China’s wealthy usually head overseas to go on luxury brand shopping sprees.
But now one high end shopping mall in Shanghai may save them that trip.
Gucci, MCM and Versace are among the famous luxury brands on sale in a shopping mall on the outskirt of Shanghai. And prices are cheaper at the mall than in downtown stores.
Zhang Yanlin is shopping with her boyfriend at Mega Mills, a luxury shopping outlet on the outskirt of Shanghai. Brands like Gucci and MCM are popular among shoppers here, and Zhang has also found the discount store of her favorite brand Versace.
According to research results published by Bain & Company in December 2013, Chinese purchases made up 29 percent of the global luxury market last year.
However, due to hefty import tariffs, consumption taxes, and higher pricing strategies, foreign luxury brands are typically 30 to 80 percent more expensive in China than in their home markets.
As a result, many Chinese shoppers are picking their shopping spots overseas. Bain & Company reports that 60% of Chinese luxury purchases are made outside the mainland.
CCTV’s Wang Lihuan reports from Shanghai.