Singaporeans give in to urge to splurge
Desmond Ng and Megha Gupta, New Paper 25 Dec 07;
LOUIS Vuitton wallets for $540, and coin purses for $250.
No big deal, say Singaporeans who have no qualms forking out for branded goods.
A recent American Express (Amex) report shows that spending in the luxury sector is growing by 30 per cent annually, said a Business Times article last month.
The report said that sales of luxury watches, jewellery, designer fashion items and fine dining spending were 29 per cent higher in the second quarter of 2007, compared to the same period last year.
The report tracks spending by Amex cardholders in the above four key areas, based on data from more than 100 retail and dining establishments.
The Link Group's vice-president of marketing, Mr Alphonsus Chung, said he has seen a sales increase of close to 10 per cent. The group carries labels like Givenchy and Zac Posen.
He credits the spending momentum to several feel-good factors such as the upcoming integrated resorts, double-digit growth rates, low unemployment figures and influx of foreign funds.
Locals make up about 60 per cent of its shoppers. The rest are Indonesians, Indians, Chinese and Russians.
He said: 'These are exciting times indeed. It's like boom town Charlie in Orchard Road once again.
'In the last five years or so, sales have been fairly stagnant and many of the high-end stores remained status quo. But now, they're expanding.'
At Takashimaya Shopping Centre, its second level now features brands like Van Cleef & Arpels and La Perla.
Luxury brands Louis Vuitton and Chanel will also double the size of their flagship stores there too.
Louis Vuitton, which occupies 5,200 sq ft, will double its size to about 10,500 sq ft by mid-2009.
Chanel's sole flagship outlet at 3,600 sq ft will be expanded to more than 7,000 sq ft by early 2011.
Fashion brand Hugo Boss is also consolidating its two stores there into a 7,000 sq ft flagship outlet on the first floor. And Tiffany & Co will renovate its 6,000 sq ft duplex in the middle of next year.
While none of the brands would reveal sales or customer traffic, Toshin Development Company, a Takashimaya subsidiary that manages speciality luxury shops there, said these brands had experienced 'strong double-digit growth' in the past few years.
When The New Paper visited the Louis Vuitton boutique at Takashimaya last Wednesday afternoon, about 15 people were waiting to enter the outlet.
Shops like Gucci, Chanel were also invaded by shoppers doing their last minute festive shopping.
And shoppers were lapping up these high-end goodies.
Student Laura Ng, 20, who splurged $250 on a Louis Vuitton coin purse, said she has no problem spending that much because her parents give her a sufficient allowance.
'It's a gift for someone special, so money doesn't matter,' she said.
Christmas makes its Orchard Road splash
Arthur Lee, Business Times 25 Dec 07;
(SINGAPORE) Nothing symbolised the mood of the season quite like Orchard Road.
The crowds thronged, with each traffic light change opposite Ngee Ann City seeing over a hundred pedestrians waiting to cross the road. Vehicles crawled endlessly into carparks.
Love came on cue, with couples soaking in the light rain, kissing under the 20-metre-tall Christmas tree at Paragon or simply relishing the displays along Orchard Mall.
Discounts were everywhere and bonuses were splurged. One sporting goods chain offered 30 per cent discounts with an additional 10 per cent for members. At Orchard Cineleisure, a gourmet coffee corner went even further, offering sandwiches and pies at 50 per cent off.
One bank's credit card company had four young women, in Santa outfits, giving away candy sticks. Upmarket watch stores did brisk business.
There were also offers for those more careful with their spending. Hypermart giant Carrefour had a promotion offering The Straits Times readers a $10 rebate voucher on purchases above $65 through to Christmas Day. POSB Everyday card holders were offered another 5 per cent off.
The malls joined in the fun, with CapitaLand re-enacting a classic nativity scene at Plaza Singapura with the theme, 'Discover the Perfect Gift under the Stars.' Its giant Christmas Village in front of the Plaza, complete with three lifesize camels featuring the Three Wise Men, attracted many wide-eyed visitors and shutterbugs. Paragon spent about $400,000 creating a Whimsical Christmas with some 18,000 ornaments. Central at Eu Tong Sen Street claims to have spent about $300,000 while Plaza Singapura spent almost $200,000 on this year's decorations.
