Apple has grabbed the number one luxury gifting spot in China. The iOS device maker snagged the top spot from designer goods maker Hermes International SCA, according to a Hurun luxury report released on Thursday.
The U.S. tech firm’s focus on glitzy stores and high prices helped it post a 70 percent rise in sales in China in the last three months of 2014 and powered the company to the largest profit in corporate history.
Overall spending on luxury gift giving dropped 5% in 2014, following a 25% drop the year before. Beijing has cracked down on corruption and luxury spending by public officials, which has led to a drop in sales of everything from premium liquor to expensive handbags.
An increasing number of shoppers are looking to spend their luxury dollars with overseas firms, which also contributed to a drop in domestic luxury spending.
“Travel retail continues to change the dynamics of luxury in China, with 7 out of 10 luxury goods bought by Chinese now being bought overseas,” said Hurun Report Chairman Rupert Hoogewerf.
Hermes dropped from the top spot last year all the way down to seventh place this year. Chinese premium liquor company Kweichow Moutai Co Ltd re-entered the top 10 after a two year absence, their sales had been hit by the government’s anti-luxury campaign among officials.
LVMH Moet Hennessey Louis Vuitton SE, Kering SA’s Gucci and Chanel took the spot on the list just behind Apple.
The Hurun Report has been conducted for over ten years, and is based on a survey of almost 400 Chinese millionaires with a personal wealth of at least 10 million Yuan ($1.6 million USD).
It will be interesting to see how Apple’s luxury gift giving status will be affected by the upcoming Apple Watch, and its 18-karat gold option. Hurun reports that watches and consumer electronics take first and second place as gifts for men, and fourth and third place as gifts for women.
