Chuo-ku, Tokyo, Japan – February 23, 2018; Top luxury shopping street with colorful neon signs. Ginza Avenue in central Tokyo is lined with expensive brand shops and restaurants. It’s half past five on Friday afternoon. People flock to Ginza to shop, have dinner and drinks with friends. Ginza became synonymous with Japan’s main shopping district.
Marco Ferrin | Moment | Getty Images
SHANGHAI – Sales of luxury brands in Japan surged, largely as Chinese tourists took advantage of a weak yen to buy, earnings reports showed this month.
LVMH, dry Both Burberry and Burberry noted the growth, although weak sales in China hurt overall results.
Sales in Japan Sales of Yves Saint Laurent, owned by Kering Group, soared 42% in the first half of the year “due to strong growth in the number of tourists from China and Southeast Asia, who were attracted by the price difference brought about by favorable exchange rates.” Unveiled its second largest brand.
In the first half of the year, luxury goods groups LVMH This week’s report “Japan’s amazing growth Especially shopping from Chinese tourists.
Wind information data shows that since 2000, the exchange rate of the yuan against the yen hit its highest level in at least 24 years this month, and the exchange rate of the yuan against the yen has risen 6.9% so far this year.
The yen has fallen to a 38-year low against the dollar as interest rate differentials between the Federal Reserve and the Bank of Japan remain wide.
According to statistics, there was a surge in tourists from around the world to Japan in the first half of this year, with South Korea accounting for the largest number of tourists. Japan National Tourism Organization.
But data shows that tourists from mainland China have grown the fastest so far, with a surge of 415% in the first half of the year to 3.1 million.
Ctrip told CNBC that spending by Chinese tourists traveling to Japan has increased in recent months compared to the previous three months. The travel services company reported a more than 60% increase in bookings through its customized travel team and global shopping services with global luxury brands. Trip didn’t specify which months, citing upcoming earnings historically released in September.
On Chinese social media sites like Weibo and Xiaohongshu, users shared the following tips: Where can I find luxury stores in Japan?.
A netizen called on netizens to save money—— Shopping through Japan. She praised a shopping mall in Sapporo for having a “beautiful” Gucci store and a “top” standard of shopping.
The creator of another post seen by CNBC said they “Shopping until their legs turn to jelly.”
A study by consultants Oliver Wyman showed interest in visiting Japan among wealthy Chinese households rose 5 percentage points in May compared with a survey conducted in September last year. The income component covers households in mainland China with a monthly income of at least 30,000 yuan ($4,140, or about $50,000 per year).
Research by Oliver Wyman found that the prices of various luxury goods in Japan are 10% to 30% cheaper than in mainland China.
Compared to Hong Kong, the discounts are larger. For example, during Oliver Wyman’s research, a Louis Vuitton Speedy Bandouliere 20 was priced at RMB 16,700 in mainland China, had a 3% discount in Hong Kong, and was 19% cheaper in Japan.
According to the report, Malaysia offers a 10% discount and France offers a 27% discount.
The report quoted an unnamed luxury brand retailer director as saying, “In Asia, Japan has the most comprehensive product range (e.g. styles, colors, etc.) among most luxury brands outside Hong Kong.”
China’s growth slows
Chinese consumers’ overall interest in Japan Luxury goods consumption in China has declined due to uncertainty about future income. Locals are also increasingly embracing cheaper holidays in mainland China.
Before the outbreak, about half of China’s luxury goods consumption occurred abroad, but this number has now been halved to about 20% to 25%, according to data from Oliver Wyman.
The report showed that Japan was the fourth most popular overseas luxury shopping destination as of May, but Hong Kong remains the most popular destination so far, followed by Macau and Singapore.
“Globally, the Chinese customer base also declined, but it outperformed mainland China as spending shifted overseas,” Burberry said in its earnings report earlier this month. “Japan continues to grow, benefiting from Strong travel spending, mainly from near-shore customers in China and Asia, while locals remain weak.”
Burberry’s latest quarter sales in mainland China fell 21% compared with the same period last year, while Japan grew 6%. The overall decline in global sales prompted the luxury brand to issue a profit warning, suspend dividends and replace its chief executive.
In the three months ended March 30, Coach bosses tapestry Sales in Greater China, which includes mainland China, Hong Kong, Macau and Taiwan, fell 2%. However, sales in Japan increased by 2% during the same period. The company has not scheduled its next earnings release.
— CNBC’s Sonia Heng reported from Singapore.
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