The Rise and Fall of the luxury boom in China

The booming market for luxury watches, handbags, clothing and jewelry survive a crisis on Wall Street, the global recession and the European debt crisis. But act in conspicuous consumption, resisting what is happening in China? Chanel Caviar Bag China led companies like LVMH, Prada, Gucci, Burberry and Richemont to new heights, explodes as the top ranks of the world's second largest economy. According to the Boston Consulting Group (BCG), the number of Chinese millionaires hit 1.4 million last year, more than three times higher than in the UK. Those who have a lot of yuan to show the capability and Gap khakis and searched a Timex not do. Call the rampant materialism or just trying to look your best, anyway? There, wealthy Chinese are very good for luxury retailers in Germany and abroad. In the case of LVMH, grew brand manufacturer of high-end fashion, including Louis Vuitton and Fendi, sales in Asia (excluding Japan), 27 percent in 2011. Asia has been the company's largest source of revenue for the company, which does not take into consideration all the Chinese tourists throw their money in Europe. But there are signs of trouble in the land of luxury. The Chinese economy slows feeds fears that things could be difficult if the overheated real estate market is getting cold. Consumers may also be tactical move. Cartier watches have been. As a symbol of success, until earlier this year But after the fall of Mr. Bo Xilai, the Communist Party boss, whose wife was convicted of murder are high-end accessories as toys corrupt officials. Bo and his wife with their Porsche-driving certified mee Harvard son, seem to enjoy a lifestyle beyond their official income. China has also to prevent new measures applicable to officials of the assumption generous gifts. Fortunes of some companies are changing. Burberry reported in September that its quarterly same-store sales were flat, and accused China. The stock fell 20 percent on the day the news hit. LVMH and Richemont were each about 10 percent from their highs as investors concluded that Burberry is not an isolated case languish luxury.