Luxury sales growth to fall in China

Growth in China’s luxury goods market will slow this year in advance of November’s once-in-ten-years leadership transition, leading to a slowdown in the global luxury market, The Guardian reported, citing a Bain & Co. report released Monday. China luxury sales will grow 8% this year to US$274.9 billion, controlling for shifts in the exchange rate, down from 30% growth last year. The slowdown in Chinese sales will help to drag down the global market to only 5% growth in 2012, a decline from 13% growth last year. China’s efforts to rein in corruption and uncertainty in who will fill what positions in the leadership transition may be contributing to slowing growth, as bribes sometimes take the form of luxury goods. China has nevertheless overtaken Japan as the world’s second-largest luxury market after the US. Globally, leather goods and shoes have grown to 27% of sales, the largest segment of the market.