Posts tagged ‘luxury goods’

31/12/2015

2015 Chinese diplomacy: Reaching farther and wider – Xinhua | English.news.cn

2015 has been a productive year not only for China, but for its partners all over the world. The world’s second largest economy reached out farther and wider, through initiatives such as the “Belt and Road” and the “AIIB“. And President Xi Jinping led the way.

 

President Xi Jinping’s official state visit to the UK was full of pomp and pageantry and the occasional imbibing. Footage of President Xi and Prime Minister David Cameron enjoying a pint and some banter in an English pub went viral in China. And the rest is history. The consumer power of the world’s second largest economy has been felt fully by the British beer company. Just this time, it started with President Xi himself.

And in the year 2015, it’s been a recurring story. Wherever the Chinese president travels, Chinese investment and consumer power are his companions. From projects worth in the billions. There’s Chinese investment in the UK infrastructure and energy sector.

Chinese financing of Russian and Central Asian natural gas projects and China’s pledge of 60 billion dollars of development funds to African nations.

To a more personal touch, a visit, in the case of Boeing, by the President of the world’s largest airplane market, means shored up confidence for some 160-thousand employees, against the backdrop of a wobbly global economy, The president also brought Ping Pong diplomacy to a high school in Washington State while students there returned the favor by showing the well-known football fan, a different kind of football. And this viral photo of President Xi brought forward cutting edge research at the Imperial College London.

2015 has been a year when Chinese initiatives were taking root and taking shape on a global scale from the Belt and road initiative. To the AIIB, and the south-south cooperation fund. Economies reshaped and lives transformed or in the case of Greene King, a centuries old British beer finding a new Chinese following.

Source: 2015 Chinese diplomacy: Reaching farther and wider – Xinhua | English.news.cn

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06/03/2015

China’s Fosun buys 5 percent stake in British travel group Thomas Cook | Reuters

China’s Fosun International (0656.HK) has bought a 5 percent stake in Thomas Cook Group (TCG.L), deepening its foray into Europe’s tourism sector and potentially helping the British company to compete with travel leviathan TUI Group (TUIT.L)

Fosun paid 92 million pounds ($140 million) for the Thomas Cook stake and will seek to double its holding in the world’s oldest travel group to 10 percent, it said in a filing to the Hong Kong stock exchange on Friday.

News of the investment, which the companies said came after two years of talks, sent Thomas Cook shares soaring by as much as 22 percent in morning trade. At 6.20 a.m. ET the shares were up 18.8 percent at 143 pence.

Thomas Cook said that it expects the tie-up to enhance earnings in the financial year to Sept. 30, 2016, assuming plans under the partnership are implemented in 2015.

One of the plans is to explore collaboration opportunities with Club Mediterranee (CMIP.PA), the French holiday company Fosun bought last month, where it is seeking to turn around a business that is struggling in Europe and move more aggressively into fast-growing markets such as China.

via China’s Fosun buys 5 percent stake in British travel group Thomas Cook | Reuters.

19/10/2014

China’s Jet Set Spends Overseas While Luxury Sales Rise in U.S. – Businessweek

For the first time since Boston consultancy Bain & Co. began tracking the global luxury market, overall sales of luxury goods declined in mainland China over the first eight months of 2014. The dip was small—sales dropped 1 percent—but significant because of the outsize hopes brands from Prada (1913:HK) to Rolls-Royce (RL/:LN) have placed on wooing China’s socially ambitious spenders.

The fully-booked Nanatsuboshi (Seven Stars) luxury sleeper cruise train in Kagoshima, Japan

In the past year, the number of billionaires in China jumped by more than a fifth (from 157 to 190), according to Switzerland’s UBS (UBSN:VX) and Singapore research firm Wealth-X. But spending on luxury goods within mainland China has been squeezed by two significant trends: the continuing austerity and anticorruption drive led by President Xi Jinping and the growing preference for China’s jet set to snatch up expensive handbags and watches while on overseas trips (in part to avoid pricey import taxes at home).

Bain forecasts that overall global luxury sales will rise 5 percent in 2014, with the largest increases expected in the U.S. and Japan (at 5 percent and 10 percent, respectively). Some portion of that spending comes from Chinese tourists in New York, Los Angeles, and Tokyo, but the report doesn’t attempt to estimate how much. Bloomberg Businessweek has previously reported on the growing market for luxury train service in Japan, where household wealth is rising more quickly than at any time in the past five years and seniors want to enjoy their golden years.

via China’s Jet Set Spends Overseas While Luxury Sales Rise in U.S. – Businessweek.

14/02/2014

Chinese luxury spending drops 19% during festival[1]- Chinadaily.com.cn

Chinese people spent $6.9 billion overseas on luxury goods during the Spring Festival holiday (Jan 31 – Feb 6), a drop of 18.8 percent from last year, according to World Luxury Association.

Austerity drive among factors taking toll on luxury market

Luxury outlets lure Chinese at Lunar New Year

And domestic sales of luxury goods were only $350 million, a 57.8-percent drop from 2013 and 80 percent drop from 2012.

The European area tops the destinations by receiving nearly $3.6 billion of total overseas spending during the festival.

Meanwhile the domestic luxury goods consumption also saw a sharp drop in five major cities (Beijing, Shanghai, Guangzhou, Shenzhen and Chonagqing), standing at $350 milion, down 57.8 percent from the same period of last year and 80 percent from 2012.

Insiders said the results were due to the Chinese central government‘s cracking down on corruption, which led to dramatic decrease in government-paid junkets and officials accepting gifts.

via Chinese luxury spending drops 19% during festival[1]- Chinadaily.com.cn.

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23/01/2012

* Chinese luxury goods brand you’ve never heard of

Chow Tai Fook is a Hong Kong based jeweller with revenues 50% higher than Tiffany’s. It has 1,500 outlets in China, mainly in second tier and third tier cities. It IPOed 10% of its shares 6 weeks ago which puts the value of the company at around $20bn.

With Chinese New Year here (Year of the Dragon), jewellery purchases are expected to be high and Chow Tai Fook hopes to gain some of that.

http://blogs.wsj.com/scene/2012/01/03/getting-to-know-chow-tai-fook/

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