Chinese Luxury Shoppers Tends to Spend Closer to Home
One major industry survey that was recently held claimed that the weak economy is losing the enthusiasm of Chinese visitors in traveling long distances to do their luxury shopping. Despite the majority of wealthy Chinese tourists spending $45 billion on luxury items in foreign countries last year, Euromonitor International stated that nearer destinations such as South Korea and Thailand are taking the place of distant venues such as Western Europe and North America.
The Chinese made around 2 million trips to the United States last year, showing n increase of 12 percent in 2013, 1.7 Chinese tourists made trips to France in 2014 this including shopping excursions to luxury retailers in their trip itineraries. Global luxury goods are predicted to be worth $405 billion by 2019 but experts say that survey showed that in the future trips to the US and Europe will fall around 30 percent by 2020 compared to the 2014 level. Euromonitor head for luxury goods Fflur Robert said, that due to the economic slowdown US and Japan will remain ahead of China as the world biggest luxury goods market by 2020 and it will be maintaining its third position. The Chinese are important revenue drivers for luxury department stores in London, New York, Paris and Hong Kong, as high import taxes in the mainland are pushing Chinese to shop abroad.
The Euromonitor report said that the weakening economy is unlikely to stop wealthy Chinese consumers from traveling to purchase luxury goods, but might change their choice of destination and total spending which will benefit South Korea and Thailand. Director of the International Tourism Development Institute Jiang Yiyi said that luxury brands will continue to cut the price difference between the goods sold in China and elsewhere, but staying home and shop will help domestic retail figures.