The Far East (HK) visitors are buying everything

[HappyFish]

Originally Posted by Luap1976

Ha ha nice

Im from uk and here if your not a local you can't have hot steel watches. So these Chinese couple would not be allowed the good steel pwatches anyway even wasting 150k on stuff they don't want

I'm glad they did not pull out a steel sub hulk etc etc as they are obviously flippers

Same here in france - i m glad too that they dont pull out steel sub hulk for english visitors as they are obviously flippers!

[Mr.Rolex1]

Originally Posted by schoolboy

I understand.

It’s tough for everyone right now, except grey dealers perhaps.

[jagwap]

I live in China and this is not an unlikely story.

Chinese regularly buy multiple Rolex in Hong Kong as they are considerably cheaper than in China, as western goods have had considerable tariffs for decades. Yes Trump didn't invent them. As there is a better price to be had in the UK with the tax back at the airport, it is not unusual for Chinese tourists to go on extreme spending sprees. They traditionally bring back gifts for family and friends on trip, but also Hongbao gifting features heavily in business (we would call it bribes). You also gain "face" if you spend a lot on a gift or hongbao, AND get a bargin. I witnessed one guy spend 25K in Burberry in a sale.

People here jump to their own conclusions based on their own values too fast. If someone from another part of the world is told to behave differently to you, either just shrug and move on, or travel more. Don't get so upset and life will get better.

[teck21]

Originally Posted by aparker973

I do not know much about the Chinese consumer, but I gather they store their wealth in ways we may not totally "get", but still suit their needs. We see it as more pure 'consumerism' than they may. I suspect this may be driven by political and economic conditions there.

This is a good point that hasn’t often been mentioned. A lot of the new rich and Super rich Chinese are very insecure about where their money sits.

They are therefore constantly looking for stores of value, preferably with capital appreciation, or minimal depreciation.

And they ascribe huge value to luxury goods, which makes them consider them a good store besides the usual stores like property.

And when it comes to luxury goods which depreciate the least? Everyone knows Rolex is right up there.

Person A discovers it, tells person B, who tells person C.... The news spreads like wildfire on WeChat. And soon everyone is buying Rolex indiscriminately.

They don’t care about the aesthetics, functionality or history of the watch or the brand.

What they want is the ‘best and most expensive’ because they really need to park that much money away in physical stores of value.

So it is not uncommon for the super rich Chinese to walk into a Bvlgari and make a clean sweep of the most expensive and/or popular items, which oddly enough seems to be what these customers did.

And countries with VAT refundable to travellers are especially susceptible to this practice. I do know of new super rich Australian immigrants from China who are constantly trying to rort the system by claiming a 10% GST refund when they travel back to China (which is often frequent) with these new purchases and then having relatives smuggle them back in later.

I know the idea of buying physical items as a proxy for cash is an alien idea to most people who grew up in western (read rich, or newly poor, pick one!) economies who take for granted their money is secure (at least legally so) in the banks.

Most of the current rich Chinese grew up in a completely different socio-economic environment. They feel no such security, and hoarding money in the form of physical objects is a very normal thing for them.

I’m just surprised not more hold physical gold, they’d have done really well over the past couple of years.


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[jagwap]

Originally Posted by teck21

I’m just surprised not more hold physical gold, they’d have done really well over the past couple of years.

This is because they did in the past, and then gold took a massive dive in 2013, so they don't trust it anymore. Also like the the Shaghai stock exchange. If the value goes down a bit they all exit on mass. No one in living memeory has experience a real recession, so everything that is a good investment will always go up, like a rolex sub and chinese property. They are about to get a huge shock when the next recession comes if the goverment can't afford to hide it from them like last time.

[zjd168]

Originally Posted by Old Expat Beast

Strange. They could have bought all that less desirable stuff in HK.

This. Whatever said in the original thread doesn't make sense, at least they can't flip them in HK for any profit.

[Seibei]

Terrible negotiators. They should have assembled all the watches they wanted to buy and then said that it is a deal, but only if we get 2 or more SS professional watches at retail. 9 times out of 10 the dealer would have been happy to pull out the extra watches to make a 150k sale. I know I would have in a heart beat.

[jagwap]

Originally Posted by zjd168

This. Whatever said in the original thread doesn't make sense, at least they can't flip them in HK for any profit.

They can, as the pound is very low right now, but they won't. They will take them to China where they cost a lot more. See above.

[teck21]

Originally Posted by jagwap

This is because they did in the past, and then gold took a massive dive in 2013, so they don't trust it anymore. Also like the the Shaghai stock exchange. If the value goes down a bit they all exit on mass. No one in living memeory has experience a real recession, so everything that is a good investment will always go up, like a rolex sub and chinese property. They are about to get a huge shock when the next recession comes if the goverment can't afford to hide it from them like last time.

It is true, the ‘investing’ mindset of many Chinese. Only the greater fool theory applies because as you put it, in their belief that their government will be a permanent backstop for any negative price movement for pretty much any economic asset.

And for stuff that their government won’t, there’s Rolex :)

The frenzied nature of their Rolex buying will end eventually.


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[zjd168]

Originally Posted by jagwap

They can, as the pound is very low right now, but they won't. They will take them to China where they cost a lot more. See above.

I wasn't talking about mainland china. I said they can't make profit in HK.

Sure if they were from mainland China then I can believe it. Though they would be lousy flippers, failed to get any hot models after spending this amount of money, definitely not pro.

[jagwap]

Originally Posted by zjd168

I wasn't talking about mainland china. I said they can't make profit in HK.

Sure if they were from mainland China then I can believe it. Though they would be lousy flippers, failed to get any hot models after spending this amount of money, definitely not pro.

Well the UK price after you take 20% tax off is considerably cheaper than Hong Kong. While these peices may not get retail if you sell them greay NIB, you may still make a profit. But that is an academic argue ment as thwy won't. They will be gifts to gain face back home.

[Nikrnic]

I'm glad to hear your AD held back all of the SS pieces for his more local and customers with history who will most likely keep and wear them. I'm all for the home team.. I remember when the same scenario was going on in the 90's snd 00s when Asian buyers were buying up and shipping all the Plymouth Roadrunners they could overseas.

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[WatchLurv]

Originally Posted by Lemieux66

What’s wrong with the New Bond Street manager? Is that a Rolex boutique?

Guy is clueless and cocky. That's as much as I'd like to elaborate. You get more of an "experience" if you walk in.

[tom2517]

Originally Posted by Luap1976

Ha ha nice

Im from uk and here if your not a local you can't have hot steel watches. So these Chinese couple would not be allowed the good steel pwatches anyway even wasting 150k on stuff they don't want

I'm glad they did not pull out a steel sub hulk etc etc as they are obviously flippers

That's what people say about Patek in UK too, hot pieces only for locals but they make exceptions. Not saying in the particular case but they do sell to foreigners.

[ninjin]

Originally Posted by jagwap

Well the UK price after you take 20% tax off is considerably cheaper than Hong Kong. While these peices may not get retail if you sell them greay NIB, you may still make a profit. But that is an academic argue ment as thwy won't. They will be gifts to gain face back home.

There is a 20% sales tax in the UK but as a tourist you won't get it all back. The company that handles the tax refund will take a cut (handling fees and exchange rate) So as an example, a £12,000 UK purchase will only get around £1300 back, making it £10700.

Also your view on Rolex prices in HK is wrong. All the pieces bought by the group in this thread, are easily available from HK AD with discount making them much cheaper than the UK even with tax free.

[Dirty Tool]

To clear up some comments in this thread - in the UK the price shown on products includes the 20% VAT, it is not added ontop at the till. Therefore the RRP is inclusive of the VAT.

[Jimmy Jam Jam]

Can i just say, as a british born chinese (parents from hong kong), this is quite normal to see (for me anyway). Like one posted every one of my friends in hong kong that knows im going back Uk to see friends and family will ask me to help them get this and that etc and i end up with some ridiculous list (especially for bicester village), make up and designer but no watches (im poor myself now) hahaha

but like the one person said its quite true they want the best of the best, its like every weedding i went to as a kid everyone had gold day dates, just anything bling, gold and rolex something that will stamp a name across their head they will buy.

I also have an uncle in the UK who have built a really good relationship with their local AD, who will also ask if any of us will want a blnr at retail but we will have to wait maybe half a year or so until he next visits us.

I just kind of think theres all sorts of people, they came in and swept the models clean ... fair enough, the sales didnt bring out the hidden away ones also fair enough =D

[jerrychan23]

Originally Posted by wholecz

I cannot agree with you more. See some ugly hk residents in this thread end up with a conclusion saying the customers are from mainland China instead of as OP says from hk.

Pls mind your words!

[Wristwatcherboy]

My AD will also not sell any of the “special” pieces to tourists, mainly those from China and HK who come in daily wanting to buy everything.

The OP’s AD did exactly the right thing in selling them as many DJs as they wanted but not offering them a single hot model.

[WatchLurv]

Originally Posted by ninjin

There is a 20% sales tax in the UK but as a tourist you won't get it all back. The company that handles the tax refund will take a cut (handling fees and exchange rate) So as an example, a £12,000 UK purchase will only get around £1300 back, making it £10700.



Also your view on Rolex prices in HK is wrong. All the pieces bought by the group in this thread, are easily available from HK AD with discount making them much cheaper than the UK even with tax free.

Amen. Greys seller cheaper DJs than ADs in Hong Kong

[Quamby]

Originally Posted by Old Expat Beast

Strange. They could have bought all that less desirable stuff in HK.

I think it's because they are cheaper in the UK and continental Europe at the current exchange rate with VAT deducted.

I am told these days, many Mainland Chinese tourists don't waste time. They just tell the salespeople what they want, the price, and what bundling deal is required to get the deal done. If they don't like what they hear, they walk.

One of the more interesting stories I heard is that a mainland tourist asked a salesman point blank "tell me which watch has been sitting in your display case the longest? I'd buy it if I can have a 116500LN).

I wish I have their chutzpah.

[AK797]

Originally Posted by peterskinner

So some people went into a Rolex store and bought quite a few watches; what has their ethnicity got to do with anything? Are these watches reserved for particular ethnic groups? The tale has a slightly unpleasant feel to it...and I live in the UK.
You can buy what you want, regardless of where you call home.

I think for us outside of Asia this is initially difficult to read as ethnicity is a very delicate matter, but this thread has shown there are many in Asia here who have first hand knowledge of the situation and mostly the reasons are economic and financial which is fair comment, would be the same of any area that has experienced growth and has money to spend, so it is not the ethnicity or culture that is under scrutiny, and it has to stay that way.

[Moggo]

Originally Posted by AK797

I think for us outside of Asia this is initially difficult to read as ethnicity is a very delicate matter, but this thread has shown there are many in Asia here who have first hand knowledge of the situation and mostly the reasons are economic and financial which is fair comment, would be the same of any area that has experienced growth and has money to spend, so it is not the ethnicity or culture that is under scrutiny, and it has to stay that way.

Good post, this is not about race/ethnicity all the OP did was point out where they were from, nothing more.


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[Vanalich]

Originally Posted by fullofboats

Not saying the OP lied, just that the conclusion that the tourists are flippers/grey is definitely incorrect. Perhaps the AD heard/assumed it wrong, perhaps the tourists were full of shit. Don't know, but there's no way the tourists spent $150k on easily obtainable watches in HK to make a profit.

The HK retail price for a DJ36 is HK$53,200, which at the current exchange rate is 5380gbp. The UK tax must be in addition to the retail price (i.e. 5350gbp + 20%), otherwise ADs/Rolex would be making less margin in UK than rest of world.

And consider 5 percent discount you can get at most shops

[Vanalich]

Originally Posted by bondtoys

It would have been much more expensive for them in HK.

The prices are slightly higher in HK and in the UK, they get the VAT back, so they are saving roughly 15-20% against HK prices

You can get 5 percent discount on most models at many shops

[peterskinner]

Originally Posted by Moggo

Good post, this is not about race/ethnicity all the OP did was point out where they were from, nothing more.


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A neutral headline might have been ‘’tourists buy all the stock.’’
Instead it was ‘’Far East (HK).........buy all the stock.’’ Singling-out an ethnic/cultural group when tourists from all over the world buy stock , not just Chinese people. For example, people from Russia buy large numbers of very expensive watches in central London. So do wealthy tourists from Africa, and so on. Just go and stand in Harrods.
I know an AD , miles from London, who has had Americans trying to buy almost every expensive Rolex in the shop. No tax, and a weak pound you see. Incidentally, he refused.
We were then treated ,in the ensuing thread, to a mass of generalisations about the behaviour of this specific group....which given there are 1,3 billion Chinese people is absurd. No-one mentioned that all ethnic/ cultural groups will have their own quirks.
As a rule, generalisations about ethnicity/cultural groups, are perhaps best avoided....

[Art 1]

Originally Posted by peterskinner

A neutral headline might have been ‘’tourists buy all the stock.’’
Instead it was ‘’Far East (HK).........buy all the stock.’’ Singling-out an ethnic/cultural group when tourists from all over the world buy stock , not just Chinese people. For example, people from Russia buy large numbers of very expensive watches in central London. So do wealthy tourists from Africa, and so on. Just go and stand in Harrods.
I know an AD , miles from London, who has had Americans trying to buy almost every expensive Rolex in the shop. No tax, and a weak pound you see. Incidentally, he refused.
We were then treated ,in the ensuing thread, to a mass of generalisations about the behaviour of this specific group....which given there are 1,3 billion Chinese people is absurd.
As a rule, generalisations about ethnicity/cultural groups, are perhaps best avoided....

You continue to look for something that’s just not there. But twice now you have brought up Americans.

[jagwap]

Originally Posted by ninjin

There is a 20% sales tax in the UK but as a tourist you won't get it all back. The company that handles the tax refund will take a cut (handling fees and exchange rate) So as an example, a £12,000 UK purchase will only get around £1300 back, making it £10700.

Also your view on Rolex prices in HK is wrong. All the pieces bought by the group in this thread, are easily available from HK AD with discount making them much cheaper than the UK even with tax free.

Yes, but if you spend 150k, you get 24650 back from global blue. That's 98.5% of all the tax. The more you spend, the closer to 20% you get. Try for your self: https://www.globalblue.com/tax-free-...nd-calculator/

So you can get 20% off in Hong Kong from an AD now? I can't. Perhaps I look too rich and touristy...

[peterskinner]

Originally Posted by Art 1

You continue to look for something that’s just not there. But twice now you have brought up Americans.

Because this is mainly an American forum. If it was (say) a Swedish forum, I’d mention Swedes. No offence intended.

[Jake B]

Upon scrutiny, the OP is a worthless, nonsense story with a mildly controversial headline. Typical. What is it their President calls it?...."'Fake N__S"?