With the Chinese New Year fast approaching, the United Kingdom is bracing itself for an influx of Chinese shoppers. However, recent data from Global Blue suggests that the growth in shopping during this period is starting to slow down. The outlook for the next 90 days shows a 15% decrease in transactions, signaling a waning interest among Chinese shoppers in shopping outside of the traditional New Year weeks compared to previous years.
While Chinese visitors are still expected to travel to the UK for New Year celebrations, there has been a noticeable shift in their shopping behavior. Many are now focusing on other major shopping events throughout the year, leading to changes in their spending patterns. Some are opting to shop during the autumn and early winter months instead of the New Year period.
Despite the excitement surrounding the Chinese New Year festivities, concerns loom over how travel bans enforced due to the coronavirus outbreak could impact shopper sentiment. Moreover, the political turmoil in Hong Kong has contributed to a decrease in spending by consumers from the region. Global Blue reported a 1% decline in spending by traveling Hong Kong consumers in December, marking the first drop in 11 months.
Nevertheless, Global Blue predicts that Chinese shoppers will remain the top spenders in categories like luxury fashion, leather goods, watches, and jewelry during the Chinese New Year period. In 2019, shoppers from mainland China, Hong Kong, Macau, and Taiwan made a total of 41,809 transactions, with an average spend of £1,104. While hotel and flight bookings for the New Year period have seen an 18% increase, spending growth is expected to be lower than the previous year’s 13% rise.
Despite the challenges posed by changing shopper behavior, UK retailers are gearing up to welcome Chinese visitors for the upcoming Chinese New Year celebrations. Retailers are optimistic about a potential boost in spending, estimated to reach up to £17 million in the week ahead. As the dynamics of global shopping continue to shift, it will be essential for retailers to adapt to these changes to effectively tap into the spending power of Chinese tourists.
To learn more about Chinese New Year shopping trends and Global Blue’s insights, visit Global Blue’s official website.
For tips on how UK retailers can cater to Chinese tourists during the New Year period, visit Visit Britain’s official website.
