Figures from retail tax-refund services company Global Blue show that spending on luxury goods by Chinese tourists fell in March for the first time since records began in 2010. Consumers from China represent almost a third of the global luxury goods market.
According to Global Blue’s data, overall tourist spending on luxury items, including branded leathergoods, fell 14% last month, with Chinese tourists spending 24% less year on year. Europe suffered the most with a drop of 35% in spending by Chinese people, a figure attributed to a reduction in tourism due to terrorist attacks in Paris and Brussels.
LVMH and Burberry were amongst the luxury groups to report a drop in tourist spending in Europe at the start of 2016. This led to disappointing sales figures across the continent during the first quarter of the year.
Burberry reported revenues of just over £1.4 billion for the six-month period ending March 31, 2016 which represents a 1% decline year on year. LVMH reported first quarter revenues of $8.6 billion, a 4% increase from the first quarter of 2015, but revenue within the fashion and leathergoods division was flat.
Report by Leatherbiz