Greater China may represent a significant portion of sales for leading luxury brands Louis Vuitton, Gucci [ GUCG 40.50  +0.00 (+0.00%) ] and Bulgari, but Aaron Fischer, regional head of consumer research at CLSA Asia Pacific Markets, believes Hong Kong-listed retailers are better positioned to capture the mainland’s demand for high-end merchandise.

Fischer identifies Emperor Watch & Jewellery [ 0887.HK 0.87  +0.01 (+1.16%) ], Sa Sa International [ 0178.HK 4.24  -0.35 (-7.63%) ], Parkson Retail [ 3368.HK 7.95  +0.01 (+0.13%) ]and L’Occitane [ 0973.HK 19.10  -0.28 (-1.44%) ]as attractive investment opportunities. He highlights that a greater percentage of their earnings are derived from Chinese customers and their mid to high-end product mix offers accessibility to a wider range of consumers, including the country’s burgeoning middle class.

Rising wages and the growing availability of consumer credit is encouraging middle-income Chinese to purchase goods that were previously out-of-reach.

A recent CLSA survey illustrated this growing trend. Out of the 340 consumers and 31 luxury store managers interviewed in China’s tier 1-3 cities, over 50 percent of the respondents have or are planning to purchase luxury apparel.

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