China'S New Luxury Policy Will Prohibit Government Officials From Buying Beyond Standards.

The slow pace of China's economic development has caused many luxury brand executives to worry. Recently, China's new policy may make them even more worried. This week, the Chinese government issued new regulations to prohibit government departments and officials from buying luxury goods above designated standards, a policy that could significantly affect luxury sales in the Chinese market.

Gift giving is an integral part of business in China, and luxury gifts such as watches and famous cars are a good way to consolidate business relations, but the new policy will fundamentally hurt this luxury consumption. The new policy is expected to be formally implemented in October 1st to eliminate government officials' wasteful spending and rectify officialdom. Officials who do not comply with the rules will be severely punished and may lose their jobs.

It is said that luxury brand executives have noticed that the number of luxury goods purchased by government officials has declined this year. They expected to recover around November, but this policy can be said to throw cold water on them.

　　 Luxury goods (Luxury) internationally, it is defined as "a kind of consumer goods beyond the scope of people's survival and development needs, which is unique, scarce, rare and so on", also known as non life necessities. In terms of economics, luxury goods refer to products with the highest value / quality relationship ratio. From another point of view, luxury goods also refer to the products with the highest ratio of intangible value to tangible value. Luxury consumption is a kind of Upscale consumption The word "luxury" is not derogatory in itself. China is one of the largest markets for luxury goods in the world. In 2010, Chinese consumers The purchase of 10 billion 700 million dollars of luxury goods accounted for 1/4 of the global consumer goods market.