China is seen as the world biggest client in luxury products. Paris is one of the Chinese people’s most wanted destination for its luxury boutiques and experiences.
However, according to the Berstein Company’s study, China is the country where more and more luxury houses closed their Chinese boutiques between 2016 and 2017. Indeed, the Chinese clientele prefers shopping online to acquire luxury goods. This consumption behaviour is mostly noticed on people living in medium-sized cities because their access to luxury boutiques is limited. 50% of their luxury consumption comes from e-commerce.
Also, according to a survey made by Bain & Company, middle-class Chinese people would rather go to discount department stores and malls where they can acquire luxury goods at a lower price. 66% of the surveyed people affirmed they would increase their shopping habits in discount department stores by next year. In 2015, 138 new department stores were opened in China. That represents a 41% increasing in one year.
The issue with such phenomenon is that those stores could hurt the luxury houses’ image and make their individual boutiques disappear.
Another reason why luxury houses become less present in Pacific Asia is that because of the Chinese anti-corruption law, the Chinese economy decreased by 7.4%. This is the first time it happened in 15 years. Richemont, for example, lost 12% of its selling capacity in Hong-Kong and Macao. Indeed, wine and spirits and jewellery goods are very much used as gifts in business.