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UK. Retailers in the UK are expecting a dramatic increase in sales to Chinese passengers as the Golden Week holiday begins today (1 October). Last year Chinese tax free sales grew by +35% during the holiday, according to tax refund company Global Blue.
The week will add a second boost to retailers after a strong Chinese New Year period in February, in which tax free sales rose by +23% compared with the holiday period in 2013. Global Blue has reported that 83% of Chinese travellers rate shopping as their favourite past time, with average spend per transaction reaching £752 (US$1,217.93) for the year so far.
Global Blue UK Country Manager Gordon Clark said: “China now accounts for 25% of total tax free spend in the UK”¦ Golden Week is hugely important as thousands of Chinese tourists flock to stores in search of their favourite brands, which can be up to -30% cheaper to buy in the UK even before they have claimed back their tax free refunds.”
Fortnum & Mason Customer Experience Director Zia Zareem-Slade explained how the retailer has prepared for the event at its central London flagship store. “We have Mandarin-speaking sales staff and run cultural training sessions for the whole store,” she said. “Union Pay terminals are situated on each floor, and we have a large stock of Mandarin Store Guides.
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Shops at Paris Charles de Gaulle Airport received China Outbound Tourism Quality Service Supplier accreditation in time for Golden Week |
“We are also working with Global Blue to create awareness of Fortnum & Mason among the Chinese, so that they know about us even before they visit Britain. This year, we are featuring a special Chinese tea, made by Jin Jun Mei, which is exclusive to us in the UK.”
Global Blue’s data is based on tax rebates claimed by travellers on high street purchases. At airports the holiday is also expected to boost sales. As reported, World Duty Free Group was honing destination targeting at its new store at London Heathrow’s Queen’s Terminal as The Moodie Report visited last week.
Also last week, Société de Distribution Aéroportuaire at Paris Charles de Gaulle Airport became the first European travel retailer to receive accreditation as a China Outbound Tourism Quality Service Supplier. Golden Week campaigns are a regular part of its Chinese passenger strategy.
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Chinese signage at World Duty Free Group’s store in London Heathrow Queen’s Terminal highlighting the National Day holiday at the start of Golden Week |
European countries are likely to generate stronger Golden Week sales in the future: A syndicated survey published by Nielsen this week confirms that Europe is an increasingly popular market for Chinese travelling luxury shoppers.
France is expected to become the third most popular destination among these luxury travellers in the next 12 months, based on responses from a sample of 1,005 Mainland Chinese who had purchased luxury goods overseas in the past year.
France is also climbing the rankings of projected destinations for purchasers of fashion, accessories, beauty products and wines & spirits. Switzerland is expected to become the second-choice destination for watches and jewellery (behind Hong Kong) for these elite overseas shoppers, while Italy will become the second destination for wines & spirits (behind France, usurping Hong Kong and Singapore from first and second places respectively).
See The Moodie Report e-Zine later this week for more on Golden Week and Nielsen’s study “˜Understanding Chinese Travelers Buying Luxury Overseas’.
