Chinese taste in luxury goods is changing with the times; shoppers now prefer more discreet designer labels, eschewing flashy brands like Gucci and Louis Vuitton.

Chinese consumers are now more likely to shop for themselves or their friends instead of for their boss or the spouse of a government official, Reuters reported on Tuesday. Gifts that were popular two years ago- Rolex watches, Hennessy cognac, and Gucci handbags, are no long in high demand.

The shift is partially due to Beijing’s crackdown on anti-corruption and luxury goods spending in 2012. This has also prompted more Chinese to go abroad to buy luxury goods in order to both save money and shop discreetly.

Analytics predict that more than two-thirds of luxury goods purchased by Chinese are bought overseas, mainly in Paris, Milan, London, New York, and Tokyo. The prices in many of these cities for luxury goods are more than 50% lower than prices in China because of tax rebates and other discounts.  

"While [Chinese consumers] used to purchase luxury products to show off their wealth, now they want to show their good taste, their personal choice of the best the luxury industry can offer," said Daniele Zito from the Italy based consultancy Bain & Co.

Chinese luxury buyers were almost non-existent a mere decade ago. Now, Chinse buyers consume more than 30% of the global luxury goods market. This year, consumer spending on luxury goods in China in expected to reach $259 billion.

Chinese shoppers are now interested in brands like Valentino, Dolce & Gabbana, Givenchy, Chloe, and Miu Miu. Popular ready to wear brands include Victoria Beckham’s line, Alexander McQueen, and Korean brands Mojo.s.phine, and Ozoc.

Source: inews.qq.com

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Keywords: Chinese shoppers luxury goods market China luxury brands