What: While the pandemic’s travel restrictions led to increased domestic luxury shopping in Asia, the recent loosening of travel constraints is likely to cause a dip as consumers begin buying abroad again with malls and department stores fearing a permanent loss of local customers.

Why it is important: Local retailers and Western brands are increasingly pushing for a greater presence in combination with added incentives to leverage the growing consumer power of Asian shoppers while attempting to mitigate the threat of returning international travel.

The reliance brands have established on this demographic necessitates a greater understanding of the new consumer behaviours to properly invest in different regions for local or intra-Asian travel. According to predictions, Asian shoppers are expected to account for over half of the global luxury goods market. The pandemic had accelerated the luxury industry’s efforts to serve Asian customers where they live, work and socialize across regions. The loss of international tourism also led many retailers to focus more heavily on local consumers.

Local Asian luxury shopping threatened by a return to travel