Luxury Goods Are Beginning To Be Cautious About Chinese Market.

But the fact may be changing.

According to the new research report, although 2011 is another year of luxury sales in China, luxury brands are becoming more and more popular.

"Some luxury brands are making prudent decisions to slow down their expansion in China and to focus more on store sales," Bain said in its recent report on China's luxury market.

Bain's management consultant said that the growth rate slowed down slowly in the fourth quarter of last year, and that the executives of luxury companies were only "cautiously optimistic" this year because they could not foresee too far.

According to Bain's report, sales of luxury goods in mainland China increased by 27% to 87 billion yuan in 2010.

In 2011, Bain's sales increased by about 26% to 110 billion yuan, but the growth of leather products in 2011 will be unchanged from 30% in 2010, about 25% to 30%.

Bain also predicted that the growth rate of shoes, cosmetics, perfume and personal life will stop, but sales of men's clothing and women's clothing will continue to grow.

These data do not mean that wealthy Chinese are unwilling to buy luxury goods.

They just keep buying in a smarter way.

Because the renminbi is currently increasing, wealthy Chinese consumers prefer to buy overseas, which makes their banknotes more valuable.

Bain said that Hongkong and Macao still occupy more than half of Chinese luxury consumers' overseas purchases, and this trend will continue this year.

In mainland China, luxury brands are starting to focus.