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Whilst global luxury sales fell as much as 20 percent in 2020, China's luxury market bucked the trend, growing a whopping 50 percent in the same year to around CNY356 billion (US$55.2 billion), according to reports.
Frederic Winckler says that Asians have been playing a dominant role in the luxury market for some time, although for years this has been partially disguised by the fact that many of their purchases—indeed about two-thirds—were made overseas in Europe, Japan, and elsewhere.
Chinese spending on luxury goods, which has driven some stocks to record highs, is likely to subside once the pandemic eases in favour of spending on travel, dining and outdoor leisure, a publication tracking the Mainland market reports.
The consensus view is there is still pent up demand for travel amongst Mainland Chinese and disposable income to do so, however, there are subtle changes in travel preferences that Asia’s operators would do well to take note of.
Surprising strength in Chinese luxury spending, an ongoing clampdown on online gambling and limited travel options all bode well for Macau and shares in its operators, Morgan Stanley said.
China’s economy is seeing renewed strength in premium activity, driving demand for luxury cars and VIP gaming in Macau, though longer term the outlook...