Home Capital Covid-19

The virus has trapped US$111 bil of luxury spending in China

Jinshan Hong
Jinshan Hong7/9/2020 06:30 AM GMT+08  • 7 min read
The virus has trapped US$111 bil of luxury spending in China
Thanks to the coronavirus pandemic that’s halted travel and disrupted networks of parallel importers, Chinese high-end shoppers are finding it hard to spend their cash.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (July 9): Jeff Meng, a 25-year-old watch lover from a well-heeled Guangdong family, had RMB160,000 ($31,800) burning a hole in his pocket. He could not find the Rolex Daytona watch he wanted, dubbed “panda” for its black-and-white face, anywhere in China.

Thanks to the coronavirus pandemic that’s halted travel and disrupted networks of parallel importers, Chinese high-end shoppers like Meng — who collectively spend US$111 billion ($155 billion) a year on luxury goods, powering over a third of the global industry — are finding it hard to spend their cash.

That’s forcing global luxury houses from Balenciaga to Montblanc to rethink how to reach Chinese consumers on the mainland, despite long-standing concerns that range from counterfeiters to powerful e-commerce platforms that set the rules. The halt to travel is also fuelling the rise of a second-hand luxury market in China as consumers seek certain styles or models they can’t find in local stores.

×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.