Corruption has been long-standing in China, but as the the government cracks down there have been noticeable trends in luxury good consumption. Last year luxury good sales fell 1%. The government has been criticizing officials who
that wear designer clothes and flashy jewelry, causing individuals to spend their wealth in areas that aren’t as noticeable. Interestingly, that includes lingerie.
La Perla, an Italian brand, once had struggling sales in china, but last year they saw 42% growth. Common items you might find in these stores include $200 silk boxers and $3000 silk robes. Total lingerie sales in China were $20 billion in 2014 and 18% growth is forecasted for this year. As this trend continues more western brands are entering the luxury lingerie market including Victoria’s Secret, which opened up nine new Chinese stores in January. Not only are Western brands benefiting from this growth, but Chinese companies such as Embry Holdings developed a lingerie line for its high end clientele. It seems that the Chinese just love to spend money on luxury items no matter if it is seen or not. An excuse cited for the purchase of highly priced lingerie is that it improves your silhouette.
While the economy shifts to it’s ‘new normal’, consumer preferences are changing which is a potential explanation for the overall decline in luxury good sales. However the high demand for luxury lingerie can be attributed to the fact that lingerie is generally hidden. The government cannot discourage you from wearing highly priced designer goods if they do not know you have it.