By now, we all know China is the largest travel market and biggest opportunity for luxury brands, but what do the biggest consumer base in the world actually want? Lee from Reuter: Intelligence shares some of the latest emerging trends in Chinese luxury travel.
With reports of Chinese outbound travellers expected to reach anywhere between 200 and 240 million by 2020 and tourism revenue within China growing at more than double the rate of GDP growth, the country represents the leading market for hospitality brands. This is particularly true for luxury, with any key report from Bain & Co to McKinsey charting China to be responsible for 45-50 percent of global luxury consumption by 2045.1
Chinese cities are ultra-competitive environments with relentless construction, traffic and transport hubbub, and little green-space. This has given rise to a huge trend in consumers looking back to nature, craving countryside escapes, beach retreats and fresh air, while in the city, the fitness industry grows so rapidly that new gym brands pop up on a weekly basis and social media posts make it seem as though affluent consumers live in the yoga studio.
Culturally, China has long been a foundation for the health & wellness mindstyle.
- Vegetarianism is a key part of China’s Buddhist history, and Traditional Chinese Medicine’s adherence to natural life forces are a key aspect – still today – of general wellness beliefs and treatments. This, coupled with the sheer market size and an urge to escape city concrete, make China the leading driver for global wellness travel.
- The Chinese government is committed to a health drive, with ‘Healthy China 2030’ promoted by the State Council, including plans for 530 million people to regularly exercise and an aim to extend the country’s average life expectancy to 79 by 2030.2
- At least 15 million Chinese have gym memberships while the country counts 10 million yoga practitioners. Lululemon now has 10 stores in mainland China, having entered the market in 2016 with just three outlets. French sporting goods and apparel chain Decathlon grew sales by 34 percent in 2016 on the back of 51 new store openings, which brought its total in China to 214.3
- 40 percent of adults in China said they experience a lot of stress daily. Health really is the new wealth – the modern, aspirational generations view ‘all things healthy’ as desirable additions to the lifestyles that they live and present, and this is in all forms; not only exercise and fitness, but eco-friendliness, sustainability and holistic wellbeing.4
For a closer look at Chinese luxury consumers, download our insight report MindStyle: The New Generation of Health & Wellness Travel, produced in partnership with Reuter Communications.