The influx of wealthy Chinese tourists to London is causing luxury retailers to rethink their
offering.
ccording to tax-free shopping company Global Blue, retail sales to Chinese consumers
rose 64% for the year to December 2011.
The New West End Company, which represents retailers in and around the Bond Street
area, reports sales to the Chinese in the West End are increasing 59% year on year.
[quote align=”center” color=”#b64736″]retail sales to Chinese consumers
rose 64% [/quote]
At Harrods, total sales grew 12% last year, reflecting a marked shift towards international
designerwear such as Chanel, Dior, Prada, Gucci and Louis Vuitton. An average spend of
£3,500 by Chinese shoppers over Christmas 2010 helped the luxury department store hit the
£1bn sales mark. Harrods now wants to double this within the next five years.
According to insight from Global Blue, Chinese shoppers buy 80% of their luxury purchases
abroad to avoid fake goods, favouring accessories.
Pragma Retail analyst Patrick Woodall says that Chinese consumers have astonishing
purchasing power.
“But because it is recent wealth, those people want to spend on these very, very recognised
global luxury brands.”
[quote align=”center” color=”#b64736″]The very wealthy make up less than 1% of the Chinese population so they expect to
be treated as very special people indeed[/quote]
Selfridges has introduced specific services, including Chinese language lessons for staff to
help them familiarise themselves with Chinese shopping habits and customs.
The Oxford Street store has added a size 35 in women’s footwear to several lines and plans
to add smaller sizes to some ready-to-wear ranges.
Sebastian Manes, womenswear, accessories and kidswear buying director at Selfridges
said, “The very wealthy make up less than 1% of the Chinese population so they expect to
be treated as very special people indeed, for the obvious reason there are very few of them.”
Harrods recently launched a Chinese-language Android app. The retailer is using feedback
from the app to explore new ways of expanding its Chinese services. It follows continued
investment in catering for the Chinese shopper, which has seen the launch of worldwide
shipping, tax-free shopping, later summer opening hours, Mandarin-speaking staff and more
than 100 Union Pay terminals in-store.
by Rani Singh
