Bling sales surged in Hong Kong in April. So much for China’s anti-corruption push

June 3, 2013
June 3, 2013

Western luxury brand firms didn’t think China’s anti-corruption crackdown would last. And increasingly, it’s looking like they’re right. Case in point: Sales of jewelry, watches and “valuable gifts”—that’s the official rubric from Hong Kong’s Census & Statistics Department—exploded in Hong Kong in April. They jumped 68% compared to April 2012. (Hong Kong is a top destination for mainland Chinese to do their shopping, thanks to its lack of sales tax.)

Tap image to zoom

Observers are linking the surge to the recent collapse of gold prices, which has drawn in buyers looking for a bargain. This is good news for firms that supply the shiny stuff to China, as well as the Chinese officials who eventually receive a significant share of such these baubles as “gifts.” Cartier-owner Richemont, Bulgari-owner LVMH and Swatch, which owns Breguet, all stand to catch a bit of a tailwind if China regains its luxury appetite.

Top News

Powered by WordPress.com VIP
Follow

Get every new post delivered to your Inbox.

Join 26,229 other followers