Busloads of Chinese tourists used to visit L.A. luxury stores. Not anymore

Busloads of Chinese tourists used to visit L.A. luxury stores. Not anymore

Now these shoppers are shifting their spending east. Luxury goods prices in China fell last year after the government slashed tariffs by more than half, to 6.9% from an average of 15.7%. The cuts are, in part, an indirect effect of the U.S.-China trade war and President Trump’s demands that China lower barriers to its markets, but they are also part of a broader push by China to strengthen domestic consumption. As the savings from buying abroad shrink, Chinese shoppers are increasingly choosing to make their luxury purchases at home. By 2025, Bain predicts, half of Chinese luxury spending will take place inside China, up from less than one-fourth in 2015.

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