Hongkongers do not like mainlanders, and it`s mutual - Shaun Rein

Shaun Rein

For a long time, Hong Kong was the place to go for visitors from the mainland, but the resentment against mainlanders in Hong Kong grew, says retail analyst and author Shaun Rein in Todayonline, and as Chinese got more travel alternatives, Hong Kong sees sales of luxury good drop dramatically.

Todayonline:

Chow Tai Fook, the biggest jeweller in the world by market capitalisation, is seen as a bellwether for mainland demand for Hong Kong’s luxury goods. Its sales in Hong Kong and Macau fell on an annualised basis by 22 per cent in the three months to the end of June. Other companies, such as handbag retailer Coach and watchmaker Jaeger-LeCoultre, which viewed Hong Kong as a cash cow, have been closing stores. 

Even Hong Kong’s humble tea shops have seen a slide in sales of their cheap noodles and milk tea. At Tsui Wah, a popular chain, profits for the year to March fell by more than half to HK$72 million (S$12.6 million). Mr Shaun Rein, who runs China Market Research in Shanghai, warns that the slump in retail is not simply the result of the Chinese slowdown or the crackdown on extravagance and corruption by President Xi Jinping. “There is a deep-seated animosity to mainlanders in Hong Kong,” he says. “So why would they want to go somewhere they are not welcome when there are so many other choices?”

More in Todayonline.

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.

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

Chinese donations to top US universities rise - Wei Gu

+Wei Gu 

High profile donations from Chinese wealthy to US top universities have been hitting the headlines a few times. But, discovers WSJ wealth editor Wei from BE Education founder William Vanbergen, donations from China are lagging compared to other nationalities, although that might change.

Wei Gu is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers´request form.

Are you interested in more luxury goods experts from the China Speakers Bureau? Do do check our recently updated list.

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Diamond sales rise, despite anti-corruption drive - Wei Gu

+Wei Gu

Diamond sales in China have gone up 14% last year, while all other luxury goods suffered from the ongoing anti-corruption campaign. WSJ´s Wei Gu analyzes with De Beers CEO Stephen Lussier, why diamonds keep on doing so well.

Wei Gu is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers´ request form.

Are you interested in more luxury good experts at the China Speakers Bureau? Do check out recent list.

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Foreign ´experts´still galore in Chinese ads - Tom Doctoroff

Tom Doctoroff

The roles of the typical white foreign experts in Chinese commercials might be shifting, as the country becomes more confident, but the market has not yet dried up. This kind of reassurance of quality is still needed, says ad expert Tom Doctoroff in PRI.

PRI:

This kind of “expert” testimonial corresponds with a need for reassurance, said Tom Doctoroff, CEO for marketing firm J. Walter Thompson Asia Pacific, and author of the book “What Chinese Want.” Chinese don’t assume the world outside is safe, Doctoroff says, so lesser-known local brands might use a foreign actor in a lab coat to project reliability and scientific advancement. 

“You have people who are urbanized for the first time, owning apartments for the first time, who need household cleaning ingredients for the first time,” he says. “These are new consumers, and new consumers always need more explicit reassurance than more mature consumers.” 

There are exceptions to this trend, but they're mostly for luxury brands calling on Hollywood A-Listers like Brad Pitt and Nicole Kidman to hawk their products. “This type of advertising is extremely expensive to produce and it reinforces global stature, which is always very motivating for Chinese people,” Doctoroff said.

Foreign expert in action

More in PRI.

Tom Doctoroff 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 interested in more experts on luxury goods at the China Speakers Bureau? Do check out our latest list. 

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Where are China´s tourists turning to? - Wei Gu

+Wei Gu 

 Hong Kong is loosing its attraction for Chinese tourists. Where are they now going to, wonders WSJ wealth editor Wei Gu in a discussion with Francis Belin from Swarovski. Both Tokyo and Seoul are doing better, but since 96% of the mainland Chinese still do not have a passport, there is room enough for growth, also in Hong Kong.

Wei Gu is a speaker at the China Speakers Bureau. Do you need her 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 have a look at our recent list.

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Graft busting changes gift-giving - Shaun Rein

Shaun Rein

Mooncakes and watches are just a few of the items you cannot give officials as a gift anymore, as Xi Jinping's anti-corruption drive is gathering steam, in stead of losing it. But gift-giving is not disappearing, tells business analyst Shaun Rein in the Jing Daily, it is just changing. 

The Jing Daily:

The long-term effects of the ongoing corruption crackdown on the mooncake market reflect a larger shift in the way the rich are consuming luxury items in China, says +Shaun Rein, founder of China Market Research, a Shanghai-based consultancy that focuses on the buying habits of China’s wealthy class. “The culture of gift-giving is still there,” he says. “They’re just giving different types of gifts.” 

As officials continue to be investigated for graft, fear of being suspected of giving or taking bribes is moving the culture of gift giving away from showy items, such as Louis Vuitton bags or gold foil wrapped mooncake boxes. “Mooncakes are obvious,” says Rein. “Everyone sees mooncakes as a corrupt gift.” Instead, market trends are moving towards items that can be used or consumed in the home and are not so easy to appraise at a glance, such as massage chairs or health supplements, he says. And the flow goes both ways. As officials are increasingly hamstrung in bestowing favors at will, those looking for favors are hedging their bets with less expensive gifts. “A couple of years ago, if you gave someone a ¥5,000 watch, it was almost quid pro quo the official could help you with anything,” says Rein. “Now, when they give a gift, it’s only ¥1,000, because they know the official might not be able to help them now.”

More in the Jing Daily.

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

Foreign firms complain in western media they are having increasingly a hard time in China. But it all a matter of perception, argued China-veteran Janet Carmosky and business professor +Richard Brubaker in the +China Weekly Hangout on August 22. Western journalists focus on Western firms in China, that might be fair, but they ignore China's real challenges. Moderated by +Fons Tuinstra of the China Speakers Bureau.

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Anti-corruption drive hits expensive gifts - Rupert Hoogewerf

Rupert Hoogewerf

Expensive watches and liquor are on the watch list, as China is going through an anti-corruption drive, tells Hurun Rich list founder Rupert Hoogewerf Reuters. Less-expensive gifts are the trend. 

Reuters:

The results follow a government crackdown, launched in March last year, on using public funds to buy luxury items such as baijiu, which can cost several thousand yuan per bottle. In December, alcohol was banned at military events. 

"Watches and liquor have been influenced by government policies and have been pulled down by a change in leadership. It's traditionally been that in government there are people who can influence policy in your favour," Hurun founder Rupert Hoogewerf told Reuters... 

France dominated with six brands out of the top 10 in the men's list and four in the women's, including luxury accessory and apparel makers Louis Vuitton and Chanel. However, less expensive gifts were the order of the day. 

"With the current anti-corruption drive, officials can no longer receive blatantly expensive products, so we're seeing a trend towards less-expensive giving," said Hoogewerf.

More in Reuters.

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.

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