HONG KONG: It appears the economic recession has gone right past Hong Kong's most affluent. Since the recession set in, private car ownership has increased along with ownership of designer clothes, leather goods, luxury watches, high definition TVs, laptops, notebook computers and digital cameras.

"It is obvious that affluent consumers do not want to give up their quality of life," said Clare Lui, research director of Synovate of Hong Kong.

"This group with money on hand is willing to spend despite the condition of the economy," said Steve Garton, executive director of media at Synovate.

Private car ownership among affluent consumers increased during the downturn in the third quarter of 2008 to 44 percent, compared to their pre-crisis ownership of 38 percent, according to a survey released yesterday by Synovate.

Compared to other Asian Pacific markets surveyed, the well-heeled in Hong Kong appeared to have fared well. Affluent consumers in Hong Kong own the most luxury jewelry and watches. Twenty-eight percent of Hong Kong's elite own jewelery worth $1,000 and over, while 33.8 percent of Hong Kong's affluent own luxury watches worth $1,000 or more.

Hong Kong is one of the Asian markets that recorded an increase from 15.8 percent to 17 percent in ownership of designer clothes and leather goods ($1,000 up per item) over the past year during the downturn, following Singapore and Taipei.

Hong Kong elites owned more mobile phones equipped with camera and Internet access functions, recording 68 percent compared with 64 percent last year. Ownership of laptop computers has increased by 11.7 percent to 53.3 percent.

The survey was conducted in 11 markets in Asia, including Hong Kong, Singapore, Korea, Taiwan, Thailand, Malaysia, India, Indonesia, the Philippines, Japan and Australia. They defined affluent consumers in Hong Kong as households with a minimum monthly income of HK$40,000.

"There is no denying that the recession that started in the last quarter of 2008 has affected the whole watch industry. People held back when it came to purchasing luxury items. Interestingly, the slowdown did not impact Oris much," said a staff member in the marketing department of Oris, a Swiss watch brand whose prices vary from HK$7,000 to HK$28,000.

He said customers are mainly Swiss watch enthusiasts, watch collectors, and professionals who demand top rate functional watches for their fields.

He revealed Oris had a steady increase in mainland customers coming to the city to purchase watches. He said the future looks promising. "The brand does not just run on fad," he added.

Mr Sheh, a salesperson of a well-know luxury car brand, said company sales in the first quarter of this year were hit by the recession, but not hard. After that sales have popped back to normal levels.

"The business is actually much better than anticipated," he said.

In Sheh's opinion, the reasons that keep the customers buying are the government's economic stimuli and the quick rebound of stock prices.

"The recession didn't make me spend less or more," said Mr Yu, a 33-year-old Hong Kong resident. "I buy things that I think necessary. So the economy doesn't influence me much," he said.

He pointed to the Rolex watch on his wrist, which cost him HK$85,000. He bought the watch just before the recession, and got it a few months ago. The price was a bit high, he thought, but the recession actually brought the price down.

(HK Edition 10/14/2009 page1)