Chinese to travel more overseas – Brands and retailers need to adapt fast !
Projected to take 88 million overseas trips this year, Chinese travelers could take nearly double that — 155 million trips — by 2020, according to a new report on regional travel by HSBC.
Already the leading tourist demographic in Thailand and the Maldives, HSBC expects the influence of Chinese tourists to grow further in the Asia-Pacific region in particular, giving brands no choice but to do more to cater to their preferences. Currently, the report points out, tourist-shoppers from mainland China account for anywhere from 15 percent of luxury sales in Taiwan to 75 percent in Macau.
The five markets (Hong Kong, South Korea, Taiwan, Singapore and Macau) vary widely across a range of issues, and each needs to change and adapt in different ways to match the demands of Chinese luxury consumers, according to the report. While traveling to South Korea, for example, Chinese consumers are likely to prefer to shop for Korean brands over others.
Singapore faces an overcapacity issue in luxury retail, while Hong Kong is poised to continue as a prime destination for mainland retail shoppers. Prospects for the market in Taiwan are a bit less certain, but Macau has proven a surprisingly strong venue, primarily because of its allure to wealthy gamblers and holidaymakers.
WWD and HSBC