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Luxury Brand Growth in China; OmniaLuo, Inc., Coach Inc., BMW Group, Audi AG and the Swatch Group Ltd Brands Add to Social Status of Chinese Consumers
China's Growing Appetite for Luxury Brands on the Rise; China Poised to Become Second Biggest Consumer of Luxury Goods by 2015
| Source: InvestorIdeas.com; China-AsiaStocks.com; OmniaLuo, Inc.
POINT ROBERTS, WA and DELTA, BC--(Marketwire - March 31, 2008) - Coach Inc. (News, Market), BMW Group (News, Market), Audi AG, the
luxury carmaker owned by Volkswagen (News, Market), the Swatch Group
Ltd (News, Market) and
OmniaLuo, Inc. (OTCBB : OLOU ) (http://ir.omnialuoinc.com), are just a few of
the brands that are succeeding based on understanding China's consumer
needs. Hyundai (News,
Market) is refurbishing its brand image to a new luxury car to increase
market share and appeal to the consumer's desire for high-end brands.
China-AsiaStocks.com, an investor and industry portal China-Asia sector
within Investorideas.com, reports on China's growing appetite for luxury
goods from fashion, to cars, to jewelry and how both China's domestic and
established well-known foreign brands are meeting the increasing demands.
With a rising number of millionaires and a growing middle class, China is
poised to become the second biggest consumer of luxury goods by 2015.
The fashion industry in China is changing rapidly, as Chinese consumers
want to make purchases that reflect their newfound success and social
status.
China's International Clothing and Accessories Fair "CHIC 2008," held in
Beijing March 28 - 31, 2008 is attracting some of the best in the fashion
industry. OmniaLuo, Inc. (OTCBB : OLOU ) (http://ir.omnialuoinc.com ), a
domestic China-based company that designs, markets and distributes the
luxury women's apparel brand "OMNIALUO," will be exhibiting at CHIC 2008
as part of it growth and expansion strategy.
As an award-winning domestic brand designer, Cindy Luo, OmniaLuo Chairwoman
and CEO feels she has her finger on the pulse of the new breed of luxury
consumers in China, commenting, "We see many luxury brands including Dior
(News, Market) and Louis
Vuitton entering the Chinese marketplace to expand market share, selling to
Chinese consumers. Also, several foreign fashion brands have moved their
production to China -- so China is becoming an integral part of the high
end fashion industry in all aspects. Our company understands the consumer,
knows the competition and feels we can compete with well-known foreign
luxury brands."
Coach Inc. (News, Market),
internationally desired for its luxury handbags and accessories, has
ambitious plans for its line in China. According to Coach, "We expect
Greater China, which includes Hong Kong, Taiwan, and mainland China, to
grow rapidly, achieving 10% of the global market by 2009. Therefore, we are
focused on this opportunity, as we believe Greater China has the potential
to become a third leg for Coach. Although we're still in the very early
stages of our development in Greater China, we have made great progress and
estimate our market share today at about 4%. At year end there were a total
of 49 Coach locations in the region, including 15 in mainland China, 13 in
Hong Kong, 1 recently opened in Macau, and 20 in Taiwan."
Luxury car manufacturers are also gaining traction in China's new economy.
According to a study by BMW Group, "only 3.7 percent of the Chinese
population, i.e. around 50 million people, earned enough money to buy a car
in 2002. By 2010 this figure should increase to 13 percent."
Swatch Group Ltd (News,
Market) just reported net income for 2007 exceeded CHF1 billion for the
first time as part of a continuing global market for luxury goods,
particularly in China, with Europe and the United States also performing
well. In December 2007, The Swatch Group Ltd announced it increased its
participation in Xinyu Hengdeli Holdings Ltd. from 7.25% to 8.09%. Xinyu
Hengdeli Holdings Ltd. is the largest watch retail chain in China and is
listed on the Hong Kong stock exchange.
As China builds dominance as both a manufacturer and a consumer of luxury
goods, companies that know both sides of the market have a higher chance to
succeed and grow market share. In terms of growth opportunities for luxury
brands, it has only just begun.
To read full report: click here:
http://www.investorideas.com/Articles/032608a.asp
About China-Asia Showcase Company, OmniaLuo, Inc. (OTCBB : OLOU ):
OmniaLuo, Inc. (http://ir.omnialuoinc.com), based in China's fashion
capital of Shenzhen, is in the business of designing, developing, marketing
and distributing fine women's apparel under the brand name OMNIALUO.
OMNIALUO's apparel embodies elegance, femininity and sophistication for
China's rapidly growing class of urban and affluent female professionals.
With its rapid and strategic expansion plan, OMNIALUO plans to increase its
retail presence across 32 of 34 provinces in China from its current 187
stores to 264 stores by year-end 2008. Under the leadership of Cindy Luo,
the Company's founder and award winning chief designer, OMNIALUO is
positioned to become the Chinese brand equivalent of Donna Karan or Liz
Claiborne.
Investors can also visit the Company Showcase on Investorideas.com at:
http://www.investorideas.com/CO/olou/
The Company's Media Presentation can be viewed at:
http://www.investorideas.com/CO/OLOU/ss/default.asp
About InvestorIdeas.com, China-Asiastocks.com:
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the opinion of our web sites. Disclosure: OmniaLuo, Inc compensates the
site $4000USD per month as a showcase company.