Why Do the Chinese Travel Abroad for Shopping?

The Chinese are known for traveling overseas and spending lavishly on shopping. But why do they do this when they already have access to all the brands and numerous shopping malls in China?

Despite having these options, they still shop abroad. Here’s why:

First, China faces a significant issue with counterfeits. While traveling around China, you might come across stores like Polo or Arc'teryx that look identical to the originals but aren't. In the past, counterfeiters sold their goods in shady markets and online to avoid getting caught. Today, they open stores that mimic the original brand stores in logo, design, product selection, and branding materials—everything except the authenticity. These fake stores can be found in malls in Shanghai and elsewhere in China. As a result, Chinese shoppers often prefer to travel abroad to buy genuine products rather than risk buying counterfeits at home.

Another factor is the quality of products sold by Western brands in the Chinese market. Several brands have been known to sell lower-quality goods in China compared to other markets, a fact that has been widely publicized and remains in the minds of many Chinese consumers. Even today, many brands introduce China-specific products made locally at lower quality, leveraging their foreign brand names.

Chinese shoppers also travel to find products and brands unavailable in China. Many brands have yet to enter the Chinese market, and those that have may not offer a full range of products.

Finally, there's the issue of price. Western brands sell at a premium in China to account for added costs. In contrast, in other markets, such as the EU or countries with lower taxes like Dubai, UAE, goods are cheaper. Additionally, Chinese shoppers can get a tax refund, and paying taxes upon re-entry to China is not enforced, further reducing costs.

Overall, Chinese shopping tourism makes perfect sense and is likely to continue.