According to a report released this week by the consulting firm, luxury spending in China has slowed significantly. Bain estimates that luxury sales in Mainland China grew by just 2 percent in 2013, compared with 7 percent growth a year earlier. The consultancy said men’s wear and watches were particularly hard hit, with sales of luxury timepieces falling 11 percent.
“The highly visible government campaign encouraging frugality and focusing on corruption had a large impact on gifting, which had been one of the major growth engines of the sector,” the firm said about its 2013 China Luxury Goods Market Study.
Bain expects the trend to continue through 2014, which is unsurprising given the high profile President Xi Jinping’s regime has put on anticorruption efforts. Thus far, however, the clampdown does not appear to include China’s top leadership and its own ties to family fortunes gained through political connections.
China needs to make tangible, bold economic moves very soon to ensure its citizens and trade partners the new government is serious about reform, leading scholars and analysts said at a conference in Beijing this week.
Well-known Chinese academics and executives from major companies and organizations gathered in the capital at the annual Caixin Summit, a forum on critical issues hosted by China’s leading independent business magazine. The two days of discussion focused on the potential for reform in the Communist Party of China’s newest leadership team, led by President Xi.
Though the central government has signaled it will undertake several new policy directions, it has yet to establish any timetables or new legal framework nearly a year into its tenure.
Most critically, the speakers said, any new reforms must tamp down on China’s widespread systemic government corruption.
Outgoing U.S. Ambassador to China Gary Locke on Thursday spoke about the importance of building rule of law and of a functioning, independent judicial system to China’s credibility in the worlds of international business and trade.
“People need to know the rules will be applied equally no matter who you are or how much power you have,” Locke told the gathering.
Locke laid out for listeners how American-style adherence to rule of law and an independent judiciary have helped build trust in the government system. In particular, Locke said, “what business people are not willing to accept is arbitrary rule of law.”
China’s court system does not operate independently from the rest of government, and it is long fraught with the taint of corruption. Both Chinese citizens and companies tend to be skeptical the court system will produce fair, unbiased outcomes.
“How does a society build confidence in the integrity of its legal system?” asked Locke. “The answer is, steadily. It takes years.”
My character, Dinah Madani, is just the coolest, [most] badass woman imaginable," says @amberroserevah. The actress stars in @marvel's newest series on @netflix, @thepunisher. To prepare for her role, Revah sat down with Homeland agents to get a real sense of with Dinah's day-to-day life is really like. Read our full interview on WWD.com. #wwdeye (📷: @jilliansollazzo)
A scene from the 91st annual @macys Thanksgiving Day Parade. The parade, which boasts 50 million TV viewers and 3.5 million on-site spectators, is considered one of the largest and most watched parades in the world. (📷: Jason Szenes/EPA-REX)
The circus came to @bloomingdales 59th Street on Tuesday night and lit up Lexington Avenue with acrobatic dancers, death-defying knife throwing, sword swallowing and aerial acts with no net. The 45 minutes of theatrics built up to unveiling the holiday windows depicting @swarovski crystal-encrusted circus pieces and scenes from “The Greatest Showman” – songs from the soundtrack included. See the rest of the photos on WWD.com #wwdfashion (📷: Joshua Scott)
The psychedelic fashion that pervaded the ’60s is back with an exhibit at the @museumofcityny. “Mode New York: Fashion Takes a Trip” chronicles the changing styles from 1960 through 1973 and features designers such as @ysl, @oscardelarenta and more. The exhibition, which is on display through April 1, is organized into four periods: First Lady Fasion, Youthquake, New Bohemia and New Nonchalance. Pictured here is model Pat Bardonella during the Garvey Day Parade in 1968. (📷: @kwamebphoto) #wwdeye #wwdfashion
“People should be a lot more honest in expressing both the dark and light of themselves. We need to give each other the space to do that because it’s the only way we can grow and evolve,” says @noelwells of her new film “Mr. Roosevelt,” which is largely based on her own struggles. Unexpectedly leaving @nbcsnl in 2014 after just one season, Wells felt set back in her self-esteem and career trajectory. She quickly refocused her energy to more personal projects, which led to the completion of “Mr. Roosevelt.” Read the rest of WWD’s interview with the “Master of None” actress on WWD.com #wwdeye (📷: @jilliansollazzo)
@barbrastreisand is giving fans a chance to see her perform up close in a new concert series, which makes its debut on @Netflix today. From behind-the-scenes takes to her concert performance in Miami last December, the two-hour streaming special captures Streisand in her element. Pictured here is the singer/actress photographed for WWD in 1963. (📷: Palmieri Tony) #wwdeye #wwdarchive
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)