First-class goods in second-tier cities as luxury goes local in China


Top malls in second-tier cities have significantly improved their offerings, giving nearby consumers access to brands without having to travel to Shanghai or Beijing. — Reuters

CHINA’S so-called second-tier cities are fast becoming the first stop for luxury goods vendors as middle-class consumers seek high living standards in lower-cost locales, taking with them their penchant for pricey parkers and expensive extras.

With luxury spending in places like Nanjing, Changsha and two dozen other middling cities exceeding that of a handful of economic powerhouses such as Beijing and Shanghai, bling brands like Burberry and Louis Vuitton owner LVMH are following the money and booking sales that point to a recovery in China’s battered luxury sector.

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