regulation to stop production of 'gutter oil'
  4. 225 websites closed for spreading porn
  5. New food scare as report says tainted rice sold