Western brands do not sweat the Chinese oppression on luxury

  This is not the first statement of the Chinese government against corruption in the public and free of expenses and Western companies know how to fight. Some of the largest producers and manufacturers of alcohol in the world rid dramatic decline in sales of luxury cars, watches and alcohol from the recent raid Xi Jinping adapted to luxury.

Communist Party of China has banquets, small recording number plates banned military on high-end cars and TV and not radio advertising for luxury watches, stamps and coins. As a result, the Chinese Sales of luxury watches have suffered. (As much as 60% of high-end watches are good in public service.) Sales in upscale restaurants in Shanghai, Beijing and Ningbo have fallen between 20% and 35% in January, the state media Xinhua. Bentley sales in China by 20% (paywall) for the first quarter growth in sales of BMW and Audi, Volkswagen significantly (paywall) has slowed. Sale of baijiu, a Chinese premium grain alcohol, Diageo, the world's largest distillery, by 40% in the first three months of this year, after a call from the company on 14 May

Nomura's analyst Ian Shackleton think "abused" in the baijiu industry limited, he sees a return to double-digit growth in the long run. Pernod Ricard, the second largest distillery in the world, given the recent decline in sales of Scotch in China for changing the direction of the country and the fight against corruption. "We certainly see the effects in the short term," said Jean Touboul, Vice President of Investor Relations in March. Managing Director of Pernod Pierre pringue recorded in April. "We are a double-digit growth in the medium term return," Referring to the recent transition of leadership in China, he said: "We have seen this before 2003."

Expressed a similar leadership manufacturers like Mercedes and Porsche. "There is not too much wealth in China at this time there for people with an interest in vehicles produced," said Hans Hennig, Group Managing Director of Jebsen, which sells Porsche in China. Last year, China, Hong Kong and Macao have represented the fastest growing region in terms of sales of Porsche.

However, Diageo least one strategic change. Gilbert Ghostine, president of Diageo Asia Pacific, said 14 May that the call was angling more scotch, including Johnnie Walker, which represents about half of the company's investment in China sell. So far, sales of spirits such as whiskey and cognac, have 10% goes to 15% of the gifts, not the batting.