BLOG: Insights from Global Blue Luxury Retail Spending Trend 2016Posted by in China, Inspiration, Latest News, Marketing, Trends
Recently we attended the “Global Blue Luxury Retail Spending Trend 2016” seminar in Bloomberg headquarter in City Gate House, London. Here are our key outtakes on global Chinese shoppers predicted by Global Blue:
(1) Post-Brexit: Chinese shoppers will continue to visit Europe and the UK
Chinese shoppers are the key driver over the last four years, contributing 31% CAGR on Chinese sales in store. Tourists coming to the UK and Europe had began to come from second and third tier cities searching for shopping and experiential trips.
Although the biometric visas and fears of terrorism attacks post a threats to Chinese tourists visiting Europe and the UK, factor such as weaker GBP after Brexit leads to higher attractiveness for Chinese tourists coming to UK to travel, shop and invest.
On the other hand, European countries such as Spain and Italy had been very proactive with attracting Chinese consumers such as covering second tier cities with new visa centres, cheaper visa prices, and new routes between Barcelona and Madrid.
Despite famous luxury brand still remain the cachet among Chinese affluent consumers, factors such as more and more Chinese consumers are pursuing a more value conscious buying decision as well as the rise of affluent millennial generation is searching for self-expression, independence, and authenticity, the luxury and fashion brands need to constantly innovate a better product mix and diversify its product ranges on better targeting a new shift in Chinese consumers’ shopping patterns.
(2) Future of retail: Making shopping experimental
According to Global Blue Report, Chinese globe shoppers’ new emphasis on experience means that we are seeing a growing demand for ‘retailtainment’ – a shopping opportunity that offers something more than just consumption.
Retailers can consider not only the lifestyle options (e.g. entertainment and dining) they integrate into stores, but also the personalised and unique experiences they offer the Chinese globe shopper.
Chinese globe shoppers are often restricted on time, especially those who are part of a tour group, so anything to make the process smoother, for example easy payment methods, will be valued (55% expect to be able to pay with China Union Pay).
For example, a “lifestyle concept store” mixed of art gallery with fashion, beauty, wellness and dining together in one place would encourage Chinese consumers to entertain themselves, make shopping and enjoying food at the same time. These lifestyle retail store or village are popular among Chinese consumers where they like to do everything at the same time with once place without the hassle of travelling from one place to another which wastes time and energy.
As Chinese consumers like to make their trip to the UK and Europe worth the cost (long flight and cost etc.), they like pack and squeeze literary everything together. So what is attractive among “lifestyle concept store” among Chinese consumers is the fact that they can shop major brands while they can eat good food and have fun for a half-day under tight time travel schedule.
Global Blue Bloomberg whitepaper 2016
Global Blue Bloomberg Chinese global shopper trends 2016