Louis Vuitton and Versace to decrease prices in China
Fortune Character Institute, a research center based in Shanghai, recently reported that luxury purchases within China decreased by 11 percent to $25 billion last year. Despite the spending slowdown on the mainland, Chinese tourists made up for it with luxury purchases abroad.
Data from HSBC shows that Chinese consumers have made around two-thirds, or 66.6 percent, of their luxury purchases outside of mainland China in the past. During last year, however, consumers from the Mainland made 76 percent of their luxury purchases overseas, according to Fortune Character Institute.
China’s Ministry of Commerce spokesman Shen Danyang recently stated its determination to control prices: “The Ministry of Commerce and other relevant departments will continue to adjust the market price for luxury goods to enable consumers within the Chinese mainland to buy luxury goods at a reasonable price without going abroad”