During the 4th Summit Shopping Tourism & Economy in Madrid on November 19 & 20th, Global Blue revealed key insights about Chinese globe shoppers in Spain and possible levers to increase the country’s status as an attractive shopping and tourism destination for international travellers.

Chinese globe shoppers as the top nationality in Spain

Since 2012, Chinese Tax Free spend in Spain has increased by x6 to represent today 33% of total Tax Free spend in the country. From October 2017 to September 2018, Chinese travellers have remained the largest nationality, representing 15% of total globe shoppers visiting Spain, with a higher spend compared to international average: 2,529 € against 1,183€.

In parallel, on the back of a growing Chinese middle class, experts forecast a +8% increase of their tourism arrivals to Europe. In this context, for Spain to make the most of these new incoming shoppers, the country needs to up its retail game.

Still a long way to go to attract more Elite & Frequent Chinese shoppers

When travelling to Europe, France and Italy remain the two top of mind destinations for Chinese travellers with high purchase power, far before Spain. Indeed, only 15% of Elite Chinese tourists that visit Europe come to Spain, against 39% in Italy and 45% in France.

In Spain, Elite* & Frequent** travellers represent 31,5 % of total sales from October 2017 to September 2018. With this in mind, the country still has room and many opportunities to acquire its status as an attractive shopping destination to these high-flying customers.

The Spanish retail offer has nothing to envy its close by neighbours. Indeed, although Spain registers only half the number of repeating Chinese travellers compared to France or Italy, their average spendRefers to average value of a transaction (usually applying t... More average is higher in Spain. For example, in France an Chinese Elite traveller will spend 28,361€ compared to an average spendRefers to average value of a transaction (usually applying t... More per traveller reaching 29, 476€ in Spain!

Since 2012, Chinese Tax Free spend in Spain has increased by x6 to represent today 33% of total Tax Free spend in the country

What about Chinese Millennials?

Millennial generation appears to be the most relevant segment for Elite and Frequent traveller categories as more than two out of ten are between 18 to 34 years old. Concretely, this means, it will be necessary to attract a greater volume of Chinese travellers with an increasingly young and digital profile. As the youngest are captured, they are more likely to come back later with a full life ahead of them.

In that sense, if Spain is able to capture 1 million more Chinese travellers, Sales in stores in Spain will increase by 2.500 million Euro (= 0,2% of GDP)*** . An objective that combines increasing investments and resources to improve promotion in origin countries, directly in the Chinese market, as well as improving procedures to obtain visa so that Spain will be able to easily attract more and more Chinese tourists as competing destinations.

 

*Elite Travellers: globe shoppers who have spent more than 40.000 euros on the last 24 months
**Frequent Travellers: globe shoppers who have made more than 3 trips in the past 24 months
***Global Blue sources