Luxury goods Aaron Fischer, CFA Regional Head of Consumer and Gaming Research [email protected] () Contents. MUMBAI: CLSA has maintained sell rating on Bank of India and lowered target price to Rs 90 from Rs citing weak asset quality and return. The other one of course is the fact that there is that dip come by in the GST tax collections and the government has already announced a higher.

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They enjoy being given special treatment and have no hesitation in paying a bit more for clsw privilege. On the flipside, China is accelerating. With girl power also growing, luxury handbags are rapidly catching up.

Megha Mittal of the Indian Mittal group of companies acquired Escada. Exposure can be gained via the brand owners ib in Europe and the USA. The strong demand intensifies competition in the luxury space more than domestic expansion of competitive brands.

The Hong Kong Securities and Futures Commission requires disclosure of certain relationships and interests with respect to companies covered in CLSA’s research reports and the securities of which are listed on The Stock Exchange of Hong Kong Limited and such details are available at http: As a result, a majority of the purchases in this store were made by foreign shoppers.

International peer group LVMH Leading luxury-goods giant holding a portfolio of more than 60 prestigious brands in wines and spirits, fashion and leather goods, cosmetics, watches and jewellery, and retailing. The company generates most of sales from the mainland and Hong Kong.

These include apparel brand owners, watch and jewelry retailers, department stores and fashion retailing, cosmetics, and footwear specialists. Although savings rates remained high in the past five years, we believe that it may have already peaked.

From head to toe Luxury goods Figure 99 Figure Which luxury brand would you like to own? Bentley China chairman Peter Mak djpped amazed by the huge demand and rapid income growth on the mainland, since some of these buyers might not even have a car 15 years ago. Figure 1 Profile of millionaires in China Average age 39 Male-female ratio 7: Hurun Research Institute 12 aaron.


Hong Kong tops the Where to buy luxury cosmetics. The more traditional way of signing up celebrities as spokespersons, however, is still common. Generally, the affluent Chinese are younger with a greater desire to display their wealth and success.

For example, a pack of premium puerh tea from the s sold for Rmb13, in an auction, which is almost Rmb40 per gram.

China’s growing middle class continues to dip itself in gold

Hang Seng Index’s consumer goods sub index has slipped 8 percent since November last year. As of Decemberthe company had retail outlets, of which are exclusive Hermes stores. We expect to see very strong demand from Greater Chinese in the next 10 years. On average, among all the consumers we surveyed who have made luxury purchases in the past 12 months, each spent Rmb16, Audi is also the biggest supplier of official cars in China.

Dipped in gold, China to be world’s top luxury market – CLSA

As China’s middle class grows, and luxury items become the norm, gold will continue to be consumed voraciously, say analysts. This year so far has been one of growth, up Given the close proximity and its fame as a shopping heaven, Hong Kong still attracts many luxury shoppers.

The Red Eight and the Chinese customer Luxury goods 14 aaron. Lanvin 0 50 ? Shang Xia already has a collection that is affiliated with porcelain techniques from Jingdezhen. We print on paper sourced from environmentally conservative factories that only use fibres from plantation forests. Import duties are relatively high in China and the government also imposes a consumption tax and the typical VAT. Exposure to Greater China customers European owned and listed Nearly all the leading luxury brands mentioned in the previous section are listed in Europe or the US or form part of private companies.

Hugo Boss started a joint venture with local fashion retailer Rainbow Group in July and planned to open as many as 20 stores in aaron. A tad pricey at 26x. The government expects that million people will travel abroad byup from 47 million in Exposure to the high end Most of the European and US-listed brand owners generate the majority of their earnings not necessarily sales from the luxury segment.

Gold and jade are the most popular jewellery items. Big brands in China include Zegna and Dunhill. The Red Eight and the Chinese customer Luxury goods Watches and jewellery are great for displaying wealth, gifting, and collection 5.


Regis opened the first international luxury hotels in Lhasa, the capital of Tibet. The luxe brand is to hold a retrospective exhibition golr mark its th anniversary in Beijing later this month. As far as we could see, the people that visited the store were all impressed, by its decoration and delicateness, as well as price tags. Below Rmb1, Rmb5, Rmb1, Above Rmb10, How much do you plan to spend on luxury goods in the next 12 months?

Beer remains the preferred drink, with each person consuming Based at in January Expensive brand-name products are oftentimes perceived as of higher quality. The Red Eight and the Chinese customer Luxury goods Travel is key threat for retailers The 31 store managers we surveyed also named overseas demand as the top competitive force in luxury skincare and accessories.

It is a lot more important to dress well and enjoy a luxurious life when you are out in public. Hong Kong is the largest Swiss watch export market in the world. Clsq Wintour, US Vogue editor, also made her first visit to China recently and the prominent fashion magazine featured eight Asian models in its December issue.

China’s growing middle class continues to dip itself in gold

He believes that local materials and local crafts have an appeal to Chinese consumers. Similarly, Chow Tai Fook, which holds a dominant market share in Greater China’s jewellery retail business, established a network of more than 1, sipped and watch points of sale. Figure Figure Everyone likes foreign names Which luxury brands would you like to own?

Domestic versus total demand Luxury goods feature high on the shopping list for Chinese travellers. The brand is not doing much advertising in China for now and we do not see much comment in local media or internet communities.