Luxury brands feel the chill as Chinese shopping spree slows
There are noticeable cracks in what has been the very bankable strategy of catering to throngs of newly affluent Chinese
For the better part of a decade, wealthy Chinese tourists have been on a feeding frenzy for luxury brands, casinos and cruise lines. Now there are doubts about how long the buffet will last. From Tokyo's glitzy Ginza shopping district to Hong Kong, Macau and New York's Fifth Avenue, there are noticeable cracks in what has been the very bankable strategy of catering to throngs of newly affluent Chinese travelling the world. Explanations vary from China's slowing economy to the government's push to spur spending at home and fluctuations in currency values. Whatever the reason, the result is increasing worry across the globe. "Luxury brands have gained a lot of traction and growth out of China, but the bloom is off the rose," said Pam Danziger, president of Unity Marketing, which researches affluent shoppers. "You can't blame them because that's where the easy money was." Over the past few months, executives have been hounded by questions about high-end Chinese shoppers, who Bain & Co ...
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