China big spenders back in luxe market - but not overseas

Foreign destinations, global brands feel impact as Chinese rethink lifestyles

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China's big-spending shoppers are back, to the relief of the global luxury industry.

But in a pandemic-era shift, they are doing more of their spending at home, even with mainland borders open again and the consequences for foreign destinations and brands once reliant on deep Chinese pockets could be dire.

About 62 per cent of luxury spending by Chinese consumers took place inside its borders in April, widening from 41 per cent in the same month in 2019 before Covid-19 - figures compiled by alternative data provider Sandalwood Advisors show.

Though Chinese tourists are slowly travelling abroad again, analysts surveyed by Bloomberg say the share of their shopping taking place overseas will not be returning to its heyday.

Domestic luxury offerings have grown in sophistication and range, while the prices of goods are rising around the world, hindering Chinese shoppers' enthusiasm for leaving home.

The turn inward stands to impact global brands and tourist destinations that have come to rely on spendthrift Chinese shoppers.