China Luxury News Roundup: October 23

China Luxury News Roundup: October 23

Summary: Prada expects its China sales to double or triple within the next two to three years. Bentley makes ten limited edition cars, and all ten go to China for sale. BMW affirms its position on the growing Chinese auto sector. Are Chinese still buying real estate at home? China leads world in luxury spending. 20 per cent of the global market for luxury goods will be Chinese. Chinese companies like Shang Xia are starting to produce local luxury brands, and looking overseas for growth. Burberry and Harrods earnings affirm continued Chinese demand.

Prada China sales to double or triple

Prada expects its China sales to double or triple within the next two to three years.  “About 40% of our business is from Asia, and it may rise to 50% next year,” Deputy Chairman Carlo Mazzi told reporters. “I don’t think China’s economy will be seriously hit by the global economic crisis.” http://www.thesundaily.my/news/179220

Bentley China limited edition models

Bentley makes ten limited edition cars, and all ten go to China for sale.
http://luxvelocity.typepad.com/luxvelocity/2011/10/linley-bentley-continental-features-a-humidor-and-luxury-galore.html

BMW affirms its position on growing Chinese auto sector

Eichiner told Reuters on Friday on the sidelines of the premiere of its 3 Series that Chinese luxury car sales would continue to rise next year.
http://articles.economictimes.indiatimes.com/2011-10-15/news/30283552_1_bmw-first-friedrich-eichiner-german-luxury-carmaker

Are Chinese still buying real estate at home?

With the benchmark stock index losing almost 10 percent this year and regulations tightening on overseas investments, China’s rich have been turning to luxury property at home, defying a government trying to cool the market. “Luxury homes are still investment darlings of rich people,” said Albert Lau, the head of Savills China,  “They will still buy properties rather than sit there to see their money losing value every day. http://red-luxury.com/2011/10/20/are-wealthy-chinese-still-buying-luxury-properties-at-home/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+RedLuxury+%28Red+Luxury%29

China leads world in luxury spending.

About 57 percent of wealthy Chinese shoppers say that the economic environment has prompted them to spend more on luxury in the past year, and 50 percent plan to boost spending in the next 12 months. In China, 58 percent of the wealthy plan to spend more on leisure travel. http://luxurysociety.com/news/21107

20 percent of global market for luxury goods will be Chinese

With luxury tax being so high in China, the World Luxury Association found prices to be 72 per cent higher in mainland China than, for example, France. Chinese shoppers spent US$50bn in Europe last year (four times more than was spent in China).
http://realbusiness.co.uk/simon-bevan/chinas-luxury-goods-market-is-booming

Shang Xia in the West

Chinese companies like Shang Xia are starting to produce local luxury brands, and looking overseas for growth. Are westerners ready to accept a “made in China” luxury brand and can local luxury brands provide the status that Chinese shoppers want? http://www.thoughtfulmedia.com/en/chinese-luxury-brands-en.html

Burberry and Harrods earnings affirm continued Chinese demand

Demand in China, which accounts for 10 per cent of Burberry’s group revenues, shows no sign of slowing. Chinese remain the top spenders of international shoppers at Harrods, with VAT reclaim data showing an average spend of £3,500 per customer on a store visit. http://luxurysociety.com/news/21040

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