This week in the news, four cities in China make The Economist’s list of the most expensive cities, Chinese tourists are among the highest spenders on hotels, Victoria’s Secret plans to open beauty and accessories stores across China, Michael Kors debuts its flagship store in Shanghai, and diagou brings revenue and controversy.
The World’s 10 Most Expensive Cities
The Economist Intelligence Unit’s bi-annual worldwide cost of living report has declared Singapore the most expensive city in the world, unseating Tokyo. The worldwide cost of living index compares more than 400 prices across 160 products and services including food, drink, clothing, household supplies, personal care products, rent, property costs, transportation, utilities, and recreation. Four cities in China made the list of 140 cities, though none were in the top ten. Hong Kong ranked as the 13th most expensive city, up from 14th in the last survey. Shanghai, Shenzhen, and Beijing ranked 21st, 39th, and 47th respectively.
Chinese on Top 10 List For Paying Most for Hotels When Abroad
Contrary to popular belief that Chinese travelers are frugal when it comes to hotel stays, Chinese globetrotters were among those who paid the most for hotels when traveling outside their own country, according to a recently released report by Hotels.com. Chinese outbound travelers ranked No 8, spending an average of 1,031 yuan ($166) per night for a hotel abroad, reports China Daily. The report is based on bookings made on the Hotels.com site and are actual rates paid.
Victoria’s Secret Makes Its Move on China
American lingerie and beauty retailer Victoria’s Secret, known for its supermodels called “Angels,” plans to open its first store in mainland China as part of its efforts to open more than 100 international stores this year, according to Columbus Business First. The first new international stores will be Victoria’s Secret Beauty and Accessories stores. These approximately 1,000 square foot stores offer a selection of bath and beauty products, fragrances, small leather goods, cosmetic cases, and sunglasses.
Michael Kors Debuts New Store Concept at First China Flagship
American luxury brand Michael Kors will open its first China flagship in Shanghai. The flagship offers two firsts for the brand – a dedicated men’s accessory presentation and a women’s shoe salon. The store will carry handbags, watches, jewelry and eyewear. The second floor is for the more luxury Michael Kors shopper and includes two side-by-side women’s ready-to-wear shops, one for Michael Kors Collection and the other for Michael Michael Kors. Over the next five to seven years, the brand plans to have 100 stores in the region.
Growing Interest in Daigou Brings Revenue and Controversy
An increasingly large group of daigou agents, or those who specialize in acquiring foreign goods for mainland Chinese consumers, are shaping the international marketplace. Between 2008 and 2012, the daigou market grew 19-fold when it reached Rmb48 billion (US$7.8 billion), according to the China e-Commerce Research Centre; the center also believes that the market exceeded this value in 2013, growing to Rmb74 billion (US$12 billion). A recent study by Bain also showed that approximately 60 percent of Chinese luxury consumers have used daigou at some point.