Chinese tourists are flocking to Japan to indulge in luxury shopping, with their spending power reaching levels comparable to before the Covid-19 pandemic. According to LVMH Group, the Asian market, especially China, has been a significant contributor to the company’s strong performance in the first half of 2023.
Sales revenue in the Japanese market alone witnessed a remarkable 31% increase during the first six months of the year. Meanwhile, the Asian market, excluding Japan, experienced a 23% growth. LVMH Group’s chief financial officer stated that the recovery of overseas consumption by Chinese tourists has been a driving force behind this growth. Although Chinese tourists have not yet fully returned to Europe, their buying power in Japan has rapidly rebounded and is now nearing pre-pandemic levels.
The Japan Department Store Association recently released sales data for June, which highlighted the surge in duty-free purchases made by Chinese tourists. Sales of duty-free goods reached approximately 28 billion yen, marking a staggering 4.2-fold increase compared to the same period last year. This rise in sales can be attributed to the growing number of tourists from mainland China returning to Japan, particularly favoring cosmetics and high-end brands.
The recovery of Chinese tourism in Japan has had a positive impact on various sectors of the country’s economy. The increased spending by Chinese tourists is not only benefiting luxury retailers but also boosting the overall tourism industry in Japan.
As Chinese tourists continue to show their eagerness to shop, Japanese retailers are stepping up their efforts to cater to this lucrative market. From offering exclusive discounts and promotions to providing personalized services, businesses are keen to attract and retain Chinese tourists’ patronage.
It remains to be seen how long this trend will continue, especially as international travel restrictions fluctuate due to the ever-evolving Covid-19 situation. However, for now, the Chinese tourists’ love affair with luxury shopping in Japan seems to be thriving once again, offering hope for continued economic recovery in both countries.