The makers of luxury clothing, accessories, cosmetics, and perfumes are expanding their reach internationally by targeting travelers. Many of the industry’s leading companies, such as Christian Dior, Louis Vuitton, Hermes, Chanel, and L’Oreal, have opened boutiques in airports and on cruise shops around the world to appeal to tourists, particularly those from Asia, who are seeking luxury clothing, handbags, accessories, and other goods at a discount. Europe is currently the cheapest place to buy luxury goods.
Revenue from travel-related retail, including sales on airplanes, has been rising steadily and is expected to double by 2020. Labels are tapping into this growing market and targeting airports because international travelers are spending increasing amounts of time there and seeking goods that are difficult to find at affordable prices in their home countries. The designer companies are especially focused on customers traveling in Asia and Europe.
While spending related to tourism has grown by double digits this year, the numbers are most significant for Chinese tourists. While they barely accounted for any luxury sales a decade ago, Chinese travelers now account for 29 percent of global luxury spending, despite rising prices for many high-end goods. It is estimated that more than two-thirds of luxury spending by Chinese citizens this year was done overseas, due in part to the high prices of local duties. The number of international trips and the amount of money spent by Chinese citizens are expected to climb as more people from the region travel internationally.
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