China Herald: Baijiu

Showing posts with label Baijiu. Show all posts

Wednesday, August 30, 2017

The uptick in spending on real estate, Tesla and Baijiu - Rupert Hoogewerf

Rupert Hoogewerf

The China's luxury Consumer Price Index (CPI) rose 3.6% on a yearly basis in 2017, both based on more wealthy Chinese, and an uptick in the money they spend. Chief researcher of the Hurun China rich list Rupert Hoogewerf says expenditure on real estate, Tesla and Baijiu going up, he tells in Asia Times.

Asia Times:

The Luxury Consumer Price Index, released by Hurun each year, aims to measure the price changes for a predetermined basket of goods and services purchased by China's high-net-worth individuals (HNWI). The index covers the consumption activities of wealthy Chinese in the following 11 categories: real estate, health, education, luxury tourism, weddings, watches & jewelry, accessories & beauty products, cruises & private jets, lifestyle, liquor & cigarettes, and automobiles.

The 2017 index, which gauges prices from June 2016 to June 2017, was calculated based on a basket of 116 high-end goods and services, 20% of them imported. The issue marks the 11th edition of the index.

The depreciation of the Chinese yuan against major global currencies over the past year has been the main reason for the decreasing purchasing power of China's rich population with respect to buying luxury property worldwide and high-end imported goods.

Based on Hurun's estimates, there were nearly 1.34 million HNWIs in mainland #China by May 2016, while the number of individuals with over a billion yuan of wealth was close to 89,000. Over the past year, this population has borne the brunt of the price spike in the areas of luxury property, liquor, lifestyle and travel.

'What impresses me most, this year, is how much the price of real estate, baijiu (a traditional Chinese liquor) and Tesla has increased,'said Rupert Hoogewerf, chairman and chief researcher of the institute, 'completely lifting up the luxury CPI.'

For affluent Chinese buyers, the price of luxury property has gone up 16.6% since last year. Domestically, a villa in China's southwestern city Chengdu spiked 56.5%, followed by properties in Hainan (a rising tourism city) and Shanghai. Housing prices in overseas cities such as Vancouver, San Francisco, Los Angeles and New York also jumped.

More in Asia Times.

Rupert Hoogewerf is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more experts on luxury goods at the China Speakers Bureau? Do check out this list.

Thursday, July 27, 2017

Winners in luxury: property, baijiu and Tesla - Rupert Hoogewerf

Rupert Hoogewerf

Spending on luxury in China went up over 80 percent over the past ten years, reveals the Luxury Consumer Price Index (LCPI). HuRun chief researcher Rupert Hoogewerf points in ECNS at three major winners: property, baijiu and Tesla.

ECNS:

The gauge represents a basket of 116 high-end goods and services, 20 percent of which are imported. It is the 11th of this kind issued by HuRun research institute, which tracks changes among China's high-net-worth individuals.

The index compares the price level from June 2016 to June 2017, while noting that the LCPI rose by 3.6 percent so far this year, outpacing a 1.5 percent increase in CPI.

"What impresses me most this year is the increase in property prices, baijiu (a Chinese alcohol), and Tesla cars, which drive the general luxury consumer price up," said Rupert Hoogewerf, chairman and chief researcher of the institute.

Of the 11 categories measured by HuRun, luxury housing price led the upward trend, up 16.6 percent from the previous year. And baijiu recorded huge price surge, with Wuliangye, one of China's most famous high-end Baijiu brands, rising as high as 30.5 percent.

The LCPI report attributed more expensive luxury houses and imports to the depreciation of yuan, as many foreign currencies became stronger, with exchange rate of US dollar against renminbi up 3.6 percent year-on-year as of June 9.

Gold and diamond maintained momentum, up 9.6 percent and 3.3 percent respectively. And Tesla electric cars increased by 4.5 percent, thank to favorable policies in China to support electric car development, the report noted.

However, wedding and healthcare markets witnessed a decline for the first time, dropping 3.6 percent and 3.5 percent respectively.

More at ECNS.

Rupert Hoogewerf is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more luxury experts at the China Speakers Bureau? Do check out this list.

Monday, November 25, 2013

Shui Fang Jing: Baijiu on the rocks

Shui Fang Jing

From all the products and industries in China trying to go global, the baijiu - Chinese liquor smelling sometimes like nail polish - seemed to be the least likely one. Even in China, anti-corruption and a general dislike of the explosive drink, it is out of grace. But Shui Fang Jing is going to change that, it hopes.
A bottle of Shui Fang Jing came by accident in my hands a few days ago, as a friend had picked it up at New York airport. I'm not sure it is actually sold in China. First, it looked like it would mainly focus on its nice package and sensational decorations. But no, the idea is you are going to drink it. The marketing includes some pretty sophisticated cocktails, probably the best you can do to it, just like tequila.
The mastermind behind this all is Diageo, the company owning many well known drinks like Bushmill (my all time favorite whiskey), Guinness, Johnny Walker, Gordon's Gin and many others.
Diago has been building up its relation with the Chinese producers for over a decade, first with a small equity part, a larger one, and then a majority share. Only last summer in got permission to get full ownership of the Chinese company, the Shanghai-listedSichuan Chendu Quanxing Group Company Ltd. The deal got some media coverage, but obvious not a lot of people thought it was a major thing.
Their marketing strategy is sympathetic, although slightly over the hill. An excavation by archaeologists proved the place was producing baijiu already over 600 years, and the marketeers see its historical value only as second behind the famous terracotta army in Xian.
Well, I kept my suspicious towards the product and decided to pass it on to another friend, who has no bad memories connected with the liquor.

Thursday, September 05, 2013

Anti-corruption drive hits Moutai hard - Shaun Rein

Shaun Rein

President Xi Jinping's anti-corruption drive has lasted longer than everybody expected, hurting high-profile drink manufacturer Moutai hard. The drink is unfortunately "synonymous with corruption and hedonism", tells retail analyst Shaun Rein Reuters.

Reuters:

Baijiu has rocketed in price over the last five years, boosted by its traditional use by officials and executives as a gift to help smooth business ties. However, this has brought it under the spotlight of China's new government as it looks to clean up corruption.

"It's clear that President Xi Jinping's crackdown on corruption has been longer and deeper than many analysts had expected. He's really trying to cut to the bone to ensure the legitimacy of the party," said +Shaun Rein, Shanghai-based managing director of China Market Research Group.

Moutai reported net profit growth of 3.6 percent in the first six months of the year. This compared to 43 percent for the same period last year and 58 percent in 2011.

"It has hit Moutai especially because it's just such a high-profile brand. It's synonymous with corruption and hedonism. A lot of officials and enterprises are shying away from purchasing or receiving gifts of Moutai because it's just too high profile," said Rein.

More at Reuters.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

China Weekly Hangout

China’s internet companies are another industry looking for international expansion. The +China Weekly Hangout today will discuss the latest deals with +Tech in Asia editor +Steven Millward, and a range of other panelists. You can read our announcement here, or register for the event here. President Xi Jinping is struggling with a range of huge problems, including the debt bubble in government finance.

Last week the +China Weekly Hangout discussed whether China is going to collapse under the burden of its debts? Yes, if they do not play their cards rights, tells Sara Hsu, leading expert on shadow banking in China. Questions are asked by +Fons Tuinstra of the China Speakers Bureau.