How Do Chinese Spend Money Abroad?

The result of an increase in the number of Chinese outbound tourists is a decline in the size of the mainland luxury market. Like mainland tourists, the luxury market in mainland China has seen negative growth for the first time, which has dropped by 1% compared with 2013. Their money has been spent on the global luxury market. 30% of the global luxury goods market is consumed by Chinese consumers, who spend 380 billion yuan.

Most of the main outbound consumers are family tours or group tours, or personal travel for a short period of time. They are shouldered "heavy responsibilities" - buying large numbers of relatives and friends in the mainland. When choosing a place to travel, it will also be more careful. It is often the main consideration of the difficulty and flight time of the visa, the natural environment of the destination country. Because of the relaxation of visa policy for mainland China this year, the growth rate of mainland tourists to the United States has reached 39%.

Middle class people like to go abroad. brand As you often hear, LV, Hermes, PRADA, and with the depression of the mainland market, most luxury brands have a conservative attitude towards expanding the market by opening new stores in the mainland. Apart from Coach, Prada, Michael Kors, Kate Spade, a few brands can still keep a good store opening speed and quality this year. The rest of the brands are adjusting their sales strategy.

　　 Luxury goods in China The main consumer groups in the market have become more youthful and pay more attention to the quality of consumption. Most luxury brands will consolidate their existing stores, renovate and refurbish them for a larger scale, and at the same time enhance the shopping experience and service quality of customers, especially VIP, in order to maintain the connotation and value of the brand.

However, the decline in the size of the luxury market in the mainland is mainly due to the decline in the size of the luxury goods market. Men's wear And the decline of watches, this kind of gifts and good products sold poorly in the mainland this year. According to the data released last April by the Swiss watch Federation, sales of Swiss watches in the mainland of China fell by 6.5% in 4 months. From the beginning, the market has shifted from male consumer dominated category to female consumer dominated category - the growth rate of women's wear and footwear is still maintained. But the decline of luxury goods in the mainland has also been offset by consumption abroad.

Bain investment company's annual report shows that up to 70% of the respondents purchased luxury goods through purchasing channels, while 60% of the consumers said they would increase purchasing expenses in the future. This is a more convenient way of returning home than taking a vacation in person and carrying a big bag. In 2014, 30% of China's luxury spending was completed through purchasing.