SHANGHAI // Decorated with gold, silver and shining glass, the vast stores here that sell luxury watches, handbags, clothes and shoes are drawing in the local elite for a Saturday evening of no-expense-spared retail therapy.
In Shanghai's riverside Pudong district, a mass of thrusting skyscrapers and space-age observation towers, a pair of diamond-encrusted Cartier earrings is on display for an eye-watering 615,000 yuan (Dh358,003), while a watch retails for 330,000 yuan.
Despite the stratospheric prices, there is no shortage of customers in the IFC Mall, home to "over 100 global flagship of luxury international brands" as a billboard proclaims.
China's high flyers from business and industry, with their wallets and purses bulging after heady years of double-digit economic growth, are the world's key growth market for luxury goods.
Young, expensively dressed women, sometimes accompanied by middle-aged men, as well as 30-something couples and the occasional student, are all drawn in by these vast stores and their exclusive wares.
Li Ruihua, 34, an advertising executive, is admiring handbags, which sell at the Louis Vuitton store for 10,200 yuan. Ms Li claims to have once paid 30,000 yuan for a single bag.
"It's the glamour, the branding, the heritage. I think people can use the famous brands to express their status," she said.
In 2010, 87 billion yuan was spent on luxury goods in China, ranking the country fifth worldwide. Add Hong Kong and Macau, where 80 per cent of luxury goods sales are to mainland Chinese buyers, and China ranks third.
It could soon rise further. According to Bruno Lannes, a partner at the Shanghai office of the consultancy Bain and Company, sales of luxury goods in China grew 25 to 30 per cent last year to about 110 billion yuan. Mr Lannes expects a similar increase this year.
Yet the high local taxes on luxury goods have sent many Chinese people shopping abroad, travelling to Hong Kong, Dubai, Paris or New York.
To counter that exodus, stores in China have invested millions to lure in customers and encourage spending at home. Forget the chic little boutiques of the Champs-Élysées or Manhattan. Outlets selling luxury goods in China are on a different scale.
"The brands are trying to improve the customer experience by creating these consumption cathedrals," Mr Lannes said at the China Europe International Business School's recent Prestige Brands Forum in Shanghai.
"This is what the brands are doing to make sure they continue to attract consumers in mainland China. They're acquiring the lease to the second and third floors."
Stores in China selling prestige brands could become even busier, as the country's former deputy minister of commerce, Wei Jianguo, indicated last week that the country may cut import duties on luxury goods.
In Pudong, high-end shopping malls share the shadow of the 492-metre Shanghai World Financial Centre, the world's third tallest building. Under construction next door is the Shanghai Tower, which, at 632 metres, is destined to become the world's second-tallest building, after Dubai's Burj Khalifa.
Yet the inequalities plaguing modern-day China are not far away. Nearby on the street, migrant workers sell sweet potatoes for 5 yuan per half kilo, and pirated DVDs for 5 yuan each.
While luxury brands are popular in China, their true value may not always be appreciated. "Chinese consumers do not have good taste in luxury consumption. They buy things just because a magazine or luxury website told them it is worth buying," Helen Wu, a Shanghai television entertainment editor, said last year in heavily reported comments.
And not all those shopping for luxuries could be described as rich. Such is China's enthusiasm for luxury brands that even modestly paid employees like Wang Qiuli are visiting the stores.
The 23-year-old, who works for Shanghai's Horizon Center of Youth Entrepreneurship for Society, saved her wages from a part-time college job to buy a US$2,000 (Dh7,346) Longines watch last October.
"It's just for myself. I like it. When I left college, I thought I would buy something for me," she said.
The preoccupation with status linked to prestige brands is stronger in China than other parts of East Asia, believes Jun Kim, 28, a computer engineer from South Korea looking for shoes. He already owns a pair of John Lobb shoes that cost about US$1,200.
"Social status, that's the important point. If a girl has a good bag, like a Hermès, people regard her as a very special person. The luxurious bag makes their social status higher and higher," he said.
"Only the Chinese people think like that. In Korea a girl likes a luxurious bag, but the desire is not too high."
dbardsley@thenational.ae
China's trade economy slips, b8
Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
- SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
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Nayanthara: Beyond The Fairy Tale
Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni
Director: Amith Krishnan
Rating: 3.5/5
Thanksgiving meals to try
World Cut Steakhouse, Habtoor Palace Hotel, Dubai. On Thursday evening, head chef Diego Solis will be serving a high-end sounding four-course meal that features chestnut veloute with smoked duck breast, turkey roulade accompanied by winter vegetables and foie gras and pecan pie, cranberry compote and popcorn ice cream.
Jones the Grocer, various locations across the UAE. Jones’s take-home holiday menu delivers on the favourites: whole roast turkeys, an array of accompaniments (duck fat roast potatoes, sausages wrapped in beef bacon, honey-glazed parsnips and carrots) and more, as well as festive food platters, canapes and both apple and pumpkin pies.
Ruth’s Chris Steakhouse, The Address Hotel, Dubai. This New Orleans-style restaurant is keen to take the stress out of entertaining, so until December 25 you can order a full seasonal meal from its Takeaway Turkey Feast menu, which features turkey, homemade gravy and a selection of sides – think green beans with almond flakes, roasted Brussels sprouts, sweet potato casserole and bread stuffing – to pick up and eat at home.
The Mattar Farm Kitchen, Dubai. From now until Christmas, Hattem Mattar and his team will be producing game- changing smoked turkeys that you can enjoy at home over the festive period.
Nolu’s, The Galleria Mall, Maryah Island Abu Dhabi. With much of the menu focused on a California inspired “farm to table” approach (with Afghani influence), it only seems right that Nolu’s will be serving their take on the Thanksgiving spread, with a brunch at the Downtown location from 12pm to 4pm on Friday.
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China and the UAE agree comprehensive strategic partnership
China and the UAE forged even closer links between the two countries during the landmark state visit after finalising a ten-point agreement on a range of issues, from international affairs to the economy and trade and renewable energy.
1. Politics: The two countries agreed to support each other on issues of security and to work together on regional and international challenges. The nations also confirmed that the number of high-level state visits between China and the UAE will increase.
2. Economy: The UAE offers its full support to China's Belt and Road Initiative, which will combine a land 'economic belt" and a "maritime silk road" that will link China with the Arabian Gulf as well as Southeast, South and Central China, North Africa and, eventually, Europe.
3. Business and innovation: The two nations are committed to exploring new partnerships in sectors such as Artificial Intelligence, energy, the aviation and transport industries and have vowed to build economic co-operation through the UAE-China Business Committee.
4. Education, science and technology: The Partnership Programme between Arab countries in Science and Technology will encourage young Emirati scientists to conduct research in China, while the nations will work together on the peaceful use of nuclear energy, renewable energy and space projects.
5. Renewable energy and water: The two countries will partner to develop renewable energy schemes and work to reduce climate change. The nations have also reiterated their support for the Abu Dhabi-based International Renewable Energy Agency.
6. Oil and gas: The UAE and China will work in partnership in the crude oil trade and the exploration and development of oil and natural gas resources.
7. Military and law enforcement and security fields: Joint training will take place between the Chinese and UAE armed forces, while the two nations will step up efforts to combat terrorism and organised crime.
8. Culture and humanitarian issues: Joint cultural projects will be developed and partnerships will be cultivated on the preservation of heritage, contemporary art and tourism.
9. Movement between countries: China and the UAE made clear their intent to encourage travel between the countries through a wide-ranging visa waiver agreement.
10. Implementing the strategic partnership: The Intergovernmental Co-operation Committee, established last year, will be used to ensure the objectives of the partnership are implemented.
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Killing of Qassem Suleimani
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Kanguva
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How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Three ways to limit your social media use
Clinical psychologist, Dr Saliha Afridi at The Lighthouse Arabia suggests three easy things you can do every day to cut back on the time you spend online.
1. Put the social media app in a folder on the second or third screen of your phone so it has to remain a conscious decision to open, rather than something your fingers gravitate towards without consideration.
2. Schedule a time to use social media instead of consistently throughout the day. I recommend setting aside certain times of the day or week when you upload pictures or share information.
3. Take a mental snapshot rather than a photo on your phone. Instead of sharing it with your social world, try to absorb the moment, connect with your feeling, experience the moment with all five of your senses. You will have a memory of that moment more vividly and for far longer than if you take a picture of it.
