Although the Chinese luxury goods consumption is increasing, but the luxury stores attracted to the passenger is significantly less than the expectations of the stores. Crowded Apple store in Shanghai, and next to the Louis Vuitton flagship store is almost empty. More and more Chinese luxury consumers choose to go overseas shopping. Recent research conducted by Bain & Company, purchased in 2010 by the Chinese consumers of luxury goods have more than 50% was purchased from overseas. The Pacific Asia Travel Association and The Nielsen Company, a joint study also showed that Chinese tourists to Europe to travel every travel spend an average of $ 1,359 shopping – more than tourists from other countries.
Taking into account the factors that the vast majority of economists agree that the yuan is significantly undervalued, and this phenomenon is particularly interesting. Shaw potential Hui, general manager of the Shanghai Spring International Travel Service, said the majority of Chinese tourists to buy luxury goods as the main purpose of the trip to France. He said: “Sometimes, a Chinese tourists even in a shop to buy Christian louboutin shoes package for Global Alliance recently commissioned a survey found that many Chinese tourists to foreign countries, will complain that they can not project a clean sweep of the planned shopping .
Overseas Chinese consumers mentioned shopping the main reasons include: the luxury tax is too high in China and overseas cheap; select more; and “show off” the higher value. China’s luxury import tax from 20 percent of the bags to cosmetics 50%, resulting in the prices of these commodities increased dramatically. Corresponding LV in the price of Shanghai Yuebibali 35% higher. The Chinese government is considering to reduce China’s luxury goods tariffs to be used to stimulate domestic consumption. The parties concerned believe that this is necessary to reduce China’s export dependence. At the same time, the adoption of more stringent legislation to solve the problem for difference, a luxury tax on the purchase from abroad. Nevertheless, each year the amount of uncollected customs duties for the loss of billions of dollars.
Chinese consumers choose to go abroad shopping Another reason is that the brand more and more choice. China World Shopping Mall in Beijing gathered in many luxury brands such as Louis Vuitton, Christian louboutin shoes Hermes and Gucci. Interviews with shoppers, many women choose to go overseas shopping because they feel similar shops abroad not only in the product categories on more extensive and updated. Many Chinese people also believe that the purchase of luxury goods to the best overseas because there are better services and more choice of brands, including some that have not yet entered the Chinese brands, such as Alexander Wang, Christian Louboutin. Louis Vuitton, also said that they provided for all products are the same. In the interview, a Louis Vuitton executives pointed out that the products sold in China is no different, only the inventory has been adjusted according to the China market. Although the products are unified, but the Chinese consumers still believe that the choice of domestic store to inferior overseas stores.
Lastly, travel has become part of the Chinese luxury lifestyle, and is considered a status symbol: the claim that their own package purchased in the origin of Paris, rather than branch in Tianjin to buy is clearly more style. China National Tourism Administration pointed out that in 2010, more than 57 million Chinese people going abroad for travel in the tourist destination to spend $ 48 billion. This figure is a rate of 17% per year within the next decade is expected to continue to grow. Behind the key driving force of this momentum include: cross-border means of payment more convenient, a stronger yuan for overseas travel and shopping easier and cheaper. Particularly worth mentioning is that, through the resources of overseas travel, a lot of newly rich Chinese people eager to demonstrate their wealth through high-value consumer.