Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Join the Mingtiandi Proptech Forum 2021
      • Asia Proptech 2021: COVID-19 Accelerates a Trend
      • Panel Talk: Tech Adoption in Logistics Real Estate
    • Promote Your Brand with the Mingtiandi Proptech Forum 2021
    • 2021 Mingtiandi Event Calendar
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

Was Anti-Graft Campaign the Real Reason Luxury Retail Struggled in 2013? Mingtiandi Survey Results

2014/03/10 by Michael Cole Leave a Comment

While China’s luxury retailers fell well short of their goals in 2013, the major cause of the industry’s struggles was poor planning, not a government clampdown on bribery and draft, according to a survey conducted last week on Mingtiandi.

Among the survey’s respondents, the major reason cited for retail store openings missing their targets in 2013 was “overly-optimistic retailers” which was cited as the leading cause of the shortfall by 46.15 percent percent of respondents. Only 15.4 percent of the professionals responding to the poll saw cutbacks in luxury purchases due to the anti-corruption drive as the leading cause of the luxury sector’s struggles last year.

cause of shortfall

The poll was conducted in response to a report from real estate consultancy Knight Frank which found that 65 percent of luxury retailers failed to reach their targets for new store openings in 2013.

Among the respondents to the Mingtiandi survey, 60 percent agreed with the figure cited by Knight Frank, while 20 percent believed that 65 percent was an overestimate of the industry’s shortfall, and 13.3 percent thought that the 2013 shortfall was significantly greater than the 65 percent found in the report.

Survey agreement

Figures from consultancy Bain & Company estimated that spending on luxury goods in China expanded by only about 2 percent in 2013, compared with 7 percent the previous year. China’s overall retail sales increased 13 percent last year compared to 2012, according to figures from the National Bureau of Statistics.

Media reports, which often cite comments from luxury brand executives, have been quick to place the blame for last year’s disappointing results on the Xi Jinping government’s anti-corruption drive. The campaign has sought to improve the Communist Party’s public image by reining in obvious displays of ill-gotten gains such as officials driving luxury cars or their girlfriends’ carrying designer handbags.

One retail real estate professional who responded to the survey commented, “Too many retailers were looking at their past sales growth and projecting the rate of increase to continue even as they opened more outlets in more cities.”

Outlook for 2014 Shows Little Love for Luxury

The new year could be bringing further disappointment for sellers of high-end goods, as the survey respondents saw little chance of the market improving significantly in 2014.

2014 Outlook

A majority of respondents believe that luxury retailers will again miss their expansion targets, with 60 percent predicting that “it will be another tough year for luxury retail in 2014, so the shortfall will decrease.” Another 40 percent of respondents indicated that brand owners will come closer to reaching their targets this year, but only because they have already scaled back their expectations.

About the Survey

The luxury retail real estate survey was conducted on Mingtiandi’s website for four days, from March 4th to March 7th, and received responses from 15 visitors to the site. Among the respondents, 60 percent identified themselves as China retail real estate professionals, with another 20 percent indicating that they followed the sector professionally as an investor or analyst. Another 20 percent identified themselves as casual observers of the market.

The survey was the first installment in what is expected to be a regular feature on the website.

About Mingtiandi

Mingtiandi is China’s independent source of real estate market intelligence and was visited by more than 3000 professionals during February. The company’s email newsletters reach more than 2000 real estate and financial professionals each week, including institutional investors, fund managers and corporate real estate managers.

Related Stories

  • China Anti-Corruption Drive Hits Luxury Brands and LandlordsChina Anti-Corruption Drive Hits Luxury Brands and Landlords
  • Knight Frank Taps Candy Zhao for China COO JobKnight Frank Taps Candy Zhao for China COO Job
  • Two-Thirds of Multinationals Aim to Follow Flexible Office TrendTwo-Thirds of Multinationals Aim to Follow Flexible Office Trend
  • Xinhua Cites Spectre of Money Laundering After Chinese Student Buys $24M Vancouver MansionXinhua Cites Spectre of Money Laundering After Chinese Student Buys $24M Vancouver Mansion

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Research & Policy Tagged With: anti-corruption, China, Knight Frank, Luxury brand, retail real estate, weekly

logistics tech panel

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Yardi Vendor Cafe

Get Mingtiandi Delivered

MTD Proptech Report

Latest Stories

logistics tech panel

Logistics Experts Reveal How Tech Is Reshaping Asia’s Distribution Centres

JLL Alex Barnes

Office Vacancy in Hong Kong’s Central Tops 7% for the First Time Since 2004

laurent-jacquemin axa

AXA IM Breaks Ground on $260M Nagoya Distribution Centre with ESR

Amazon Asks India Court to Jail Erstwhile Partner and More Asia Real Estate Headlines

Sponsored Features

Tony Horrell

Colliers’ Global Investor Sentiment Report Anticipates Up to 50% Surge in Investment in 2021 Sponsored Feature

Andrew-Slevin-John-Foord (4)

Insurtech to Help Address Underinsurance Across Asian Real Estate Assets in 2021 Sponsored Feature

CK Lau

Asia Pacific Logistics Sector: Increasingly Varied Sector Requires Multiple Approaches Sponsored Feature

COVID-19 Uncertainty Creates New Priorities for Real Estate Investors Sponsored Feature

More Sponsored Features>>

MTD-QR-Code-320

Top Stories

Singapore’s CDL Warns of Loss After China Developer Investment Swells to $1.4BSingapore’s CDL Warns of Loss After China Developer Investment Swells to $1.4B

JLL Recruits Finance Veterans to Fill Japan, India Leadership Posts JLL Recruits Finance Veterans to Fill Japan, India Leadership Posts 

Asia Real Estate People in the News 2021-01-25Asia Real Estate People in the News 2021-01-25

UK Developer Grosvenor Appoints Kozo Hiratani as Japan PresidentUK Developer Grosvenor Appoints Kozo Hiratani as Japan President


Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • Events
    • Join the Mingtiandi Proptech Forum 2021
      • Asia Proptech 2021: COVID-19 Accelerates a Trend
      • Panel Talk: Tech Adoption in Logistics Real Estate
    • Promote Your Brand with the Mingtiandi Proptech Forum 2021
    • 2021 Mingtiandi Event Calendar
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Newsletter Subscription
  • Terms of Use
  • Privacy
  • Advertise
  • Join the Mingtiandi Team

We use cookies in accordance with our Privacy policy to provide the best user experience on Mingtiandi and to safeguard user data. By continuing to browse you consent to the policy. AcceptRefuse