A Dior store in Paris. Europe has seen a slump in spending by Chinese travelers in 2016. (Shutterstock)
Last month, we saw global Chinese tax-free shopping in negative growth (-18.5 percent year-on-year) for the second consecutive month. The drop comes after a sterling year in 2015, when overall Chinese spend was up 58 percent.
There are a number of triggers that may be impacting Chinese spending and travel, including the new Schengen biometric visa requirements, confusion around new customs policies, and a tough comparison after early 2015?s meteoric sales increase?in March 2015 we saw an annual high of +122 percent.
Understandably, the slow start to 2016 has caused concern within the global luxury industry. However, despite the recent instability, the Chinese global shopper remains a highly valuable one, making up for around a third of global tax-free shopping spend. And things may improve?according to research recently commissioned by Global Blue among ?regular Chinese travelers,? this group still plans to spend; 81 percent of those planning to travel in 2016 will shop, allowing an average budget of around 2,300EUR (16,702CNY).
With the challenging context and a competitive landscape, it?s more important than ever that retailers know how to attract and cater to the global Chinese shopper:
Engage in advance
Our research shows that the average global Chinese shopper plans their trip almost three (2.7) months in advance and will research their shopping trips heavily, with 4...