High-end sales in China fell by 1% in 2014
2014中国奢侈品销量下降

China will soon account for one fifth of the world's luxury sales. According to a new report by Bain and Company, last year consumers in China spent nearly 19 billion US dollars on luxury goods. But despite this, it says, luxury consumption in the country still fell in 2014.

The increasing amount of wealth in China has made it one of the most important markets for luxury brands. But, they're buying fewer than before.

And Chinese brands are often a better bargain. Due to import taxes, luxury brands cost up to two-thirds more than overseas... Sending many shoppers abroad.

According to Bain & Company, 70 percent of Chinese luxury buyers now shop overseas. And China's ongoing anti-corruption campaign has dented luxury gift giving.

"Luxury spending has been slowing in China for several years, ever since the government's anti-corruption campaign began. But for the first time in recent years, luxury consumption here has actually fallen, down one percent, last year.

The sales dip comes after growth of 7 percent in 2013. And 2 percent in 2012.

Luxury watches were worst-hit, plunging 13 percent last year.

Dennis Wang, who runs this online watch store, says sales of expensive watches have fallen, but cheaper watch sales have grown.

"In 2014, we sold more than 100 thousand watches, up around 60 percent from 2013. Most buyers already know what they're looking for and buy it online for less. It's also because we sell a wide range of watches, with prices from several hundred yuan, to hundreds of thousands. So market changes do not affect us much," Wang said.

But many other retailers are being hit by the changes in China's luxury market.

Bruno Lannes, head of consumer goods, retail and luxury for Bain in China, says 2014 was quote, "an extraordinary year". And that he expects 2015 to be very similar.

"We saw for the first time a decline in the market. There are three main reasons. One is the anti-graft campaign. The second is that Chinese consumers buy a lot of luxury products outside China, or through 'daigou' agencies. The third reason is more are now enjoying experiential luxury, enjoying good times in spas, resorts and cruises, not only owning luxurious products," Lannes said.

With experiences now more important to Chinese, it seems brands need to offer more than just a product to win them over.