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Chinese Consumers Rapidly Shift From Luxury To Thrift

Tyler Durden's picture




 

It was a decent run but all good things come to an end. We know China's growth is fading (even by their own official data) but below the surface data suggests things are a lot worse. Between this drop in growth and the rise in anti-corruption practices (that we discussed here) the imports of Swiss-made luxury watches has tubmled 24% in Q1 for the third quarter in a row of declines. "The corruption crackdown campaign is having a big effect on luxury watch sales, high-end watches are very common gifts and they are items that are quite conspicuous and associated as a sign of corruption." This follows the firing of Communist Party official Yang "Brother Watch" Dacai who posted images of himself wearing 11 luxury watches at different times. Two major luxury watch retailers are significantly underperforming while Swatch is improving as Hong Kong (the world's biggest importer of watches) slows dramatically. But have no fear, we are sure it will be a smooth transition.

 

Imports of luxury watches into China and Hong Kong slump...

 

Luxury watch retailers are struggling as Swatch rallies...

 

Charts: Bloomberg

 

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Sat, 05/11/2013 - 12:41 | 3551496 francis_sawyer
francis_sawyer's picture

Are 'Chinese' [or 'Asians'] a 'race'?...

~~~

If so ~ I think it might be unjust to characterize them, or their behavioral patterns, in any way that might be offensive to others...

Sat, 05/11/2013 - 12:43 | 3551508 Burt Gummer
Burt Gummer's picture

Welcome to the new normal.

 

http://www.youtube.com/watch?v=deuC8GPr31A

Sat, 05/11/2013 - 12:46 | 3551515 Jayda1850
Jayda1850's picture

A real chink in the armor of chinese growth. I see where you're going with this francis.

Sat, 05/11/2013 - 13:16 | 3551577 francis_sawyer
francis_sawyer's picture

I see what you did there... [by Monday, I predict ~ there'll be a whole fucking MORSE CODE]...

Sat, 05/11/2013 - 14:03 | 3551687 Element
Element's picture

All covered francis, take care.

 

" ... will not be tolerated in ANY FORM on this site, ..."

Sat, 05/11/2013 - 15:17 | 3551883 WmMcK
WmMcK's picture

Let's just call a spade a spade (but not a fucking shovel).

Sat, 05/11/2013 - 12:46 | 3551516 kito
kito's picture

I'm like the Jewish lawyer who defended the kkk right to march.....and I say give Francis Liberty or give him Death!!!!!!!

Sat, 05/11/2013 - 13:10 | 3551560 francis_sawyer
francis_sawyer's picture

@kito... LOL ~ I say 'GIVE ME DEATH"... NOW!... I'll fucking fall on the sword...

~~~

& before I die... Let me say... You're cool [in my book]... I wish you the best [in spite of your Banana Republic ~ buy one, get 7 free ~ 'KHAKIS' ~ lol]

Sat, 05/11/2013 - 12:46 | 3551517 fonzannoon
fonzannoon's picture

dude give it up already. You made your point. As you illustrated last night, a whole thread about religion took place after the policy was put up on the site and Tyler did not delete anyone's comments or pop up to remind us about it. If this site is gaining momentum and actually making a few more sheep look up every day and see they are about to get slaughtered, then I am willing to put up with it.

You have also done a decent job of distinguishing a small group of people (bankers) from an entire religion. Your point has been made. My guess is tptb are looking for any reason to start coming after sites like this and ZH may just be doing CYA. I am sure I will get bashed for this or look like a suck up, but it is what it is.

You are eloquent as hell. Start your own blog. Play by your rules.

Sat, 05/11/2013 - 13:53 | 3551661 francis_sawyer
francis_sawyer's picture

@fonz

~~~

I'll start with where I AGREE WITH YOU...

"It is what it is"

...but this... "Give it up already"... ON FIGHT CLUB???... You gotta be fucking insane... Brad Pitt [as Tyler Durden?]... Fuck that... I'll take Brad Pitt [as Achilles]...

http://www.youtube.com/watch?v=_ygRholyh5g

"I won't let a stone take my glory"

~~~

"I'd rather fight beside you than an army of thousands"

http://www.youtube.com/watch?v=d_O68HUcHos

~~~

"The Gods envy US... They envy us, because we're mortal... Cause any moment might be our last... Everything's more beautiful... Because we're doomed..."

http://www.youtube.com/watch?v=pTebyczRuYA

~~~

...& even if it means the death of me...

http://www.youtube.com/watch?v=z41KT5fLF1g

Sat, 05/11/2013 - 14:20 | 3551723 PontifexMaximus
PontifexMaximus's picture

Go for it!

Sat, 05/11/2013 - 15:30 | 3551870 Aurora Ex Machina
Aurora Ex Machina's picture

European Commission against Racism and Intolerance (ECRI), the disclaimer is about that.

 

SWISS INSTITUTE OF COMPARATIVE LAW, EUROPEAN COMMISSION AGAINST RACISM AND INTOLERANCE, LEGAL INSTRUMENTS TO COMBAT RACISM ON THE INTERNET (2000) [PDF]

There is an exception to the common standard, however; it concerns negationism, which means calling in question the existence of genocide. Other than France, where it is an offence to “dispute crimes against humanity”, only Switzerland, Germany, Belgium and Austria punish this offence; and in the latter three countries the offence is limited to the denial of genocide committed by the Nazis. This difference in approach is worth mentioning, out, since revisionist sites are flourishing on the Internet.
...
Switzerland/link
Recently (in March 2000) the personal home page of an assistant lecturer at the Federal Ecole Polytechnique in Zurich was closed down by an internal decision taken by the authorities of the Ecole Polytechnique,acting on their own initiative, because it contained links to racist sites. The matter is currently the subject of an internal administrative and criminal investigation.
...
User Guidelines for sunrise internet services (SUNRISE SWITZERLAND)
Legal and illegal use: You are under obligation not to use the services provided for committing, or causing to be committed punishable offences and to take suitable measures to prevent illegal use by your employees or members of your household. This applies in particular to matters of illegal games of chance, money laundering, the publication and the making accessible the presentation of violence, so-called hard pornography, incitement to crime or acts of violence, disturbance of religious and cultural freedom or racial discrimination."

 

 

 

tl;dr

 

Grow up, the internet is not the USA (and be very thankful ZH isn't hosted on US soil). The policy has nothing to do with you, your imaginary "rights" to free speech on the internet or even about "The Jews". Sorry to burst your masturbatory bubble francis, but you can dribble all you want as long as you're not posting direct links, copy/pasting screeds that can be spotted by algos, and ZH has a policy in place that clearly says it'll erase such stuff[1] etc.

 

There's a reason why I'm careful about every link I post / every cut/paste, they can be used as justifications for all kinds of pressure placement. I'd hope people were savvy enough to realise that a) all my links are safe (and if rude/icky, labeled as NSFW/NSFL) and b) I know where I'm linking to in respect to legal frameworks above.

 

 

[1]Enforcement is a different issue, and I've no idea about Tyler's designs on that.

Sat, 05/11/2013 - 15:38 | 3551921 francis_sawyer
francis_sawyer's picture

I don't NEED, nor give FF about 'links'... My ideas are my own [& 'others' ~ who attempt 24/7 to INSERT their own opinions as to what my ideas actually mean, are THEIR OWN]... That's the goddamed LUXURY & BEAUTY [ain't it]... I don't need others to speak for me...

~~~

You do whatever the fuck you want...

Sat, 05/11/2013 - 15:41 | 3551924 Aurora Ex Machina
Aurora Ex Machina's picture

...which is why I suggested last night you'd probably be fine. (IANAL, nor am I running this site). I've then explicitly explained the new policy, it's most likely rationale with references that you can check yourself, since it looks like you didn't understand.

 

You're making a scene over something that's beyond your control, and not actually about what you think it is. But go ahead, THEY are after you...

Sat, 05/11/2013 - 15:44 | 3551930 francis_sawyer
francis_sawyer's picture

Nothing... I repeat 'N-O-T-H-I-N-G' is beyond the 'control' of a freePERSON... Try it on 4 size...

~~~

Klaus Kinsky ~ 'Dr. Zhivago'

http://www.youtube.com/watch?v=8g6LrHoGzRc

Sat, 05/11/2013 - 18:01 | 3552167 Aurora Ex Machina
Aurora Ex Machina's picture

If you're ignorant of the chains that bind, then you've no chance of breaking them, or slipping through them. You're welcome not to be part of the reality based community, but that doesn't change the nature of the chains.

 

 

Baaaaa.

Sat, 05/11/2013 - 14:10 | 3551698 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

Francis,

I have scanned numerous articles today and have noticed that you are posting a bunch today.

I do not understand why. Not one of the articles today had anything to do with Zionists.

Are you feeling o.k.?

 

/s

Sat, 05/11/2013 - 14:41 | 3551782 francis_sawyer
francis_sawyer's picture

I don't know anything about 'Zionists'... Hell ~ on that note... TWICE... [in this past week] somebody else brought up 'stormfront' [which I swear to DOG I'd never even heard of before]...

~~~

So I guess that means... by YOUR definition... that I'm NOT feeling OK... [Is there a BLUE PILL I can take to make me feel better]?... I certainly hope so... After all... I want to 'FEEL THE BUZZ' as much as the next guy... Ive always dreamed of wearing khakis [but could never afford them]... I'm just a poor asshole in worn dungarees & overalls...

Sat, 05/11/2013 - 14:49 | 3551809 e-recep
e-recep's picture

according to new regulation we must respect the zionists for their belief in zionism.

Sat, 05/11/2013 - 15:03 | 3551848 francis_sawyer
francis_sawyer's picture

Well ~ I've already admitted, over the past number of years, that I don't know anything about their ['terminology'] slice of life... So... WHEW... I'm absolved...

Sat, 05/11/2013 - 15:04 | 3551852 q99x2
q99x2's picture

Hard to say but there are more of em in China than in Israel.

Sun, 05/12/2013 - 12:56 | 3553713 dunce
dunce's picture

It seems you have little idea of just how racist Chinese in particular or Asians in general are. Americans in general could said to be 10 times more tolerant. They will not be offended because they are proud of themselves.

Sat, 05/11/2013 - 12:44 | 3551498 williambanzai7
williambanzai7's picture

This is to be diistinguished from the solid gold jewelry business which seems to be running on turbo overdrive.

'Time' to get serious about how your stealth flight capital gets deployed...

Sat, 05/11/2013 - 20:30 | 3552401 Pool Shark
Pool Shark's picture

 

 

Bet these guys are doing just fine:

http://www.watchcheaps.com/

 

Sat, 05/11/2013 - 12:40 | 3551502 yogibear
yogibear's picture

Something that people in the US have a tough time doing. Know of many that don't know how to balance a checkbook (Like the US government). No budget.

Spending out of control and irresponsibility until the US dollar blows up.

Bubble Bernanke and the Fed have the accelerator mashed until off the cliff.

Sat, 05/11/2013 - 16:35 | 3552030 AldousHuxley
AldousHuxley's picture

no need for budget or checkbook balancing when majority are living pay check to pay check....buy when you get paid, work until you can buy more.

Sun, 05/12/2013 - 13:00 | 3553717 dunce
dunce's picture

Free health care, free school, food stamps, and govt. housing,. Who needs a stinkin' budget? Just the fool with a job.

Sat, 05/11/2013 - 12:58 | 3551540 Kreditanstalt
Kreditanstalt's picture

Hengdeli and Emperor Watch are "luxury Swiss brands"???

Probably Audemars-Piquet and Vacheron-Constantin are still doing just fine, thank you.

Sat, 05/11/2013 - 14:22 | 3551725 PontifexMaximus
PontifexMaximus's picture

Hehehe, do not forget my friends Rolex and the Stern family, Patek Philippe

Sat, 05/11/2013 - 12:59 | 3551541 ebworthen
ebworthen's picture

The Chinese still wear watches, eh?

I don't see anyone under 30 here in the U.S. wearing a watch.

"Genuine Fake Watches" -reminds me of the self-car wash/vacum places I see in my town - "Unlimited Time! (15 minute limit)"

Sat, 05/11/2013 - 13:31 | 3551614 Kreditanstalt
Kreditanstalt's picture

Well, that says something about young people and their investing perspicuity, doesn't it?

A good watch is a good store of value.

Sat, 05/11/2013 - 14:19 | 3551718 williambanzai7
williambanzai7's picture

This is definitely a male Asian thing. When you live in a small apartment (and most of them are small irrespective of what you read), there are two things to flaunt your success/status with,  a sports car and high end watches. Young women look at men's wrists just as they look at their shoes, which these days are usually expensive sport shoes.

I stopped wearing a watch out here because it is uncomfortable in humid weather and there is a clock on every piece of electronic gear.

Sat, 05/11/2013 - 17:49 | 3552148 Apostate2
Apostate2's picture

Just don't give anyone a CLOCK!

Sat, 05/11/2013 - 18:13 | 3552182 Kreditanstalt
Kreditanstalt's picture

Or hang it on the back wall of your house, facing the front door...

Sat, 05/11/2013 - 21:49 | 3552621 MythicalFish
MythicalFish's picture

Isn't receiving a watch as a gift kind of 'unauspicious' anyway?

Sat, 05/11/2013 - 13:23 | 3551555 PaperWillBurn
PaperWillBurn's picture

I was in HK about 3 weeks ago. I have no AE about watch sales but there was long lines outside of every high end bag retailer. They're either spending a tremendous amount on handbags or they enjoy waiting in long lines to get into bag stores.

Sat, 05/11/2013 - 13:47 | 3551656 topspinslicer
topspinslicer's picture

No rice for you!! (but can I interest you in a pure gold one grain bar perhaps?)

Sat, 05/11/2013 - 13:54 | 3551667 Yen Cross
Yen Cross's picture

      A country of 1.3 billion, and 1 billion live in squalor. 

      At least you can buy 'fireworks' to self immolate in China.

Sat, 05/11/2013 - 14:25 | 3551734 ekm
ekm's picture

Bravo. It's difficult for people to keep thinking in RELATIVITY.

 

ooooooo, there are 300 million chinese (if ever, but let's assume so) living ok.

Yeeees, ok, but how about the other 1 billion?

Sat, 05/11/2013 - 14:49 | 3551811 Yen Cross
Yen Cross's picture

      I stand corrected EKM. I was generalizing.  It's probably closer to 100 million. Thanks for keeping it real.

    Need moar ALGO articles.

Sat, 05/11/2013 - 15:32 | 3551918 Rustysilver
Rustysilver's picture

One another thread someone posted that 1.3B Chinese are buying gold. I strongly disagreed and got junked. 

Assuming an optimistic figure may be 100-200 million in India and China are doing well by there standards.

Sat, 05/11/2013 - 15:58 | 3551956 Yen Cross
Yen Cross's picture

       (+1)  Feel better now ?

Sat, 05/11/2013 - 23:21 | 3552878 CheapBastard
CheapBastard's picture

True, Yen. I heard on BBC th eother day that despite all we hear about the many new millionaires in China, that more then 50% of the people there still survive on less then $1 measley dollar a day....and the BBC commentator went on the say that despite that shocking fact is that India is much much poorer then China.

 

We have it pretty lucky......

 

Sun, 05/12/2013 - 13:10 | 3553739 dunce
dunce's picture

"Luck" had little to do with the organization of our govt,. and economy. Millions of people put their sweat, blood, and tears to build what we have out of resources that were being ignored by our predecessors. from sea to shining sea there was not one road here 500 years ago.

Sat, 05/11/2013 - 13:54 | 3551673 geminiRX
geminiRX's picture

Who has the "time" to buy Swiss watches when shopping for new Porsches (i.e. Porsche has best quarter ever)

Sat, 05/11/2013 - 14:07 | 3551691 reader2010
reader2010's picture

Whorehouses in Beijing have seen slow since the average visit costs more than $1000 a pop.

Sat, 05/11/2013 - 14:47 | 3551800 Smegley Wanxalot
Smegley Wanxalot's picture

Yes but you only frequent the ones that offer upscale ladyboys.

Sat, 05/11/2013 - 18:08 | 3552177 Rustysilver
Rustysilver's picture

reader2010,

I am assuming that this a report from a friend of your and you don't have any personal knowledge.

Sun, 05/12/2013 - 13:14 | 3553745 dunce
dunce's picture

That meat would be easy to beat.

Sat, 05/11/2013 - 14:14 | 3551700 Smegley Wanxalot
Smegley Wanxalot's picture

Mah iStupidFone® dun tellz mi da tahm fo' free!

Sat, 05/11/2013 - 14:25 | 3551735 urbanelf
urbanelf's picture

More money for gold.

Sat, 05/11/2013 - 14:34 | 3551765 ejmoosa
ejmoosa's picture

Imagine the chaos of the world financial leaders if 1 billion consumers decide it is better to save a little than it is to spend a lot on crap you just do not need.

 

Sat, 05/11/2013 - 16:02 | 3551964 Ban KKiller
Ban KKiller's picture

My chickens can tell time. Time to....etc.

Sat, 05/11/2013 - 18:20 | 3552194 Yen Cross
Yen Cross's picture

     China, "land of river pigs and cheap diamonds"...

Sat, 05/11/2013 - 21:06 | 3552494 Atomizer
Atomizer's picture

Chinese consumers will resolve in buying their products from the new African Globalized regions.

 

/LMFAO

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