More Chinese buying luxury goods abroad

According to industry analysts, purchasers of luxury goods should receive one more lavish advantage, little tax. Analysts said the nation should adjust its marketplace for luxury goods to keep the overwhelming purchasing power of Chinese tourists in the country.

“China should improve the environment for selling luxury goods by installing more duty-free policies, such as the newly-launched

duty-free shop in Hainan, and reduce tariffs on luxury goods to encourage Chinese tourists buying luxury goods to buy them at home,”

Ouyang Kun, CEO of the China Branch of the World Luxury Association said. 

“Authorities should also impose stricter supervision on prices of luxury goods sold in China, particularly the goods made in China,” he said.

He made the remarks in response to a recent report by Global Blue, the world’s largest provider of tax refund services, which said Chinese tourists make up the largest population of shoppers in France, spending about 1,300 euros ($1,860.30) on average each time they hit a shop last year.

Tourists buying duty-free goods in France reached 3 billion euros last year, up 35 percent from the previous year, with Chinese tourists responsible for much of the growth, according to the report released last week.

Chinese spent 650 million euros on duty free goods in French stores, accounting for 16 percent of sales by tourists outside of the European Union, the study showed.

France reigns above Italy, Britain and Germany as the most popular destination for foreign tourists to shop, and the purchases made by Chinese tourists in France accounted for one third of the total they spent overseas, it said.

European luxury goods makers such as Louis Vuitton and Givenchy benefited most from the spending spree by tourists in France.

Xiao Qianhui, general manager of the Shanghai-based Spring International Travel Agency, told the Global Times most Chinese tourists consider shopping for luxury goods the major aim of their journey to France.

“Sometimes one Chinese tourist will even buy up to 20 Louis Vuitton bags at one shop,” he said.

Ouyang said high tariffs on luxury goods sold in China, a strong yuan, no fake goods and a better variety of goods available at overseas shops are the reasons for the spending frenzy.  

“…Allowing Chinese consumers to buy them cheaper domestically is essential to quelling irrational purchasing,” he said.

Leave a Reply