This post was edited by Fllyingfish at 2017-2-6 19:39|
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.
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.
The signs of recovery in luxury spending could provide some relief for Chinese mid and high-end retailers such as Golden Eagle and Hendgeli, Fitch said.
A weaker Chinese yuan and tighter government restrictions on "daigou" - buying on behalf of a third-party for a fee -- also made overseas purchases less attractive to Chinese luxury-goods shoppers.