Category Archives: luxury
Sales of luxury goods dropped in 2013, the third year of decline, and is expected to drop even further in 2014, according to a new Hurun report. “In terms of traditional luxury – leathers, accessories, watches – this year is going to be flat if not a little bit down,” Hurun founder Rupert Hoogewerf tells Reuters.
Europe has been a traditional winner in China’s luxury market, but both brands and countries are losing market share to Asia, and to a lesser degree to the US, discovers WSJ wealth editor Wei Gu in a discussion with HSBC’s Erwan Rambourg. Chinese travel more, and discover more and existing products.
Paris and Europe in general are losing track as hot spots for buying luxury goods, as the crisis hits China’s middle class, and consumers move from luxury goods to lifestyle, tells business analyst Shaun Rein in WSJ. “Why buying expensive goods, if you cannot have clean water and air?”
For the first time in a decade growth of luxury goods in China has stalled, as inflation is larger than the recorder growth, says China’s rich list founder Rupert Hoogewerf, and composer of the China Luxury Goods Price Index in the Shanghai Daily. Causes: the fight against corruption and the economic downturn.
Chinese tourists used to belong to the relatively wealthy, but as the picture diversify, more are young and aspiration. Bargains and outlets are becoming higher on their travel agenda, WSJ wealth editor Wei Gu explains. A slower Chinese economy also does not help the high-end luxury industry to catch those buyers.
A cumbersome visa system, no Chinese language brochures. Those are just a few of the barriers the UK and London have in place to stop more Chinese tourists from visiting their country, almost ten years after the first groups were allowed in, hospitality expert Roy Graff tells Christine Lu in the Jing Daily.
Luxury brands have systematically been overcharging their Chinese customers by a margin of over 60%, tells WSJ wealth editor Wei Gu. They blamed high import taxes for the difference with prices in Paris, but also China-produced luxury cars are 64% more expensive than abroad.