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Matthew Smith has been a business and financial journalist for more than a decade. He previously worked with the Financial Times Group, reporting from New York on company buyouts and refinancing in the wake of the Global Financial Crisis. He started his career reporting on the funds management industry in Sydney.

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Markets wide open as China’s yuan looks for luxury: Deloitte

Published 22 March 2013 12:09, Updated 27 March 2013 12:06

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Markets wide open as China’s yuan looks for luxury: Deloitte

About a year ago, Antoine de Riedmatten got fed up with advising companies on cutting costs, so he started advising them how to grow.

De Riedmatten is the global consumer business leader for Deloitte and his clients include companies such as French multinational retailer, PPR, which owns such luxury brands such as Gucci, Fnac, YSL and Stella McCartney.

He says retail and consumer companies are increasingly looking to shift onto the front foot after an extended period of economic uncertainty since the global financial crisis. He adds that luxury retail is well positioned to buck otherwise conservative retail growth forecasts.

A key component of the growth strategy for his retailer clients is to enter overseas markets, says de Riedmatten, who was in Sydney this week visiting from his base in Paris.

Tourism is increasing, which he says will provide the fuel for the growth prospects of retailers, particularly luxury brand retailers.

“It used to be the Japanese that were travelling and luxury brands we were putting stores in the places the Japanese were travelling, and now it’s the Chinese,” de Riedmatten says.

“That’s good for Australia, because you will have more Chinese going to Australia than Japanese,” he says.

However, he says there is no one brand has fully emerged yet that has captured the Chinese luxury taste and the lucrative potential market is still wide open.

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