Study shows luxury still in fashion

The global economic downturn hasn't dented demand for designer goods in China, where a study shows the affluent are buying handbags, watches and jewelry in force.

The study, by New York-based market research firm Pao Principle, found that almost 90 percent of Chinese surveyed had purchased a designer handbag over the past year. Nearly two-thirds of men, and a third of women, bought a luxury watch over the same period.

The one-child policy has produced individuals who want to differentiate themselves from their peers, the marketing firm said in a statement. "No longer content to be one of the crowd, this group looks to luxury goods to help achieve this goal."

A government stimulus package and record lending by State-owned banks have helped put China on track to achieve 8 percent growth this year.

As the economies of Europe and the US recover at a slower pace, luxury retailers are looking eastwards for growth, with LVMH, the world's biggest luxury group, and rival Richemont both counting China as one of their main markets.

For its study, the Pao Principle tracked the buying habits of 448 individuals from the Chinese mainland.

Reuters

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