RETAILERS across Asia are poised for a sales boost during the Lunar New Year holidays as China's new ranks of big spenders head abroad for the peak shopping period.
Strong economic growth and rising incomes are expected to bolster Chinese retailers. But inflation risks and a stronger yuan mean that shopping hot spots such as Hong Kong, Tokyo and Seoul could benefit more than last year as the Chinese take their appetite for cosmetics, karen millen feminine wool coat red electronics and luxury goods abroad, industry experts say.
"Retail sales growth as a whole in China is expected to remain strong at about 20 percent in the run-up to the Chinese New Year as many companies have been enjoying a very good year," said William Lo, an analyst at Ample Capital in Hong Kong.
Despite efforts to cool growth, China's economy expanded 9.8 percent in the fourth quarter, from 9.6 percent in the third quarter, defying expectations for a slowdown.
Analysts say Chinese retail sales should remain strong despite worries about inflation, which hit a 28-month high of 5.1 percent in November as food and property prices surged.
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"Inflation won't affect wealthy (Chinese) customers. Even for the mass market, people won't be very picky for pricey goods like this (gold ornament)," said Paul Law, an executive director of Luk Holdings Ltd, the largest Hong Kong-listed gold ornament and jewellery distributor.
A rise in discretionary spending, boosted by a steady rise in the yuan is encouraging Chinese consumers to shop for luxury goods abroad, where they can avoid high taxes, custom duties and fears their goods may be counterfeit.
"We can for sure get genuine products here," said Chen, a tourist from Xian in China's Sichuan province, shopping for a camera at Causeway Bay, one of Hong Kong's prime shopping districts.
"In China, you can not guarantee that you will get the genuine stuff even if you are karen millen feminine wool coat red willing to pay."
Tourist arrival numbers from Hong Kong, Tokyo and Seoul all show a rising trend of Chinese tourists, who are becoming an increasingly important source of revenue for local retailers.
In Singapore, Helen Khoo, Executive Director at Wing Tai Retail, a subsidiary of Wing Tai Holdings Ltd which manages a portfolio of fashion brands including Ben Sherman, Miss Selfridge, Topshop and Karen Millen, said sales are off to a good start this year thanks to increasing local demand and rising visitors from China and Indonesia.