China's demand for luxury goods still growing

China’s taste for luxury goods seems to be unaffected by the pessimistic global sentiment affecting overall economic growth. Hermes sales increased by 22% globally during the second quarter, compared to 50% growth in China, while Bulgari sales in Greater China jumped by 67% in the first half.

“The concept of mainland Chinese spending on luxury is not new what’s new is what they are spending on right now,” said Aaron Fischer, head of consumer and gaming research at CLSA, during the firm’s Investors’ Forum in Hong Kong this week.

China’s monthly jewellery sales grew by 12% a year from 1997 to 2007. After a drop during...