SHANGHAI — A new report titled “From insights to actions: a blueprint for capturing the return of Chinese luxury shoppers” by Global Blue and the marketing and digital agency Gusto Collective showed that Chinese high-spenders are ready to get on the road again, after the broader reopening in January.
Some 92 percent of those participating in a survey expressed interest in making an international trip in 2023. It appeared that Europe is high on the agenda, with Paris ranking as the top pick among travelers.
The report also noted that while the local market experienced explosive growth in the past three years, two-thirds of the money the Chinese spent on luxury goods was done on trips abroad pre-pandemic, which means that brands will need to prepare for the change again.
According to Global Blue data, mainland Chinese shoppers were the leading nationality for tax-free shoppers globally in 2019. They accounted for a total of 4.25 million shoppers, spending an average of 1,600 euros per shopper, compared to 950 euros for other nationalities.
“Today, Chinese travelers are hungry for newness: looking to reconnect — with destinations, retailers and brands. Ninety percent of shoppers plan to shop as much or more as pre-COVID-19 on their next overseas trip. This indicates a significant opportunity for luxury brands to capitalize on the pent-up demand for shopping overseas as Chinese shoppers likely will make up for the lost time,” the report said.
Reconnecting with Chinese consumers requires an in-depth understanding of what motivates and engages them since China’s retail and digital landscapes have continued to evolve and transform during COVID-19, the report observed.
Therefore, the report included a detailed five-step framework for brands to create engagement and desirability to better prepare themselves for the return of Chinese consumers, from understanding the outbound Chinese consumer’s user journey, developing a China holiday engagement calendar, localizing social media content to driving them to stores with collaborations and social media, and elevating the store and post-store experience.
Chloe Reuter, founding partner of Gusto Collective, said the report aims to provide brands with “a blueprint for growing their businesses with Chinese consumers. The data from the report offers a solid sense of optimism; the appetite for travel and shopping is definitely there.”
Jacques Stern, Global Blue’s chief executive officer, added that, “Our exclusive data on shopper behavior and extensive network of over 75,000 partners worldwide uniquely position us at the forefront of this exciting development. Global Blue’s wealth of knowledge and expertise makes us well-equipped to assist luxury brands in preparing for the arrival of this important market segment in Continental Europe.”