Luxury brands unlikely to be hit by economic slowdown

Hong Kong - Year-on-year advertising spend over the Chinese New Year period increased 24% with the jewellery, watches and luxury products category recording a  significant increase of 114%, according to figures from Admango.

The report compared the Chinese New Year period from 10 February to 16 February 2007 and 31 January to 6 February 2008 and reported the year-on-year ad spend in magazine for that time frame increased by over 128%.

Roddy Yu, MD for Edipresse Asia, said the 100% increase figures could be attributed to inflation rather than actual growth.

He said the economic downturn, particularly the much talked about sub-prime crisis from the U.S has made advertisers more cautious and reluctant to commit to spending long-term.

Despite the uncertain economic outlook, Yu is confident that marketers of luxury brands are still active in print advertising.

Edipresse Asia launched five magazines aimed at the luxury market last year and Yu added the company, which publishes Tatler Hong Kong will continue the momentum to launch more titles this year.