Luxury-brand in China rising from grave
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Luxury-brand sales are reviving in mainland China, with Macau paying the price.
As China’s currency depreciates, the narrowing price gap is keeping mainland luxury shoppers at home, further contributing to Macau’s retail slump, reports the Macau Business Daily.
Some brands in China are expecting this year to return to the figures of their sales peak in 2012, says partner Bruno Lannes of Shanghai-based consulting firm Bain. He says luxury sales in the mainland have risen an estimated 4 per cent after three years of decline.
According to the latest data from the Macau Statistics and Census Services (DSEC), retail sales of watches, clocks and jewellery have fallen 21.2 per cent year-on-year, with the overall volume of retail sales dropping 5.9 per cent in the third quarter.
More than 45 per cent of retailers interviewed by DSEC expect their sales volume to decrease for the present quarter. Meanwhile, visitor numbers from the mainland edged up 0.4 per cent year-on-year in October, but have fallen by the same amount over the first 10 months of this year.
Questions & Answers
Q.What is causing luxury shoppers to stay in mainland China instead of going to Macau?
What is causing luxury shoppers to stay in mainland China instead of going to Macau?
The depreciation of China’s currency is narrowing the price gap between luxury goods in mainland China and Macau. This makes purchasing items locally more attractive for Chinese shoppers.
Q.How much have luxury sales increased in mainland China after their period of decline?
How much have luxury sales increased in mainland China after their period of decline?
Luxury sales in mainland China have risen by an estimated 4 per cent. This growth comes after three years of decline, with some brands expecting to return to 2012 sales peak figures this year.
Q.What is the recent performance of retail sales in Macau, specifically for high-value items?
What is the recent performance of retail sales in Macau, specifically for high-value items?
Retail sales of watches, clocks, and jewellery in Macau have fallen by 21.2 per cent year-on-year. The overall volume of retail sales in Macau dropped by 5.9 per cent in the third quarter.
Q.Are Macau retailers optimistic about their sales prospects for the current quarter?
Are Macau retailers optimistic about their sales prospects for the current quarter?
No, a significant proportion of Macau retailers expect their sales volume to decrease. More than 45 per cent of those interviewed anticipate a decline for the present quarter.
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