British Media coined “Peking Pound” for Extravagant Chinese Purchases and High stakes Gambling Abroad

| January 2nd, 2011

(IFENG)

The big bucks Chinese spend overseas every year reaches staggering numbers. Last year reportedly 56% of Chinese purchases of luxury goods occur abroad, totaling 13,000 million USD. British Media coined a new word—“Peking Pound” for Chinese huge purchasing power. The casinos overseas, also add Chinese in their VIP lists.

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British “Peking Pound” splurged £1bn in sales of luxury goods

According to the British Daily Mail reported on 28th December, 2010, wealthy Chinese tourists are expected to spend a billion pounds on luxury goods during sales.

Based on the word “pound”, British media coined a new noun—“Peking Pound” for the pounds Chinese have spent. The booming “Chinese Pound” is anticipated to account for a third of the entire sales of high end goods, such as Burberry, Louis Vuitton and Gucci.

Shopping Malls looks like “Chinese supermarkets”

Many stores in London have appointed Mandarin-speaking assistants to cater to the massive new market. One of the most popular department stores in London, Selfridges has started taking China UnionPay cards– the only domestic credit card available in China, which greatly facilitates consumption. The massive flood of Chinese shoppers makes the shopping mall look like a “Chinese supermarket”.

Jonathan de Mello, analyst of retail business, comments that Chinese have taken the place of Russians and Arabs to become the biggest buyer of British luxury goods.

“Chinese Pound” takes 30% of British Luxury Goods

De Mello said that the booming economy in China provides the luxury goods industry with a big emerging market. The price of luxury goods in China is 20%-30% higher than that in Britain due to its high tariff rate. In the past two years, the exchange rate of pound to RMB slumps by almost 30%, which whets China’s consuming appetites.

According to de Mello, Chinese’s expenditure accounts for 30% of the consumer market of luxury goods in Britain.

The number of Chinese visiting Western Europe this year, according to statistics, is around 25 million, which is a 20% over 2009, and the expenditure has also been doubled.

Chinese lavish 7 Billion dollars in the U.S.

LV, GUCCI, HERMES are Chinese favorite luxury brands when traveling in developed countries. It has been well-known that Chinese travel overseas with consuming purposes. Sun Deming, secretary of China’s Commerce Department offers a list of appalling numbers in light of Chinese tourists’ consumption in the U.S., “The chairman of the China National Tourism Administration told me that there are approximately 1 million Chinese tourists to the U.S., and on average every Chinese spends more than 7000 dollars after tax refund.  So the total consumption reaches 7 thousand million dollars.” Just in the U.S. Chinese tourists spend 46 thousand million RMB. The number is even more startling if Chinese expenditures in such developed countries as Britain, France and Japan are included.

Chinese Mainland Tourists spent 54.6 hundred million dollars in Japan

Thanks to the relaxed restrictions on individual travel visas for

Chinese, there was a surge in Chinese tourists to Japan, which became the backbone of Japan’s tourism industry.

In 2010 the total expenditure of tourists overseas in Japan is 292.98 billion yen (24 thousand million Yuan), of which Chinese tourists contributes to 68.2 thousand million yen (54.6 hundred million Yuan), far surpassing Korea in second place.

Recently the Japan Tourism Agency conducted a survey on the consumption tendency of foreign tourists visiting between July and September as a research object. The result shows that Chinese mainland tourists on average spend up to 143.9 thousand yens (11.5 thousand Yuan) among other major Asian countries coming to Japan, taking the top ranking in the “consumption ranking of tourists overseas” with China Hong Kong and China Taiwan both in the second place.

At the Re-opening of Casinos in Rason City of North Korea where visitors are almost all Chinese

According to the Korean media report, starting from its opening two months ago, the gambling house in Rason City of North Korea restarted its business and its clients are almost all Chinese.

Besides visitors from the China’s Yanbian Prefecture, many are also from China’s other cities such as Harbin, Shengyang and Changchun. The ride time from Yanji (a city in Jilin Province) to North Korea only is one and a half hours through customs at Huichun (a city in Jilin Province) and it takes another one and a half hours to reach the casino. Shuttle cars are also provided to cater for Chinese customers.

This casino, according to an anonymous source, was operated by the Hong Kong Emperor Group. After nearly four years’ of business, it was closed down in the end of 2004 as a result of the leaking scandal that a civil servant squandered a colossal amount of public money. This re-opened casino now is still under the charge of the Hong Kong Emperor Group.

From the casino it takes merely a 15m drive to those luxury facilities as five-star hotels and bars, fancy restaurants as well as saunas. In the bars there are prostitutes soliciting clients overtly .

Concerns from China’s commerce secretary over Chinese consumption overseas

To Regain the lost businesses

Chen Deming, China’s commerce secretary put it at the national business meeting a few days ago that Chinese consumptions overseas is where China’s great potentials in consumption lies, but how can we regain those lost businesses?

Attention should be paid to those products unavailable in China

Chen Deming said, “Those who bring back several LV bags, Swiss watches, ipads or iphones after a trip are definitely not real Chinese entrepreneurs but the newly emerging rich.”

Chinese customers’ active consumptions abroad are restrained because of their panic purchasing. “Take the milk powder in Japan where it is said that each people can only buy two packages. I asked our boss is it because of the tension in Japan’s powder supply? He denied and said that it is common in Japan as a result of Chinese tourists’ buying spree of the milk powder in Japan.” Said by Cheng. This situation distresses domestic producers. Ma Xinsheng, president of Shanghai Bailian Group said that attention should be paid to those products unavailable in China. He listed the products unavailable in China including high end products and high-quality products abroad. Therefore, Chen extended his concern that it is urgent “for Yangtze River Delta and Pearl River Delta as well as all the metropolis in China to conduct early research on promoting domestic products, decreasing surplus and meeting domestic needs simultaneously.”

Why high end consumptions are shipping abroad?

As the most rapidly increasing market of the luxury goods worldwide, Chinese buy a majority of high end goods outside it’s borders. Ma Xinsheng, president of Shanghai Bailian Group clearly points out that, “in general, the high tax rates and price of importing high end products have not been settled yet.” Men Xiaowei, who is responsible for promoting industry circulation in China’s Commerce Department says the lost large consumption of high end products should have something to do with the domestic agency system of high-end products, which monopolizes the industry and drives the price higher and higher. “Is there any flaws in this agency system? Does it monopolize the channel? How to break the monopoly? All these questions should be dealt with and it is our responsibility.”

The Latest Statistics

Chinese Consumption of Luxury Goods “Lead the World”

According to the Goldman, China’s consumption of luxury goods is up to 65 hundred million dollars, enjoying the highest growth rate and the largest sales volume for three consecutive years all over the world. Goldman predicted that in the near five years, the number of Chinese luxury-goods-consumers is expected to reach 1.6 hundred million from 40 million of which most are second and third tier city citizens.

From the Perspective of Media Overseas

The Whole World Should Wish China’s “A Good Economy in the New Year”

词汇中被排除掉的‘完全就业’这个词又回到人们嘴边?谢谢,中国!因为德国的成就是北京制造的。”

In one of German newspapers it is said that, “What a year! Nobody could foresee that Germany takes such a short time to get out of the crisis. It has been a long time since the economy in Germany surged like this. The once disappearing word “full employment” comes back again. Thank you, China! It is all because of you, Beijing.”

The article points out that Germany sold a lot of cars to China, the sales volume of some brands in China even surpasses that in Germany, which promotes the substantial increases in Germany’s export industry—as well as in the other economic sectors. “Any nation that cares about its own well-being should wish for a strong China economy in the new year. If this economic engine doesn’t work, it does help the world.” It is said in the article that everywhere in the world Chinese are needed, whether as producers or consumers.

39 Comments | Leave a comment | Comment feed

  1. Curren$y says:

    Chinks

  2. Herrings says:

    Two things:

    1) I would be afraid of getting a fake product even in a high -end department store in China.
    2) The Chinese have been brainwashed into wasting their money on pointless fashion – it’s honestly disappointing to see otherwise intellegent people piss their money up the wall for a label.

    P.s. Curren$y – you’re not funny, you’re a twat.

  3. aflame says:

    “products unavailable in China”
    Milk powder without melamine I guess?

  4. Crystal says:

    … there are approximately 1 million Chinese tourists to the U.S., and on average every Chinese spends more than 7000 dollars after tax refund

    The figure is even more surprising if we compare it to China’s GDP/capita (4,283 dollars in 2010)

  5. gongjiao says:

    yall can buy stuff but yall aint go no justice
    class is the speedbump on chinas economic autobahn

  6. Eason says:

    打肿脸充胖子

  7. John says:

    Status symbols: A complete waste of money that the Chinese have yet to figure out. But every culture has to go through this process at some point or another.

    • TheRealThunderMonkey says:

      It’s nice to see that the old idiom: Keeping Up with the Joneses, transcends cultural boundaries.

  8. dilladonuts says:

    LOL look at all you jealous haters. A majority of you white boys need to calm down and get off your high horses. When whites and europeans were the ones purchasing these lame products, nobody was complaining. Let them ( Chinese ) do whatever the fuck they want to do with their money, take your self righteous attitude somewhere else. Some people have money, some don’t, thats just the way the life is, and for the ones with money, they can spend it however they choose, for the ones without, they have the same privilege. When was the last time any of you guys contributed a good amount of money to some charity and causes?

    And for those who think you are buying a fake product in a high end store in China just shows that u have no clue as to what your talking about, for once, go in a high end store and buy something, its not going to be fake, if you can’t tell the difference, then u need to stop buying fake shit from the fake markets. This is the same guy who buys shit from fake markets, bootleg dvds, then on internet forums go on about how China has no justice or moral.

    To the other fool who doesn’t know what the Chinese mean when they say ” its not avail in China ” is another broke hater. You don’t know that not everything a designer makes is avail to all of its worldwide retailers? Not just designer clothing brands, this goes from electronics to foods, certain items a retailer produces is only avail in north america, only avail in europe, only avail in japan, only avail in se asia… etc

    From the poorest to the richest nations on this earth, tell me one country that doesn’t have a place for status symbols? 8 comments, only john had something intelligent to say.

    • Dawei says:

      Dilladonuts

      How do you know they are white, did a genetic scan on their postings did we.

      Buying from a up market department store is no guarantee that you re not getting a fake, even in Hong Kong which is fairly squeaky clean by mainland standards.

      Great reaction from the Gov, “Chen extended his concern that it is urgent “for Yangtze River Delta and Pearl River Delta as well as all the metropolis in China to conduct early research on promoting domestic products, decreasing surplus and meeting domestic needs simultaneously.” Missing the whole point that in the economy right now it is hard to find quality products, you can trust, with a wide range of choice and of course good prices plus it will take decades to elevate a domestic brand to the cashe of an international brand. So fix IP protection, crack down on copy products, improve consumer regulations and supervision, particularly quality control. then you might just get customers buying domestic luxury brands.

  9. dilladonuts says:

    Actually, i fully agree with your point of view, im not debating your point or your post, im simply replying to the previous responses.

    • 2B-real says:

      you just flaked out because some one called you out.

      anyway its not that the high end isnt real but its God awfully expensive in China. There is no one fucking regulating these guys on their pricing cause of the fact that these guys will come down on almost anything when there is a price tag on them. These rich chinese people are benefitting by traveling and getting everything genuine and high end, high quality merchandise at a bargain with the proof of purchase, warranty, etc. Plus being able to say I went here or there to get it. The moment you say you got it from China there is surely going to be a debate on wether you got it at the right place and if its real. No matter how much you payed for it, the items won’t carry so much luster. For a country full of poor people even Chinese brands are becoming too expensive for the general pop and resolved to fake. There is no law against fake shit in China like there is in the rest of the civilized world.

  10. dilladonuts says:

    i didn’t flake out, im not gonna sit there and argue every point for the sake of arguing. i agree with what he has to say, and my response was to the comments, not regards to the post.

  11. Carl says:

    LOL the irony… sigh

  12. john digmeme says:

    I like the girl in the picture, she looks good; but, maybe she isn’t the best icon for the article.
    As the saying goes:

    If you have to look at the price tag, you can’t afford it!

  13. Joebu says:

    It takes a lot of money to make women look trashy

  14. Jimmy says:

    I am traveling to UK this January. Does anybody know if Visa card is still accepted in ATMs, shops and banks or they only accept UnionPay ?

    • john digmeme says:

      I think you are Shit Outta Luck my friend, the lines will be so long at the checkout counter you’ll die of exposure regardless of how you expect to pay.

  15. Curious says:

    So! What the hell does 13,000 million USD work out to in actual numbers? (Sorry, my western mind just doesn’t work that way–using the Chinese system of counting is simply incomprehensible to me.)

    • Curious says:

      Is it? Could it be? 13 billion?

      I learn new things every day. (Long scale counting! There’s a word for it, too! Of course the short term 13 bn is oodles and oodles more comprehensible.)

      (I feel like my comments aren’t nearly on-topic or ranty enough to survive on China Hush.)

  16. Huzhang says:

    YOU’RE WELCOME

  17. Tony D says:

    Good to see Communism is alive and well in the hearts of the Chinese.

  18. Heindrich1988 says:

    中国人要对自己有信心。我会尽量只卖中国产品。这才叫爱国,光说是没用的!

    When I can afford it, I will buy Chinese cars, electronics and fashions.

    祖国万岁!

  19. xmq_jpm says:

    There is a mistake about the Republic of China, incorrectly mentioned in this article. Please proofread your posts, lest you unintentionally spread malfeasant propaganda.

  20. Cleo says:

    Maybe it’s a Cantonese thing but that girl looks like Nicholas Tse’s sister.

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  22. John says:

    When I see an Asian carry a lv bag or such, I just think “idiots” they are walking around with some gay white guys name and thinks it is luxury. LOL. Sad, these white brand would never put an Asian face in their ad yet stupid Asian people are enslaving their people to make a buck to give to whites who hire Asian to enslave their people to make the bag that they sell back to Asians. The winner = white people. The loser = everyone who spends money on these craps

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