As a luxury brand nowadays, catering to the needs of Chinese shoppers and tourists is no longer a mere consideration—it’s a necessity. This will be a crucial strategy for luxury brands in Italy, especially in 2024.
Chinese consumers are a dominant force in the global luxury market, accounting for around 35% of global luxury purchases in 2023, according to Bain & Company. Despite the slowdown of luxury shopping within domestic China in the first half of 2024, outbound traveling resumed rapidly especially to Japan (given Yen’s depreciation) and Europe. A sustained recovery of the global travel retail market is seeing a silver lining.
Recent data from Global Blue highlights the growing importance of Chinese luxury shoppers in Italy. According to their July 2024 report, Italy saw a +19% year-on-year increase in Tax-Free Shopping growth, driven largely by Chinese tourists, whose spending in Italy rose by +33% compared to the previous year. This slight acceleration from the +31% growth seen in Q2 of 2024 underscores the sustained demand among Chinese luxury shoppers.
Interestingly, while the overall growth in Continental Europe decelerated slightly in July (+12% in July vs. +19% in Q2), Italy maintained strong performance, outpacing other major destinations like France, which saw a decline of -2% due to pre-Olympic preparations in Paris. This indicates that Italy remains a key destination for Chinese shoppers, who continue to be a driving force behind the luxury market’s recovery and growth.
To make travel to Italy more convenience for Chinese tourists, the Italian embassy issued about 120,000 visas in the first half of 2024, which is an increase of 130 percent year-on-year, according to Italy Visa Application center’s report. According to UnionPay and Dragon Trail’s data, Chinese Outbound shopping is driven significantly by experiences. UnionPay’s data indicates that Chinese tourists are now more inclined to prioritize experiential forms of consumption.
If we look at organic content and feedback on Chinese social media by users, some interesting topics are adding layers to the trend to outbound travel to Italy. On Little Red Book (xiaohongshu), the lifestyle e-Commerce platform in China, a celebrity Qian Yu Wu’s Italy wedding created buzz this summer. The Wedding was held in a premium hotel in Tuscany, Italy and social media audiences picked up the event and created over 20 million views under the #Wuqianyuwedding topic. Meanwhile, #traveltoItaly (500 million views) and #weddinginItaly have reached significant eyeballs as well. The hotel Borgo San Felice has been exposed to Chinese tourists since then.
Source: xiaohongshu
We believe that the above trends have provided promising opportunities to local Italian luxury brands, hotels and premium restaurants in the coming months but also in the years to come. With the Chinese golden week holiday on October 1st to October 7th is approaching, Chinese outbound traveling is expected to embrace a peak season.
Tips and insights from RedderUp’s team:
Navigate Trusted and Popular social platform
In today’s digital age, Chinese tourists rely heavily on local social platforms for travel information and recommendations. Little Red Book (xiaohongshu) stands out as a key player in this space, with users frequently sharing organic and numerous reviews about their lifestyle and travel experiences. This platform also plays an essential role in search engine functions, making it more relevant for Chinese tourists than international sites like TripAdvisor. RedderUp can support Ensuring your brand having a strong presence on Little Red Book and significantly influence potential travelers during their decision-making process.
Collaborate with Chinese Influencers
Partnering with Chinese influencers is a powerful strategy to increase brand visibility and build trust among potential customers. Influencers’ content and positive reviews can effectively “plant seeds” within your target audience, driving interest and engagement. Organizing live-streaming events with these influencers directly from your boutique can generate instant sales revenue while reaching a broader audience. This real-time interaction not only boosts sales but also creates an authentic connection with viewers, enhancing your brand’s appeal. Please contact the RedderUp team for more details.
Offer Customized Experience
Whether you’re an apparel brand or a luxury hotel, offering tailored experiences to Chinese customers can make a significant impact. Providing Chinese-speaking sales assistants or customized menus in Chinese can narrow the cultural gap, making your customers feel welcomed and understood. These personalized touches go a long way in fostering loyalty and creating memorable experiences that resonate with Chinese travelers.
Are you ready to welcome Chinese tourists? The time to prepare is now.