Keep up with the news by installing RT’s extension for . Never miss a story with this clean and simple app that delivers the latest headlines to you.


​Luxury boom threatened by China’s slowdown

Published time: June 06, 2014 11:45
AFP Photo/Fabrice Coffrini

AFP Photo/Fabrice Coffrini

Slowing growth of the second largest economy and the world’s biggest luxury consumer is threatening a luxury consumption boom. Spending more than tripled over the last 20 years to reach $300 billion in 2013.

The share of around 130 million luxury market consumers comes to emerging market, where 50 million refers to China, according to US consulting firm Bain & Co. Each year the auditory of excellence lovers grows by 10 million, while the existing consumers attack luxury shops with a new eagerness.

The rich in China that provides for about 30 percent of global luxury revenues has cut their spending 15 percent in 2013, according to Hurun Report, the survey of Shanghai-based publisher.

Luxury accessory brands such as Cartier jewelry and Montblanc pens as well as elite alcoholic drinks manufacturers like Remy Martin cognac also pointed to a falling demand from Chinese customers.

Their major customers are Chinese consumers, for which spending is indeed slowing down significantly,” as Bloomberg quotes Arthur Kwong, the Hong Kong-based head of Asia Pacific equities at BNP Paribas Investment Partners, which manages about $650 billion.

The growth of the second largest economy slowed to 7.4 percent last quarter, compared with 11.9 percent three years before. Meanwhile the retail sales in Hong Kong nosedived 9.8 percent in April, representing the biggest year-on-year drop since 2009.

Revenue growth in the casinos and betting shops of the special gambling zone in Macau fell two-thirds in May to 9.3 percent compared to four-year monthly average of about 34 percent.

Still the S&P Global Luxury Index of 78 companies shows positive results and is trading within 2 percent of a record having more than doubled over the past four years.

Comments (7)


rudy 09.06.2014 06:32

Anybody here ever endeavor oil trading? I've been trading oil and benefitting. I endeavored the forex and that was abominable and stocks may be unreasonably unusual for my tastes yet with oil trading I'm making incredible trades and money. I'm using the framework by Gold Trading Academy for oil trading, essentially Google Gold Trading Academy and you should have the ability to run across them.


rogirl 08.06.2014 15:23

Maybe a downturn in sale of European made luxury goods, but what are the statistics on Chinese luxury goods which are fabulous and breathtaking in beauty and quality.


DoAskDoTell 08.06.2014 12:09

Christopher Phelan 08.06.2014 10:13

The same place everyone gets their cash from*

Do you think Russia keeps stacks and stacks of gold to back your currency?


banksters have gazillions of digital & cash dollars
while they play with manipulation of gold (since they don't have Monopoly Power on physical gold) => see High Frequency Trading on everything (front-running, scalping pennies on both sellers/buyers)

Gold is another game for Wall Street traders now
China , Russia, India, Iran... most Asians like to hoard gold under their mattress

View all comments (7)
Add comment

Authorization required for adding comments

Register or



Show password


or Register

Request a new password


or Register

To complete a registration check
your Email:


or Register

A password has been sent to your email address

Edit profile



New password

Retype new password

Current password



Follow us

Follow us