News: 07/10/23

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New Report: China’s Luxury Shoppers at Home and Abroad

WHAT YOU NEED TO KNOW TODAY: TUESDAY, JULY 11, 2023

Dear BoF Community,

The way Chinese customers are shopping for luxury is undergoing seismic shifts. While spending is set to surpass pre-2020 levels, how and where Chinese customers purchase luxury is changing.

Global fashion and beauty brands must revamp their strategies to reflect these changes, according to our latest report from BoF Insights, "Dynamic Journeys: China's Luxury Shoppers at Home and Abroad," out today:

Outbound travel from China, especially to Europe and the US, will be slow to recover to pre-pandemic levels. Those who are travelling are increasingly knowledgeable about luxury fashion and beauty — price alone is no longer sufficient to capture shoppers' share of wallet abroad.
BoF Insights forecasts $131 billion of luxury spending by Chinese shoppers in 2027. Of this, approximately $89 billion — or 68 percent — will take place in the mainland. This is a reversal from before the pandemic, when the vast majority of spending took place outside of the mainland.
Luxury shoppers say Hainan island tops their wish list for domestic holiday destinations for the next year; Japan is the top global destination.

For access to more data and insights — including market sizing, proprietary consumer surveys exploring shopping behaviours and brand preferences, and a synthesis of 15 executive interviews — download the full 93-page report.

Imran Amed, Founder and CEO

Plus, also in today's BoF Daily Digest newsletter: