KPMG: Chinese Luxury Shoppers Prefer To Buy Online

Chinese luxury shoppers are increasingly turning to buy online, according to a recent study published by KPMG. The study conducted surveys with 10,150 Chinese luxury consumers in 2015.

In the study, KPMG found that nearly one third of Chinese luxury consumers would choose to shop from online retailers instead of brick-and-mortar stores.

Chinese luxury shoppers are increasingly turning to buy online.

The respondents’ average spend per luxury item was 2,300 yuan ($350), and the averaged highest amount they would be willing to spending online on each order was 4,200 yuan ($638).

Women products are the main consuming items, according to the study. The best-selling items were cosmetics, women’s shoes, bags, leather products, women’s clothes and accessories.

In terms of the shopping destinations, overseas online retailers were more preferable to domestic ones by the Chinese luxury shoppers. Two thirds of online shoppers responded that they purchase more from aborad.

The foreign exchange is another factor impacting the Chinese luxury online shoppers’ purchasing decisions. KPMG indicated that the Chinese consumers will move fast to take advantage of opportunities presented by changes in foreign exchanges.

Starwood Plans Four New Luxury Resorts on Hainan Island in China

Starwood Hotels & Resorts Worldwide Inc. is expanding its luxury presence in China with the opening of four new properties on Hainan Island by 2020.

Slated to open in 2019 and 2020, two of the new properties, W Retreat & Spa Sanya – Haitang Bay and The St. Regis Sanya Haitang Bay Resort will be located at the North Wing of Haitang Bay, one of the area’s most exclusive and sought-after addresses.

As the first W Retreat in China, W Retreat & Spa Sanya – Haitang Bay joins W Retreat & Spa Goa in the Asia Pacific pipeline.

The St. Regis Sanya Haitang Bay Resort will feature 400 guestrooms and 15 villas, as well as a luxury spa, three restaurants, a lobby lounge, wine bar and meeting space.

“The rapid growth of Starwood’s luxury brands in China reflects the robust demand for high-end hospitality from an increasingly affluent market, where domestic travel continues to thrive,” said Qian Jin, Greater China’s president of Starwood Hotels & Resorts Asia Pacific. “We are thrilled to introduce the W brand’s first retreat in China while growing the St. Regis footprint locally,” added Robert Zhang, vice president, Acquisition & Development, Greater China, Starwood Hotels & Resorts Asia Pacific.

Private Banks On A Hiring Spree In Asia

Source: The Wall Street Journal

With the number of Asia’s rich growing rapidly, private banks see its businesses booming and have gone through a hiring spree, according to a latest report by the Wall Street Journal.

This year, UBS has hired 130 clients advisors, leading its private-banking head count in Asia to more than 1,100. Credit Suisse Group has increased its private-banking staff by 7 percent over the past year.

The speed of wealth creation in Asia has attracted more young graduates to work in wealth management rather than in the investment banking or sales and trading which were one of the most popular sectors among graduates to work in the past.

Tiffany & Co To Expand In China

American jeweller Tiffany&Co hosted last week in Beijing its travelling exhibition Tiffany Diamond, showcasing some of the brand’s most iconic pieces including the 128.54-carat yellow Tiffany Diamond.

Tiffany’s recent fourth-quarter sales results showed a 27 percent increase in the Asia-Pacific region, to US$238 million, and though the company doesn’t break out sales figures in specific countries, Tiffany CEO Kowalski said China was a major driver in the rise. “Diamonds are probably relatively more important here to the Tiffany brand than they are anywhere in the world,” he told WWD.

Kowalski confirmed Tiffany will open three to four stores in mainland China each year for the foreseeable future, carefully choosing store locations. He thinks this can be the most important part of making a lasting presence.

 

Chinese House Hunters All Over The World

The United States is the top investment destination for Chinese property buyers this year, according to the latest report released by Juwai.com, reported China Daily. Juwai.com is a Chinese-language international property portal catering to Chinese buyers.

A quarter to half of all buyers start hunting for property without any particular country in mind, according to the report. “The country where the property is located can be less important. More high-net-worth buyers are beginning to search by property price and lifestyle,” said Andrew Taylor, co-CEO of Juwai.com.

The property could be in any country, however, it has to be close to a major international airport or a well-known University. The traditional gateway cities are still the top choices, but Chinese investors also look into newer destinations which are growing fast or have a big growth potentiality.

In the US, in addition to New York City, Los Angeles, Philadelphia and Houston, emerging cities which drive more Chinese clients to purchase include Honolulu, Detroit, Charlotte, Chicago and Austin, according to the report.

The Internet and word of mouth are two major channels for affluent Chinese and emerging middle class to buy property overseas, said Taylor.

Juwai now has established relationships with Chinese buyers and the real estate agencies in places like the US.