Chinese men drive a rebound in luxury sales
ENSURES A STRONG FOURTH QUARTER RUN- UP IN SALES ON MAINLAND AND HONG KONG
et’s hear it for the boys. China’s fashion- forward men are snapping up Gucci and Burberry bags, driving a rebound in the luxury market months after a slowdown in spending by the world’s biggest luxury goods buyers spooked global investors.
Men account for about 55 per cent of China’s luxury goods market, well above the global average of 40 per cent, according to research from brokerage CLSA, partly because businessmen often buy expensive gifts to curry favour with government officials or potential associates.
Companies such as Burberry Group Plc benefit from this gift- giving culture, and wealthy Chinese men’s penchant for designerware. But they are also at risk of big sales
Lquarter after seven straight quarters of slowdown, sales rebounded. Burberry said last week its Asia- Pacific sales rose 15 per cent in the three months to December, led by China and Hong Kong, while its European business was flat and the Americas up just 2 per cent. Sales of men’s clothing were up more than 50 per cent over the final three months of 2012, Burberry said, and men’s accessories such as handbags rose nearly 40 per cent.
Big spenders
Just last week, customers toting paper bags bearing the logos of Louis Vuitton, Hermes, Gucci, Prada and other global luxury brands were out in force at malls in Hong Kong and Macau, two nearby destinations for wealthy mainland Chinese shoppers.