A recent survey released this week by consultancy Oliver Wyman on Chinese travellers has found that they are more interested in spending their money on experiences instead of things.
Even as a host of global and regional luxury brands prepare themselves to generate as much as sales as possible from the millions of Chinese travellers in the upcoming Chinese Lunar New Year holiday, the survey has concluded that there is a fats declining trend among travellers of the second largest economy of the world to spend less on shopping and expend more money in experiences and activities such as sightseeing, entertainment and food when they travel.
In its latest study of outbound Chinese travel, consultancy firm Oliver Wyman found that in 2018, there only about one third of the amount - or 32 per cent of the total travel by Chinese tourists were spent on sopping during their travel. The report also noted that the amount was about 41 per cent of the total travel budget by them in 2016.
Following a survey of 2,000 Chinese travelling overseas, the report found that compared to about 8,000 yuan that the Chinese tourists on the average on shopping during travels and vacations in 2016, they spent 5,800 yuan ($855) last year on shopping.
And ever since the consultancy firm has been issuing the reports, this is the first time that about less than half of the respondents surveyed opined that shopping was among the first three priorities while they travelled abroad. And instead, according to Hunter Williams, partner at Oliver Wyman, more people than before opined that their interest was more on food and beverage, sightseeing and entertainment.
"(There's) a greater openness and willingness to try local experiences," Williams said in an interview with the media. "It just changes so fast in China and (businesses need to) be prepared for these changes."
The drop in the propensity of the Chinese consumer to spend has already being feared because of a general slowdown of the Chinese economy and the lingering pressure on the economy because of the trade war with the United States. According to official data, there was a slowdown in retail sale in China in 2018 along with a drop in auto sale for the entire year for the first time in a decade. Citing "economic deceleration" in Greater China, Apple also cut its revenue expectations earlier this month.
The survey also found that mobile payment is an aspect that overseas businesses might also require to get adapted to because it is the most popular mode pay payment for the Chinese domestically.
Smartphones were use to pay abroad in 2018 by more than two-thirds of Chinese tourists, found a survey which has been co-issued by Nielsen and Alibaba-affiliated Alipay. Addition of Alipay had enhanced their business, opined 56 per cent of the merchants who responded to the survey.
During the Chinese holiday season which officially takes place the first full week of February, about 7 million Chinese would be travelling abroad, expects Chinese travel booking site Ctrip. Last year, about 148 million Chinese overseas trips were made, said China’s Ministry of Culture and Tourism which marked a 13 per cent increase year-on-year.
(Source:www.retailnews.asia)
Even as a host of global and regional luxury brands prepare themselves to generate as much as sales as possible from the millions of Chinese travellers in the upcoming Chinese Lunar New Year holiday, the survey has concluded that there is a fats declining trend among travellers of the second largest economy of the world to spend less on shopping and expend more money in experiences and activities such as sightseeing, entertainment and food when they travel.
In its latest study of outbound Chinese travel, consultancy firm Oliver Wyman found that in 2018, there only about one third of the amount - or 32 per cent of the total travel by Chinese tourists were spent on sopping during their travel. The report also noted that the amount was about 41 per cent of the total travel budget by them in 2016.
Following a survey of 2,000 Chinese travelling overseas, the report found that compared to about 8,000 yuan that the Chinese tourists on the average on shopping during travels and vacations in 2016, they spent 5,800 yuan ($855) last year on shopping.
And ever since the consultancy firm has been issuing the reports, this is the first time that about less than half of the respondents surveyed opined that shopping was among the first three priorities while they travelled abroad. And instead, according to Hunter Williams, partner at Oliver Wyman, more people than before opined that their interest was more on food and beverage, sightseeing and entertainment.
"(There's) a greater openness and willingness to try local experiences," Williams said in an interview with the media. "It just changes so fast in China and (businesses need to) be prepared for these changes."
The drop in the propensity of the Chinese consumer to spend has already being feared because of a general slowdown of the Chinese economy and the lingering pressure on the economy because of the trade war with the United States. According to official data, there was a slowdown in retail sale in China in 2018 along with a drop in auto sale for the entire year for the first time in a decade. Citing "economic deceleration" in Greater China, Apple also cut its revenue expectations earlier this month.
The survey also found that mobile payment is an aspect that overseas businesses might also require to get adapted to because it is the most popular mode pay payment for the Chinese domestically.
Smartphones were use to pay abroad in 2018 by more than two-thirds of Chinese tourists, found a survey which has been co-issued by Nielsen and Alibaba-affiliated Alipay. Addition of Alipay had enhanced their business, opined 56 per cent of the merchants who responded to the survey.
During the Chinese holiday season which officially takes place the first full week of February, about 7 million Chinese would be travelling abroad, expects Chinese travel booking site Ctrip. Last year, about 148 million Chinese overseas trips were made, said China’s Ministry of Culture and Tourism which marked a 13 per cent increase year-on-year.
(Source:www.retailnews.asia)
