Xinhua, Beijing :
China’s recent recovery in luxury spending may boost sales of department-store operators and high-end retailers in the country, according to global ratings agency Fitch.
Reports from international brands such as Coach, Swatch and LVMH suggest luxury spending in China is beginning to pick up after a few difficult years caused by China’s anti-corruption campaign and weak consumer sentiment, according to Fitch.
Coach recently reported its Greater China local-currency sales rose 6 percent in the fourth quarter of 2016, while Swatch spoke of “very good growth” in sales on the Chinese mainland during November and December 2016, as well as January 2017.
The Fitch report said that the stronger sales were driven by a wealth effect caused by higher property prices in China, a narrower gap between domestic and international prices and a decline overseas purchases.
Brick-and-mortar retailers in China have had difficulties in recent years as both offline and online competition intensified and spending patterns changed, with consumers choosing experiences over shopping.
China’s recent recovery in luxury spending may boost sales of department-store operators and high-end retailers in the country, according to global ratings agency Fitch.
Reports from international brands such as Coach, Swatch and LVMH suggest luxury spending in China is beginning to pick up after a few difficult years caused by China’s anti-corruption campaign and weak consumer sentiment, according to Fitch.
Coach recently reported its Greater China local-currency sales rose 6 percent in the fourth quarter of 2016, while Swatch spoke of “very good growth” in sales on the Chinese mainland during November and December 2016, as well as January 2017.
The Fitch report said that the stronger sales were driven by a wealth effect caused by higher property prices in China, a narrower gap between domestic and international prices and a decline overseas purchases.
Brick-and-mortar retailers in China have had difficulties in recent years as both offline and online competition intensified and spending patterns changed, with consumers choosing experiences over shopping.
