Weathering the storm

Dec 13, 2012 | Comments 0

It's December, the festive month of Christmas, the season to be jolly and a time for family and friends, so my thoughts are naturally drifting back in my home country, the UK.

It's not all mince pies and Quality Street there right now though. My newsfeed has story after story about terrible stormy weather and with a system dubbed the "Beast from the East," intimidating the UK with freezing fog and extreme snow, I really start to appreciate Singapore's tepid winter climate. I'm staying put.

Weather isn't the only thing that is looking bleak in the UK and Europe. I can remember writing of threats of the double-dip recession not so long ago and while the UK has narrowly avoided a triple-dip recession (by 1 percent), experts warn that the on-going sovereign debt crisis is far from over.

It has long been considered that Asia is a safe-haven; bolstered by its high-growth, strong domestic consumption and active intra-Asia trading. Many luxury brands have been seeking shelter in Asia with reported y-o-y growth in most territories in the region. Bentley doubled its sales in China in 2011, while Prada raised US$2.1 billion in its Hong Kong IPO and the Pearl of the Orient is also now home to more Gucci and Hermes stores than Paris.

According to Knight Frank, and Citi Private Bank's Wealth Report 2012, Asia-Pacific accounts for almost 27 percent of luxury spending worldwide. Meanwhile, research firm Boston Consulting Group predict China to become the biggest consumer of luxury goods in the next five to seven years. Jakarta is also tripping off the tongue with the luxury glitterati set.

However, warnings from the IMF and concern's over property market bubbles and slowdowns in luxury condo sales suggest that some may be holding onto the coat-tails of an illusion of economic immunity.

While Asia may be safe from the "Beast from the East," can the region weather the economic storm that's yet to blow over?

Filed Under: Blog

Tags: Asia (General) • beast form the east • Bentley • boston consulting group • China • Christmas • citi private bank • December • double-dip recession • economic immunity • glitterati • gucci • Hermes • Holiday • Hong Kong IPO • IMF • intimidating UK • intra-Asia trading • Jakarta • knight frank • luxury brands • luxury condo sales • mince pies • opinion • paris • Pearl of the Orient • Prada • quality street • safe-haven • sovereign debt crisis • stormy weather • strong domestic consumption • tepid winter • triple-depi recession • UK • wealth report 2012 • Xmas

Article source: http://www.thethailandlinks.com/2012/12/14/weathering-the-storm/