The Chinese New Year Brings Record Spending Overseas
Chinese consumers spent a record amount of money, $7.2 billion, for luxuries surrounding the New Year. Last year only a mere $5.6 billion was spent. This contributes to Chinese having the largest share, 62 percent, of the European luxury market. Their purchases also take up one-third of the North American market and 69 percent of the market in Hong Kong, Macao and Taiwan.
A survey showed that 72 percent of Chinese feel luxuries overseas are less expensive, 69 percent like the variety of luxuries overseas and 45 percent are impressed with the service they receive. The main luxuries purchased are watches, leather bags, designer clothes, perfumes and cosmetics.
Here’s how luxury brands are reacting to the news:
Polo Ralph Lauren Corp. (NYSE:RL): RL shares recently traded at $153.91, down $0.18, or 0.12%.
Tiffany & Co. (NYSE:TIF): TIF shares recently traded at $63.94, up $0.09, or 0.14%.
Coach Inc. (NYSE:COH): COH shares recently traded at $70.60, down $0.34, or 0.48%.
Guess? Inc. (NYSE:GES): GES shares recently traded at $31.81, up $0.59, or 1.89%.
Saks Incorporated (NYSE:SKS): SKS shares recently traded at $10.14, down $0.21, or 2.03%.