What: A new study shows Chinese consumers are transforming from traditional 'tourism shopping' to 'retail tourism,' with over 70% planning shopping activities during travel and seeking enhanced cultural experiences at retail destinations.

Why it is important: This transformation signals a critical shift in global retail tourism, where success now depends on creating immersive cultural experiences rather than just offering products, forcing retail destinations worldwide to rethink their approach to Chinese consumers.

A comprehensive study by the China Tourism Academy and Value Retail highlights a fundamental shift in Chinese consumer behaviour, with nearly 95% of surveyed travellers incorporating shopping into their journeys and over 70% considering it during travel planning. The research reveals that consumer expectations now extend beyond simple purchasing, focusing on diverse, theme-driven experiences. This trend is exemplified by the success of Bicester Collection's Shanghai and Suzhou villages, which saw visitor numbers increase by 30% compared to 2019 levels, while sales revenue doubled and average spend per visit rose by 80%. The report emphasises that successful retail tourism destinations must integrate enhanced cultural experiences, responsive customer service, supply chain innovation, and digital technology. The average spending range of JPY 2,000-5,000 (USD 280- USD702) indicates a significant market opportunity for destinations that can effectively combine shopping with meaningful experiences.

IADS Notes: The China Tourism Academy's findings align with significant shifts in Chinese consumer behavior documented throughout 2024. According to Savills' April 2024 report , Chinese consumers are increasingly prioritising entertainment and experiential retail, with major cities dedicating up to 16% of retail space to entertainment zones. This evolution is further evidenced by innovative retail partnerships, such as DFS and Douyin's "phygital" shopping experience launch in March 2024 , catering to the new generation of digitally-savvy consumers. The success of Bicester Collection's China locations mirrors broader market trends, where Chinese luxury spending is projected to reach USD 88 billion by 2028 . While Chinese tourists are returning to international travel, their behaviour has notably shifted, with a focus on experiences over traditional shopping . This transformation is particularly visible in successful retail destinations like Shanghai, where the Tourism Festival demonstrated how cultural integration and experiential offerings are becoming crucial drivers of retail success. The trend is further validated by SKP's successful expansion in Wuhan, where the integration of youth culture and luxury retail generated significant sales, confirming the market's appetite for experience-driven retail concepts.

Retail tourism fuels China’s consumption growth