Why high spending tourists will soon come from emerging markets in Asia

Asian key tourist shoppers currently hold more than 30% of the global tax-free spend.

According to Manelik Sfez, Head of Intelligence at Global Blue, a research, marketing and consultancy to international luxury brands, the next wave of high spending tourists will hail from emerging markets in Asia, especially China.

“Many businesses are looking to these markets to sustain growth in an era of economic uncertainty as tourist shoppers from China, Japan, Indonesia, Taiwan, and Hong Kong combined hold more than 30% of the global tax-free spend, according to Global Blue Analytics’ findings,” he said.

Global Blue has named this group of visitors globe shoppers, because of the high priority they give to shopping.

Here’s more from Sfez:
Asian globe shoppers are increasing their spending in destination cities around the world. This year in Singapore, one of the top five destination countries for tax free shopping sales, Chinese and Indonesians represented 55% of globe shopper spending. In the first half of 2012, Chinese tourist shoppers spent an average of SGD1,951 per purchase and Indonesians SGD946. Other significant globe shopper nations in Singapore were travellers from Malaysia (7%) and Japan (5%) .
Chinese globe shoppers are now considered the ‘new rich’. According to Global Blue, in FY2011/2012, Chinese shoppers maintained their number one position as the nationality generating the most tax-free shopping sales, spending SGD3.23 billion on tax-free products globally, a 68% increase from the same period a year before, placing them ahead of their Russian, Japanese, US and Indonesian counterparts .
This trend of increasing affluence of Asian globe shoppers offers luxury goods retailers rich opportunities for growth and a low threat of competition, but they offer no reason for complacency. Without careful attention to their markets and their target customer groups, some luxury brands may find themselves marginalised and facing tough times.