China's luxury market shrinks in 2014

Luxury goods consumption in mainland China declined for the first time in 2014 as China's ongoing anti-extravagance campaign hit sales hard.
Chinese mainland's luxury goods consumption reached 115 billion yuan (18.79 billion U.S. dollars) in 2014, down 1 percent year on year, compared with a 2-percent and 7-percent growth in 2013 and 2012, according to a recent report from the international consulting firm Bain & Company.
The government campaign encourages frugality and is cracking down on corruption across the country to put a dent in gifting, which had been one of the major growth engines for the sector, said Bruno Lannes, author of the report.