After years of chasing the mythical wealthy Chinese consumers, Western luxury retailers start to leave China

dunhill store asiaFamous luxury brands have dreamed on the Chinese market for the last twenty years. Ignoring common sense (China remains, per capita, one of the poorest country in the World), they decided to open massively luxury retail stores chasing the mythical wealthy Chinese consumer.

It’s time for a reality check.

China has recorded the most number of closures of luxury stores between July 2016 and July 2017, the latest report by the investment research and management company Bernstein shows. The report, titled “Store Wars,” based its findings on Bernstein’s tracking of about 7,000 stores referring to 36 luxury brands including big names such as Burberry, Saint Laurent, and Céline. Burberry and Dunhill had the most store closures in China of all the brands during that period.
China has seen 62 net closures of luxury brand stores during the surveyed period, the largest number observed by Bernstein among all significant geographies. The firm viewed the trend as a revision of the over-expansion, in previous years, of luxury brands into the Chinese market.

The rapid development of the country’s luxury industry fueled by affluent Chinese consumers has given luxury brands unrealistic projections of retail sales in the past. This over-estimation, according to Bernstein, has led them to aggressively open retail stores in China that exceeds consumers’ real purchasing power. The same situation occurs in the Middle East region, another area where luxury consumption is rising fast.
Globally, the number of the net store openings by luxury brands has also for the first time run into the negative territory. The report said most brands have more or less closed some of their stores in the department stores, a traditional channel that accounts for about one-third of these brands’ global sales.

Chinese consumers have demonstrated some remarkedly different purchasing behaviours from that of the West. According to Pierre Gervois, a leading expert about wealthy Chinese travelers’ shopping behavior, and founder of the prestigious STC magazine “Western luxury brands have been warned since 2010 that their projections about affluent Chinese consumers were grossly exaggerated.” “Brands refused to acknowledge that their future Chinese customers would buy in overseas stores  rather than in domestic stores, both for tax reasons but also because of the poor customer service in their Chinese stores”, Gervois added.

The really affluent Chinese consumers (as affluent as an average U.S. or Western Europe consumer) massively choose not to purchase in Chinese stores, neither online in China.  They choose deliberately to purchase overseas, as a sign of social status.

Another distinguishing habit that sets Chinese luxury consumers apart from Westerners is their huge interest in buying luxury items online. Over the past year, an increasing number of luxury brands have embraced the e-commerce marketplace and launched stores with the country’s top two players, Alibaba and JD. Moreover, big names like Louis Vuitton and Gucci even opened their own Chinese e-commerce stores to ensure their offerings meet the expectations of Chinese consumers. And then there’s the nature of luxury itself, the meaning of which is different to younger consumers from what it was to their forebears.

Another concern that Western brands cannot officially recognize in China, is that a growing part of affluent millennials Chinese are moving from government-censored social media (WeChat, Weibo…) to Facebook and Twitter throughout an increasing use of VPN’s. That makes much less relevant their communications campaigns on Chinese networks.

Source:  Chinese Tourists Blog / JingDaily Blog / Bain / Bernstein

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Between a visit at the shopping mall and at their real estate agent, Chinese tourists create growth in the U.S.

Chinese Dad in car - China Elite FocusThe number of Chinese tourists traveling the globe has increased significantly for the last ten years, making them the largest group of travelers in the world. Now, thanks in part to a recent agreement between the U.S. and China to extend visas for short-term business travelers, tourists and students, the U.S. could see an increase in Chinese travelers in the near future.

This trend is supported by research from the latest Chinese International Travel Monitor (CITM) from Hotels.com which reveals the U.S. is the second most popular destination for Chinese travelers to visit in the next 12 months (behind France), with popular U.S. landmarks like the Grand Canyon and the Statue of Liberty topping travel wish lists.
The CITM research also identifies that, while cities in Asia Pacific remain the most popular (82 percent of Chinese travelers have visited in the past 12 months), visitors to Europe and America have increased with a year over year growth of 25 percent and 11 percent, respectively. These destinations were particularly popular with millennial travelers, with 42 percent visiting Europe and 29 percent visiting America in the past 12 months.

“The CITM reveals that the United States is one of the top five countries Chinese travelers visit the most,” said Josh Belkin, vice president and GM of the Hotels.com brand. “With tens of thousands of places to stay across the U.S., like distinctive boutiques, spacious vacation rentals and familiar chains, our site and mobile app have the perfect places for Chinese travelers of all ages and lifestyles.”

In 2016, there were 122 million outbound Chinese tourists – four percent more than in 2015 and a massive 74 percent more than in 2011, when the first CITM was published. China is already the largest source of international travelers for many countries – despite the fact only 10 percent of the population had passports in 2016.

“Chinese travelers in the United States tend to be more affluent than those who choose other destinations”, said Pierre Gervois, CEO of China Elite Focus Magazines LLC and Founder of the STC magazine, a luxury travel digital publication in Chinese Mandarin. “Real Estate investment in the United States is now the #1 real reason – and rarely stated in surveys – for affluent and wealthy Chinese outbound travelers, as they have acquired for $100 billion in U.S. Real Estate in 2016”

Source: Chinese Tourists in America Blog / CITM

U.S. Retailers wanting to target Chinese Millennial Shoppers should now use English in their campaigns

Affluent Chinese Millennial Shopper - Gervois Magazine - China Elite FocusThey speak English now (Just in case you didn’t notice).

They are the millennial Chinese travelers in the United States.

They are the Chinese tourists coming to discover the United States of America and to buy high quality Made in USA products.

They are the Chinese businessmen and businesswomen coming to invest in American companies and create U.S. jobs.

They are the smart Chinese millennial entrepreneurs coming to America to create start ups and contribute to America’s leadership in future technologies.

They are the Chinese guests fed up to be disrespected in luxury hotels when asking if they really can afford to pay for a suite when they ask for one and are offered first the cheapest room available.

They are the Chinese businessmen walking into a bespoke suit company in New York City and asking for a hand made in America suit because they also deserve to wear the finest clothes. (No, they are not only interested in “I Love NY” Made in China T-shirts)

They are the Chinese travelers annoyed to be depicted by U.S. marketing agencies as using only Chinese social media networks such as Weibo and WeChat, when they are actually using Instagram, Twitter and Facebook to stay in touch with their U.S. friends and freely discover the world.

They are the tourists who have spent $40Billion in the U.S. in 2016

They are the LGBTQ+ Chinese travelers wanting to be as respected as any other tourist and find safe places to just be who they are.

They are the Chinese shoppers who find utterly ridiculous when Western luxury brands add a dragon or a Chinese symbol on a watch or a handbag and expect that they’ll specifically want to buy this model.

They are the Chinese tourists who are grateful for the warm welcome they have received by American people when they were doing horseback riding or cowboy shooting. (Yes, they are not only obsessed by shopping in large shopping malls but want to discover the various aspects of America’s culture and heritage).

They are the Chinese travelers who are proud of their Chinese cultural heritage and Chinese language, but who also speak English and prefer to read in English original stories about the United States.

They are the Chinese travelers who are fluent in English and understand exactly what some people say about them when they are traveling overseas.

Actually, they are exactly the same as any other traveler in America.

By Pierre Gervois, Founder of Gervois Hotel Rating, Publisher of Gervois Magazine, Hospitality & tourism keynote speaker and expert about marketing to outbound Chinese tourists.

Chinese shoppers in the U.S. can now use WeChat Pay & Alipay, China’s leading mobile payment solutions

A Chinese shopper using WeChat Pay - China Elite FocusCitcon, the integrated payment and marketing platform, announced a strategic partnership to enable brands in North America to accept WeChat Pay and Alipay.

WeChat Pay and Alipay are the most popular and convenient payment options for Chinese consumers to purchase goods and services. Adding these payment options to retail point of sale allows brands to now tap into an even larger revenue stream from Chinese consumers who are the largest spender, and fastest growing traveler segment to the North America. The platform enables brands to optimize revenue growth without the costs and hassles of establishing a business entity in China.

WeChat Pay is a fully integrated payment solution within WeChat, the world’s most popular mobile social communications service with 936 million active users and Alipay is a super lifestyle app run by Ant Financial Services Group with more than 450 million active users. Together these platforms jointly account for 90% of China’s mobile payment market share. Both super apps allow users to book a trip, hail a taxi, order food, purchase movie tickets, pay for water and electricity bills, manage investments, perform transactions on e-commerce websites and more to create a cashless society.

“China is changing fast. Mobile payment is the new frontier of commerce and China is leading this trend. By providing an integrated and easy-to-use payment solution, Citcon is creating a future that takes payment and marketing to the next level, empowering global merchants to drive business growth with millions of Chinese consumers.”said Chuck Huang, Founder and CEO of Citcon

As the first payment partner of WeChat Pay and Alipay, in addition to major credit cards such as UnionPay, MasterCard, Visa, Discover and American Express, Citcon is a one-stop shop for merchants to connect with Chinese consumers and accept payments anywhere. Citcon’s stand-alone mobile point-of-sale (mPOS), easy-to-integrate API and software products empower merchants to optimize growth both online and offline, with an easy and affordable rate compared to credit card processing. In addition to the convenient payment solutions, merchants will also be able to gain in-depth consumer behavior insights, manage business performance, run marketing campaigns, guides users to merchants stores while saving their shopping preferences for future visits and manage lifetime customer loyalty programs.

“Accepting WeChat Pay is a smart move for U.S. Retailers. That will definitely help with the category of budget-conscious Chinese travelers who choose to travel in groups. But they must keep in mind that the most affluent categories prefer to pay with their international credit cards, who show their status when traveling overseas and offer more perks in terms of miles and reward points.” commented Pierre Gervois, CEO of China Elite Focus Magazines LLC, a media group specialized in luxury travel publications for very affluent Chinese outbound travelers.

Source: Citcon / Chinese Tourists in America

Targeting Affluent Chinese shoppers the Bloomingdale’s way: Talking to the heart of Chinese tourists planning a U.S. trip

Bloomingdale's Interviews -Shanghai Travelers Club May 2015 -7The growing purchasing power of affluent Chinese travelers is making it more important than ever for luxury brands and luxury retail brands to adopt marketing strategies to target them. With Chinese third-party mobile payment systems like Alipay and WeChat Pay beginning to set up shop in popular global tourist destinations, catering to this traveling consumer is becoming easier to do, but it’s not a brand’s only option.

Digital intelligence firm L2’s recent report “Cross-Border and Travel Retail: Connecting Digitally with China’s Shoppers” discusses ways brands can be targeting consumers online both during their journey overseas and before they set off.

“[Luxury brands] are under-serving the traveling Chinese consumer, whether it’s through their own brand site and its functionality and capability, their WeChat account, or from leveraging things like WeChat Pay and Alipay,” said Danielle Bailey, head of Asia Pacific Research at L2. “It’s a huge missed opportunity for them to not engage on these platforms that Chinese consumers are using all the time. Their phone is their number one travel accessory.”

Brands that do engage consumers digitally abroad with an omnichannel approach are using platforms like Alipay’s “Overseas Travel Channel (支付宝境外游)” to give travelers exclusive gifts, better exchange rates, or let them find deals near where they’re going, all within the app on their mobile device. WeChat’s website within an app feature gives consumers the opportunity to reserve a product online to pick up in a store and access store locators in their own language that they can hand to a taxi driver en route.
But about half of Chinese travelers are doing research on what they want to buy abroad before they leave, and luxury brands have been adopting strategies to target these consumers, according to L2.

Bloomingdale's Interviews with Chinese customers -Shanghai Travelers Club May 2015 -4In a dissent opinion, Pierre Gervois, Publisher of the STC magazine, a digital travel media in Chinese Mandarin, said “The most important for retailers is not the way Chinese shoppers are going to pay. It’s a technicality. Chinese Customers who want to make a purchase have plenty of options: Cash, credit Cards or WeChat Pay.  The really important thing to do is to convince them to choose a particular retailer”
“Too oftenly, we see U.S. retailers being obsessed by Chinese mobile payment systems when their strategy should be focused on branding their image to Chinese millennial travelers, and create an emotional connection with their future customers, based on their brand values”, Gervois added.

A good starting point is to provide an international store locator on their official online store in China, a strategy about 72 percent of brands employ. However, brands can also take it a step further by adding a Chinese-language travel retail site that let shoppers research the products, compare prices, read reviews, view maps that direct them to duty free shops, and even let them purchase the product online in advance so that they can simply pick it up at the airport if they’re in a hurry.
To help consumers find these pages, brands are paying for search term generated Baidu ads. L2 lists the efforts of beauty brands as an example—many brands pay for cosmetics-related key words, while others, like Lancôme, are taking a more travel-centric approach, targeting consumers researching phrases like “South Korean vacation.”

Some high end retailers, such as Bloomingdale’s, choose a more qualitative approach, and advertise in luxury digital travel publications about the U.S., like the STC magazine, available for mobile but also in digital inflight entertainment.

Bloomingdale's Interviews with Chinese customers -Shanghai Travelers Club May 2015 -3With a very creative advertising campaign created by China Elite Focus Magazines in New York, they organized interviews of actual Mainland Chinese customers while shopping at their Third avenue flagship store.  The story of six actual Chinese Bloomingdale’s customers has been published in the digital edition of the STC magazine: It has much more impact than buying keywords on Chinese search engines and directly talked to the heart of Chinese consumers.

While maintaining an engaging physical presence in airports and shopping malls is always important for marketing to the Chinese shopper abroad, brands that understand how to make the most of China’s digital sphere are likely going to more efficiently connect with Chinese travelers who are in the process of creating their luxury goods shopping list for their next overseas vacation.

Source: Jing Daily / Skift / Chinese Tourists Blog

Luxury brands might have forgotten that Wealthy Chinese shoppers also wanted a good service

Bottega Veneta store ChinaKering, the French luxury group, is adapting its sales approach to better cater for increasingly sophisticated Chinese customers, according to group managing director Jean-François Palus.
“We’ve changed the way we conduct our business in China and the way we address Chinese clients when they’re abroad,” said Mr Palus at the Financial Times luxury conference in Lisbon on Tuesday.
“We learnt that a very serious risk is to become complacent, to think that it’s an easy business, an easy customer base, easy to open stores with good products and then people will come in. That was true for a moment but Chinese customers have become sophisticated and highly demanding and we need to adapt.”
Chinese consumers account for more than 30 per cent of global luxury consumption, according to consultant Bain, which is forecast to increase to 35 per cent by 2020.
How much of global luxury consumption Chinese consumers account for, according to Bain, a figured set to rise to 35% by 2020
In the past, luxury houses relied on rapidly opening up stores in China to fuel growth amid rampant Asian demand for their products, but this approach has been undermined by an economic slowdown in China.
In the final quarter of last year, Chinese consumers showed signs of returning, although notably shopping more in mainland China, while tourism in Europe has slowed in part owing to recent terrorist attacks.
In China, Kering is retraining shop assistants and replacing email communication with WeChat, China’s most popular social media platform with more than 800m daily users.
Mr Palus said: “The way the Chinese treat very important clients is different — they have a very candid approach to wealth.”
He pointed to a recent visit to a Gucci store in Beijing where the store manager told him he had hired the daughter of a billionaire to work with clients in the shop “because to talk to wealthy people in China, you need to be wealthy”. He added that bad feng shui in a shop can hurt client traffic.
According to Pierre Gervois, the New York Based Founder and Publisher of the STC magazine, a luxury travel publication for High Net Worth Chinese global travelers “HNWI Chinese clearly signaled about  five years ago that they wanted to purchase luxury goods outside China, to enjoy the full experience of the iconic flagship stores in London, Paris or New York”
“This new trend has not been immediately recognized by luxury conglomerates such as LVMH and Kering, that led to an inflation of store openings in China in the years 2010/2015, with little customer traffic, insufficient staff training, and in some cases damaging consequences in terms of brand image.”, Mr Gervois added.
Kering posted a 31.2 per cent rise in revenues to €3.57bn in the first three months of 2017, lifted by a 34 per cent jump in sales from luxury activities.
Among its brands, Gucci led the way, posting record revenue growth of 51.4 per cent for the three months — the latest sign of improvement under creative director Alessandro Michele. Other Kering brands such as Brioni and Bottega Veneta were doing less well than the likes of Saint Laurent.
Mr Palus said: “The market has become more difficult and the pace of growth has slowed down. In this environment you need to take market share from the competition.”
Kering was not looking at acquisitions, added Mr Palus. “We have so much on our plate with helping our existing brands tap their potential . . . we don’t have enough time to think about M&A.”
He said that Kering was also still adapting to digital platforms. “We need to open ourselves to what’s happening in other industries and other countries. Our industry needs to become less product-centric and become more customer-centric.”

Source: The Financial Times / Chinese Tourists Blog

Heathrow ‘Passenger Ambassadors’ Secretly Encouraging Chinese Travelers to Spend Money at Airport Stores

Chinese woman reading the STC magazineAn investigative report by the United Kingdom’s Channel 4 revealed that Heathrow Airport’s 250 passenger ambassadors—service staff helping travelers at the airport—are actively trying to entice tourists to spend money at airport stores. Passenger ambassadors, who were revealed to earn commission from promoting airport stores’ special offers, were found to often actively pursue Chinese travelers as they are identified as the most likely customer segment to spend big inside the airport.

The Channel 4 report, titled Dispatches: Inside Britain’s Airports, unveils that Heathrow Airport’s passenger ambassadors are responsible for what can be considered unethical behavior. By using hidden cameras and undercover reporters, reporters found that, rather than helping passengers, Heathrow’s passenger ambassadors were eager to nudge tourists toward shopping at the airport’s many stores and restaurants. The Daily Mail, which also sent reporters to the airport to investigate, had one if its reporters ask a passenger ambassador for help to find her gate, only to find the ambassador ignoring the question and instead recommending where to find the “best shops and restaurants.”

In a segment of the Channel 4 report, one of Heathrow’s passenger ambassadors described that after successfully encouraging a traveler to spend money at one of the stores, store clerks would provide information on the amount spent by the traveler, which is then recorded in a terminal. According to the report, Heathrow ambassadors have the target of generating up to 4,000 GBP (US$4,960) in sales every day, with one ambassador claiming to have generated sales for as much as 10,000 GBP (US$12,403) in a single day.

Some airport ambassadors interviewed for the report also admitted to actively targeting Chinese tourists, since they’re perceived as more likely to spend substantial amounts of money in the airport’s retail outlets. The report by the Daily Mail further corroborates this claim and describes one of Heathrow’s passenger ambassadors seen “pursuing a man of Chinese appearance for 100ft, while a couple was forced to ignore another ambassador as she skipped beside them gesticulating outside the Cartier store.”

According to the job description that an undercover reporter received when applying for the job, “the majority of the role will involve interacting with passengers, persuading them to shop if they had not planned to, or encouraging them to spend more by talking to them about offers and promotions.” In contrast, a spokesperson for Heathrow airport described the practice as follows: “We provide fantastic restaurants and stores in order to offset the cost of running the airport, which keeps the cost of air fares down. Passenger ambassadors are an important part of our business, and we expect the team to put the needs of passengers first.”

While some experts interviewed for the investigative piece questioned how ethical it is to use employees who are described as there to help travelers for promotional services, none questioned the legality of the practice.

In the United Kingdom, the growing number of Chinese travelers that the country receives is perceived as a crucial engine for growth in the retail sector, particularly after the Brexit referendum which saw the British pound plunge in value against the Chinese yuan. With countless media reports describing Chinese tourists as “flocking” the country for luxury shopping as the value of the pound dropped, it should perhaps not come as a surprise that sales promoters working on a commission basis actively target this particular customer segment. For airport retail, just like other sectors in the tourism and retail industries, Chinese travelers is a customer segment to be reckoned with—with initiatives that encourage further spending among Chinese travelers potentially extremely lucrative.

Source: Jing Daily / Channel 4

Mainland Chinese shoppers accounted for 75% arrivals in Hong Kong in 2016

Chinese power couple - China Elite FocusShoppers from mainland China contributed 35% of Hong Kong’s total retail sales in 2016, which is up from 15% 10 years ago.

Visitors from mainland China now account for 75% of the tourist arrivals in Hong Kong according to Hong Kong Tourism Board reports, up from 54% in 2006.

Mainland travelers spend an average of 2.7 nights in Hong Kong per trip and spend more than CNY20,000 (US$2,900) each time they visit. And while 5 in 10 visitors buy jewelry and watches on their trips, some visitors who come to enjoy the food (51%) and culture (40%) who spend 10% more during their stay than those who come just to shop.

According to Nielsen’s recent study, Hong Kong covers off on the top 6 reasons that consumers look for when they consider regional travel. Online travel agencies and social media are dominant influencers to mainland Chinese travelers, at 95% and 49%, respectively according to Nielsen.

The Brexit’s One Bright Spot: More Chinese gentlemen getting bespoke suits in London

The STC magazine Sept 2016 CoverA volatile stock market, downgraded credit rating, and plunging pound may be some of the economic woes plaguing the UK after the Brexit vote, but there is one thing that seems set to go up in the near future: Chinese tourist numbers.

According to a recent report in Shanghai Daily, travel agencies are seeing a surge in Chinese travelers booking tour packages to the UK as travel and shopping in the region are set to become much cheaper. According to Chinese travel agency Shanghai Spring Tour, all of its tour packages to Britain have now been totally booked for the summer. Meanwhile, Ctrip has also seen a jump in bookings to the UK.

“An interesting reason for this increase of London travel for affluent Chinese men is the new trend for bespoke tailoring”, said Pierre Gervois, Publisher of the Shanghai Travelers’ Club (STC) magazine, a digital luxury travel magazine for wealthy Chinese gentlemen. “As London is probably the best city in Europe to get a bespoke suit, a growing number of Chinese gentlemen are going to London to see their tailor – such as Benson & Clegg, for example, and take advantage of the favorable exchange rate as well”, Pierre Gervois added.

Advertisement Tower - Gervois Hotel Rating May 2017 featuring Pierre GervoisWith shopping a high travel priority and an acute awareness of where to seek out the best prices of luxury goods and avoid mainland tariffs, Chinese tourists have been known to follow currency fluctuations to get a good deal. This has been one factor in the recent Chinese spending boom in Japan as the weak yen means cheaper prices of luxury goods and premium Japanese brands. When the ruble rapidly plunged in 2014, Chinese travelers and daigou sellers rushed to Russia and cleared out entire luxury boutiques thanks to the cheap prices.

The UK has long been working to attract more Chinese tourists, but its exclusion from the Schengen Area has made the visa application process cumbersome for visitors from China. As groups such as the luxury retailer-led UK-China Visa Alliance have lobbied for easier visa access, the government has made changes such as a two-year multi-entry visa policy for Chinese travelers as well as a partnership with Belgium to grant Chinese visitors with a Belgium-issued Schengen visa access to the UK.

But these efforts for greater EU-related visa access may now be undone, showing it’s not all good news when it comes to Chinese tourism in the post-Brexit UK. UK-Europe package tours could take a hit as participants traveling to both the UK and European countries would have to declare tax-free goods brought from the UK into Europe. This includes not only European countries, but also Ireland, which will now see fewer Chinese tourists entering form the UK.

In the long run, Chinese tourists are risk-averse when it comes to making their travel plans and tend to avoid places seen as politically unstable. The perception of increased political and economic instability could also deter the Chinese real estate buyers who have been flooding to London in recent years.

Source: Jing Daily / TopTier

Major duty-free stores yet to be affected by dwindling Chinese tourists over THAAD deployment

Young Chinese shoppers - China Elite FocusSouth Korea’s major duty-free shops have been operating in the black in recent months despite the number of Chinese tourists declining over the country’s plans to deploy an advanced US missile defense system, industry sources said Monday.

Chinese travel agencies in recent weeks spent sales of tour packages to South Korea as part of the Beijing government’s retaliation against Seoul’s decision in July to have the Terminal High Altitude Area Defense system deployed on South Korean soil later this year. South Korea says the missile system will not target China but only counter threats from North Korea.

HDC Shilla Duty Free said it posted a surplus of 125 million won ($107,982) on 53.2 billion won in sales in January.

It is the first time the joint venture between Hotel Shilla Co. and Hyundai Development Co. recorded a monthly surplus since its opening in December 2015.

HDC Shilla also had 1 billion won in operating profit on 67 billion won in sales in February.

The company suffered 20.9 billion won in operating deficit on 397.5 billion won in sales last year.

Shinsegae DF said its Myeongdong branch in downtown Seoul recorded an operating profit of 1.2 billion won on sales of 75 billion won in January in the first operating profit since last May when the Myeongdong branch opened.

Hanwha Galleria, an affiliate of Hanwha Group, and Doota Duty Free Shop, run by Doosan Group, said they have been improving in recent months with their daily sales surpassing 1 billion won each.

Hanwha Galleria logged an operating loss of 43.8 billion won and Doosan a loss of 30 billion won last year.

The duty-free industry, however, may face tough business conditions in the coming months when the country is expected to receive fewer Chinese tourists in the aftermath of the Chinese government’s retaliation.

“The current geopolitical climate between Korea and China is certainly an issue for Korea’s duty free and retail industry.” declared Pierre Gervois, CEO of China Elite Focus, and Publisher of the STC magazine, a travel magazine in Chinese language.

Chinese clients account for about 80 percent of the sales for South Korea’s duty-free shops, according to industry data.

“We are trying to come up with measures for stainable management of the business while refraining from excessive and cutthroat competition to achieve sales and profits at the same time,” a HDC Shilla official said. (Source: Yonhap)