chanel uk

Chinese Shoppers Help Europe's Luxury Sector Defy Stagnation

by D'Arcy Doran

As Europe's economies wrestle with deep uncertainties, its iconic luxury brands are posting record revenues, largely as a result of Chinese consumers planning a trip to Europe to obtain the most current fashion.

Boutiques on London's Bond Street don't have to advertise the fact that they take plastic, but small red, blue and green-striped signs are shooting up in windows alongside De Beers' diamonds, white gold or platinum Chanel necklaces and $25,000 Audemars Piguet watches. The twelve signs bear the brand of UnionPay, China's plastic card system, and are generally a not-so-subtle invitation on the world's largest collection of high-rolling tourists.

Inside, Mandarin-speaking sales assistants await, often happy to have access to a cup of green tea leaf when they exhibit expensive goods, such as the latest $40,000 alligator-skin handbags.

"Go into any store and the rich citizens are all Chinese," Xu Peidong, 58, says having a laugh outside a row of shops, while both he brilliant wife carry bags packed with new purchases.

Xu together with his compatriots have helped Europe's luxury brands post record growth, defying the commercial gloom to their home markets. The sector saw an 18% growth over last year, Credit Suisse luxury goods analyst Rogerio Fujimori says. He forecasts slower, but relatively healthy, 9% growth at the moment.

The earth's largest luxury group, Lv Moet Hennessy (OTC:LVMHF), saw group sales rise 25% inside first quarter about this year to billion. Yourrrre able to send 60 brands cover sets from champagne to perfume and watches. Asia, led by China, generated a bigger share of sales than before at 39% - choosing a percentage point from Europe, which fell to 29%. Tourist spending accounted for part of European sales, LVMH Chief Financial Officer Jean-Jacques Guiony told analysts and journalists recently. He credits rebounding European sales to customers like Xu.

"Prosperity is definitely a modern phenomenon for China," says Xu, a well-known Chinese composer who is responsible for a musical director and is in London to obtain a concert within the Royal Albert Hall. "It's surprisingly easy for The chinese to visit now and when they travel, they spend."

China have channel handbag uk topped the tables for duty-free spending since 2010, in 2009 buying greater than $2.4 billion in goods. That figure was up 57% out of the previous year, depending on tax refund service Global Blue. Usual Chinese duty free claim in 2011 was $1,073.

"They are enticed from the prestige importance of luxury brands, and they often perceive affordable luxury as the 'status' stepping-stone on their upward social mobility," says Fflur Roberts, head of worldwide luxury goods for market research firm Euromonitor.

While Louis Vuitton flagship stores have sprouted up in Beijing, Shanghai along with Chinese cities, Chinese prefer buying abroad. "The selection is newer, there's more," Xu says, "And it's cheaper."

The 30% luxury tax China levies on purchases, combined with the weak euro mean a Chinese customer saves 45-47% by getting on Bond Street and the Champs d'Elys in lieu of in your home, says Guiony, the LVMH CFO.

Other luxury brands, like Britain's Burberry (OTC:BURBY), are noticing the very same phenomenon. Burberry reports it's got adapted to higher serve Chinese consumers inside london, Paris and The big apple. "It's the globe-traveling luxury consumer which may be dominating," Burberry Chief Financial Officer Stacey Cartwright recently told analysts and journalists.

But China's slowing economy casts a shadow within the sector. Beijing has cut its growth forecast to 7.5% this season, looking for a decade of annual growth exceeding nine percent.

"Will chinese people keep buying? Which is the upside main question today," Credit Suisse's Fujimori says.

Observers are bullish on luxury brands. Inside of a Credit Suisse survey of 21 luxury companies, the majority said they saw no slowdown or only a small one. One expert said about 40% of Chinese luxury spending is now overseas also, the proportion will be rising.

Even slower Chinese growth remains attractive up against the International Monetary Fund's forecasted 3.5% growth globally and also a 0.3% contraction to your Eurozone.

The boom in China hasn't already only crafted a new generation of wealthy consumers, it's allowed brands to finance their global expansion. Prada mentioned in Hong Kong during the past year and used the main it raised to start 75 new stores, eight individuals in China. The provider gives open 160 additional stores worldwide throughout the next a couple of years, expanding its retail footprint to 548 stores.

While recent market uncertainties forced London's family-owned jeweler Graff Diamonds to set its Hong Kong IPO on hold, the delay is probably going very temporary setback. Indeed, Asia is definitely a pivotal market, comprising a 3rd within the company's business. China alone helped drive growth in interest diamonds up 6% in '09 to twice possible global supply.

Asia and China are responsible for high of hence gone through luxury brands as of late. However, with the long-term, brands like Prada (Hong Kong: 1913) or Lv can't rely solely on Chinese customers to feed their profit margins, Fujimori explains. Shoppers publication rack looking beyond China so are busy opening stores across Latin America, the center East chanel 4 besides other relatively modest markets. It's these regions, your luxury brands hope will provide the new growth driver throughout the coming decade within the that this Asian and Chinese accomplish now.Chinese Shoppers Help Europe's Luxury Sector Defy Stagnation

by D'Arcy Doran

As Europe's economies wrestle with deep uncertainties, its iconic luxury brands are posting record revenues, largely owing to Chinese consumers checking out Europe to invest in the modern fashion.

Boutiques on London's Bond Street shouldn't advertise which they take plastic, but small red, blue and green-striped signs are emerging in windows alongside De Beers' diamonds, white gold or platinum Chanel necklaces and $25,000 Audemars Piguet watches. The signs bear the emblem of UnionPay, China's credit card system, and are also a not-so-subtle invitation within the world's largest group of high-rolling tourists.

Inside, Mandarin-speaking sales assistants await, often prepared have access to a cup of green tea herb while they exhibit expensive goods, enjoy the latest $40,000 alligator-skin handbags.

"Go into any store and also the rich men and women are all Chinese," Xu Peidong, 58, says by having a laugh outside a row of retailers, while both he and his awesome wife carry bags crammed with new purchases.

Xu along with his compatriots have helped Europe's luxury brands post record growth, defying economic downturn and the gloom in their home markets. The sector saw an 18% growth on average last season, Credit Suisse luxury goods analyst Rogerio Fujimori says. He forecasts slower, holiday relatively healthy, 9% growth this current year.

The earth's largest luxury group, Lv Moet Hennessy (OTC:LVMHF), saw group sales rise 25% in the first quarter of this year to billion. Youre able to send 60 brands cover everything from champagne to perfume and watches. Asia, www.luxurybagmall.co.uk led by China, generated a greater share of sales than previously at 39% - enjoying a percentage point from Europe, which fell to 29%. Tourist spending landed 1 / 2 of European sales, LVMH Chief Financial Officer Jean-Jacques Guiony told analysts and journalists recently. He credits rebounding European sales to customers like Xu.

"Prosperity is an extremely modern phenomenon for China," says Xu, a well-known Chinese composer the person a musical director and is in London to obtain a concert in the Royal Albert Hall. "It's a piece of cake for The chinese to search now and when they travel, they spend."

Men and women have topped the tables for duty-free spending since 2010, in '09 buying above $2.4 billion worth of goods. That figure was up 57% belonging to the previous year, in keeping with tax refund service Global Blue. The majority of Chinese duty free claim for 2011 was $1,073.

"They are enticed from the prestige property value luxury brands, and infrequently understand affordable luxury being a 'status' stepping-stone as part of their upward social mobility," says Fflur Roberts, head of global luxury goods for online survey firm Euromonitor.

While Louis Vuitton flagship stores have sprouted up in Beijing, Shanghai together with other Chinese cities, Chinese prefer buying abroad. "The selection is newer, there's more," Xu says, "And it's cheaper."

The 30% luxury tax China levies on purchases, as well as the weak euro mean a Chinese customer saves 45-47% by getting on Bond Street or even Champs d'Elys as a substitute for from home, says Guiony, the LVMH CFO.

Other luxury brands, which includes Britain's Burberry (OTC:BURBY), are noticing an identical phenomenon. Burberry has stated these have adapted to raised serve Chinese consumers within london, Paris and New york city. "It's the globe-traveling luxury consumer that may be dominating," Burberry Chief Financial Officer Stacey Cartwright recently told analysts and journalists.

But China's slowing economy casts a shadow at the sector. Beijing has cut its growth forecast to 7.5% this year, looking for decade of annual growth exceeding nine percent.

"Will china keep buying? That is the main question today," Credit Suisse's Fujimori says.

Observers are bullish on luxury brands. Inside a Credit Suisse survey of 21 luxury companies, the bulk said they saw no slowdown or a very small one. One expert said about 40% of Chinese luxury spending is now overseas as well as the proportion continues rising.

Even slower Chinese growth remains attractive about the International Monetary Fund's forecasted 3.5% growth globally and then a 0.3% contraction for those Eurozone.

The boom in China doesn't have only crafted a new generation of wealthy consumers, additionally, it is allowed brands to finance their global expansion. Prada in your local Hong Kong this past year and used the money it raised to read 75 new stores, eight analysts in China. The manufacturer wants to Cheap Beats By Dre open 160 additional stores worldwide through the next 2 years, expanding its retail footprint to 548 stores.

While recent market uncertainties forced London's family-owned jeweler Graff Diamonds to position its Hong Kong IPO on hold, the delay is probable a temporary setback. Indeed, Asia can be a pivotal market, making up a third with the company's business. China alone helped drive development in interest in diamonds up 6% recently to twice possible global supply.

Asia and China lead to a lot of the expansion seen by luxury brands these days. However, within the long-term, names like Prada (Hong Kong: 1913) or Lv can't rely solely on Chinese customers to feed their profit margins, Fujimori explains. Rest room publication rack looking beyond China and are busy opening stores across Latin America, the very East in addition to other relatively modest markets. It's these regions, that your luxury brands hope brings the fresh growth driver within the coming decade in terms of the fact that Asian and Chinese are going to do now.