Many overseas makers of luxury goods are reluctant to enter the
Chinese market, citing high duties and poor distribution.
That was the message yesterday at the four-day Luxury China
exhibition.
The show, which runs through tomorrow at the Shanghai New
International Expo Center, has 300 exhibitors from more than 20
countries and regions.
Their goods range from stylish sports watches to a diamond necklace
priced at 8 million Hong Kong dollars (US$1 million).
Exhibitors agreed that a demand for luxury goods has emerged in
China and is set to grow considerably in the next three to five
years.
Diamond-jewelry sales on the mainland came to 6.1 billion yuan in
2000, four times as much as in 1990, industry sources said.
Shanghai has seen three premium stores or shopping malls - Lane
Crawford, Plaza 66 and CITIC Square - open since 2000.
But five of seven executives questioned said they will wait before
making substantial business efforts on the mainland.
"High import tariffs raise our cost and prevent over-seas companies
from competing in the domestic market," said Daniele Baldan,
commercial director of Italian jewelers Balestra 1882.
"Most other Italian companies are waiting for the Chinese
government to change its mind . . . as part of China's promises on
its (World Trade Organization) entry," Baldan said.
China bans the importation of gold products and imposes duty
ranging from 17 percent to more than 100 percent on clothing,
jewelry and other accessories.
Aaron Shum, president of a Hong Kong agent for Italian jewelers and
watchmakers, said "finding qualified domestic distributors is not
easy."
"Agencies that have both import rights and access to premium
department stores or watch chains are preferred. But the number of
such domestic partners is very limited," he said.
(eastday.com September
21, 2002)