| > | | | | company edged up 0.2 percent from a year ago. |
| Luxury Brand,Designer Handbags,Luxury Bag,China | | | | Gucci had 25 stores in 17 Chinese cities as of |
| Luxury Market,2009 China Luxury Market,Louis | | | | January, when it opened three new stores. It is |
| Vuitton China,Gucci China,Couch China,Hermes China | | | | looking to open its Shanghai flagship store in May. |
| While the developed world tighten their belts and | | | | LVMH claims business profit was up 2.1 percent from |
| focus spending on daily necessities, the big luxury | | | | a year earlier to 3.63 billion euros in 2008, but sales in |
| companies are looking to China's new rich to buy their | | | | the United States fell 4.03 percent and in Japan 5.16 |
| jewelry, clothes and bags. | | | | percent last year. However, the group stressed in its |
| While the developed world tighten their belts and | | | | annual report that performance in China was "solid" |
| focus spending on daily necessities, the big luxury | | | | and strong. |
| companies are looking to China's new rich to buy their | | | | Cartier, the French jeweler and watchmaker, is |
| jewelry, clothes and bags. | | | | planning more stores in first and second-tier Chinese |
| The Chinese market shows remarkable resilience in | | | | cities after posting double-digit growth in 2008. |
| the financial crisis because it has an increasing number | | | | Yan Jun, managing director of Beijing-based Ecole |
| of people able and willing to buy luxury goods, says | | | | Fashion & Luxury Consulting Ltd., says the expanding |
| Guo. | | | | middle class constitutes an important group of |
| "Unlike the mature traditional markets, demand in | | | | consumers who desire and can afford luxury goods. |
| China is far from saturated either materially or | | | | "Aged between 25 and 40 and living in developed |
| psychologically." | | | | regions, they are fashionable, mature, and passionate |
| The high-end market, which was once believed to be | | | | about lifestyle and quality," he says. |
| immune from economic downturn, has seen | | | | Up to 170 million people, or 13 percent of the |
| weakening sales growth or even declines in the | | | | population, can afford luxury brands and the number |
| traditional markets of the United States, Europe and | | | | will reach 250 million next year, according to the China |
| Japan, analysts say. | | | | Association of Branding Strategy. |
| A study by the Bain & Company consultants in | | | | The government aims to build "a well-off society" by |
| October predicted global luxury goods sales growth | | | | 2020, with per capita GDP of 3,000 U.S. dollars. |
| would slow sharply to 3 percent to hit 175 billion | | | | Developed regions, such as Shanghai, Beijing, |
| euros (220 billion dollars) in 2008. The slower growth | | | | Guangzhou, Shenzhen, Suzhou and Wenzhou, with a |
| rate stood in sharp contrast with 6.5 percent in 2007 | | | | total population of more than 300 million, will see per |
| and 9percent growth in 2006. | | | | capita GDP exceed 15,000 U.S. dollars. |
| The study also forecast the luxury sector would face | | | | Bain & Company predicted the Chinese luxury market |
| its first recession in six years in 2009, with sales | | | | would see growth of 20 to 35 percent in the next |
| declining by up to 7 percent. | | | | five years. The Ministry of Commerce says China will |
| A report from Deutsche Bank says the market will | | | | become the world's largest luxury market by 2014, |
| contract 5 to 10 percent in 2009. | | | | accounting for 23 percent of global business. |
| However, experts say the Chinese luxury goods | | | | "It is almost certain that China has surpassed the |
| market remains resilient. | | | | United States to become the second largest luxury |
| An estimated 415,000 Chinese had more than 1 million | | | | market after Japan. There is still a lot of room for |
| U.S. dollars in disposable assets in 2007, more than | | | | development," says Yan Jun. |
| any other country, according to the Merrill-Lynch | | | | He believes the huge potential will definitely attract |
| Asia-Pacific Wealth Report released in September. | | | | more brands. |
| "The spending power in China is spectacular", says | | | | "I am going to Italy to give a lecture about luxury |
| Daisy Moon, assistant PR manager of Tiffany & Co. | | | | management in China this June. I have been told a lot |
| China, which achieved its sales targets last year and | | | | of executives of luxury companies will attend and |
| seems little affected by the financial crisis. | | | | they are eager to know more about the Chinese |
| A Gucci spokesman said in an e-mail to Xinhua that | | | | market and how to enter the market," says Yan. |
| China represented one of the most dynamic areas of | | | | "The Chinese market is so desirable that international |
| retail growth for the firm, with 2008 sales growth in | | | | luxury companies are speeding up their quest for a |
| the mainland at 42 percent. The global profit for the | | | | share. |