As Chinese New Year is coming, a report states that the Chinese are spending more on experiences rather than on things.
Many luxury brands and retailers are preparing for Chinese consumption as they are expecting millions of tourists during the Chinese Lunar New Year holiday. But, the survey says that the consumers belonging to the world’s second-largest economy have no mood to the only shop. The interest of Chinese consumers has moved to sightseeing, entertainment, and food.
The amount Chinese tourists spent on shopping for total trip expenditure fell below 32 percent in 2018. Consultancy Oliver Wyman has found the data in its latest study of outbound Chinese travel. The figure was 41 percent in 2016.
The average amount spent on shopping also declined to 5,800 yuan ($855) last year, from 8,000 yuan in 2016, the report said, citing a recent survey of 2,000 Chinese traveling overseas.
For the first time in China, less than half of the respondents named shopping as one of their top three reasons for going abroad.
However, food and beverage, sightseeing and entertainment increased their share of the trip budget.
Williams said that in China there is greater openness and willingness to try local experiences.
It should be reported here that a slowdown in the Chinese Economy and trade dispute between the U.S. is the major issue of today. And the lower expenditure by the Chinese tourists has put the responsibility on these matters.
A slowdown in the Chinese economy and the on-going trade war between the United States and China has raised confusions among Chinese travelers to spend or not.
As per the official data, retail sales growth slowed last year, and auto sales declined for the first time in years. Earlier this month, Apple has declared to cut its production owing to the decreased revenue and demand from the Chinese market. But, as per some experts, Apple has been facing multiple issues like local competition. In the last couple of months, fashion brands Burberry, and Dolce and Gabbana have also come under fire from Chinese social media users for controversial advertisements.
However, the slowing down of the economy is affecting many countries as most of the countries are dependent on Chinese consumption. The other countries should think seriously on diversification of their market so that they can avoid shocks from large countries like China and the United States.