Any doubts about whether luxury spending is back on the increase can be erased by a single look at China’s consumer spending. The nation is amazing global luxury goods makers and dealers and bolstering their bottom lines at a pace that is little short of astonishing, according to those who sell to the Chinese market.
Chinese consumption is one of the main factors fueling the recovery of the luxury sector and leading expansion of luxury houses such as Hermés, L'Oreal, Prada and Coach into the Chinese market, Reuters reports.
And the move is going both ways. WhileEuropean brands are looking to invest in Chinese handmade and luxury goods, Chinese firms are looking for acquisitions in European luxury brands. European firms are now listing themselves on the Hong Kong exchange to take advantage of the broader Asian exposure the move would offer.
Chinese companies are also seeking market listings outside Asia, Reuters reports. NYSE Euronext, which listed 22 Chinese companies in 2010, expects to list more in 2011 as China expands beyond its own region. International IPOs mean more money, both in fees for the listing exchange and for the companies being listed—and money fuels growth.
The factor that astonishes the most, however, according to Lamborghini Chief Executive Stephan Winkelmann, is the speed with which it all happens. "The biggest surprise you get in China is the speed of change,” he told Reuters.