Agenda-setting intelligence, analysis and advice for the global fashion community.
"Luxury in China Loses Lustre as Wealthy Flee" (Reuters)
“Overall spending by wealthy Chinese fell by 15 percent in 2013, the third consecutive year of decline, according to a survey by the Hurun Report. Spending on gifts in particular also declined by a quarter. The drop coincides with a government crackdown on corruption and gifting, as well as an a growing penchant for travelling and shopping overseas to circumvent Chinese consumption taxes on luxury goods as high as 40 percent.”
"Era of Cheap Apparel May Be Ending for Us" (The New York Times)
“For decades, declining prices have helped American consumers spend less on one critical part of every family’s budget: clothing. But those days may be ending. The government reported this week that consumer prices for apparel rose 0.6 percent in 2013. That is hardly rampant inflation, but it was the third consecutive year that apparel prices increased. Before 2011, those prices had risen in only two of the previous 13 years. The long stretch of falling apparel prices was largely attributable to an era of cheap imports, as China emerged from economic isolation to become the world’s largest exporter.”
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"China's Big Spenders Turn to Macau Into a Luxury Brand Shopping Destination" (South China Morning Post)
“With its huge casinos and glittering hotels, Macau has established itself as a top tourist destination for wealthy mainlanders in recent years. But it's not just the city's famed casinos - 36 of them generated US$38 billion in gaming revenue last year - that are crowded. The real buzz is coming from the city's luxury boutiques, many of which dwarf their Hong Kong counterparts in scale, profitability and range of exclusive products.”
"Shanghai FTZ To House Asia's First High-End Fashion Distribution Centre" (Want China Times)
“Asia's first distribution center for luxury fashion brands is expected to be established in Shanghai's free trade zone (FTZ) and will take advantage of the favorable tax policies there, reports the Chinese-language Guangzhou Daily. The distribution center will build a modern supply chain for parallel imports of luxury goods, which indicates that the wholesalers and retail channels in the Asia-Pacific region will no longer need to stock up from the country of origin, such as Europe.”
"E-Commerce Competition Intensifies in China" (The New York Times)
“Until recently, Alibaba and Tencent seemed largely content to develop their own areas of expertise without moving too aggressively onto each other’s turf. Alibaba owns e-commerce sites like Taobao and Tmall, while Tencent operates messaging services like QQ and WeChat. But over the last year or so, with Alibaba positioning itself for an initial public offering and Tencent eyeing the lucrative earnings from the boom in online retailing in China, the gloves have come off.”
