Chinese travellers have become the new darling of the global retail scene, especially as some 100 million Chinese tourists are expected to travel outside China by 2015, according to data from UNWTO.
Furthermore, the Chinese have been crowned the biggest spending nationality in 2012, accounting for 25 per cent of the value of all tax refund claims made, according to international tax refund company Global Blue.
Chinese travellers made more than three million transactions last year, a significant growth of 58 per cent from 2011. Chinese travellers are developing a reputation as “keen shoppers” and they have earned the name of “big spenders” worldwide, according to Stefan Ellrott, country manager, Global Blue Singapore.
He said: “Chinese visitors are the most willing (travellers) to part with their money when it comes to overseas shopping. We refer to this group of visitors as globe shoppers because of the high priority they give to shopping when travelling.”
According to Ellrott, the average Chinese visitor to Singapore spends close to a staggering S$18,000 (US$14,052) per trip on shopping alone, spending largely on watches, jewellery, fashion and clothing.
Apart from China, several Asian countries are also on the to-watch list. According to Global Blue, Russians were the second highest spending nationality after the Chinese, while Japan and Indonesia came in third and fourth respectively. Meanwhile, Thailand and Malaysia joined the top 10 list for the first time in 2012.
It is estimated that more than 200 million tourists from the 10 globe shopper nations travel overseas each year, and globe shopping is becoming a larger and more important part of these travellers’ itineraries.
Arjen Kruger, executive vice president at Global Blue, said: “The rise of the globe shopper is one of the most dramatic stories of the 21st century luxury goods landscape, not just in Europe but worldwide. For some manufacturers and retailers, globe shoppers, who on average spend four times more than local shoppers, are now considered the most important customer segment for the business.”
The top 10 globe shopper nations have some preferred destinations in common; all nationalities shopped heavily in at least some of the most popular tax-free shopping destinations: France, Italy, the UK, Germany and Singapore. Other favoured destinations include Finland, Austria, Spain, South Korea and Switzerland.
Ellrott said: “These are exciting times for the world’s most popular shopping destinations that are set to receive the rapidly growing ranks of globe shoppers.
“For the travel (consultants), it will be a good time to tie up with retailers to do pre-travel marketing and woo these shoppers.”
Alicia Seah
Senior vice president, marketing and PR,
CTC Travel Singapore
The Great Singapore Sale
When does this event take place?
The Great Singapore Sale (GSS) offers eight weeks of shopping with special deals on everything, from fashion and watches to jewellery, electronics and toys, all over Singapore. It takes place annually from May to July.
Can you sell the festival?
During the GSS, we roll out customised shopping packages in accordance to individual market’s needs, culture, behaviour and preferences. For example, for the Indonesians who travel with extended families, 50 per cent of their time is spent on shopping, and we will bring them to Orchard Road, Chinatown and family-oriented malls. But itineraries for the Chinese and Japanese will focus more on shopping for branded and designer label brands.
We are still seeing growth for China and India for group shopping tours, and increasingly from Indonesia and Hong Kong. For FITs we have tied up with Ion Orchard to promote the Tourist Wallet featuring discounts at selected retail stores.
What challenges are there? Any improvements needed?
With the strong Singapore dollar and stiff competition from Hong Kong and South Korea, it is challenging to attract tourists to shop (in Singapore). To stay competitive, we need to ensure the GSS savings are genuine and the deals are exclusive. A good variety of merchandise must be available and more promotions created during this period. – Lee Pei Qi
Umberto Cadamuro
COO inbound,
Pacto Indonesia
Jakarta Great Sale
When does this event take place?
Taking place between June and July each year, this annual event usually runs for six weeks and highlights discounts at shopping malls and department stores across Jakarta.
Can you sell the festival?
While it is always a (good idea) for travellers to experience some great shopping in a city, the fact is that most of the packages are prepared on a yearly or six-month basis, depending on the markets, and are generally already quite loaded with activities.
Hence it is difficult to use the Jakarta Great Sale as a leverage for additional sales.
What challenges are there? Any improvements needed?
I believe that strong marketing is needed for Jakarta. The city is an excellent destination in terms of hotels, restaurants, nightlife and indeed shopping, but it is (commonly) perceived only as a business destination or as a departure point for overland tours.
If the perception (of Jakarta) changes to that of a great and vibrant city, as indeed it is, then events like the Jakarta Great Sale will offer extraordinary value-added benefits, especially if special deals for foreign passport holders are implemented.
– Mimi Hudoyo
Michael Wu
Managing director,
Gray Line Tours of Hong Kong
Hong Kong WinterFest
When does this event take place?
This event usually takes place between December and January to coincide with Christmas and the run-up period before Chinese New Year. Shopping malls will be adorned with festive decorations while ample retail discounts are available too.
Can you sell the festival?
Yes, this festival draws more group business because of the cooler weather in Hong Kong (during this period) and visitors will shop for Christmas presents.
We usually tell (our clients) when to come, particularly during the sales seasons. Apart from the usual sightseeing, we will reserve time for them to shop and provide them with discount coupons as well as latest shopping offers.
What challenges are there? Any improvements needed?
As a shopping paradise, Hong Kong relies heavily on mainland Chinese shoppers. Many retail outlets focus on them without considering the needs of other visitors who have different demands and needs.
There should be more synergy between industry stakeholders, such as hotels and retailers, to work on promotions together. Moreover, it would be better to weave in additional elements such as the Hong Kong Wine & Dine Festival, which attracts more foreigners than Chinese, to enhance the shopping experience. – Prudence Lui
Pornthip Hirunkate
Managing director,
Destination Asia (Thailand)
Amazing Thailand Grand Sale
When does this event take place?
Organised from June to August each year, this festival features discounts at participating merchants in Bangkok, Chiang Mai, Phuket, Hat Yai, Hua Hin, Pattaya and Koh Samui.
Can you sell the festival?
This event draws significant numbers from the region, mainly clients from the Asian market who travel to Thailand on short breaks and take advantage of the great savings on hotels and shopping bargains that are on offer throughout the sale period.
We do not develop special packages or tours for these types of promotions, but when clients arrive during these promotional period we advise them what’s on offer so that they can obtain the full benefits of any promotions.
What challenges are there? Any improvements needed?
The challenges are to ensure that we are putting out the right (advertising and marketing) message in order to create interest (in the sale). It would be good if the Tourism Authority of Thailand allocated more marketing budget to develop more media campaigns on all levels for all market sources.
We would definitely like to see more trade partners getting behind these campaigns with promotions from local wholesalers, travel (consultants) and airlines to support the festival. The more suppliers we can interest in the festival, the bigger and better it will become. – Greg Lowe
Ally Bhoonee
Executive director,
World Avenues Malaysia
1Malaysia Mega Sale Carnival
When does this event take place?
This carnival is always held between June and September in conjunction with the Middle East summer holidays to attract the Middle Eastern shoppers. Sales are nationwide.
Can you sell the festival?
The 1Malaysia Mega Sale Carnival is well-known in the Middle East thanks to promotions by Tourism Malaysia and tourism players from the private sector, but we still emphasise this carnival to our overseas partners. The ringgit’s appreciation against the dirham has made the carnival more attractive as there are big savings for travellers from the UAE.
Middle East travellers are independent shoppers. They like to stay in the Bukit Bintang area in Kuala Lumpur where there are many shopping malls. They know what they want and where to get them as many are repeat visitors to Malaysia, while first-time travellers have also done their research before travelling.
What challenges are there? Any improvements needed?
Having Arabic-speaking personnel at the information counters of shopping malls and Arabic flyers during the carnival will be helpful.
Participating outlets should also offer discount coupons and shopping vouchers to hotels, which will pass them on to guests upon check-in. – S Puvaneswary
