‘Big-Spender’ Chinese Tourists Flocking for 인증샷, Luxury Consumption 'Shaken'

Est?e Lauder, Shiseido and Other Luxury Brands Hit
"Impact of Chinese Instagram and Development of China's E-commerce"

Chinese overseas tourists (Youke), who were known for so-called 'luxury brand sweep' shopping at travel destinations, are changing. The travel pattern is shifting to taking 'proof shots' at tourist attractions instead of luxury shopping, especially among young Youke.

Luxury Brands Face Sales Slump Due to Changes in Youke Travel Patterns... Stock Prices Plunge and Earnings Forecasts Cut

According to the Wall Street Journal (WSJ) on the 17th (local time), this change was detected through the performance of luxury brands.

Cosmetics brand Est?e Lauder lowered its sales growth forecast for next year from 5-7% to -2% on the 1st of last month, causing its stock price to plunge 17%, reaching the lowest level since 2017. The pessimism was attributed to expected pressure on Asian travel retail business performance and a slower-than-expected recovery in mainland China.

Another cosmetics company, Shiseido, also cut its earnings forecast by 36% last month. The brand cited sluggishness in China and travel retail sectors as reasons.

Analysts from Barclays and others downgraded investment opinions on Louis Vuitton Mo?t Hennessy (LVMH), which owns the French luxury brand Louis Vuitton, citing decreased demand from Chinese consumers.

Dickson Concepts, which operates the department store Harvey Nichols, stated in a disclosure that "Chinese tourists traveling to Hong Kong are no longer focusing on shopping as they did before the COVID-19 pandemic."

'Chinese Instagram' Establishment and Development of Internet E-commerce Influence... "Emphasis on Personal Experience Such as Taking Proof Shots Rather Than Shopping"

The photo is not directly related to the content of the article. [Image source=Pixabay]

Recently, taking 'proof shots' has become the main travel style, especially among young Youke.

The changed travel pattern of Youke is analyzed to be due to the establishment of the social media (SNS) platform 'Xiaohongshu' (小紅書, Little Red Book), known as the 'Chinese Instagram.'

Chinese tourists now browse this app to find new places for selfies, take photos at 'photo spots' such as beaches, and then stroll around the city.

Subramania Bhat, CEO of China Trading Desk, a travel data provider, explained, "The young Chinese generation, which has emerged as a major force in outbound (domestic residents traveling abroad) tourism, has led changes in preferences and consumption patterns."

According to data from the company, about 63% of Chinese travelers are under 40 years old, and recent surveys show a tendency to travel for 'personal travel experiences' rather than shopping.

It is also analyzed that the decline in shopping by Chinese tourists is partly due to the development of e-commerce in China.

Bhat explained, "The decrease in shopping during travel is partly due to financial issues caused by the economic downturn, but Chinese people are increasingly shopping from home."

Huan Weijin (24), an executive of an export company in Guangdong, China, who enjoys day trips to Hong Kong, said, "You can buy anything you want online even in China," adding, "When traveling, I look for something different."

Since anything desired can be purchased online even in China, travelers do not necessarily spend time shopping during their trips.

This content was produced with the assistance of AI translation services.