China Bought Almost Half World's Luxury Goods in 2015

By Isabella Farr, February 22, 2016

As the number of luxury stores in China grow, the number of interested Chinese consumers also grows. In 2015, Chinese consumers purchased 46 percent of all luxury goods worldwide, according to the luxury consultancy firm, Fortune Character.

The Chinese consumer’s love for Chanel, Louis Vuitton and Cartier, has hit an all-time peak, with the World Trade Organization reporting that Chinese consumers spending RMB1.2 trillion on goods abroad in the past year. The move to foreign purchases has been attributed to China’s high tariffs on luxury goods, with 78 percent of Chinese luxury purchases taking place overseas.

According to Bain & Company, China’s domestic purchases of luxury goods has shrunk by two percent, while the number of purchases of overseas luxury goods increased by ten percent.

This decrease in Chinese purchases is further evidenced by the lack of people that shop in Chinese stores. Instead, cities like New York and Paris are crowded with Chinese tourists carrying Chanel shopping bags.

For watches and premium alcohol, price differences could reach up to 80 percent. While the price difference for clothing, perfumes and cosmetics was closer to 30 percent, Chinese consumers still preferred to buy these items abroad. Even with duty-free stores opening in major Chinese cities, the prices of luxury goods are still significantly lower overseas.

However, this poses an issue for the Chinese economy, as last year, consumption of goods and services contributed to 66.4 percent of Chinese GDP. As more and more Chinese consumers look overseas for their new fragrance or designer handbag, growth of the Chinese economy could slow.

[Image via Jing Daily]