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Gucci sales soar amid ‘extremely dynamic’ demand for luxury goods in China

Kering’s Gucci label continued to outpace competitors in the fourth quarter, giving another signal that Chinese appetite for luxury goods remains healthy. Fourth-quarter sales at Gucci rose 28 per cent on an organic basis to €2.3 billion (US$2.6 billion), Paris-based Kering said on Tuesday. Analysts had expected 27 per cent growth. The last of the major luxury-goods makers to report for 2018, Kering wraps up an unusually strong earnings season for the industry. The Gucci owner confirmed a trend seen at LVMH and Richemont, which indicated the Chinese are still…

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At least eight guests struck down by norovirus at luxury Club Med Yabuli resort in northern China

Eight guests celebrating the Lunar New Year holiday at the luxury Club Med Yabuli resort in northern China had contracted the norovirus sometimes known as “winter vomiting bug”, according to the resort operator. “Harbin local government confirmed that eight guests received medical treatment for symptoms of the ‘Winter Vomiting Bug’ Norovirus on February 9 and 10 at Club Med Yabuli in Heilongjiang Province,” said a statement released by Club Med on Monday. Harbin is the capital city of China’s nothernmost province. No one had been kept in hospital for treatment,…

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Luxury goes local as Chinese shoppers gravitate towards home-grown brands

Affluent Chinese consumers have for years shown a preference for global, well-known brands and labels. But with growing sophistication in tastes and a penchant for unique styles, the well-heeled are now increasingly gravitating towards high-end Chinese designers. “While global forces will continue to impact China’s luxury market, domestically there’s this whole new wave [of Chinese designers] that is coming through and is transforming the market,” said Simon Tye, executive director of Hong Kong-based market research company Consumer Search Group (CSG). Alibaba and Guess team up to marry fashion and artificial…

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Luxury brands pig out on Year of the Pig images, hoping it will bring home the bacon

On Tuesday, February 5, the Chinese calendar will usher in the Year of the Pig. For Chinese, the year in which one is born determines personality traits and luck in life. For luxury brands, the Lunar New Year, or Spring Festival celebration, offers a chance to deliver capsule collections aimed at those celebrating the seasonal change and a possibility of bumping revenues in the weeks following the end-of-year holiday period. Porcine shapes and imagery are covering everything from elegant Swiss watches to cute bag charms in 2019. Vacheron Constantin allows you to, pardon…

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Why Do Budget Hotels Offer Free Internet and Luxury Hotels Do Not?

[Sponsored Article]          Add-on Policies under Vertical Differentiation: Why Do Luxury Hotels Charge for Internet while Economy Hotels Do Not?LIN, SongMarketing Science, Articles in Advance, pp1-16, 2017 Hotels, like any businesses, are motivated by profit. But a strange pattern has emerged when it comes to low-cost amenities such as Internet services. One survey found only 54 per cent of luxury hotels offered free Internet compared to 91 per cent of budget hotels. As Song Lin points out, this phenomenon seems counterintuitive and has not been explained satisfactorily…

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China 

China’s confident and carefree Generation Z spend over US$7,000 a year on luxury goods

They are confident, carefree and spend over US$7,000 a year on luxury goods – even before they turn 21. Meet China’s Generation Z. Spoiled by parents and grandparents for being the only child in their families, these youngsters are living it up compared to their cautious, conservative peers in the West, according to a new survey. They are pumped up about the future and not worried about their career prospects or international politics, notwithstanding a trade war at their doorsteps. A study by research firm OC&C Strategy Consultants, reveals marked…

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Property 

Luxury home sales in Hong Kong hit record US$24.6 billion last year, says Centaline report

Sales of luxury homes in Hong Kong smashed all previous records last year, according to research by Centaline Property Agency. But whether that momentum can be maintained in 2019 will depend on the outcome of the US-China trade war, analysts warned. The number of homes that sold for HK$20 million (US$2.55 million) or more climbed above 4,000 for the first time, up 8.2 per cent on the year, to 4,189. The total value of those transactions reached HK$192.67 billion, the most since records began in 1996, up 14.8 per cent…

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Mainland buyers’ interest in Hong Kong luxury homes wanes as trade war sours appetite

Fewer deep-pocketed mainland buyers are showing an interest in the city’s luxury homes amid rising economic uncertainty brought by the US-China trade war, with market observers saying enquiries for property over HK$100 million (US$12.8 million) has fallen by half. “Most of the buyers from the mainland are business owners whose businesses might be directly affected by the tariffs, while some are just holding off on their offers because of the uncertainties,” said Patrick Chau, senior director of residential development at Savills. Businesses in the Pearl River Delta, one of the…

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Shanghai’s ‘Quarry’ hotel set to tap growing taste for luxury, high-end business travel

After a marathon construction process marred by technical setbacks, a luxury hotel built on an abandoned quarry near Shanghai has opened to the public – and so far the rush of bookings seems to vindicate the efforts by one of China’s riches men to create a local landmark. After 12 years of development, the 2 billion yuan (US$288.2 million) hotel, developed by Shimao Group, officially opened on Tuesday. Expectations are the luxury concept, branded as the InterContinental Shanghai Wonderland Hotel, will tap growing interest among mainland consumers for a taste…

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Property 

Thailand opens its biggest luxury shopping playland – and looks to wealthy Chinese tourists to make it a hit

The owners of a splashy riverside project in Bangkok of luxury shops, high-end condos and a large performance auditorium are tying their success to tourists – aiming to attract 250,000 a day, mostly from mainland China and Hong Kong. The US$1.6 billion Iconsiam’s first phase opened on November 10. It features such international brands as Louis Vuitton, Hermes and Apple, as well as 300 local food and handicraft stalls representing the Southeast Asian country’s 77 provinces, plus the Magnolias Waterfront Residences and The Residences at Mandarin Oriental, Bangkok. It will…

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