China's men's market could be hit hard with President Xi Jin Ping taking office soon. His top priorities are to "reduce corruption" and "conspicuous consumption" Meaning he wants to lessen China's cultural traditions of "gift giving". An example WWD mentions has already taken effect with a new "frugal working style". This entails no lavish parties, giving expensive cars, or luxurious gifts for civil servants. This new approach parallels American ethics law which requires government officials to avoid conflicts of interest with lobbyists.
Accorcing to Flora Sapo, a professor of Chinese law "gift giving is only a minor offense". She believes that the real estate and the stock market is far more corrupt than China's civil servants. Professor Sapo thinks that the gift giving tradition represents the lifestyle of the political/economic elite. And she doesn't see it changing much, unless some drastic happens to Chinese economy.
One case that made big news was called "Brother watch". It happened when a low level bureaucrat was photographed wearing an expensive name brand watch. Apparently, expensive watches are the preferred gift of choice for the elite, according to WWD. However, Bain & CO. studies reveal that the sale of luxury watches has decreased by 5% in 2012, in comparison with a 40% increase in 2011. One explanation for the slow down in sales could be attributed to China's slowing economy. But, another major factor points directly to a crackdown on corruption!
No comments:
Post a Comment