Chinese people spent a total of $116.8 billion on luxury products last year, accounting for 46 percent of the world’s luxury sales, Fortune Character – a luxury product consulting firm – estimated based on revenues of over 20,000 brands.
About $91 billion of Chinese consumers’ luxury product purchases took place overseas, accounting for 78 percent of total Chinese luxury purchases, The Global Times reported citing the firm as saying.
Price difference is the major reason why Chinese people shop overseas. According to the report, the price differences for products such as premium alcohol and wristwatches could reach 80 percent. Price differences for clothes, perfumes and cosmetics were usually below 30 percent.
Statistics from ymatou.com, a Chinese e-commerce platform, showed in an earlier report that Chinese people who preferred to shop overseas were usually aged between 25 to 40. People age 25 to 30 preferred to shop for shoes, clothes and cosmetics; people aged 30 to 35 preferred bags and electronic gadgets; and people aged 35 to 40 focused their spending on health products and jewellery.
China’s economy saw 6.9 percent growth in 2015, the slowest annual expansion in a quarter century, but consumption has emerged as the new growth driver. Last year, consumption contributed to 66.4 percent of China’s gross domestic product, up 15.4 percentage points from 2014.
