France maintains its position as Europe’s leading shopping destination, particularly for Chinese tourists. Payments solutions specialist Planet has released new data indicating that international travelers are flocking to luxury retail hubs in Paris and Milan, among other cities, with a focus on purchasing luxury clothing, jewelry, and bags. This trend has been consistent throughout the year and suggests that UK retailers are losing out to their European counterparts.
During Golden Week, a Chinese holiday week, mainland European destinations experienced a surge in sales. Planet observed an average transaction value (ATV) of over €1,400 during this time. France emerged as the top destination, capturing an impressive 48% of the market share for Chinese tourists. Italy, Spain, and Germany collectively accounted for 30% of the share. As Chinese shopping interest increased from September 1 to October 9, reaching its peak during Golden Week, sales per store (SiS) surged in Europe, creating a retail buzz unlike any other. On the first day of the working week, sales peaked at 67% higher than on Sunday.
Luxury items, particularly watches and jewelry, experienced unprecedented sales growth during this period. Interestingly, Planet noted that tax-free sales were dominated by Gen Y and Gen Z, comprising nearly 90% of the total. Despite representing less than 10% of the market share, Gen Z had an impressive average transaction value of approximately €1,000.
This data highlights the potential for a tourist shopping boom in the UK if there is a revival of tax-free shopping for tourists. While the UK remains a key destination, it is losing ground to France and other European countries in terms of attracting Chinese shoppers. This serves as a reminder for UK retailers to reassess their strategies and find ways to compete with their European counterparts. By understanding the preferences and behaviors of Gen Y and Gen Z, they can tailor their offerings to capture a larger share of the lucrative Chinese market.
In summary, France continues to be the preferred shopping destination in Europe, with Chinese tourists driving significant sales growth in the luxury retail sector. As the competition for Chinese tourists’ spending intensifies, UK retailers must adapt to remain competitive and attract these shoppers. By offering unique experiences, personalized services, and appealing tax-free incentives, the UK has the potential to regain its appeal as a top shopping destination for international travelers. Otherwise, France and other European countries will continue to dominate the market and reap the economic benefits.
Useful links:
1. The Telegraph: Shopping boom in France sees Chinese tourists flock to luxury stores
2. Reuters: France remains Europe’s top holiday shopping destination for Chinese tourists
