USA

The Chinese refuse luxury

As reported by jewelry company Tiffany, sales of her products to Chinese tourists dropped in the first quarter by more than 25%, and it is possible that this figure will decrease even further with the escalation of the trade conflict between the two countries.

For the first time the fact that the Chinese are less likely to acquire jewelry, was noted a year ago, and since then this trend became more pronounced. However, tourists in General, regardless of the country from which they came, in the first quarter was spent on goods from Tiffany’s, 25% less than a year earlier.

What is happening is a threat to all companies producing luxury items since their income is largely dependent on demand from wealthy foreigners. The problem is likely to worsen as the Ministry of culture and tourism of China has warned citizens about the dangers of travel in the United States, where, they say, very often happens shootings, robberies and theft. And state Central television accused us law enforcement agencies are in “constant abuse” in relation to Chinese tourists.

“Of course we are not pleased that our potential customers set up this way, — said General Manager Tiffany Alessandro Bogliolo. — But in this case there’s nothing we can do, and therefore pay attention to the problems to solve that in our forces”.

According to the company, foreign tourists bring her less than 10% of the profits from sales on the market in the United States, while Americans account for about 40% in I quarter they have spent on decorations to $ 1 billion. But the consequences of a trade war are felt, not only Tiffany, but also others — so, Jeffrey Goh, chief Executive of the airline group Star Alliance, which includes, in particular, Air China and United Continental Holdings, said the decline in passenger traffic from China to the United States. And PVH Corp., which owns the brands Calvin Klein and Tommy Hilfiger, said that the disputes between the US and China, causing concern among consumers.

Source:news.rusrek.com
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