But that said, I would be hard-pressed to identify who's doing the buying (foreigners are almost never seen shopping in any of these expensive shops, which seem to mainly cater to wealthy locals) or where the money's coming from.
A group of 16 of Italy's top name brands set up shop earlier this year in the new Swissotel in Dalian, including Missoni, Versace, and Ermenegildo Zegna. Armando Branchini, who works for the Altagamma franchise that groups 25 of the best-known Italian companies, was bullish on this northeastern city. However, while Branchini says that the bulk of the shopping center's customers are locals, he is at a loss to explain how a city in which monthly incomes fall short of the price of an silk tie can generate enough business to make the venture a success.
"In this country, there is income which is unexplainable," he explains. "I would never have expected so much purchasing power, but I believe there are many people in a position to spend a lot of money."
Branchini pointed to the Ermenegildo Zegna outlet located in the nearby Furama Hotel, which opened two years earlier. Zegna's second shop in Dalian is its 18th venture in China. "For a company with prices like these to already have a second shop in Dalian is pretty astonishing," he says.
Meanwhile, the central bank reported this month that consumer spending had begun to pick up in the third quarter. However, much of this appears to be due to seasonal factors: an increase in the number of young people starting school in the fall, the week-long holiday for the October 1 national day celebration which saw people taking off on extended vacations, and increased investment in the stock market, the result of the government's attempt to pump up the markets and in turn the economy. A third reason cited was greater spending on homes as banks increased the number of mortgagees available. Still, this new spending failed to stop deflation, which marked its 23rd consecutive month in September.
While there are obviously a lot of people around China with money for expensive homes, cars and luxury items, the answer to boosting consumption lies with the masses. Unless the government can do something to make people less nervous about their futures -- i.e. dealing with the structural issues that are worrying the have-nots -- the slump in spending will be around for quite a while to come.
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