Shanghai Shoppers Outspend New Yorkers In Luxury Purchases: Study

February 6, 2014Chinaby EW News Desk Team

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Wealthy Shanghai consumers spent nearly double what their counterparts in New York did on their last luxury purchase, according to a new study by Milan-based digital marketing firm ContactLab, with four out of five Shanghai residents claiming to have purchased at least one luxury item over the past 12 months.

ContactLab’s survey, which sampled 1,000 residents between the ages of 25 and 54 in both cities, found that the average Shanghai resident spent around $1,000 for their last luxury purchase, compared to $500 in New York.

On top of that, 91 percent of luxury shoppers surveyed in Shanghai said they plan on spending a similar amount in the next six months, whereas only 77 percent of such New Yorkers said they would be splurging on high-end goods.

Shanghai residents also planned to shell out, on average, 66 percent more on luxury items than New Yorkers plan to spend, according to ContactLab.

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The two cities also displayed different shopping patterns. For instance, in Shanghai, the number one source of information about a purchase is the advice of family and friends, which only ranks third for New Yorkers. In New York, the top influencer for shopping was by reading magazines.

The figures aren’t surprising, according to the International Business Times, considering that Morgan Stanley estimated Chinese travellers will top the list of luxury spenders by 2015, thanks to their expanding middle class.

However, a recent anti-graft crackdown by the government may reduce the scale of luxury spending. Last year, the government banned the broadcast of advertisements for luxury items on its state radio and television stations as part of the campaign.

The Communist Party of China’s Central Committee have also issued a 5-year anti-graft plan (2013-2017) that will see a new system in place to punish and prevent corruption – this include use of public funds for luxury gifts.

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