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Explosion of riches

By Karl Wilson in Sydney (China Daily) Updated: 2014-05-12 08:12

The EIU says India will become a "key battleground for luxury brands as the retail market opens up to foreign investment".

A wealthy elite has also emerged in Indonesia on the back of the global commodities boom, while Malaysia and Thailand are becoming shopping destinations with the former benefiting from low import duties on luxury goods, the EIU says.

Juan Manuel Mendoza, head of Asian equities at Credit Suisse Asset Management, says in a report to clients that the Southeast Asia luxury market is growing at a similar pace to the Chinese market.

"It is a quarter of the size of the Chinese market but it is making a significant contribution to global luxury goods spending," he says.

Mendoza adds that luxury malls in cities like Bangkok are rising and growing at 25 percent annually with several new luxury developments expected to come up within the next three years.

"In fact, Thailand is planning to allow Chinese tourists to enter the popular holiday destination without tourist visas and, at the same time, will significantly cut import duties for luxury brands, helping it compete with places like Hong Kong and Macao in the future," Mendoza concludes.

Explosion of riches

Explosion of riches

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