China-AsiaStocks.com, an investor and industry portal China-Asia sector within Investorideas.com, reports on China’s growing appetite for luxury goods from fashion, to cars, to jewelry and how both China’s domestic and established well-known foreign brands are meeting the increasing demands. With a rising number of millionaires and a growing middle class, China is poised to become the second biggest consumer of luxury goods by 2015.
The fashion industry in China is changing rapidly, as Chinese consumers want to make purchases that reflect their newfound success and social status.
China’s International Clothing and Accessories Fair “CHIC 2008,” held in Beijing March 28-31, 2008 is attracting some of the best in the fashion industry. OmniaLuo, Inc. (OTCBB: OLOU) domestic China-based company that designs, markets and distributes the luxury women's apparel brand “OMNIALUO,” will be exhibiting at CHIC 2008 as part of it growth and expansion strategy.
As award-winning domestic brand designer, Cindy Luo, OmniaLuo Chairwoman and CEO feels she has her finger on the pulse of the new breed of luxury consumers in China, commenting,” We see many luxury brands including Dior and Louis Vuitton entering the Chinese marketplace to expand market share, selling to Chinese consumers. Also, several foreign fashion brands have moved their production to China – so China is becoming an integral part of the high-end fashion industry in all aspects. Our company understands the consumer, knows the competition and feels we can compete with well- known foreign luxury brands.”
Coach Inc, internationally desired for its luxury handbags and accessories, has ambitious plans for its line in China. According to Coach, “We expect Greater China, which includes Hong Kong, Taiwan, and mainland China to grow rapidly, achieving 10% of the global market by 2009. Therefore, we are focused on this opportunity, as we believe Greater China has the potential to become a third leg for Coach. Although we're still in the very early stages of our development in Greater China, we have made great progress and estimate our market share today at about 4%. At year-end there were a total of 49 Coach locations in the region, including 15 in mainland China, 13 in Hong Kong, 1 recently opened in Macau, and 20 in Taiwan.“
Luxury car manufacturers are also gaining traction in China’s new economy. According to a study by BMW Group, “only 3.7 percent of the Chinese population, i.e. around 50 million people, earned enough money to buy a car in 2002. By 2010 this figure should increase to 13 percent.“
Swatch Group Ltd just reported net income for 2007 exceeded CHF1 billion for the first time as part of a continuing global market for luxury goods, particularly in China, with Europe and the United States also performing well. In December 2007, The Swatch Group Ltd. announced it increased its participation in Xinyu Hengdeli Holdings Ltd. from 7.25% to 8.09%. Xinyu Hengdeli Holdings Ltd. is the largest watch retail chain in China and is listed on the Hong Kong stock exchange.
As China builds dominance as both a manufacturer and a consumer of luxury goods, companies that know both sides of the market have a higher chance to succeed and grow market share. In terms of growth opportunities for luxury brands, it has only just begun.
About China- Asia Showcase Company, OmniaLuo, Inc. (OTCBB: OLOU)
OmniaLuo, Inc., based in China's fashion capital of Shenzhen, is in the business of designing, developing, marketing and distributing fine women's apparel under the brand name OMNIALUO. OMNIALUO's apparel embodies elegance, femininity and sophistication for China's rapidly growing class of urban and affluent female professionals. With its rapid and strategic expansion plan, OMNIALUO plans to increase its retail presence across 32 of 34 provinces in China from its current 187 stores to 264 stores by year-end 2008. Under the leadership of Cindy Luo, the Company's founder and award winning chief designer, OMNIALUO is positioned to become the Chinese brand equivalent of Donna Karan or Liz Claiborne.
Investors can also visit the Company Showcase and The Company’s Media Presentation on the Investorideas.com website.
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Source: Investorideas.com, China-AsiaStocks.com, OmniaLuo, Inc.