The market for luxury goods has historically thrived in the face of recessions, rebellions and natural disasters. But China’s crackdown on high-level corruption and extravagance is putting a dent in some high-end brands.
The Scotch Whiskey Association is just the latest industry to report a sales decline in China as a result of the crackdown.
Sales from January through June 2014, it reported this week, were down 11 percent compared with that period in 2013. The trade group attributed the decline in part to “anti-extravagance measures in China,” though it noted long-term prospects there are still good.
French crystal and glass maker Baccarat reported earlier that its sales of glasses, jewelry and cognac bottles were down generally, with its problems “compounded by China’s anti-corruption crackdown,” according to CPP-Luxury, which reports on the “Business of Luxury.”
Others feeling the impact, according to news reports, include Bentley, Prada, Hermes — and the tasty treats known as Mooncakes.
Why Mooncakes? Because they are given as gifts — to and from government officials — sometimes in containers made of precious stones, sometimes accompanied by other delicacies, including little wads of cash.