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The Chinese Have Come To Spend Some Of Their Trillions


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The Clarke's shop at Bicester Village had optimistically put barrier ropes for people to queue outside when I was there yesterday. The crowds of Chinese people seemed more interested in Prada and Burberry.

Can't see the Chinese massive bling jockeys being interested in Clarkes sandals. All those young kids buying £1000 bags in Selfridges must be getting the cash from bomad.

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From the Want China Times link.

....

A combination of this mentality, the remarkable wealth of some Chinese and their willingness to flaunt it has resulted in a strange phenomenon where the more expensive a product is, the better it sells.

Car market analyst Zhong Shi says in China, there will always be people willing to pay for a car no matter how much it costs. China's luxury car owners are currently at a development stage where they only care about brand and price, Zhong says. This is why luxury car dealers in China have adopted the mentality that a more expensive vehicle will actually attract more buyers, explaining some of the more outrageous pricing strategies seen in the country.

For instance, the most expensive vehicle at last year's Shanghai International Automobile Industry Exhibition was a limited edition Aston Martin One-77 priced at 47 million yuan (US$7.4 million). The vehicle, one of only 77 in the world, had five interested buyers at the expo and was snapped up by one of them on the spot.

China's super-rich are leading the way, but its upper-middle class may have an even greater impact on driving up prices of luxury goods due to their insatiable demand. According to a report by Chinese marketing firm China Online Marketing, young white-collar workers in China constitute a major consumer group of luxury products because they feel the need to gain the approval of their peers and prove they belong to a particular social class. This group spends a large proportion of their income on purchasing luxury items and keeping up with the latest trends and fashions to be consistent with the behavior of others in the group.

The report argues that this mentality is deeply influenced by traditional Chinese culture which stresses hierarchy and collectivism, as opposed to traditional western culture which focuses on the individual and satisfying personal needs.

...

The report mentioned in the last paragraph doesn't really explain the "mentality".

UK people have often taken holidays based on the rationalisation that they could fund it at least in part from buying their tat (er luxury goods) and other stuff when at their holiday destination. One of the favourite destinations used to be Hong Kong but it doesn't seem to be so much on the itinerary for that now.

As for "a strange phenomenon where the more expensive a product is, the better it sells" that's not unheard of in the UK - the UK property market seems to fit that bill - or at least it used to.

Even so an interesting article.

Edited by billybong
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From the Want China Times link.

The report mentioned in final paragraph doesn't really explain the "mentality".

UK people have often taken holidays based on the rationalisation that they could fund it at least in part from buying their tat (er luxury goods) and other stuff when at their holiday destination. One of the favourite destinations used to be Hong Kong but it doesn't seem to be so much on the itinerary for that now.

As for "a strange phenomenon where the more expensive a product is, the better it sells" that's not unheard of in the UK - the UK property market seems to fit that bill - or at least it used to.

Even so an interesting article.

"tat" is the wrong word. In a lot of places both high and low quality goods are cheaper in the US than in the UK. I buy the vast majority of my clothes in the US. Anyone who travels over there on a regular basis would be mad not to.

The shopping experience in China is a bit woeful. Outside of maybe Shang Hai and Hong Kong many large cities have big shopping centres. But these shopping centres only sell local brands. I suppose not surprising really. There is probably not enough local volume in high quality/price designer goods to justify the shops to sell them.

So its not just a matter of wanting to buy the goods, its a matter of the goods being available for sale. For example someone in the UK will have much more choice in terms of designer gear in London than in Grimsby.

If air travel is cheap, visas are easy, country is friendly, you have a greater range of goods to buy, they may be cheaper, plus you know they are not fake AND you get a holiday thrown in as well.

Easy to understand why people may be coming over here to shop from China really. Best of luck to them and about time we started a bit of trade in the opposite direction.

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Can't see the Chinese massive bling jockeys being interested in Clarkes sandals. All those young kids buying £1000 bags in Selfridges must be getting the cash from bomad.

believe it or not clarks is a premium brand around the world. in the UK they are the type of shoe for school kids and older people at £40-50.

around the world, especially in Asia, the same shoe will set you back £150.

clarks is surprisingly the biggest shoe company in the world.

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"tat" is the wrong word. In a lot of places both high and low quality goods are cheaper in the US than in the UK. I buy the vast majority of my clothes in the US. Anyone who travels over there on a regular basis would be mad not to.

The shopping experience in China is a bit woeful. Outside of maybe Shang Hai and Hong Kong many large cities have big shopping centres. But these shopping centres only sell local brands. I suppose not surprising really. There is probably not enough local volume in high quality/price designer goods to justify the shops to sell them.

So its not just a matter of wanting to buy the goods, its a matter of the goods being available for sale. For example someone in the UK will have much more choice in terms of designer gear in London than in Grimsby.

If air travel is cheap, visas are easy, country is friendly, you have a greater range of goods to buy, they may be cheaper, plus you know they are not fake AND you get a holiday thrown in as well.

Easy to understand why people may be coming over here to shop from China really. Best of luck to them and about time we started a bit of trade in the opposite direction.

I suppose it depends what item is being purchased and I think it's fair to say a lot of stuff being bought in those "shopping frenzies" reported in the newspapers can come under the description of tat. Then opinion comes into it as well as a bit of tongue in cheek. I'm sure there are some sensible buys being made even in the shopping frenzies.

If it wasn't clear I was referring to Hong Kong pre 1997 although I don't think UK people presented themselves so en masse at any sales there even though apparently the "bargains" were just as good.

Of course I agree if it's cheaper overall and you're going to buy it anyway then of course it would be wise to buy it outside of the UK - especially if you're there anyway.

I wasn't saying anything different. I was saying that the report's explanation for a so called "mentality" didn't seem to stack up much as UK people can behave almost exactly the same as Chinese in their purchases given the same circumstances especially if the price differences are substantial.

I certainly don't blame the Chinese for shopping where it's cheaper for them and I agree on the point about UK trade but I suspect that's a stable door problem.

Apparently Grimsby does great fish and chips.

Edited by billybong
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Yes, this 'tat' costs less here than in China, but this does not tell the whole story. These folks have loads of cash, loads. They open their wallets and have lots of credit cards, and I bet it's not Bank of Mao Dzedong. They are massively money-laundering. The Chinese students sometimes pay their exorbitant university fees in cash then cancel their place on the course and ask for a refund. Once the account is opened the money can be safely used by third parties for laundering.

Edited by sombreroloco
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believe it or not clarks is a premium brand around the world. in the UK they are the type of shoe for school kids and older people at £40-50.

around the world, especially in Asia, the same shoe will set you back £150.

clarks is surprisingly the biggest shoe company in the world.

Not wrong. In Jamaica Clarks is rapper's bling

http://www.bbc.co.uk/news/uk-politics-20600102

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  • 429 Brexit, House prices and Summer 2020

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