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Business / Economy

Most Chinese luxury consumption happens overseas: report

(Xinhua) Updated: 2015-11-25 10:20

BEIJING - China accounts for nearly half of the world's luxury consumption so far this year, but Chinese consumers do most of their shopping outside of the country, a Beijing-based consultancy said in a report on Tuesday.

Chinese are expected to spend $116.8 billion on luxury goods this year, accounting for 46 percent of the world's total, said the Fortune Character Institute.

However, 91 billion worth of luxury purchases, or 78 percent of all Chinese luxury consumption this year, happens outside of China, up 12 percent from last year. Increased buying overseas has led to a 1 percentage drop in China's luxury market share in the world's total, to 10 percent.

The institute also estimates that the world's luxury market is set to grow 11 percent this year to $255.2 billion.

The report also found that 83 percent of luxury brands have closed some of their retail outlets in China this year and closures will continue. It predicted more overhauls of existing shops next year to focus on experience and service as more consumers opt to purchase online.

This year also witnessed an emergence of luxury online retailers in China. But the institute said a survey of high net worth individuals in China suggests that only 4 percent of them are willing to shop luxury goods at domestic online retailers while 44 percent prefer buying at brands' official websites.

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