Rising euro 'is driving away Asian spenders'
Wealthy Chinese shoppers are beginning to ditch European shopping trips for Asian spending sprees.
HSBC's luxury expert Erwan Rambourg claims in his latest report, titled The Bling Dynasty, that the rise of shopping trips by wealthy Asian people to Korea, Macau, Hong Kong, Taiwan and Singapore will increase – driven by higher priced goods in Europe and the rising euro.
He warned that luxury brands need to ensure they have a strong presence across Asia.
He said: "In 2013, a risk for luxury companies is a possible reversal of the trends seen in 2012 – Chinese consumers are now buying more at home, but less abroad."
UK-based leather brand Mulberry last month issued a profit warning and said the handbag brand could not rely on tourists to Europe alone. But Mr Rambourg claimed there is a balance between recognition and overexposure for luxury brands.
He said: "Chinese shoppers have become more sophisticated and discriminating, which means some established brands may lose market share – we call this a 'first-mover disadvantage'."