What crisis? Beijing luxury fair evades the gloom

BEIJING, Nov 22 (Reuters) - The world may be teetering on the brink of a prolonged and painful recession, but many luxury brands are looking for salvation in China, where the economy is still bounding along, albeit slower than before.

Some of the world’s most expensive brands have gathered in Beijing this weekend, confident that even with buckling global finances and China struggling to deal with factory closures, the world’s most populous nation remained a good bet.

The Top Essence fair drew around 11,000 visitors to its 2007 Beijing show, and managing director Leon Sheng said this year’s event has around 15 more luxury brands than last year’s.

“This emerging market is very important for the luxury brands and, as you see, the world economy is suffering from the recession but Chinese people are still very passionate about the luxury brands,” Sheng told Reuters.

“Most of the brands are here, very proactive, and I don’t think this happens in a lot of other places in Europe or America,” he added.

High-earning businessmen and local celebrities watched as models stalked down the catwalk in Italian cashmere sweaters costing several hundred dollars apiece at the opening event on Friday night.

For those who prefer to spend their money on an experience rather than a product, China Adventure Travel offers tailor-made hunting trips across the world, costing up to 1 million yuan ($146,400).

Company president Wang Wei said he anticipated feeling the effects of the economic downturn in a few months, but believed his clientele would be relatively immune from the worst affects.

“I think that, when there is a depression, there will be some lows but sometimes the more well-to-do people are not particularly affected by the downturn, not badly,” he said.

Last week uber-chic Italian design house Versace brushed off global economic woes to hold its first ever fashion show in China, saying it expected Asia to become its second-largest market next year after Europe, helped in part by China.

Vincent Wang, a consultant visiting the Top Essence fair, said he did not think the wealthy in China would be that affected by a world recession.

“With the financial crisis, people will make some adjustments to their consumption, but rich people still have quite a lot of money and can buy these kinds of goods,” he told Reuters.

Yet Li Xinxin, who owns a bar in Beijing’s fashionable Houhai, said she would likely scale back her spending.

“I’m just back from Hong Kong two days ago and bought some goods like these, though I bought much less than before,” she said, walking round the showroom. “I’ll feel uncomfortable if I continue to buy luxury goods because the whole economy is in recession.”

Still, for teacher Roger Xu, the displays of such overt excess left him feeling conflicted.

“On the one hand, I’m happy, as this fair indicates that China’s living standard is improving,” he said.

“But it also indicates China has become a little excessive. I’m worried that there is a growing gap between rich and poor. The rich can buy what they want, but some poor people still struggle to get enough to eat.”