Depreciation Of The Euro And Benefit From Foreign Shoppers

This year, a luxury shopping boom is on the rise, and the whirlwind is the escalating European debt crisis.

Affected by this, the euro has depreciated sharply, although this is not good news for the euro area people. But in another way, it also means buying more famous brand clothes with the same amount of RMB.

This is not a joke.

Beneficial exchange rate changes

The European debt crisis has been discolored, such as bank failures in batches, large numbers of workers losing their jobs and even the state's income, but it does have another advantage: luxury goods are becoming cheaper, especially for some Asian buyers who are pursuing the trend.

AyieAligada is a training manager from an airline company in Manila, Philippines. Her biggest trip in Europe was to buy a Chloe handbag that she had been looking forward to for 1475 euros.

In the past, it would cost at least 1600 euros to buy this bag.

The same thing happened to ElaineChua, a housewife in Singapore. She traveled to Paris for 4 days, saving 1500 Singapore dollars (7433 yuan) to buy a Chanel (Chanel) classic shoulder bag, which is equivalent to saving a ticket to and from Europe.

European stores and Asian stores, then.

What is the price difference? Taking Louis Weedon as an example, according to the introduction of Jean-JacquesGuiony, a LV financial officer in Paris, France, the difference between LV and French stores in the first quarter of this year has reached 47%.

In other words, if the 1 packages are sold in China for 10 thousand yuan, it will only cost 6800 yuan in Paris.

All this is due to the depreciation of the euro on Asian currencies.

Data show that over the past 1 years, the Philippines Peso has appreciated 19% against the euro, and the renminbi and the Thai baht have appreciated 17% and 12% respectively against the euro.

And because of the rising purchasing power, the attraction of Europe as a tourist destination is increasing. Taking Manila, capital of Philippines, for example, the volume of travel booked to Europe increased by 30% in the 1 quarter of this year.

Of course, the luxury fever also owes to the crazy purchasing power of Asian tourists.

The HSBC report shows that Asian tourists account for 35%~60% of luxury goods in Europe.

In the first quarter of this year, the total amount of duty-free goods purchased by Chinese tourists in Europe increased by 69% over the same period last year.

"The economic slowdown and debt burden will drive the euro to continue to depreciate against Asian currencies," said AkiraTakei, Mizuho international asset management head of Mizuho bank asset management. "The advantage of exchange rate will help European tourism and Asian shoppers."

Aligada sighed from the bottom of his heart, "exchange rate changes made us a windfall."

Stocks rose this year.

If you are not keen on buying brand name handbags, watches or clothing, then paying close attention to luxury stock may be a good choice.

Zegna (ErmenegildoZegna), a luxury clothing company in Italy, is launching an aggressive offensive against the market.

The way of publicity includes cooperation with travel agencies to ensure that tourists know their location in Europe's brand direct marketing center (Outlets).

Its chief executive said last month that the company's revenue could increase by 10% in 2012, and that it might increase multilingual staff in the future.

Two luxury goods companies Prada and Gucci are enjoying this shopping craze.

Prada CEOPatrizio-Bertelli has said that if the euro continues to be weak, it may consider raising its price by 10% in Europe.

Driven by the wave of tourism, Gucci's revenue increased by 15% in the 1 quarter of this year.

Reporters statistics found that since this year, the price of luxury goods has outperformed the benchmark index.

For example, Gucci listed in New York increased by 81% (winning 72 percentage points in the same period), while LVMH in Paris rose 10% (CAC6 percentage points), while Prada listed in China's Hongkong rose 45% (winning 38 percentage points of Hang Seng).

According to statistics, the Bloomberg luxury index rose by 16% during the year.