Chinese consumers dominate global luxury spending, but many prefer to shop abroad rather than in China. By Marcus Zhan, GMA
Why? It’s not just about the price—it’s about experience, authenticity, and exclusivity. Here’s the breakdown:
1. Price Difference: High Import Taxes in China 💰
Why? China imposes high luxury taxes (25-40%) on imported goods. Buying luxury items abroad—especially in Europe—can be 30-50% cheaper.
Example: A Louis Vuitton Neverfull MM bag costs around €1,500 in Paris but can be 20-30% more expensive in China after tariffs and VAT.
Smart Shopper Move: Many Chinese tourists use VAT refund services in Europe, cutting costs even further.
2. Authenticity & Avoiding Fakes 🛍️
Why? Despite crackdowns, China’s domestic market still struggles with counterfeit issues. Chinese consumers trust flagship stores in Paris, Milan, and Tokyo more than local retailers.
Example: Chanel & Hermès boutiques in France see queues of Chinese shoppers because they know they’re getting the real deal with perfect quality control.
Smart Shopper Move: They often buy in-store abroad to ensure their products come directly from the official brand inventory.
3. Shopping as a Status & Experience Symbol ✈️
Why? Luxury shopping is about the experience, not just the product. Shopping in Avenue Montaigne, Bond Street, or Ginza is a status symbol in itself.
Example: Louis Vuitton’s flagship store in Champs-Élysées (Paris) dedicates VIP services to Chinese shoppers, offering exclusive lounges and personalized shopping experiences.
Smart Shopper Move: Many high-net-worth individuals book private appointments in top-tier boutiques abroad.
4. Exclusive Collections & Limited Editions 🎨
Why? Some collections are only available in Europe or Japan, making them rare finds in China.
Example: Rolex, Hermès, and Dior release limited-edition products that are exclusive to overseas markets.
Smart Shopper Move: Buying abroad means access to exclusive products that friends and peers in China won’t have.
5. Stronger Brand Loyalty & Personalized Service 🤝
Why? Buying in the brand’s home country builds VIP customer status, leading to better service and early access to future collections.
Example: Hermès assigns higher priority for rare Birkin & Kelly bags to loyal customers who purchase frequently from flagship stores in Paris.
Smart Shopper Move: Many Chinese buyers develop relationships with in-store luxury advisors abroad for exclusive previews and priority reservations.
There are more and more Chinese people that can afford luxury goods. This is due to the fast growing upper middle-class. But these Chinese consumers of luxury spirits, luxury or goods don’t buy in China: in fact, 76% of the Chinese luxury consumers prefer to go abroad.
Luxury goods are bought during travels…
It took time but is finally accepted: Chinese shoppers like to buy their high-end products outside China. But this doesn’t mean that they buy less product: on the contrary we can see an increase in the purchase of these products. Chinese tourists are more every year, and they also are the upper middle class. It means that they can afford luxury goods and bought a lot of luxury goods during their travels in Europe, Hong Kong or USA, in holidays or business.
A report published by “Fortune Character Institute”, a Chinese group, said that 76% of the Chinese luxury consumers purchased out on China in 2014. Mainland Chinese spend 25 billion $ of goods in China, which represents an 11% decrease from 2013. However, they spent 81 billion $ abroad, a 9% increase in relation to 2013.
This can be a little exaggerated, these researches are not 100% reliable, but it’s widely accepted now that a lot of Chinese people don’t buy their luxury goods in China. This has bad impact on the market of luxury goods in China, because their goods aren’t bought. A low is estimated from 1% up to 11%.
This will increase as more people will without any doubt travel more or starting to travel in 2015.
…And also online
A lot of products are bought online on the big Chinese markets like Taobao or Tmall but also directly on the websites of the high-end brands. In fact, a lot of these brands understood the Chinese trend of buying products outside of China, and their love for shopping online. A lot of them decided to adapt their websites in Chinese and to provide an online shopping service with payment facilities. This can also allow Chinese people who want to buy products outside of China to avoid a travel, because if they like to travel, they can’t travel anytime they want a new product because of the short number of holidays they have. There are also people who don’t want to travel because they don’t like it or they don’t have the time for it: the online shopping is the best solution for them.
More news here
But Chinese consumers are still one of the biggest luxury goods consumers in the world, so even if they don’t buy a lot of things in China, they buy some and it can be sufficient. Surely they buy more products outside, approximatively 3 times more, but they buy products from imported brands in China. More brands desire to go in China because of the high spending of the Chinese consumes, so China will see more high-end brand on its streets and malls in the years to come.
see also
1 comment
alamtar Guo
It’s not surprising! Most of the time luxury goods can be detaxed thanks to duty-free in airports while going abroad. When you go in Paris, there is an endless queue to buy luxury goods in Louis Vuitton, Dior or Chanel stores… some Chinese consumers have a proper budget while traveling for luxury goods, it’s part of the plan, impressive.