Affluent Chinese are traveling abroad in record numbers to purchase luxury goods. They are willing to pay for flights to Hong Kong, the US and Europe because the price of luxury goods is typically one third higher in mainland China due to exorbitant tariffs. During this year’s Spring Festival, Chinese travelers spent $7.2 billion abroad on luxury goods (according to the World Luxury Association) – an increase of 29% from $5.6 billion the previous year. What reasons do Chinese luxury shoppers have to offer for why they travel abroad to purchase watches, handbags, perfume and cosmetics?
- 72% “Luxury goods overseas are cheaper than at home”
- 69% “There is more variety overseas”
- 45% “The service and shopping experience is better overseas”
The China Observer View:
As the number of middle-class and affluent Chinese increase, outbound travel will continue to surge. This travel will be for vacations in addition to immigration. What this means for marketers isa: your China strategy should not solely be limited to the mainland – look for opportunities to target Chinese consumers in overseas markets as well.