Chinese Luxury Purchases boosting European Retail Sales

Chinese people love their luxury goods. They are the second largest market for luxury brands after Japan and are expected to overtake them in the next few years as the largest brand for luxury goods.

            The recession has really hit the luxury market hard. Last year sales declined 8% according to Bain & Co consulting firm. The Dow Jones Luxury Index, which measures the performance of companies world-wide has risen 34% in the last year. This recovery comes from tourists in Europe who are taking advantage of the low euro.

            Francisco Trapani, Chief Executive of Bulgari singled out Chinese shoppers as the major factor in increasing the Italian jewelers 11% rise in 3^rd quarter sales.  The Gucci group claims that the number of Chinese customers doubled to account for almost 22% sales in Europe. Burberry says Chinese tourists alone account for around 30% of total London sales. These Chinese customers are attracted to Europe by luxury goods that are either more expensive or aren’t available in China. 

 

            Consulting firm Tourism Economics estimates Chinese visits to Western Europe will rise to 2.4 million this year up from two million in 2009. Chinese tourists spent 99% more in the first ten months of this year than the year before. The average transaction this is year is $932 dollars.