CHINESE TOURISTS GROWING IN IMPORTANCE REGARDING LUXURY SHOPPING IN ITALY

Global Blue data for the fourth quarter confirmed that duty-free shopping in Italy ended 2023 on a positive note. This period saw a 122% recovery in spending compared to 2019, thanks to the support of Golden Week in October.

However, if we only look at Chinese tourists, the spending percentage drops to 49%, who spent an average of 1,565 euros (+24%). It is worth noting that China’s contribution to total tax-free spending is increasing, as the country now accounts for 11% of all duty-free shoppers, after Americans (21%) and ahead of Arabs (10%).

Chinese tourists are expected to return in 2024, but they have changed their shopping behavior. Global Blue has dedicated a study to this new phenomenon.

The demand has changed.

It has been observed that duty-free shopping is one of the main reasons why 68% of Chinese travel and purchase goods outside their country. According to statistics, the new profile of Chinese shoppers is predominantly young, with Millennials and Generation Z representing 69% of spending. The latter showed a significant increase in 2019 from 6% to 15%.

The fashion and apparel segment is the product category of choice for these shoppers, with 82% of them preferring to shop in this category, an increase from pre-pandemic times. The average revenue for fashion and clothing also went from 1,135 euros to 1,473 euros, with an increase of 30%.

These Chinese buyers tend to spend more, ranging from €2,278 for Generation Z to €3,530 for Millennials and €3,480 for Generation Milan. While 22% of these buyers prefer Rome, only 9% and 6% prefer Florence and Venice respectively. However, Venice recorded the highest average receipt with 2,044 euros.

According to the data, 56% of Chinese travelers who visit VIP lounges in Florence, Milan and Rome say they usually visit two or three cities during their stay in Italy. Moreover, 41% of them consider Italy as a special travel destination. When it comes to shopping, 48% of Chinese tourists expect boutique staff to be familiar with Chinese culture and language, while 47% want a unique and exclusive shopping experience. Interestingly, preference for shopping experiences changes based on age. Younger respondents (under 29) are looking for unique experiences (57%), while older respondents (over 61) prefer cultural factors (58%).

Luxury

According to Global Blue, Chinese tourists are known for spending on luxury goods, with average spending increasing by 42%, from €1,943 to €2,751. These luxury consumers are predominantly young: 68% are younger than 44 years old. However, 76% of them travel only once to a maximum of three times a year. On average, the Chinese represent 13% of total luxury purchases and spend 4,321 euros per purchase.

In the coming years, the Chinese are expected to once again become the world’s largest consumer of luxury goods, with an expected market share of 40% by 2030. By 2023, online sales are estimated to account for 46% of total sales. Even when purchases are made offline, digital touchpoints are important. For example, booking an appointment in a boutique is a fundamental factor to avoid waiting and receive personalized treatment.

Chinese tourists are motivated to purchase products when traveling abroad for several reasons, such as spending less, finding unique products available in China, and having a first-hand experience. While established luxury brands remain popular, there is a growing number of sophisticated consumers in China who are interested in discovering new niche brands with high-quality products and the right price positioning. This presents a market opportunity for Made in Italy companies to address and conquer this segment of consumers through effective communication strategies.