PARIS, March 31 ― Paris is set to overtake Hong Kong as the destination of choice for Chinese consumers snapping up luxury goods.
According to a report prepared by the Boston Consulting Group, more Chinese tourists are expected to take advantage of the weak euro this year and book a trip to Paris in search of monogrammed bags and red-heeled shoes.
For the report, 1,000 Chinese affluent consumers were asked to name the city where they expected to make a luxury purchase in the next 12 months.
Paris ranked first, followed by Hong Kong and Tokyo.
While proximity has traditionally made Hong Kong the first choice, this year consumers are expected to make the trek to the French capital, which is upheld as a dream shopping destination for the affluent Chinese.
Nearly one in four Chinese respondents said they buy luxury goods abroad because they can find better selections.
One in three respondents said they believe it’s important to buy goods in the country where they’re made. The same ratio of respondents said the shopping experience abroad is superior to the experience at home.
The latest forecast hinges on expenditure stats from 2015: Last year, of the €100 billion (RM443.5 billion) spent on luxury goods, only 23 billion was spent domestically in boutiques in China.
Chinese consumers poured the most money at luxury boutiques in Europe (€35 billion) followed by the US (€14 billion).
According to the report, consumer spending among the Chinese rose from €70 billion in 2012 to €100 billion in 2015.
Analysts also offer insight into the demographic profile of consumers over the next four years: 81 per cent will come from the upper middle-class and upper classes, while 65 per cent of consumers will be Millennials (those born between 1980 and 1990).
Meanwhile, here’s a snapshot of where wealthy Chinese consumers bought their luxury goods in 2015:
Europe: €35 billion
US: €14 billion
Hong Kong: €13 billion
Russia and the Middle East: €13 billion
Macau: 2 billion