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Downturn? What downturn? It's spend, spend, spend on luxuries
November 30, 2009, Monday
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Print Edition
HANGZHOU is rich and it's a magnet for wealthy shoppers who love their exalted luxury brands. All the big names are there: Louis Vuitton, Gucci, Valentino, Hermes, Bvlgari, Dolce & Gabbana and Bentley, to name just a few.
The buying power and the sums spent are stupendous.
Hangzhou is China's third biggest consumer of luxury goods, following Shanghai and Beijing, according to Beijing Business News.
According to the Hurun Report, the number of rich in Zhejiang Province, 110,500, ranks No. 4 among all Chinese provinces and municipalities, following Beijing, Guangdong Province and Shanghai.
In Zhejiang, 6,300 people own personal property valued at more than 100 million yuan (US$14.6 million), and 2,280 of them are from Hangzhou, according to the report.
Hangzhou's luxury goods consumption is fueled by wealthy people throughout Zhejiang Province. Yiwu, Wenzhou and Shaoxing cities also are all well known for their wealth and extravagant lifestyles.
Hangzhou, also ranked as the most livable city in China, attracts many middle and upper-class people to live and work, further fueling consumption.
The two central meccas of luxury are Hangzhou Tower and Hubin International Boutique Compound.
Last year the sales at Lancome's single counter in Hangzhou Tower ranked No. 1 among all Lancome's counters in China, while sales of Omega watches in Hangzhou Tower ranked No. 1 over Asia, according to Hangzhou Tower officials.
"Fine goods sell out very soon in Hangzhou," says Lou Jinyan, chairman of Hangzhou Tower. "Watches valued more than 1 million yuan sell out as soon as they are displayed, so do Bentley cars."
The combined turnover, profit and tax of Hangzhou Tower ranked No. 1 among all department stores around China, Lou says.
"Our one-year profit can build two Hangzhou Towers, and an affiliated travel agency's profit in one day is more than sufficient to rent a plane," says Lou.
The Hubin International Boutique Compound is a top fashion business district in the Yangtze River Delta region, not only for its 10,000 square meters of floor space but also its wide range of brands that are updated at the same time as international fashions.
Hubin compound boasts the first Dolce & Gabbana flagship store on the Chinese mainland, the first Armani Casa independent boutique in China and the biggest Hermes flagship store on the mainland.
Local department stores recently have expanded to draw in more customers. This year Hangzhou Tower built up its C Mansion selling first-class home furnishing and D Mansion with top brands.
Another fashionable shopping mall, Intime Department Store, last year opened its flagship West Lake outlet and this year its Qingchun outlet.
During its anniversary this month, Intime registered record sales: daily sales of its flagship Wulin store hit 120 million yuan; 106 cashier counters each handled more than 40 transactions per hour.
Major international fashion brands are also drawn to Hangzhou. Swedish retailer H&M opened two stores recently, one at the Intime Department Store, the other at the Hangzhou Department Store. Each covers around 1,000 square meters.
The new H&M in Intime achieved record daily sales, among H&M's highest in China.
"When we expand, we always consider locations that are geographically close to our existing stores, since its more economical logistic-wise," says Anne Wu, public relations manager for China of the fashion chain.
"On the other hand, Hangzhou is a city with considerable buying power. Hangzhou people are very well known for their fashion awareness."
According to China's Ministry of Commerce, Hangzhou's economy has maintained double-digit growth for the past 18 years and the average per capita GDP has reached the equivalent of US$10,200, indicating an "upper" developed country or region.
The buying power and the sums spent are stupendous.
Hangzhou is China's third biggest consumer of luxury goods, following Shanghai and Beijing, according to Beijing Business News.
According to the Hurun Report, the number of rich in Zhejiang Province, 110,500, ranks No. 4 among all Chinese provinces and municipalities, following Beijing, Guangdong Province and Shanghai.
In Zhejiang, 6,300 people own personal property valued at more than 100 million yuan (US$14.6 million), and 2,280 of them are from Hangzhou, according to the report.
Hangzhou's luxury goods consumption is fueled by wealthy people throughout Zhejiang Province. Yiwu, Wenzhou and Shaoxing cities also are all well known for their wealth and extravagant lifestyles.
Hangzhou, also ranked as the most livable city in China, attracts many middle and upper-class people to live and work, further fueling consumption.
The two central meccas of luxury are Hangzhou Tower and Hubin International Boutique Compound.
Last year the sales at Lancome's single counter in Hangzhou Tower ranked No. 1 among all Lancome's counters in China, while sales of Omega watches in Hangzhou Tower ranked No. 1 over Asia, according to Hangzhou Tower officials.
"Fine goods sell out very soon in Hangzhou," says Lou Jinyan, chairman of Hangzhou Tower. "Watches valued more than 1 million yuan sell out as soon as they are displayed, so do Bentley cars."
The combined turnover, profit and tax of Hangzhou Tower ranked No. 1 among all department stores around China, Lou says.
"Our one-year profit can build two Hangzhou Towers, and an affiliated travel agency's profit in one day is more than sufficient to rent a plane," says Lou.
The Hubin International Boutique Compound is a top fashion business district in the Yangtze River Delta region, not only for its 10,000 square meters of floor space but also its wide range of brands that are updated at the same time as international fashions.
Hubin compound boasts the first Dolce & Gabbana flagship store on the Chinese mainland, the first Armani Casa independent boutique in China and the biggest Hermes flagship store on the mainland.
Local department stores recently have expanded to draw in more customers. This year Hangzhou Tower built up its C Mansion selling first-class home furnishing and D Mansion with top brands.
Another fashionable shopping mall, Intime Department Store, last year opened its flagship West Lake outlet and this year its Qingchun outlet.
During its anniversary this month, Intime registered record sales: daily sales of its flagship Wulin store hit 120 million yuan; 106 cashier counters each handled more than 40 transactions per hour.
Major international fashion brands are also drawn to Hangzhou. Swedish retailer H&M opened two stores recently, one at the Intime Department Store, the other at the Hangzhou Department Store. Each covers around 1,000 square meters.
The new H&M in Intime achieved record daily sales, among H&M's highest in China.
"When we expand, we always consider locations that are geographically close to our existing stores, since its more economical logistic-wise," says Anne Wu, public relations manager for China of the fashion chain.
"On the other hand, Hangzhou is a city with considerable buying power. Hangzhou people are very well known for their fashion awareness."
According to China's Ministry of Commerce, Hangzhou's economy has maintained double-digit growth for the past 18 years and the average per capita GDP has reached the equivalent of US$10,200, indicating an "upper" developed country or region.
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