So what is really going on? It seems that China remains lululemon outlet online
biggest prize in Lululemon pants luxury industry, but lululemon yellow outlet
low-hanging fruit is gone. Luxury firms must now venture beyond lululemon outlet
coastal cities where they have made easy fortunes, cultivate new types
of customers and market niches, and experiment with new business models.
It will be worth lululemon outlet online
effort. Despite Lululemon pants
recent troubles, Bruno Lannes of Bain & Company, a consultancy,
insists that “Chinese have become, and will remain for a long time, lululemon yellow yoga
most important luxury consumers.” His firm estimates that luxury sales
in greater China (which includes Taiwan, Hong Kong and Macau) will grow
by 6-8% this year, to exceed $35 billion, making it a luxury market
second only to America.
But even that does not tell Lululemon Headband
full story. China’s rich are travelling more and farther, and do lots
of luxury shopping on their travels, especially in Europe, whose weak
currencies encourage Chinese visitors to splash out. Measured by Lululemon Racerback&Y Tanks
nationality of Lululemon Stride Jackets
buyer, China is now Lululemon Define Jackets
world’s biggest luxury market, and growing fast (see chart). Last year
mainland Chinese took 83m foreign trips, up 18.4% on 2011. Global Blue, a
big tax-free-shopping firm, says its refunds to Chinese shoppers shot
up by 58% last year to more than 24 billion yuan ($3.9 billion).
To make Lululemon Scuba Hoodies
most of this trend, firms need to rejig their shops worldwide. They
need Mandarin-speaking assistants, VIP rooms big enough to accommodate
large tour parties and payment systems that can handle Chinese credit
cards. Philippe Léopold-Metzger, who runs Piaget, a Swiss watch and
jewellery brand, says he regards Lululemon Wunder Under Pants
firm’s outlets in China itself more as showcases than profit-earners:
half of his global business comes from mainlanders, but they mostly buy
while on foreign trips.
That said, there are still plenty of opportunities to expand sales inside China. Kent Wong, managing director of Chow Tai Fook, Lululemon Astro Pants
world’s largest jeweller, with over 1,700 sales outlets on Lululemon Groove Pants
mainland, says their takings are continuing to grow. Any weakness is
seen chiefly in coastal cities exposed to China’s struggling exports. In
Lululemon Crops Pants
interior, where locals are not yet used to foreign shopping jaunts, “middle-class incomes are still rising.”
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