Chinese millennials have seen the benefits of economic reform and social stability, and with more disposable income and education than their elders, they are fueling luxury spending around the world.
There are an estimated 300 million Chinese millennials — those born between the early 1980s and 2000 — and China’s investment in education has paid off. Nearly 25 percent of this demographic has attended university or another institute of higher education, according to Value Walk. With this education, these young Chinese are landing white-collar jobs, giving them more disposable income than their parents’ generation.
That disposable income is increasingly going to travel. China’s millennials typically take four trips outside of the country per year, twice as many as their peers from the rest of Asia.
Though Hong Kong and Macau were the favorite travel destination for their parents, millennials are looking to travel further abroad.
Due to the popularity of Korean pop culture in China, South Korea has become one of the favorite destinations of millennials. It is estimated that just under half of all visitors to South Korea aged 20 to 40 were from China. By 2020, Chinese tourists are expected to spend over $29 billion in South Korea per year.
A new report from HSBC, “Globe-trotting Shopper,” reveals that the favorable exchange rate with the euro is once again making Europe an attractive luxury shopping destination as well. Chinese account for almost one third of global luxury spending, but two-thirds of that spending is abroad. Chinese tourists represented 40 percent of all luxury sales in France, 35 percent of luxury sales in Italy, and 25 percent of luxury sales in the U.K., according to CNBC.
image source: morbcn, value walk