Yuan spenders eclipse Russians, Arabs in London
Gloom-defying shoppers from China are flocking to the luxury stores of London’s West End, outspending Arab royalty, replacing Russia’s departing super-rich and lifting spirits after nine months of recession.
Data from tax rebate companies suggests Chinese tourists are spending three to four times more than a year ago in London’s chic shopping districts.
On Bond Street, famous for its designer boutiques and jewelers such as De Beers and Graff, figures from firms which arrange sales tax refunds for tourists suggest Chinese shoppers are now overtaking big spenders from the Gulf states, Russia, the United States and wealthy Nigerians.
“We are looking for good-quality branded stuff,” said Lillian Wang, a 28-year-old bank worker from Beijing on Oxford Street, one of London’s mainstream thoroughfares. “I’m not as crazy as others, buying a dozen Louis Vuittons (bags), but I’m sure they are a lot cheaper here than in Beijing.
“A cheaper pound has also helped.”
Thanks to a $585 billion stimulus package and record lending by the country’s state-owned banks, China is likely to hit the government’s target of 8 percent growth this year, by far the fastest rate of any major economy.
This has offset a slump in export demand and sustained the rise in incomes that made Chinese shoppers, especially the well-heeled, a rich seam of profit for Europe’s luxury brands.
“Income growth — particularly the top end, also driven by wealth accumulation — remains robust in China,” said Linda Yueh, a fellow in economics at Oxford University quick payday loans.
“Thus, wealthy Chinese may find that the weak pound makes Britain an attractive place to shop.”
Sterling has recovered from lows early this year against currencies such as the dollar and yuan, but is still far short of mid-2008 levels.
Britain has been in recession since the last quarter of 2008, when GDP shrunk at its fastest rate since 1980. A survey by the Confederation of British Industry (CBI) showed retail sales fell more sharply than expected in August.
In this environment, tourists from China and other Far Eastern countries will have little impact on Britain’s economy as a whole, says Richard Perks of market research group Mintel.
“It’s going to have a big impact on some stores, and it might have a perceptible impact on London’s retail sales. But it is hardly going to be significant for the country as a whole,” he said.
DIFFERENT TASTES
Wang’s shopping bags reflect a difference in spending habits among Chinese visitors from other wealthy shoppers: besides a 900 pound ($1,472) suit for her husband, she had a more modest 50 pound pair of shoes for herself.
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