Shoppers or smugglers? China crackdown on ‘daigou’ boom – CNN.com
“Inventory has become an issue for brands across the board, and this is a big problem.” More from Bloomberg.com: India to Unveil First Warship to Deter Chinese Submarines Slower Spending Consultancy Bain estimates that Chinese purchased a third of all luxury goods sold globally in 2013, but growth in luxury spending in mainland China will slow to 2 percent this year after rising 30 percent in 2011, it forecasts. Christian Dior SA (CDI) and Ermenegildo Zegna Group both held sales at their China stores in July, with Milan-based Zegna cutting as much as 40 percent off menswear, leather items, and shoes. Some discounting is more understated, as luxury houses try to avoid lowering the value of their brands along with their prices. Hermes dangled price cuts of as much as half off on dresses and shoes in April at an invitation-only sale, held in the eastern city of Hangzhou, according to reports by Chinese media. Guests were invited by mail to the four-hour sale, at a hotel in the city’s West Lake district, and barred from taking pictures, according to a story posted on the website of the People’s Daily, the official newspaper of China’s Communist Party. Price Difference One aim is to keep Chinese shoppers such as Ann Hu from taking their wallets to Europe. On a trip to Milan in July, the 27-year-old marketing executive from Shanghai picked up a Loewe leather handbag for 8,000 yuan, about half what she would have forked over in China.
Shoppers or smugglers? China crackdown on ‘daigou’ boom – CNN.com
With the dirth of brands fighting for a stake in the space, and the demand for goods overpowering the supply , its interesting to see which luxury handbag brands model gorden elegan are keeping up despite the madness. In a report done by Fashionista in conjunction with online consignment start-up TheRealReal , they identified the top selling handbag designers broken down by city. Their findings do a great job of identifying what brands are trending around the country, and while most of the report is pretty predictable there were a few surprises. Click on the next pages to see which brands reign in cities like New York, San Francisco, Miami and more! 1
Zhang’s customers get designer goods for less than they would at home by circumventing China’s steep taxes on luxury items. She says they cost 30% less in the United States. Chinese are the biggest buyers of luxury goods globally, making 29% of all purchases, according to consultants Bain & Company , and these purchases are increasingly being made abroad, mostly by tourists, but also by people like Zhang. Many young Chinese studying in places like New York, London, Paris and Tokyo have started ad hoc businesses, with Bain saying that Chinese luxury sales will become increasingly reliant on this kind of “parallel trade.” Zhang finds her clients through Chinese social media like WeChat and Weibo, where she posts pictures of the latest items about once a month. Customers then wire the purchase price by bank transfer, including a buyer’s commission.
The Best-Selling Luxury Handbag Designers In Each Major City | StyleBlazer
She says they cost 30% less in the United States. Chinese are the biggest buyers of luxury goods globally, making 29% of all purchases, according to consultants Bain & Company , and these purchases are increasingly being made abroad, mostly by tourists, but also by people like Zhang. Many young Chinese studying in places like New York, London, Paris and Tokyo have started ad hoc businesses, with Bain saying that Chinese luxury sales will become increasingly reliant on this kind of “parallel trade.” Zhang finds her clients through Chinese social media like WeChat and Weibo, where she posts pictures of the latest items about once a month. Customers then wire the purchase price by bank transfer, including a buyer’s commission. Others use the eBay-like site Taobao operated by Chinese e-commerce giant Alibaba.
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