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Luxury goods spending dips

The sales of major luxury goods companies in the Chinese mainland and Hong Kong fell by 2.4 percent year-on-year in the 2015 financial year, according to a report released by auditing and consulting firm Deloitte. It found that the slowing economy resulted in lower spending, and the central government's crackdown on luxury gifts in the corporate sector continues to have an impact. Nevertheless, demand remains steady among the country's expanding middle class, as they continue to buy better quality products and showcase their social status with growing disposable incomes. The report found that as in other emerging markets, the prices of luxury goods in China are being adjusted downward. This, it said, is bringing them in line with global markets and encouraging more consumers to buy luxury brands in the domestic market.