Luxury Shopping in the United States: the 2016 big trend for Chinese shoppers

Shanghai Travelers' Club magazine Media Kit 2016The Shanghai Travelers’ Club magazine, the Chinese language publication read by China’s Elite global travelers has disclosed its much anticipated 2016 Editorial calendar yesterday. And clearly, Affluent Chinese shoppers love the United States! According to Pierre Gervois, the New York City based Publisher and Editor-in-Chief of this publication “The new generation of Chinese business travelers have clearly chosen the United States as their strategic country for their business browth. We have seen in the past two years a very strong interest from Chinese corporations – and wealthy Chinese invividuals- to invest in the United States. The more they come to the U.S. for business, the more they tend to come back with their family for a U.S. luxury leisure & shopping experience”

But It’s no more just about luxury shopping: Philanthropy and real estate investment are also hot topics. The January 2016 issue will have “Philanthropy in America” as its main feature. “Many Chinese CEO’s residing in the U.S. are willing to create their own philanthropic foundations in America, as they used to do in China. We’ll publish stories to help them to understand how to create a charity organization with all the necessary partners: banks, wealth management advisors & attorneys” added Pierre Gervois.

Driving a vintage 1960 Cadillac on Road 66 is also part of a true luxury American experience. (You can also rent a brand new Cadillac SUV). The march 2016 issue will feature a “Luxury road trip to America” story. Ralph Lauren ripped Jeans, Louis Vuitton beaten up keepall bag, vintage Rolex, Vincent Peach leather bracelet, a motel with neon signs, this is America.

After the success of the September 2015 men’s fashion issue “The Gentleman Traveler”, The September 2016 issue will also feature a Men’s fashion special edition, with in depth stories about America’s best fashion designers. “Having a tailor made business suit made in USA makes a statement for Chinese global business executives” said Tyron Cutner, the Shanghai Travelers’ Club magazine Men’s Fashion Editor.

“Winter Holidays in the American West” will introduce snow experiences in the American West: Colorado, Nevada or Arizona are beautiful in winter time and very desirable destinations for Chinese frequent travelers to the U.S. who had already visited New York and Los Angeles multiple times and want to experience a truly authentic American Christmas time. A lot of opportunities for U.S. luxury retailers to showcase their products and services to their Chinese customers.

Request the 2016 Editorial Calendar & Media Kit of the Shanghai Travelers’ Club magazine here.

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International retailers waiting for the US$264Billion Chinese spending by 2019

Young Chinese shoppers - China Elite Focus

Book your holiday now, before a wave of 174 million Chinese tourists snap up the best bargains.

Already the most prolific spenders globally, the number of Chinese outbound tourists is tipped to soar further as the millennial generation spreads its wings.

Here are the numbers: 174 million Chinese tourists are tipped to spend $264 billion by 2019 compared with the 109 million who spent $164 billion in 2014, according to a new analysis by Bank of America Merrill Lynch. To put that in perspective, there were just 10 million Chinese outbound tourists in 2000.

How much is $264 billion? It’s about the size of Finland’s economy and bigger than Greece’s.

“China-mania spread globally in the past few years, akin to when the Japanese started travelling some 30 years ago, when the world went into frenzy then, pandering to Japanese customers’ needs,” the analysts wrote. “In our view, this is going to be bigger and will last longer given China’s population of 1.3 billion vs Japan’s population of 127 million.”

Millennials, or 25- to 34- year olds, are expected to make up the bulk of Chinese tourists at 35% of the total, followed by 15- to 24- year olds accounting for around 27%.

“Chinese travelers now massively prefer to shop overseas. Buying a luxury product in Mainland China is seen as “Uncool” and shows that you can’t afford to travel to New York city, Paris or London to buy at the original brand ‘s flagship store” says Pierre Gervois, Publisher of the New York City based Shanghai Travelers’ Club magazine.

Only about 5% of China’s 1.3 billion populace are thought to hold passports, meaning the potential for outbound tourism is vast.Gervois Rating Banner 01

The projected boom could be good news for the global economy. The Chinese are the world’s biggest consumers of luxury goods, with half of that spending done overseas. Chinese visitors to the U.S. have risen more than 10% since 2009, the fastest pace for a destination outside of Asia. Australia, France and Italy are also popular.

Asian markets stand to benefit, with the biggest uptick tipped for Japan, South Korea and Southeast Asia, according to the research led by Billy Ng in Hong Kong.

Source: Chinese tourists Blog / Bloomberg / Bank of America

Chinese travelers spend US$102 billion on international travel in 2012

China has overtaken Germany and the USA as the world’s biggest spenders on travel, with Chinese travelers spending US$102 billion on international travel in 2012, an increase of over 40% on 2011.
The second annual Chinese International Travel Monitor released today reveals significant insights into the changing behaviours of Chinese travelers and how the global hotel industry is adapting.
Surveying more than 3,000 Chinese international travelers and more than 1,500 hoteliers around the world, the report found 75 percent of hoteliers globally say Chinese travelers now account forChinese shoppers- Louis Vuitton- Chinese tourists Blog up to five percent of their business and 45 percent say they have experienced an increase in Chinese guests over last year, with the greatest increases coming in APAC (61 percent). Hoteliers see China as a positive growth market over the next three years with one in 10 expecting to see an increase of more than 50 percent and almost half (47 percent) anticipating an 11-50 percent rise.
According to the report the majority of overseas Chinese travel (96 percent) has been for leisure purposes, while just over half (52 percent) have also visited other countries for business or education.

Top 10 destinations interested in traveling to in next 12 months %
Australia 39%
France 33%
New Zealand 27%
USA 26%
Switzerland 25%
Singapore  23%
Hong Kong 21%
Taiwan 20%
UK 19%
Canada 19%

In a growing trend, nearly two thirds (62 percent) of Chinese travelers say they prefer to travel independently and not as part of a group. This development has been confirmed by the hoteliers surveyed, who say 70 percent of Chinese guests now travel independently, compared with a much more even split in 2012.
Other changes in behaviour noted by Singapore hoteliers included Chinese travelers spending more money, increasingly speaking more English and over all being less sensitive to price.

Johan Svanstrom, Managing Director of Hotels.com Asia Pacific, said, “The 2013 Chinese International Travel Monitor (CITM) shows the move to independent travel identified in the CITM last year is now preferred by the majority of Chinese travelers. While in-roads have been made in this area, governments will have to take this into account when organising their visa application infrastructure and processes.”
In addition, the CITM highlights areas for continued improvement for accommodation providers. The ability to accept Chinese payment methods is seen as the single most important offering from hotels and over a quarter (26 percent) of Chinese travelers feel this is a key area for improvement.
Three quarters (75 percent) of Chinese travelers say hoteliers need to improve the provision of translated items, such as welcome literature, websites, TV programs and newspapers, while almost half (42 percent) say that they would like more Mandarin speaking staff in hotels.

Highlighting a disconnect between the desires of Chinese travelers and provisions made by hoteliers, a quarter (25 percent) of hoteliers say they offer cultural awareness training to staff but only one in ten (11 percent) offer welcome materials in Mandarin. Additionally, globally, just over half (56 percent) of hotels have invested less than $10,000 in developing programmes and products specifically catering to Chinese guests over the past 12 months.
When it comes to researching and booking travel, personal recommendation plays an increasingly vital role, with almost a third (30 percent) of Chinese travelers saying they rely on advice from family and friends, followed by online travel booking and review sites.

Pierre Gervois, CEO & Publisher of China Elite Focus, said “Hoteliers realize now that it’s very important to advertise in specialized travel magazines, segmented by country (for example Luxury Hotels of America), or by activity (for example VIP Golf USA)”.
“The new generation of Chinese travelers trust these specialized travel magazines in Chinese language much more that a recommendation made by a travel agent or a generalist travel website. Even if Chinese guests will do the booking through booking engines, such as CTRIP, they will make their choice of hotel by reading specialized magazines and social media networks, and then, go to a booking engine.”, Mr Gervois added.

More than a quarter of Chinese travelers (27 percent) use social media to help them make decisions on holiday destinations, with this figure rising to 33 per cent among younger travelers under 35.
These insights highlight the need for hoteliers to adapt their marketing strategies, with a particular focus on online and social media channels, to attract Chinese travelers. While the CITM shows hoteliers are making positive steps towards catering to an increasingly mobile and savvy Chinese travel market, it also shows the need for the global hotel industry to adapt facilities and services to more extensively cater to the world’s largest market of travelers.
In addition, programmes being implemented by many governments and tourism authorities to attract and facilitate for Chinese travelers are a positive step in the right direction, but the pace of growth in the volume of Chinese travelers appears to be outstripping the pace of change in the hotel industry.