Changing China
Giant on the move
from Global Investing:
A shoe, a song and the promise of the West
I found myself at Selfridges this week, specifically in what the London retailer says is the world's largest shoe department.
Slightly dazed by cornucopia of women's shoes on slick display, I was roused only when the haze of muzak wafting over the PA system was suddenly dispersed by the jaunty strains of the Chinese New Year ditty 'Gongxi Gongxi'.
A 1946 composition from Shanghai, the song has gone from classic to kitsch, evolving to become the most popular festive song in the Chinese-speaking world. Its ubiquity rests on the many -- for me at least -- teeth-grindingly cloying versions played all over shops and markets in Asia. (Click here for example and don't say I didn't warn you)
I was somewhat surprised by the song's appearance in the British retail icon -- not least because it's still some ways off the Year of the Dragon. But then looking at the shoppers around me it all made sense.
Mainland Chinese travellers spent some £200 million on Bond Street last year. That's a 155 percent surge from 2009, according to an association of luxury retailers in the London thoroughfare.
Never mind that these products are largely assembled back in their home country, Chinese tourists buy their designer bags on Bond Street and elsewhere in Europe to avoid China's luxury sales tax. More importantly, these status-conscious buyers have the assurance that they are not being sold knock-offs -- a risk rampant in a country notorious for its lack of regard for intellectual property.
Those reasons are similar to those that drive the wealthy elite in many emerging economies to London, a city that Goldman Sach's Jim O'Neil has dubbed the "BRIC capital of the world".
