Chinese millionaires make the world of luxury
Luxury articles are not just for consumption but also gifts for bribery
Finally the Chinese authorities are moving against corruption. Very common for the latter purpose are gift cards. Since May 2011 there is a new regulation by the State Council applied to limit bribery amongst public officials. Gift cards with a value of over 1000 Renmimbi (around USD 157) have to be registered and the true names of giver and receiver have to be unveiled and there is a cap of the total value at 5000 Renmimbi for such items.
This will certainly have an effect on luxury items because such brands are in very high esteem with public officials. However the size of the luxury market will shrug off this loss because according to Hurun Research 960000 Chinese individuals are wealthy with more 10 million Renmimbi (around USD 1.6 million) and each year about 85000 new millionaires join the pack! Cheers to hail the luxury customers line (including clothing) forming the backbone of many luxury brands.