Why Chinese Tourists Like Purchasing Luxury Goods During Their Trips

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Heavy duties and taxes on luxury goods in China

According to research conducted by Chinese news sites, luxury goods in the country are nearly 51% more expensive than goods in US and nearly 72% more expensive than goods in France. This is largely because of the excess duties and taxes imposed on these luxury products. Chinese consumers need to pay consumption tax of up to 30%, import duties ranging from 10% to 25%, and Value Added Tax at about 17%.

These additional charges can increase the cost of non-essential items like jewellery, cosmetics, and alcohol by a considerable margin. For example, Crème de la Mer moisturizer costs $350 in the US, $305 in France, and around $394 in China. Similarly, Estee Lauder’s Advanced Night Repair eye cream costs around $58 in the US, $66 in France, and $76 in China.

Guarantee of authenticity

China is well-known for duplicating products from luxury brands and many of these products are openly sold in big malls and stores. Products from well-known brands like Armani, Swarovski, Ralph Lauren, Gucci, Prada, and Dior, etc. are most likely to be duplicated. People who aren’t familiar with the brands often end up paying good money for a fake product. Chinese tourists are more comfortable buying products in foreign countries because they can be certain about the authenticity.

Buying gifts for friends during a trip is a custom

Shopping experience is one key component in Chinese tourism culture, they see shopping as one leisure activity and one indispensable activity in trips. Luxury goods are a status symbol and also good gift options for affluent Chinese people give to their work partners and friends. Some travel agencies and individual travelers even like to add shopping to their travel schedule, it’s very common to see shopping sectors for China inbound tourism.

If you want to know more about connecting with Chinese consumers, contact us at ConnectX Marketing and Advertising or give us a call at (02) 9267 2972. We’ll be happy to help.

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