Archive for ‘luxury brand’

30/09/2014

China’s Legions of Tourists Will Spend $155 Billion Abroad This Year – Businessweek

China is preparing for roadways clogged with cars and trains overloaded with travelers during its weeklong National Day holiday starting Oct. 1. But the real action for Chinese tourists will be happening overseas.

Chinese tourists in Paris

Over the full year, 116 million Chinese tourists are expected to travel abroad and spend $155 billion, up 20 percent over 2013, projects a new report by the China Tourism Academy. That compares with less than $55 billion that will be spent by tourists inside the country, a gap of more than $100 billion. “The deficit will further increase in the future,” predicts academy head Dai Bin, who was quoted in the China Daily.

China now sends more tourists abroad than any country in the world, according to China’s National Tourism Administration. Favored destinations include Australia, South Korea, and Southeast Asian countries as well as, increasingly, Europe and the U.S. Chinese tourists abroad will exceed half a billion annually within five years, says Shao Qiwei, administration chief of the English language paper.

In the first half of this year, Chinese spent $70 billion on overseas travel, up 20.7 percent from the same period a year earlier. Chinese travelers abroad spend almost three times as much per capita as foreign tourists in China, says Fan Zhiyong, an economist at Renmin University in Beijing, the official Xinhua News Agency reported.

Along with hotel lodging fees and restaurant meals, overseas spending includes plenty of purchases of such high-priced products as Rolex watches, Prada (1913:HK) shoes, and Chanel handbags. One-third of all Chinese travel expenditures goes to buy goods, often “luxury items—to take back home,” says McKinsey & Co. in a June report. Total spending could reach $194 billion by 2015, Morgan Stanley (MS) estimated last year.

via China’s Legions of Tourists Will Spend $155 Billion Abroad This Year – Businessweek.

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23/04/2014

Xi’s Corruption Crackdown Hits China’s Restaurants – Businessweek

Dirty officials aren’t the only ones getting slammed as Xi Jinping continues his crackdown on corruption and waste. China’s restaurant industry grew 9 percent, to 2.56 trillion yuan ($411 billion), last year, its slowest growth in more than two decades, according to a report released by the China Cuisine Association on April 19.

Xi's Corruption Crackdown Hits China's Restaurants

Restaurants, particularly the pricier ones, have long been popular venues for China’s bureaucrats and the businessmen wanting to curry favor with them. “This is a sign that the central government’s antigraft campaign against waste and extravagance has been well implemented,” said Feng Enyuan, deputy chairman of the CCA, reported the China Daily on April 21.

Midrange and high-end restaurants have been particularly hard hit, according to the association. China Chuanjude Group, the 150-year-old state-owned roast duck chain, saw its revenue fall 2.13 percent, to 1.9 billion yuan, while net profit dropped 27.6 percent last year, to 110 million yuan. In response, the chain has tried to lure more families and friends, in part by adding more affordable dishes to its menu.

via Xi’s Corruption Crackdown Hits China’s Restaurants – Businessweek.

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19/04/2014

Audi expects to sell half million cars in China this year | Reuters

Volkswagen‘s (VOWG_p.DE) luxury division Audi plans to sell about half a million cars this year in China, the world’s biggest auto market, and raise the number of its Chinese dealers to 500 by 2017.

The company logo is seen on the bonnet of a Audi car during the media day ahead of the 84th Geneva Motor Show at the Palexpo Arena in Geneva March 5, 2014. REUTERS/Arnd Wiegmann

The German automaker hopes its car sales will exceed 500,000 this year, executives told reporters on Friday before the Beijing auto show, which opens on Sunday.

Foreign auto makers, such as General Motors Co (GM.N) and Toyota Motor Corp (7203.T), and domestic players such as SAIC Motor Corp (600104.SS) have been competing aggressively in China, where rising affluence is boosting car ownership.

“This country has an increasing number of mega cities,” Audi Chief Executive Rupert Stadler said, naming Beijing, Shanghai and Guangzhou as examples. “In these three areas, there are as many people as, for example, in Germany.”

In 2013, Audi sold 488,000 vehicles in China and a total of 492,000 including Hong Kong. Executives said it aimed to take advantage of the increasing popularity of SUVs and rising demand for compact premium cars.

China’s auto market is expected to grow 8-10 percent this year, easing from last year when it expanded 13.9 percent to 21.98 million vehicles.

Audi is stepping up efforts to unseat German rival BMW (BMWG.DE) as global luxury-car sales leader.

via Audi expects to sell half million cars in China this year | Reuters.

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26/03/2014

Foreign Brands Shift Focus to China’s Second-Tier Cities – Businessweek

On March 15, luxury retailer Lane Crawford held a soft launch for its new store in Chengdu, a fast-growing metropolis in southwestern China. A few years ago, major fashion brands were concentrating on China’s leading first-tier cities: Beijing, Shanghai, Guangzhou, and Shenzhen. But today many are focusing on China’s second-tier and third-tier cities—which McKinsey Global Institute predicts will be home to 45 percent of China’s middle-class and high-income earners by 2022.

Chunxi Road shopping street in Chengdu

Hong Kong-based Lane Crawford is in good company in Chengdu. In 2010 the spacious Yanlord Landmark mall opened there; its current tenants include Burberry (BRBY:LN), Dior (CDI:FP), and Louis Vuitton (MC:FP). Of its 47 stores in mainland China, Louis Vuitton has already opened 36 in second-tier and third-tier cities. Tommy Hilfiger even has outlets in the western territories of Xinjiang and Tibet. Estée Lauder (EL) has more than 100 counters in more than 40 Chinese cities.

Domestic luxury brands looking to establish themselves as national chains are also focusing on second-tier cities. Guangzhou-based fashion label Nisiss, which sells breezy trousers and $900 cocktail dresses, opened two stores last year in Chengdu. This year it plans to open stores in Qingdao, Dalian, and Suzhou, among other cities.

via Foreign Brands Shift Focus to China’s Second-Tier Cities – Businessweek.

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05/02/2014

China’s New Year market booms, luxury gift sales down – Xinhua | English.news.cn

China\’s consumer market boomed during the first days of the Lunar New Year holiday despite falling luxury gift sales, according to the Ministry of Commerce (MOC) on Wednesday.

In the first four days of the week-long Spring Festival holiday, the most important traditional holiday in China, consumer market sales expanded steadily and quickly, the MOC said in a statement on its website.

Without giving nationwide figures, the MOC said consumer market sales in the cities of Beijing and Chengdu had risen by 9.2 percent and 13 percent year on year respectively. According to the MOC, sales in Shaanxi, Anhui and Henan provinces grew by 14.3 percent, 11.2 percent and 10.4 percent respectively.

Online business and the catering, tourism and entertainment sectors have also prospered during the holiday, according to the MOC.

China\’s consumer market has boomed in spite of falling sales of luxury goods purchased as new year gifts, according to the MOC.

Sales of luxury gifts such as expensive alcoholic beverages and rare seafood, which are sometimes sent as gifts to officials during the holiday, have fallen sharply. Experts have viewed the drop as a direct result of the central government\’s anti-graft and frugality campaign.

via China’s New Year market booms, luxury gift sales down – Xinhua | English.news.cn.

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28/12/2013

Small jet makers see big chance as China prepares to open skies | Reuters

Ferraris and Rolls-Royces have become common sights in China\’s cities as a new class of super-rich indulge a growing appetite for luxury, but tight regulation has meant the private jet, the ultimate status symbol of the global elite, remains rare.

Guests walk next to aircrafts as they attend the Shanghai International Business Aviation Show at the Hongqiao International Airport in Shanghai in this April 16, 2013 file photo. REUTERS/Carlos Barria/Files

Recent rules changes, however, indicate that China is preparing to open its skies to private aircraft, in a move that may herald the greatest expansion of business and private aviation in the last 30 years.

Last month, China\’s aviation regulator simplified flight approval procedures for private aircraft and lowered the threshold for obtaining a private pilot license.

via Small jet makers see big chance as China prepares to open skies | Reuters.

20/12/2013

Chinese Students in U.S. Boost Luxury Car Sales – Businessweek

Chinese students at the University of Iowa began coming into Carousel Motors in Iowa City about three years ago to get their Mercedes (DAI:GR) and Audi (NSU:GR) luxury cars serviced. Finally, general manager Pat Lind started asking if they’d ever considered his dealership when they made their original purchase. No, the students told him. Back in China, they’d been told to buy their wheels in Chicago before heading to college.

Among Chinese student car buyers in the U.S. in the past two years, 32 percent paid cash

So Lind began sponsoring the university’s Chinese student association, which sends information to incoming students in China before they arrive in the U.S. Sales to Chinese students doubled and now make up about 5 percent of the vehicles sold at the dealership, located about two miles from campus. “We became an advertiser,” Lind says, “and got our face in front of them.”

The number of students from China enrolled in U.S. colleges and universities reached 235,597 during the past academic year, more than triple the 64,757 enrolled in 2002-03, according to the Institute of International Education. These students often come from families that are better off than the typical American college student’s, says Sid Krommenhoek, a founder of Zinch, a consulting firm owned by textbook rental company Chegg that works with prospective Chinese students. Shelling out $50,000 for a high-end car is viewed as an affordable status symbol compared with back home, where such cars can cost two to three times as much because of hefty import duties.

via Chinese Students in U.S. Boost Luxury Car Sales – Businessweek.

01/12/2013

For Cognac Makers, the Chinese Party is Over – Businessweek

French cognac makers won’t be toasting the Chinese New Year. After several years of double-digit growth, cognac sales in China have tanked as President Xi Jinping clamps down on conspicuous consumption.

Shares in Rémy Cointreau (RCO:FP), maker of Rémy Martin cognac, plunged nearly 10 percent on Nov. 26 after the company said it expected a “substantial double-digit decline” in profits because of weak Chinese sales.

The Chinese New Year, which falls on Jan. 31 in 2014, ordinarily would bring a sales windfall, with Communist Party leaders hosting cognac-soaked banquets and giving each other bottles costing $200 and up. But, Rémy Chief Executive Officer Frédéric Pflanz told Bloomberg Television, “We don’t necessarily expect a bettering of the situation” for the next few months. Chinese distributors are sitting on large, unsold stocks and aren’t placing new orders, he said.

via For Cognac Makers, the Chinese Party is Over – Businessweek.

20/10/2013

Jaguar Land Rover to recruit 1,000 workers in China: report – NDTVProfit.com

Indian auto giant Tata Motors plans to recruit 1,000 workers in China for its 1-billion pound Jaguar Land Rover (JLR) joint venture in the country, which will include a new engine plant.

Jaguar Land Rover to recruit 1,000 workers in China: report

The West Midlands based carmaker has been training 50 of those workers at its Halewood plant in Merseyside, according to The Sunday Times.

The workers are due to return to China at the end of the month, where they will pass on their skills to others. JLR wants to cash in on the huge demand for its vehicles in China by launching its own giant manufacturing operation in Changshu near Shanghai.

Its best-selling Evoque \’Baby Range Rover\’ will be the first car to roll off the production line.

Sources told the newspaper that the factory, built under a joint venture with Chinese car manufacturer Chery, will produce up to 130,000 cars a year, rising to 200,000.

This would put it on a par with JLR\’s operations at Solihull, which builds Range Rover and Halewood.

via Jaguar Land Rover to recruit 1,000 workers in China: report – NDTVProfit.com.

30/08/2013

Daimler’s Mercedes-Benz sees double-digit growth in China market

Reuters: “Daimler AG‘s Mercedes-Benz expects to see growth of up to 15 percent in China’s luxury car segment this year, a senior executive said, and is trying to grab a bigger share of that market by expanding into the inland-west and smaller cities.

People looks at Mercedes-Benz cars during the the 15th Shanghai International Automobile Industry Exhibition in Shanghai April 21, 2013. REUTERS/Carlos Barria

The company plans to open 75 new dealer outlets this year, nearly half in third- and fourth-tier cities, said China sales head Nicholas Speeks, as part of a broader turnaround plan to reverse its recent struggles in the world’s biggest auto market.

“We are a little bit lagging behind our principal competitors in terms of outlets opening,” Speeks told reporters at a news briefing to outline the German brand’s strategy at the Chengdu auto show on Friday.

“In the past we have been concentrating on Beijing, Shanghai (and other major markets along China’s coast). We recognize one of our shortcomings is the fact that we need to expand our dealer network.”

The network expansion is a key component of Daimler’s (DAIGn.DE) strategic plan to invest 2 billion euros ($2.67 billion) in China over the next two years.

It aims to boost sales of Mercedes-Benz cars by a third to more than 300,000 cars a year by 2015, from this year’s forecast sales of 230,000 cars.

If achieved, the target would make China Mercedes-Benz’s biggest market globally. Currently, China is the brand’s No. 3 market behind Germany and the United States.

Speeks said China’s economy remained “fairly healthy”, despite a slowdown in growth.

China’s overall car market was expected to grow about 10 percent, year-on-year, this year, he said. “I think the premium car market will exceed that. It will be solid double-digit growth this year.”

Asked to define that, he said: “13-15 percent growth – somewhere in that ball park.””

via Daimler’s Mercedes-Benz sees double-digit growth in China market | Reuters.

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