2016年CRI Younger Chinese Tourists to South Korea Pursue Local Brands over Global Luxury Ones（在线收听）

Statistics show that Chinese tourists visiting South Korea are getting younger.

The share of those in their 20s and 30s rose to 46 percent last year, from 41 percent in 2013, according to the government-run Korea Culture and Tourism Institute.

While older Chinese tourists typically travel in groups where they are ferried between shops catering to them, Chinese millennials tend to be better-informed about what they want, travel independently and spend less on shopping.

20-year-old Chinese tourist Liu Yuting is one of them.

"I use my mobile phone to research what products to buy in South Korea, it is very convenient. Many Chinese girls like South Korean products, because most of them are cheap and cute."

This new trend is reflected in data which shows that Korean cosmetics like LG Household & Healthcare's Whoo and Amorepacific's Sulwhasoo were the top-selling brands in 2015, overtaking Louis Vuitton, Chanel and Cartier.

Average prices on best-selling items from global luxury brands in South Korea are cheaper than they are in mainland China, but still cost more than in Europe.

This has also driven more Chinese tourists in Korea, like 21-year-old Zhu Xin, to local bands.

"You can buy those big brands everywhere, and it is actually cheaper to buy those brands in other countries compared to the prices in South Korea. I think now that we are here, we should buy local brands. Many local brands are of great quality."

In analyzing the latest trend, KB Investment & Securities analyst Yang Ji-hye believes Chinese consumers have become more rational.

"Young people are taking the lead in Chinese tourists' spending. Whereas past generations blindly purchased luxury goods, the younger generations have a reasonable consumption pattern. They have increased their preference for Korean cosmetics and fashion brands which have a fresh and refined image."

The number of Chinese tourists to South Korea dipped 2.3 percent in 2015 to about 6 million due to the deadly Middle East Respiratory Syndrome outbreak.

However, brokerage CLSA says Chinese inbound traffic growth rebounded from September and should jump by 28 percent in 2016. The South Korean government expects a record 8 million Chinese visitors this year.

For CRI, this is Liu Xiangwei. 

(Source: APTN)