Chinese tourists have had a big impact on helping along Japan’s economy. Since July 2014, the number of Chinese visitors to the country has increased two-fold with 2.2 million travelling there since last summer. This has led to high-end fashion brands reestablishing their stores in Tokyo to accomadate these tourist’s high demand for luxury goods, reports China News, citing Nikkei, a Tokyo-based daily newspaper.
The strong purchasing power of Chinese tourists has attracted many luxury goods stores to reopen in Ginza, a popular upscale shopping district in central Tokyo, said the report. Italian clothing designer Versace is returning to the Japanese market by opening a shop there this fall, and jeweler and Swiss timepiece producer Harry Winston will renovate its store there in October. It will be over 500 square meters and offer lavish and extravagant diamond products. Besides these, luxury Italian fashion house Max Mara will refurbish its store in eastern Tokyo’s Minato ward this September and French fashion house Yves Saint Laurent will open its first exclusive store in the capital’s Shibuya district, the report said.
In 2014, there were twelve luxury goods’ stores opened in Tokyo’s business districts, according to CBRE, a Japanese real estate consulting company. CBRE added that 2014 saw the most luxury brands operations begin in Tokyo in the past 25 years, said CBRE. The consultant company also went on to say that eight more brands have decided to open their doors there in 2015.
Louis Vuitton Moet Hennessy (LVMH), a French multinational luxury goods conglomerate based in Paris, saw its sales go up 34% in the second quarter of this year. Luxury goods maker Hermes also saw its sales go up by 30% in the same period.
Chinese consumers have contributed greatly to the global luxury goods’ market. According to statistics released by the Nomura Research Institute, the large Japanese consulting firm, around 30% of sales in this sector were made by Chinese visitors in overseas countries.