Spending on luxury goods by China's high net worth individuals declined by 15% in 2013, the third consecutive year of decline, as the communist government increased scrutiny over its millionaires' spending.
The latest Hurun Report Chinese Luxury Consumer Survey found a 15% decline in overall spending by high net worth individuals in China.
The survey reveals the brand preferences, consumption habits and lifestyle trends of China's wealthiest individuals. It was conducted between June and December 2013 on 393 Mainland Chinese millionaires, with a personal wealth of 10m yuan ($1.6m, €1.2m, £1m).
The report found that the millionaires' spending on gifts declined by 25% possibly due to the government's anti-corruption initiatives and a slow-down in the economy.
In addition, the individuals had 20% less time for leisure as they were busier than ever, resulting in further decline in spending.
The survey also found that 64% of Chinese millionaires are emigrating or planning to do so, up from 60% last year.
A 2011 Hurun survey highlighted that most of the rich people in China have emigrated or considering it in pursuit of better education for their children.
The US is still the most favourable destination for Chinese millionaires, followed by Europe, Canada, Australia and Singapore.
However, of the 64% who are emigrating, only 15% are looking to give up their Chinese nationality, with the majority looking to a permanent residency overseas.
The survey also found that the millionaires' confidence in the economy rose for the first time in five years, with three out of 10 rich people saying they are optimistic about the economy for the next two years.
Best Brand for Gifting
For the first time, Louis Vuitton has lost its crown as the preferred brand for gifting by men, losing out to Hermès. Apple retained its second place ahead of Louis Vuitton. Channel and Gucci claimed the No.4 and No. 5 positions, respectively.
Chanel continues as the preferred brand for gifting by women, followed by Louis Vuitton, Apple, Hermès and Gucci.
Whilst leather accessories proved most popular overall, jewellery brands had a bad year in the gifting market, according to the report.