Economy Luxury brands troubled by splurging tourists in Japan

Zhang Lei, a 29-year-old DJ from the southern province of Hunan, was visiting Japan for the first time but said he already wanted to come again. "It's cheaper," said Zhang, who carried two Louis Vuitton shopping bags and one from sportswear brand Onitsuka Tiger on a recent Saturday in Tokyo's high-end Ginza district. Nearby, some 15 people queued up to enter the Louis Vuitton boutique, fanning themselves in the sweltering heat. Zhang said his purchases so far included shoes and a bag. He planned to pick up a watch next, he said, pointing to his wrist as he repeated "Rolex".The trend has surprised French luxury giant LVMH, which owns Dior and Fendi.

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This month, a 30-year-old Chinese woman named Snow bought a bag and two accessories from a Gucci shop at the Matsuya department store in Tokyo's Ginza district. The total came to about 520,000 yen ($3,390). This was Snow's first visit to China with her boyfriend, but they did no sightseeing during their seven-day stay in Tokyo. She was not alone in boosting her buying power. "With the effect of the weak yen, shopping is quite affordable," said a 22-year-old Chinese man who visited Japan in June. "You could buy a Bulgari necklace that costs 368,000 yen in mainland China for 300,000 yen in Japan. The clothes I bought for 80,000 yen when I visited Japan in 2018 cost 5,000 yuan at the time, but now they've gone down to 4,000 yuan," the man said.

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thomas said:

the inability to adjust prices quickly enough to match currency fluctuations has created challenges for the luxury industry.

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