The upcoming Chinese New Year is the moment for gift giving, but how to look at the current governmental crackdown on too expensive gift. Retail analyst Paul French discusses in The Telegraph the likely effect of the drive against corruption.
Paul French, Chief China Market Strategist at research firm Mintel, said China’s current leadership transition meant 2013 was a particularly crucial moment for gift-givers.
“You’re a company and you need permits for something and you might be dealing with a new guy. So [it is] time to make nice,” he said, pointing to luxury watch brands Patek Philippe and Vacheron Constantin as the gifts of the moment.
Mr French said the government’s frugality drive was likely to trigger an initial “over-interpretation” among spendthrift officials before business as usual resumed.
“It’s like when they tell the banks to ease up on lending: the bank managers all just stop lending and then it all sort of fizzles out.” “You get this big over-interpretation of it and everyone very publicly tries to show [they are following the rules] and then it all creeps back again. I don’t know if that is what is going to happen this time.
Maybe they are going to be more serious about it,” he added.
More about Paul French and the Chinese New Year at the BBC
- Undergrad degree not enough for Chinese parents – Paul French (chinaherald.net)
- Obesity in a previously hungry country – Paul French (chinaherald.net)
- Private shoppping: new approach for wealthy Chinese consumers – Paul French (chinaherald.net)
- China bans television ads for luxury goods in bid to ‘ditch extravagance and uphold frugality’ (news.nationalpost.com)