Tag Archives: industry

WSJ: Only China Can Save Luxury Sales

Spending On Everything From Luxury Cars To Private Jets Shows Ultrarich Chinese Are Unleashing Their Inner Conspicuous Consumer

The exclusive club of "ultra-rich" in China are splurging amid the ongoing global economic doldrums

The exclusive club of "ultra-rich" in China are splurging amid the ongoing global economic doldrums

An interesting blog post today at the Wall Street Journal, where Robert Frank points out that the global economic downturn has turned a new spotlight onto a once-unlikely savior — the Chinese [ultrarich] consumer. While this group is exclusive to say the least, particularly in terms of the miniscule percentage of the Chinese population that can live up to this title, the staggering dropoff of the once mighty American, Japanese and even Russian luxury showoff has pushed the Chinese super-spender into the leading role.

Though Frank’s potential nicknames for this ultrarich group of big spenders — “Deng Xiaoblings,” for one — are a humorous take on the subject, the repercussions of an Eastward shift of conspicuous consumption and luxury shopping sprees could mean a great deal for established western luxury brands. Just as the increased buying power — and desire for diversification — seen among Chinese buyers of everything from gold to real estate to luxury cars to Chinese antiquities and contemporary arts has affected those markets and caused everyone from Bugatti to Sotheby’s to focus far more strongly on the China market than ever before, this China-bound luxury shift could very well change the nature and corporate strategies of the global luxury industry.

From the WSJ:

Purveyors of posh have a new mandate: Go East!

An updated forecast from Bain & Co. out this morning shows a stronger-than-expected rise in luxury sales for Asia–especially China. It said it expects luxury-goods sales in mainland China to jump 12% this year.

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Time To Invest In China? — CityWire UK

Additional Fiscal Stimuli Pave The Way To Recovery

Massive stimulus spending on industry and infrastructure projects are expected to transform the Chinese economy in coming years

Massive stimulus spending on industry and infrastructure projects are expected to transform the Chinese economy in coming years

CityWire reports today on China’s decision to allocate an initial four trillion RMB (£1.3 trillion) to spend on infrastructure products and consumer spending initiatives in coming years, looking to jumpstart its economy, which has lagged somewhat in recent months due to reduced demand for its exports in North America, Japan, and Europe. The author suggests that it is a good time to invest in several industries, as the potential for massive growth in certain sectors should pay off as these investments mature and China makes more progress in its transition from a state-dominated and export-led developing nation to a more consumer-led economy.

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