Chinese consumers return to Paris after “disastrous” 2016 for retailers

FRANCE/CHINA. Chinese travellers have returned to Paris in large numbers so far this year following a downturn in 2016 after the terrorist attacks of November 2015, with retail spend consequently up.

Susan Owens, the founder and Editor of Paris Chérie, a Paris-based fashion website dedicated to bringing French style news to Chinese readers, assessed the impact in a recent report for Jing Daily.

Chinese visitors to Paris fell by 400,000 in 2016, but between January and April this year, the arrival of 215,317 Chinese represented a +40.4% increase on the same period in 2016, according to figures from the Paris Office of Tourism.

The Jing Daily report notes the return of Chinese shoppers to the streets of Paris

“Spending an average €200 per person per day, the Paris region has profited from a bonus €785 million,” Owens wrote. “But this ‘average’ spend does not reflect the overall picture which includes small, chic boutiques that are sought out by discerning Chinese shoppers and are often the winners.

“Chinese consumers in the world’s fashion capital spend more than those from any other country, with 37% of their budgets slated for shopping, 18% for food and gastronomy and a mere 3% for visiting museums and historic sites.

“Analysts say the ‘new confidence’ is the result of a successful charm offensive by the Paris tourist authorities, which along with the French government earmarked a combined €33 million to remind Chinese travellers that romance, shopping and gastronomy make France one of the most visited countries in the world. The message is driving increased sales of cosmetics, handbags and late night trips to nightclubs.”

Owens noted that “a significant portion” of this budget went on public service messages on Chinese social media accounts, which emphasized the increased police presence on streets that are popular with the Chinese. In the metro and in public buildings, messages in Chinese warn about pickpockets.

Concurrently, she said that luxury groups responded with their own research, paying attention to the tastes and needs of tourists, with better service and an awareness of the need to employ shop assistants who speak Mandarin.

“Chinese consumers visit Paris for the unique products they cannot buy at home, for the choice, authenticity and (tax free) prices. ‘Paris waits for you…’ reads the message on Paris Mayor Anne Hidalgo’s WeChat account. The painstaking campaigns are performing nicely,” Owens wrote.

“Chinese demographics are also changing at a clip. New travellers are increasingly sophisticated and discerning and they seek out ‘experiential’ travel. Today, 40% of travellers to Paris are individuals, compared to 30% three years ago. In 2020, one in two tourists will travel solo, a nod to the rapid-fire rise of the ‘FIT’ (Free Independent Traveler).

“FITs are often well heeled, debt-free and living at home. Inside French boardrooms they’re spoken of in hushed tones—as the ‘7-pocket spenders.’ The phrase refers to children born under China’s one-child policy. These are children who are said to have more money for spending than Americans and Europeans of the same generation because they get money from their parents, two sets of grandparents, and their own savings.

“These new visitors are seeking richer cultural or shopping experiences, and they are increasingly well-catered for as young companies emerge to satisfy their demands.

“The core of tourists continue to descend on the centre of Paris, flocking to the ‘Opera’ district, from where they visit the legendary department store Galeries Lafayette.

24% of Chinese tourists in Europe will visit France this year, making it their favourite destination

“That scene is now changing. In March this year, the retail group opened a new store and ‘welcome centre’ dedicated to Chinese tour groups. Located opposite the historic flagship on Boulevard Haussmann, it offers leather goods, cosmetics, accessories, jewellery and gifts with French flair.

“In contrast to the busloads of tourists converging here, Lafayette’s smaller sister department store, BHV Marais, is poised to make a play for the younger FITs. The store’s new slogan; ‘The Parisians’ favourite department store’ (they claim that 80% of their clients are French) contrasts with Galeries Lafayette’s customers, of which roughly 50% are foreign visitors.

“While BHV Marais offers the services all Chinese can now expect in a department store, including a private welcome room for serious spenders, personal shopping and swift tax refunds, BHV Marais will add three ‘experiences’. Their Chinese-language ‘Walking tour of the Marais’ is intended to reinforce the store’s desired position as a cornerstone of the trendiest shopping quarter in the city.

“This year, 24% of Chinese tourists in Europe will visit France—with Paris still occupying the top slot as for the ‘most popular destination’. The fashion capital will assuredly be their kick-off destination. But increasingly, the South of France and the Champagne region – just a little over an hour from the city – are featuring strongly on millennial itineraries.”

This article was originally published on JING DAILY, a Moodie Davitt Report content partner.

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