The days when China witnessed big spending on luxury brands have - at least for the moment - hit a pause as HNW individuals have chosen to go shopping abroad and as anti-corruption measures have taken a toll, a report says.

There has been a “slump” in spending on luxury brands in Asia, suggesting that the region’s famed appetite for such expenditure is declining and moving more in line with what is seen in more mature economies, according to the South China Morning Post, citing data from analysts.

One of the consequences of such a slowdown in spending is a squeeze on prices, the report said, citing comments from Fortune Character Institute, a Shanghai-based research and consultancy group. .
"In China, we believe price cuts by luxury brands will become the norm," Zhou Ting, director of the institute, was quoted as saying.

The report, quoting data form Bain & Co, the consultancy, noted that sales of luxury goods in mainland China fell by 1 per cent in 2014; it said more wealthy Chinese consumers have decided to do their shopping abroad, encouraged by the strength of the renminbi currency.

Another blow to luxury spending has been the current Chinese government’s crackdown on corruption, the report said.

Regardless of whether the spending is at home or overseas, the ascent of a Chinese middle class with a desire for luxury has been one of the broad economic themes of recent years, encouraging wealth managers to target luxury goods/services as a growth sector.