Chinese Yuppies Create Demand for Luxury Goods

Jupiter, FL (PRWEB) May 23, 2008 -- Tony Sagami takes a closer look at the spending habits of Chinese young professionals with disposable incomes. Mr. Sagami discusses the demand for luxury goods that Chinese yuppies are creating in China.

Unlike the U.S. where there is debate about how rapidly the economy and consumer spending are slowing, Chinese yuppies (chuppies) are making sure there is no concern in China. The Chinese National Bureau of Statistics reported that retail sales soared by 22% in April; jewelry sales rose by 37.5%, apparel by 32.6%, and furniture climbed 41.7%. The fuel behind all this spending is growing urban incomes, which rose by 17.6% over the since 2007 and gave these consumers their large disposable incomes.

These consumers often live at home and spend their paychecks on luxuries and luxury goods. The reason for the luxury spending spree is simple; China's booming economy is rapidly creating an affluent middle class population. There are 100 million middle class Chinese today and that number is expected to double by 2010. These affluent middle class Chinese yuppies are educated, have well-paying city jobs, and have disposable income.

Asia is all about consumption. The Chinese are buying so aggressively that they are pushing up the prices of all luxury goods. That's why luxury retailer Cartier has recently opened 25 new stores in mainland China and Hermes International said that it will triple its stores in China over the next five years.

"China isn't the only rapidly growing economy in Asia. India is the second fastest growing economy in the world after China and its economy is growing at a 9.4% annualized rate. India had 83,000 millionaires in 2006, a 19.3% year-over-year increase, and now has a middle class population of 300 million. According to the Knowledge Company, a New Dehli consulting company, there are now about 1.6 million Indian households that spend an average of $9,000 a year on luxury goods," Sagami states.

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About TONY SAGAMI & MONEY AND MARKETS     

Tony Sagami, a veteran investment advisor and a leading expert on Asian markets, is the owner and founder of Harvest Advisors, an investment research and money management company. Mr. Sagami has been managing money for more than 20 years and is one of the early pioneers in the application of technical and quantitative analysis to mutual funds and stocks. He is a featured contributor to Weiss Research's daily e-letter, Money and Markets and monthly Safe Money Report as well as the editor of Asia Stock Alert.

Prior to establishing his own firm, Mr. Sagami was managing director at W.E. Donoghue & Co, serving additionally as the director of investment. During his successful career, he also held the position of account executive at Merrill Lynch.

Mr. Sagami's views on Asian markets, specifically Chinese investments, have been featured in publications such as The Wall Street Journal, Barron's, Kiplinger's, Smart Money, Business Week, New York Times, Washington Post, Investors Business Daily, Bloomberg, Financial Planning Times, Mutual FundsMagazine, Chicago Tribune, and the LA Times, as well as on CNBC and CNBC Asia.

Mr. Sagami holds a degree in economics from the University of Washington.

Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.

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