"Chinese Shoppers Spent 400% More On Luxury Goods Overseas Than At Home"
Of the US$69 billion the World Luxury Association says Asian tourist-shoppers spent on luxury goods in Europe last year, nearly $50 billion was spent by Chinese, meaning these individuals spent four times as much on luxury goods abroad as they did at home.
Four times more abroad than at home. (Let that sink in for a beat…)
Prestige brands with European base/foothold are clearly aware that ”China” is a demographic, rather than a geography (h/t @christinelu), but brands based in the U.S. are just starting to ponder this paradigm shift. I believe this reflects European brands’ relative comfort with a polyglot approach to culture, as well as their historic reliance on international sales for survival.
Several top-tier prestige brands are seeing significant portions of total sales in North America attributable to Chinese consumers — I heard 25% from one insider — and the rest need to stand up and take notice.
Any “global” brand that plans to remain relevant and profitable in 3-5 years’ time needs to actively pursue a coherent strategy to capture the hearts and minds of China-based consumers, wherever they may roam. Further, given Chinese consumers’ proven penchant for high-quality products with luxe cache, the world’s prestige brands must, must, must lead the charge into the Chinese demographic.