Because the specificity of duty free products, Chinese people only can buy duty free products overseas, which means people only can buy duty free products when he travels overseas. In general, the target group of DFS is aiming to Chinese who travel overseas (travel to the areas which have DFS stores), however, the products (luxury goods) which sell in DFS force to divide the target group precisely.
Overall, domestic shopping malls, boutiques overseas and duty-free shops are three favorite places where Chinese people buy luxury goods. Leather goods, watches and jewelry are main consumptions when Chinese people go abroad.
The assets class of this kind of customers is under ten million yuan, they are price-sensitive and 33% of this class prefers to buy products in duty free shop, followed by purchasing in boutiques abroad 22%, and the third is domestic shopping mall 21% (see picture 3.1). Ordinary consumers are more inclined to buy the primary luxury items such as perfumes and cosmetics (33%), leather goods (31%) and clothing (27%) (See picture 3.2). It’s interested that ordinary consumers favor top brands’ leather goods due to the differences between domestic and international prices.
When assets of consumers are between ten million and fifty million yuan, this kind of consumers are called upper class consumers. Upper class consumers give preference to boutiques abroad (32%), duty free shops (30%) and domestic shopping malls (17%) (See picture 3.1). It was noticed that upper class consumers and plutocracy consumers all prefer top luxury goods such as jewelry (26%) and watches (19%). These two classes also buy leather goods (21%), but they are likely to buy the limited edition, special skin bags and personal customization (see picture 3.2).
Plutocracy means that assets of customers are over 50 million yuan, the proportion of boutiques abroad stores reached to 39%, followed by duty-free shops (26%) and domestic shopping malls (15%), in addition, they also like buy luxury goods through the activities and exhibitions (13%) (See picture 3.1).