Retailers and fashion brands are expressing concern over a slow-down in their Asia business as Chinese tourists pull back on purchases, The Wall Street Journal reported.
Xiaohongshu, a social media site similar to Instagram, may be to partly blame. The platform has popularized travel that prioritizes experiences — and the requisite attendant selfies, of course — over making purchases.
The shift is also coming amid a sharp slowdown in the Chinese economy that may be leaving travelers with less discretionary income to spend, following debt-driven problems in the property market and sliding demand for manufactured goods, according to the International Monetary Fund. Domestically, growth in Chinese retail sales is also stalling. China retailers saw sales growth of only 3%, lower than most analysts forecast, according to the consulting firm McKinsey.
In its latest quarterly survey of Chinese travelers, the China Trading Desk said almost 44% of outbound travelers from China were between 18 and 24 years old in the third quarter of 2023, and the vast majority of those surveyed listed experiences such as visiting landmarks and appreciating nature as their primary goals. Only 10% said shopping was the main reason for their trips.
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