U.S. destinations, travel suppliers and those who provide the shopping experience are well positioned to benefit from the increasingly larger segment of the Chinese travel market comprising the luxury traveler. This is just one of the points measured and explained in Fung Global Retail and Technology’s third annual proprietary survey of Chinese overseas tourists’ travel and spending. Commissioned together with China Luxury Advisors, the 2017 version provides more in depth information on the reasons and motivations behind their decisions and behavior when traveling overseas. This year’s data was collected by an online self-completion survey conducted from May 31 to 6 June, achieving a total of n=841 samples. All respondents are mainland Chinese aged 18–59, and have taken at least one overseas trip (including Hong Kong, Macau and Taiwan) with a minimum stay of one night in the past 12 months.
Following are the study’s key findings. Should you want your own copy of the full report, you can access it via the link at the end of this article.
Key Trends Observed
- Chinese outbound tourists have evolved into experienced and sophisticated travelers—some 67 percent of surveyed tourists have traveled more than once in the past 12 months, visiting an average of 2.3 destinations. Apart from shopping, they crave lifestyle experiences while traveling abroad.
- Japan has emerged as the most popular destination, visited by 55 percent of surveyed tourists in the past 12 months, followed by Hong Kong (35 percent) and South Korea (27 percent).
- Chinese tourists from lower-tier cities have become the growth engine of outbound tourism. Based on their most recent overseas trip, survey respondents said they spent on average $2,449, 10 percent higher than tourists from tier-one cities at $2,330. They also travel as frequently as their counterparts from tier-one cities, at an average of 1.9 times per year.
- Chinese tourists are extremely mobile-savvy, 98 percent of surveyed tourists used their smartphone abroad to keep in touch with others and to search for travel-related information. Some 72% of surveyed tourists use online resources such as travel websites, blogs and social media to plan their trips.
Travel Frequency and Arrangement
- The majority of Chinese tourists are now experienced overseas travelers, with 67 percent of those surveyed having traveled more than once in the past 12 months, visiting an average of 2.3 destinations.
- Traveling as part of a group (35 percent) is still a popular form of travel arrangement. However, the majority of those surveyed traveled independently without a local guide on their most recent trip, either by buying a travel package (32 percent), or by making their own travel arrangements (21 percent).
Destinations
- Japan has emerged as the most popular destination, visited by 55 percent of surveyed tourists in the past 12 months, followed by Hong Kong (35 percent) and South Korea (27 percent).
- Europe (16 percent) is the top long-haul destination for Chinese tourists, followed by the US (9 percent).
- Almost all surveyed respondents considered security (96 percent) as an important factor when choosing the destination for their most recent overseas trip. Tourist spots (94 percent) and cuisine (88 cuisine) are the other important most-mentioned factors.
Spending
- Chinese tourists spent on average $2,335 during their most recent overseas trip; those from lower-tier cities spent an average of $2,449, 10 percent higher than those from tier-one cities at $2,330.
- On average, retail purchases accounted for 55 percent of their spending, or $1,282 in value. Chinese tourists are craving for lifestyle and experiences as well, with experience related spending, including food and beverage (15 percent), sightseeing (11 percent) and entertainment (10 percent) together accounted for 36 percent of their expenditure.
Shopping on Most Recent Trip: Apparel and Cosmetics are
the Most Popular Purchased Items among Chinese Tourists
Products Purchased on Most Recent Trip, by City Tier, May 2017 (%)
Duty Free and Department Stores represent 50% of all Chinese shopping purchases.
- Clothing, footwear and accessories (including handbags) is the most popular category, purchased by 75 percent of surveyed respondents during their most recent overseas trip. This is closely followed by fragrances and beauty products (66 percent), and food or drink products (50 percent).
- Duty free accounts for 29 percent of Chinese tourists’ retail spending on average, the highest among all retail outlet types, followed by department stores at 18 percent. These two retail outlets together capture almost half of Chinese tourists’ retail spending.
Information Sources
- Chinese tourists are now mobile-savvy, with 98 percent of surveyed tourists having used their smartphone abroad to keep in touch with others and to search for travel-related information.
- Online resources such as travel websites, blogs and social media are used by 72 percent of surveyed respondents to plan their trips.
Implications for Brands: Encourage Chinese visitors to Share their experience at Retailers
- As the market landscape for Chinese tourists transforms and becomes more sophisticated, brands and retailers need to adapt and update their strategy continuously in order to engage this large and growing market of consumers.
- Chinese tourists have diversified demographics and travel experiences, thus have different needs while traveling abroad. Brands and retailers should identify their target tourist segments and cater to their needs accordingly.
- Brands and retailers should engage with Chinese tourists online at every stage of their trip, apart from conventional advertising, encouraging Chinese tourists to share their experiences at retail outlets is more influential, as it directly reaches new potential customers.
