Here’s an interesting story about China’s pursuit of luxury goods. Agence France-Presse (AFP) is reporting that increasingly high numbers of wealthy Chinese people are traveling to luxury capitals such as Paris to purchase goods that are discounted.

I wrote previously that the global economic downturn has caused luxe companies and retailers to put products on discount in order the move product. It appears that the Chinese, who have become more involved in the Asian luxury market, are going where the deals are.

The AFP article offers more detail:

The Chinese bought tax-free goods worth 158 million euros (222.5 million dollars) in France in 2009. That was an increase of 47 percent from the level the previous year, according to Global Refund, a company specialising in tax-free shopping for tourists.

The article also notes that this has been part of a larger, growing trend:

Tax-free shopping by Chinese tourists has been increasing for the last two years, rising by 39 percent in 2007 and 23.3 percent in 2008. They now represent 15 percent of sales and 13 percent of transactions.

More Chinese people are going abroad to buy high-ticket items, which suggests a growth in the number of people who might be considered Theta personalities in China.

Year on year increases in the number of Chinese traveling abroad to do this kind of shopping suggest the figures will continue to grow. What will be interesting to watch is the impact this has on China’s burgeoning luxe market.

With New York, London, and Milan Fashion Weeks behind us, the final Fashion Week is taking place at present in Paris. Amid the weakening economy and spreading insecurity, the fashion world must wait and see if the luxury consumer is still out there to purchase £10,000 dresses and £500 shoes.

High street fashion stores are already beginning to feel the financial pinch, as witnessed by Marks & Spencer, who saw shares drop by 32.5% last Wednesday alone . Will the global economic slowdown have any effect on the luxury purchases made by the upper classes?

Some high-end brands have started to see a slow down in sales, as consumers become jittery. Milton Pedraza, CEO of the Luxury Institute noted:

The reality is that even at the highest levels of wealth, there is some pull back.

Even in areas where one would not expect money to be considered, changes are beginning to surface. Fashion bible Vogue, that specializes in luxury brands, has bannered “Value-Conscious Chic, When to Spend, Where to Save’ on the front cover of its US September issue and Araks Yeramayan, owner of Araks, reveals that many fashion companies have had to pay for alcohol, catering, makeup and hair styling for their runway shows, an expense that has previously been picked up by sponsors.

Despite these trends, Fashion Weeks do not seem to have been interrupted. USA Today notes that designers are still ‘spending up big’ on their fashion shows, with Patrick McCarthy, editorial director of W and Women’s Wear Daily speculating that “there will be at least as many shows this seasons as last year and maybe even a few more.”