Chinese bought half of all luxury products in the world last year

Chinese people and luxury products

New Chinese record! According to a luxury-market consulting firm, Chinese tourists have spent 1.2 trillion yuan ($183 billion) last year for luxury products only.

According to these data, luxury products are bought by more than 60% of the Chinese consumer, especially handbags, mobile gadgets or even cosmetics. These consumers spent $116.8 billion only for this kind of luxury products.

The number of Chinese consumers is growing more and more, there are many job opportunities to those who can speak Chinese. Learn Chinese in Beijing

Booming of Chinese consumption

Car rental locationThe grow of Chinese consumption power abroad has reached an average by 27.8 percent, according to the ministry of Commerce, and despite the decline of the Chinese economy, Chinese consumers are still the people who spend the most in the world and especially abroad. That is the reason why you can see more and more Chinese staff in luxury stores or employees who have learned Chinese.

Domestic consumption slows down

luxe

Compared to the increase of purchase overseas, there is a slowdown concerning the domestic consumption, representing a new issue for the Chinese government. You can read more about Tips for a better life in China

The main problem is still the high price of imported good, comparing to those in overseas markets, this can explain why most of the Chinese people buy less imported goods. Chinese people prefer going directly abroad to purchase their luxury products.

According to the China Chamber of International Commerce, a survey points it out that imported products in China are 40% to 68% more expensive than for the same products in France, Germany or United States.

These high-priced categories of products are mainly watches, wine, electronic products, clothing, handbags and suitcases.

This is a real concern, still unresolved, for which the Chinese government has to work on.

Luxury brands strategies

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Because international luxury brands have long set much higher prices for their products in China than in many other countries, forcing Chinese luxury consumers to turn their eyes to foreign markets.

In fact, luxury goods in China are not only priced high but also rarely discounted. By contrast, it is common to see discounted luxury goods in certain foreign countries.

The average price of luxury goods in China is 45% higher than in Hong Kong, 51% higher than in the United States, and 72% higher than in France.

China is gradually replacing the traditional European and American countries to become the main force of luxury consumption. The international luxury brands have also paid more and more attention to the Chinese market. Why are the luxury goods more expensive in China than in other countries?

Taxes, distribution costs and marketing costs are the main reasons, said Zhou Ting,

The main reason why they buy abroad is the price. Hefty import tariffs and consumption taxes, as well as higher pricing strategies, can increase prices in China to 50% more than a shopper would pay elsewhere.

You can read more:

10 digital strategies you need to learn if you work in the travel industry in China.

Do Chinese consumer prefer Chinese brands?

melanielimchenArticle was written by Melanie

Studying Chinese economy in Jiao Tong university. A mix of Chinese and Cambodian, she’s a fan of Chinese culture and trying to learn more about the social aspect in China.

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