Retail in Asia

In Markets

Which luxury brands will have the luckiest Chinese New Year ?

 At a time when China’s economy faces turbulence and the country’s anti-corruption campaign continues at full speed, some luxury brands are faring much better than others in maintaining their appeal with Chinese shoppers.

According to a recent Exane BNP Paribas study of China’s luxury market released in time for Chinese New Year called “The Year of Monkey Business,” capital outflow is likely to continue in 2016 as China’s affluent rush to invest in other countries thanks to uncertainty about the stock market and economy. “The economy is getting worse and it will get worse,” it states, predicting that troubling signs such as RMB devaluation, increasing unemployment, and declining consumer sentiment will all have damaging effects on the luxury market in 2016.

In addition, China’s anti-corruption campaign is expected to “continue with the same intensity” as last year in 2016 as “the political situation remains very tense and fragile.” For top-tier luxury brands such as Ferrari, this means that “high-end consumption has found a bottom” in mainland China, but “no growth is expected in the foreseeable future.”