The UK luxury sector is anticipating a significant boost as Chinese tourists resume their visits to the country. A report from Walpole, the official sector body for UK luxury, reveals that high-end tourists from China spend 14 times more per trip than the average tourist.
London retailers recognise the importance of catering to the preferences of Chinese shoppers and the impact it can have on economic growth and overall activity.
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Chinese students expected to arrive in record numbers
Not only will tourists contribute to the resurgence of luxury businesses in the UK, but an increasing number of Chinese students are also expected to arrive. In the 2021-22 academic year, a record-breaking 151,690 Chinese students enrolled in British universities, surpassing the number from any other country.
Jing Daily, a publication on luxury consumer trends in China, reports that this influx of Chinese students presents an opportunity for UK educational institutions to attract more international students and contribute to the economy.
China to lead Asia’s 70% global economic growth contribution
According to the International Monetary Fund (IMF), Asia is poised to make a substantial contribution to global economic growth this year, accounting for 70% of the total. China alone is expected to contribute nearly 35% of that figure.
As the mainland reopens after the Covid-19 pandemic, luxury businesses in the UK look forward to benefiting from the return of Chinese holidaymakers.
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By GlobalDataLondon luxury retailers should adapt to Chinese tourists’ shopping preferences
London luxury retailers must pay attention to the specific shopping preferences and characteristics of Chinese tourists, shoppers and students. While e-commerce dominates in China, Chinese tourists and students prefer shopping in physical stores when in the UK.
The absence of an all-in-one platform such as WeChat in the West makes the physical shopping experience and seamless customer service crucial for success. Central shopping streets and department stores such as Harrods are particularly popular among Chinese visitors.
Cultural differences and pain points to consider
Cultural differences pose challenges for Chinese students and tourists living in the UK. They often perceive differences in customer service and interpersonal relations. Chinese consumers value guanxi-enabled enhanced customer services, which provide personalised experiences.
Luxury brands should aim to create a seamless customer experience while also understanding the contrasting social interaction expectations. Finding a balance between Western communication styles and Chinese cultural norms is key to attracting Chinese customers.
London’s calming appeal to Chinese shoppers
Many members of the Chinese diaspora and students find London to be a calmer and more peaceful city compared to major Chinese cities. The serene atmosphere and slower pace of life in the British capital can enhance the shopping experience for Chinese tourists seeking relaxation and respite.
Shopping neighbourhoods such as Notting Hill, Covent Garden and Mayfair offer tourists a quintessentially British and leisurely getaway. London retailers should consider catering to the needs and preferences of Chinese shoppers, from Chinese-speaking staff to Asian cuisine options and curated brands, to create a soul-enriching shopping experience in 2023.
