Chinese business experts are reporting that it seems that Chinese shoppers who choose to spend their money on luxury brands should be able to receive a reduction in tax should they choose to spend their money on luxury brands that are sold within China.
According to recent reports many Chinese people are going abroad each year to vote with their feet and take their business to foreign countries such as France in order to buy luxury bands. Chinese business experts have made it quite clear that the Chinese government needs to encourage the purchase of luxury brands within China as it is harming the Chinese economy, as the Chinese feel that they need to go abroad in order to source their designer brands. Some reports show that Chinese shoppers have been found buying up to 20 bags in a Louis Vuitton store in France in one single purchase.
This is clearly a ludicrous situation for the Chinese economy and it seems that a lack of choice and high taxes on designer brands are causing the Chinese population to prefer to shop abroad. Experts say that in order to encourage more onshore purchasing then taxes need to be lowered and a greater choice of luxury items and brands should be on sale within China.
It seems that there are a variety of reasons why the Chinese are not spending their money in China but the main causes appear to be a lack of fake goods, a strong Yuan and very little choice when it comes to higher value goods such as bags and shoes. Many Chinese tourists visit France for the sole purpose of stocking up on designer goods and it seems that many Chinese travel agents are well aware of the average Chinese tourist’s spending patterns.