Chinese consumers buy luxury items abroad due to pricing gaps

Domestic luxury spending is seen to decline to 70% from 90% during the pandemic.

Shopping for luxury goods abroad is on the rise amongst Chinese consumers, with pricing gaps as a key driver for the resurgence of overseas shopping, according to a Bain & Company report.

Domestic luxury spending was projected to decline to 70% in 2023 from over 90% during the pandemic as Chinese overseas tourism returns.

Last year, spending in Asia and Europe comprised around 65% and 40%, respectively, of their 2019 spending levels.

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“A sample check of leading products in mainland China, Europe, and Asian markets has revealed significant price gaps across categories such as fashion and leather products, making luxury shopping abroad more attractive,” Bain said.

The company added that the price gaps in mainland China and other markets were unchanged compared to 2022.