Shoppers or smugglers? China crackdown on 'daigou' boom - CNN.com
Price Difference One aim is to keep Chinese shoppers such as Ann Hu from taking their wallets to Europe. On a trip to Milan in July, the 27-year-old marketing executive from Shanghai picked up a Loewe leather handbag for 8,000 yuan, about half what she would have forked over in China. "The price difference between Europe and the mainland can pay for a round-trip ticket for me to Paris or Milan," explains Hu, who's collected luxury bags since she was 23. "If I could do that and holiday for a few days there, why wouldn't I?" China imposes duties as high as 25 percent on imported products such as leather handbags, dresses, shoes, and watches, depending on their value, according to data from the World Trade Organization. The country also levies consumption taxes of 20 percent on high-end watches and 30 percent for cosmetics. The effect of taxes and a price markup means luxury branded items end up costing 50 percent more in China than in Europe, said Sanford C. Bernstein analyst Mario Ortelli. Last year 67 percent of luxury products purchased by mainland Chinese were acquired outside the country, according to Bain.
The Best-Selling Luxury Handbag Designers In Each Major City | StyleBlazer
With the dirth of brands fighting for a stake in the space, and the demand for goods overpowering the supply , its interesting to see which luxury handbag brands are keeping up despite the madness. In a report done by Fashionista in conjunction with online consignment start-up TheRealReal , they identified the top selling handbag designers broken down by city. Their findings do a great job of identifying what brands are trending around the country, and while most of the report is pretty predictable there were a few surprises. Click on the next pages to see which brands reign in cities like New York, San Francisco, Miami and more! 1
Factory Girls want to put the Southeast on fashion map | A&E Feature | Creative Loafing Atlanta
Inventory has become an issue for brands across the board, and this is a big problem. Slower Spending Growth in luxury spending in mainland China will slow to 2 percent this year after rising 30percent in 2011, forecasts Bain. Christian Dior SA (CDI) and Ermenegildo Zegna Group both held sales at their China stores in July, with Milan-based Zegna cutting as much as 40percent off menswear, leather items, and shoes. Some discounting is more understated, as luxury houses try to avoid lowering the value of their brands along with their prices. Hermes dangled price cuts of as much as half off on dresses and shoes in April at an invitation-only sale, held in the eastern city of Hangzhou, according to reports by Chinese media. Guests were invited by mail to the four-hour sale, at a hotel in the citys West Lake district, and barred from taking pictures, according to a story posted on the website of the Peoples Daily, the official newspaper of Chinas Communist Party.
A graduate student from China, Zhang spends her free time in the city's swankiest department stores buying designer goods. She once blew $45,000 on the coveted Hermes' Birkin that is regarded by some as the "holy grail" of handbags. Zhang, however, is not splashing her own cash. She is one of China's growing ranks of "haiwai daigou," or overseas personal shoppers, that source luxury items for customers back home. It's a booming business that was worth 74.4 billion yuan ($12 billion) in 2013, according to the China E-commerce Research Center. Graduate student Zhang Yuzhu makes extra money by buying designers bags for customers gorden coklat tua found through social media "Usually I can earn $200 to $300 for a Chanel handbag, but I will get more for a Hermes," Zhang told CNN. Zhang's customers get designer goods for less than they would at home by circumventing China's steep taxes on luxury items.
China Fashionistas Get Best Deals on Gucci, Hermes Bling: Retail - Bloomberg
Crew and Armani Exchange. She extended her entrepreneurial goals by compiling a collection of vintage treasures for her line, Recollection Vintage, and started her Bodega pop-up shop to promote Atlanta-based designers and their collections. In 2013 Thurnher and Weir joined forces thanks to Weir's brother, who instigated the introduction. The women became fast friends who now call each other "wifey" and even tote around the same leather handbag. Weir was managing her family's manufacturing and linen service company and looking to open a boutique with her husband. Meanwhile, Thurnher was consulting and styling local designer Abbey Glass 's line. She discovered that most of Glass's troubles were rooted in the lack of resources available for manufacturing clothing lines in Atlanta; this was also an issue for local designer Megan Huntz .