The rise of the globe shopper.

By Manelik SFEZHead of global partner & corporate marketing, Global Blue group.

April 10, 2023.

Globe shopperGlobe sho per – [glohb ∙ shop-er]

Noun: A person who regards shopping as a fundamental part of their travel experience.

Russian travellers

48%

Shopping is a vital part of their trip.

82%Chinesetravellers

56%Middle-Eastern travellers

Source: Global Blue Review.

Over

JapanRussiaUSA

20% 30%MalaysiaSingaporeThailand

Over

Source: Global Blue transactional data.

Global increase of tax-free amount spent in 2012.

50%China

Over

50-60%The estimated worldwide share of luxury goods, which are sold in

relation with a travel.

The customer of a luxury brand today.

Globe shoppers60%

Local customers40%

4 timesGlobe shoppers spend 4 times more than the locals

at high street retailers.-- Global Blue transactions since 1980.

It takes 5 locals to beat 1 globe shopper.

1 globe shopper60%

1 local10%

1 local10%

1 local10%

1 local10%

30%Retail prices of many luxury goods are this much higher on

the Chinese mainland than in Europe.-- China Daily.

80%’80% of our customers at Chloe are Chinese who leave with

a handful of bags.’-- ZHOU Mi, a Chinese-speaking assistant for Chloe.

“Foreign visitors are an economic boon, not a curse”

-- Andrew NEATHER, London Evening Standard.

The globe shopper market.Facts & figures, and beyond.

23,000,000Tax-free transactions completed by Global Blue every year.

23,000,000Amount Spent, Average Spend, and Transaction Count.

23,000,000268 different passports eligible to a tax refund.

23,000,00038 countries with an active VAT refund scheme.

23,000,00019 different categories of goods eligible to a tax refund.

World’s top 5 globe shopper nations by amount spent.

China25%

Russia16%

Japan5%Indonesia

4%USA4%

OTHERS47%

Source: Global Blue Analytics – Time period: Jan – Dec 2012.

Source: Global Blue Analytics – Time period: Jan – Dec 2012.

World’s top 10 tax-free destinations by amount spent.

Paris16%

London12%

Singapore12%

Milan5%Rome

3%

OTHERS51%

Growth of top 5 globe shopper nations by amount spent.

ChinaRussi

aJapan

Indonesia USA

MARKET

58%

31%

38%

28%

23%

30%

Source: Global Blue Analytics – Time period: Jan – Dec 2012.

Top 5 globe shopper nations by average spent.

China

Malaysia

Thailand

Indonesia USA

MARKET

€ 875

€ 778 € 765

€ 640 € 632

€ 485

Source: Global Blue Analytics – Time period: Jan – Dec 2012.

The world’s N°1 globe shopper nation.

China

Source: Global Blue Analytics – Time period: Jan – Dec 2012.

Chinese top 3 categories of goods by amount spent.

Watches & Jewellery31%

Fashion & Clothing29%

Department Stores23%

OTHERS17%

47%The share of total tax-free amount spent on Watches & Jewellery

attributed to Chinese globe shoppers.-- Global Blue Analytics, January 2013.

Source: Global Blue Analytics – Time period: Jan – Dec 2012.

Russian top 3 categories of goods by amount spent.

Fashion & Clothing54%

Department Stores12%

Watches & Jewellery10%

OTHERS24%

Source: Global Blue Analytics – Time period: Jan – Dec 2012.

Japanese top 3 categories of goods by amount spent.

Fashion & Clothing45%

Department Stores19%

Watches & Jewellery15%

OTHERS21%

Source: Global Blue Analytics – Time period: Jan – Dec 2012.

Indonesian top 3 categories of goods by amount spent.

Fashion & Clothing37%

Watches & Jewellery22%

Department Stores15%

OTHERS26%

“Four years ago China was one third of our American business, now it’s four times our

American business.”-- Michael WARD, managing director HARRODS

Mid-term forecast of Chinese outbound travel.

Departures in ,000*

2011 2012 2013 2014 2015 2016

39,657 46,429

52,766

60,252

68,219

76,726

Annual growth in %*

2011 2012 2013 2014 2015 2016

22%

13%14%

13%12%

10%

Sources: Global Blue, COTRI, CNTA, CTA, Business Monitor, UNWTO. *Excluding Hong Kong & Macau day trips.

The Global Blue Dossier

The Growing Complexity of the Chinese Globe Shopper

€ 14,570The average amount that Chinese wealthy globe shoppers spend

per trip and on shopping alone in Europe.

Source: Global Blue Dossier: The Growing Complexity of the Chinese Globe Shopper

Chinese luxury globe shoppers’ reasons to shop abroad.

Price (vs. China) Style & design Product quality

63%

49%

37%

Source: The Global Blue Dossier: The Growing Complexity of the Chinese Globe Shopper

Chinese luxury globe shoppers’ top purchase factor.

Brand; 60%

Price; 40%

Source: The Global Blue Dossier: The Growing Complexity of the Chinese Globe Shopper

Chinese luxury globe shoppers’ most purchased brands.

LV Chanel Gucci Dior Hermes Cartier Burberry Omega Prada Rolex

63%

52%

41%

24% 22% 21%18% 18%

12%7%

Source: The Global Blue Dossier: The Growing Complexity of the Chinese Globe Shopper

Chinese luxury globe shoppers’ top purchase channels.

Brand store down-town

Duty free store at airport

Shopping mall Department store Brand store at airports

33%

24%22%

18%

3%

27%

35%

15%

21%

2%

Past trip Next trip

Source: The Global Blue Dossier: The Growing Complexity of the Chinese Globe Shopper

Chinese luxury globe shoppers’ incentive expectations.

Discount or tax refund Free gifts Discounts on future purchases

Points redemption

94%

25%

10%

2%

Source: The Global Blue Dossier: The Growing Complexity of the Chinese Globe Shopper

“There's the cultural barrier too, the etiquette is a little different. We want to be in the loop

with how you treat that kind of client and what they expect.”

-- Samantha SACCHI MUCI, co-director MARLY CAMINO

YesterdayMarketing-wise, CUSTOMERS belonged to the country in which

they were living.

TodayMarketing-wise, GLOBE SHOPPERS belong to the country in which

they are shopping.

Travel retailConsiders only points of sales located in travel-related environments.

Globe shopper retailEmbraces the real business of a luxury brand, wherever

the point of sale!

“We're been thinking not like Chinese, but like Europeans. Europe is still the n°1 tourism

destination so far but that may dramatically change if we don't change some patterns.”-- Eduardo SANTANDER, head of EUROPEAN TRAVEL COMMISSION

About Global Blue.Inventors of the Tax Free Shopping concept, and beyond.

We add value where international travel meets shopping.

Global Travel Shopping

Amsterdam Athens Bangkok Beijing Beirut Bratislava Brussels Budapest Buenos Aires Casablanca Copenhagen Düsseldorf Galway Geneva Gothenburg Guangzhou Helsinki Istanbul Larnaca Lisbon Ljubljana London Luxembourg Madrid

Milan Montevideo Moscow New York Osaka Oslo Paris Prague Reykjavik Riga São Paulo Seoul Shanghai Taipei Tokyo St Petersburg Stockholm Sydney Tallinn Tokyo Vienna Vilnius Warsaw Zagreb Zürich

Tax refunds.

Dynamic currency conversion.

Retail technologies.

Marketing services.

Training & education.

Intelligence.

Consulting.

Thank you.Get in touch with us at

intelligence@global-blue.com