Chinese shop for bargains, in Paris, London, Hong Kong - Paul French

Shanghai via Wikipedia

Chinese shoppers are welcome guests in the world's luxury capitals like London, Paris, Macau and Hong Kong. Shanghai-based retail expert Paul French explains the the Globe and Mail why they prefer to go abroad, in stead of shopping in China itself.

"All around the world, people are seeing mainlanders [Chinese] coming in to shop - in Hong Kong, Macau, London, Paris. Chinese shoppers are not stupid: They know these things are half-price outside China," said Paul French, a Shanghai-based analyst with Access Asia.

Still, all the luxury brands have their flagships also in prime retail spaces in Beijing, Shanghai and other concentrations of wealthy Chinese consumers. Why? Paul French explains:

Given the modest leasing costs and low wages for sales staff, Mr. French argues that setting up shop in Chinese cities amounts to high-profile and effective advertising for international companies to create brand awareness.

"If you don't have the stores here, and you don't open everywhere and do the advertising, when the Chinese tourist goes abroad he doesn't know what he's looking at," Mr. French explained. "It's very, very cheap advertising."

Paul French by Fantake via Flickr

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Paul French is a speaker at the China Speakers Bureau. When you need him at your conference, do get in touch.

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