In the following video, Bloomberg’s David Ingles gives an overview on Asia’s demand for luxury goods - with a particular focus on China. Here are some interesting takeaways:
- Asia accounts for 50% of global luxury sales. Asian demand for luxury is holding up better than most numbers show.
- While shipments to China of luxury goods are down 31%. Shipments to the U.S. are up close to 10%. This increase in the U.S. could be attributed to Chinese shoppers who typically go abroad to shop.
- Why do most Chinese shoppers go abroad? It’s much more expensive to shop for the same exact luxury goods in China than it is to purchase overseas. Example: A Burberry scarf that costs $720 in Shanghai would cost only $385 in Europe.
- Why are luxury brands still expanding their retail presence in China if sales have declined there as a result of Chinese shopping more abroad? It’s important to establish and maintain a presence for branding.