The Chinese already account for 27 per cent of the world’s total luxury spending – and a staggering 80 per cent of that is spent outside the Mainland.
China luxury spending outside China will double by 202 according to a report by China Luxury Advisors, presented to last week’s Luxury Retail Summit: Holiday Focus 2015.
“What we’re really seeing is that [the Chinese slowdown is] just really not changing the amount of travel, it’s just changing the nature of it,” said Avery Booker, partner at China Luxury Advisors in a presentation reported in detail by Luxury Daily.
“We’re seeing fewer long haul trips among the middle class, and more people going to places like Japan and Korea to do shopping,” he said. “The purse shopper spending will remain strong even though average spend is going to decrease, and of course that’s just a volume issue.”
Booker said the devaluation of the Chinese currency was so far having no perceptible effect.
Chinese shoppers spend US$229 billion a year outside the mainland – which China Luxury Advisors predicts will double by 2020, based on the theory the $8000 per year per capita GDP is “the tipping point” at which outbound tourism booms. China has just reached that level.
The Luxury Retail Summit was organised by Luxury Daily.
In reaching its estimates China Luxury Advisors surveyed 1000 Chinese consumers 18 years and older, with a variety of incomes.
Their most common destination outside the mainland is still Hong Kong, mainly due to its nearness and visa-free travel.
China Luxury Advisors urged retailers to make their stores “Chinese consumer-friendly” to make the most of the booming trend. Mandarin speaking associates, Chinese dining options and accepting Alipay, Tencent or China Union Pay can make them feel at ease.
Source: insideretail.asia
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