Luxury spend within China to soar says Boston Consulting
As luxury reels from the effects of the pandemic as much as other sectors, there’s some good news in that Chinese demand for luxury goods is predicted to grow as much as 30% this year.
That forecast comes on the back of affluent mainland Chinese shoppers getting back into a spending frame of mind post-pandemic. But there’s worse news for luxury more widely as spending on high-end goods is expected to be down 45% for the year as a whole in Europe and the US.
Those markets have seen their domestic consumers forced to stay at home during lockdowns while shops had to close. But those markets are also suffering from a drastic reduction in tourist traffic with high-spending tourists from countries including China being unable to get the usual luxury fashion fix as travel remains heavily curtailed.
The predictions come from Boston Consulting Group and were reported by Bloomberg. The report said it's another sign of the fast bounce-back for the Chinese economy generally as it's the only global economy that's expected to show growth for 2020.
It also said that while the shopping rise in mainland China had been seen as a consequence of wealthy Chinese travellers being unable to spend abroad, it's now seen as more than this. The article said that Chinese consumers are seeking an antidote to the restrictions of earlier in the year and the inability to travel by indulging in retail therapy within China at a much higher level than usual.
And that will make Chinese consumers even more important to the global luxury industry in the months ahead and in the long term.
“Consumer confidence is rebounding faster than we thought, and young shoppers are key in driving growth,” BCG’s managing director Crystal Hao told Bloomberg. “Luxury consumption in the second half will also be boosted by Golden Week and other shopping peak periods like Singles Day.”
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