Recently, Japanese media released both good news and bad news, both related to Chinese tourists.
First, the good news: the number of Chinese tourists visiting Japan has increased significantly. In the first half of the year, the total was 4.7183 million, a 53.5% increase compared to the previous year. In June alone, the number reached 725,700, setting a new high since the resumption of outbound tourism in 2023. Now for the bad news: although more people are coming, they are not shopping as much. The average spending per Chinese tourist in the second quarter decreased by 29% compared to the previous year.
Facing the situation where the number of visitors is increasing but revenue is not, Japanese media lamented that "luxury brands are facing a tough battle in Japan." It's no wonder Japanese media feel discouraged, given the huge disparity. In 2019, mainland tourists' luxury consumption drove a 4% annual growth in Japan's personal luxury market, accounting for over 60% of the country's luxury sales. Now, to increase revenue, Japan is studying changes to tax exemption policies, including refunding taxes plus a national tourist tax plus differentiated usage, aiming to convert part of the tourism benefits into a stable source of government revenue.
It's not just Japan. For many tourist countries, Chinese tourists are like "cash cows," and their market needs the excess consumption from China. Besides attracting Chinese tourists, many foreign brands are also trying to embrace the Chinese market. For example, recently, some foreign media pointed out that outdoor consumption in China is booming, and foreign big brands are rushing to enter the Chinese market.
The upcoming National Day holiday is an example. Everyone is preparing for outdoor activities. On Vipshop alone, the sales of imported big brands such as New Balance, KEEN, Adidas, and Lafuma have all seen double-digit growth since August. The combination of big brands and discounts is very popular among Chinese youth. According to another data, the penetration rate of outdoor activities in China is currently only 28%, far lower than 55-62% in Europe and the United States. It is expected that by 2025, the retail turnover will reach 600 billion yuan, and foreign brands have seen the market potential.
Previously, a CEO of a foreign brand stated, "If you haven't laid out your presence in the Chinese market, you can't be considered a global brand." I think this sentence could be added with another one: "If you can't attract Chinese tourists, you can't be considered a tourist power." For many tourist countries, Chinese tourists are crucial to the prosperity of their local tourism, which is why they are worried about both the low number of tourists and the fact that they don't spend money.
Original article: www.toutiao.com/article/1844146723618824/
Statement: This article represents the views of the author.