Last night 8 of us when to Parkson Plaza, one of the larger shopping centers around here, and to the adjacent streets lined with stores. The one comparison I could draw to would be Michigan Avenue in Chicago, there were hundreds of stores that lined the streets; and the merchandise was name brand and definitely luxury goods. Particularly, the Plaza contained several high end name brand stores and was selling very expensive watches, jewelry and purses. That morning we had just had a lecture on Chinese market dynamics and we could really see several of them at work here. First the demand for luxury gifts was ever present in the sheer quantity of luxury stores and the goods in them. Second this nature of a SHE market was very apparent, when 7 of the 9 levels in the Plaza were dedicated to female shoppers. Lastly, the concept of discounts as a way to increase value was seen in the abundance of sales for purchasing more than one item. The shopping center and surrounding streets were very crowded and definitely attracted a wide variety of ages. Yet the most prevalent would be the younger crowd, the high school and college age kids. The shopping environment they have created is definitely very energetic and fun, and the keep the stores filled with modern brands and well recognized names. If total luxury spending is a function of purchasing power population and desire, than its clear that China has surpassed the US based on the inputs of population and desire.
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