New research from JGOO, the next generation mobile payments platform, reveals the fall in Sterling could see a surge in Chinese citizens buying British goods online and visiting the UK.
JGOO’s research with Chinese citizens reveals that of those currently buying British goods online, 85% intend to purchase more because of Sterling’s fall in value. 15% intend to increase their expenditure here by over 10%, and 4% plan to spend over 20% more.
The UK could also see a surge in Chinese tourists. JGOO’s findings reveal that 53% of Chinese citizens planning to visit the UK in the next 12 months said a key factor behind this is the fall in value of Sterling. Only 34% said this was not a primary reason for their planned visit (13% said they didn’t know). Furthermore, of those planning to visit the UK, 88% think they will spend more as a result of the fall in the Pound. Nearly one in four (22%) anticipated that they will spend 11% or more as a result of this.
Analysis of industry data from JGOO reveals Chinese citizens made 391,380 visits to the UK in 2018, which was an increase of 16.09% on 2017. Last year, Chinese citizens spent £656.68 million when they visited the UK, spending on average £1,678 per visit.
Richard Morecroft, Director and Co-Founder of JGOO said: “The UK and London in particular, remains a top destination for many Chinese travellers who prize British branded goods, as well as the quintessential British experience.”
“Our research makes for exciting reading for the UK’s tourist industry and retailers. However, many are not geared up to sell in China, or have the necessary payment systems in place to commercially engage properly with Chinese consumers and tourists.”
“Given the pressures British businesses are under with Brexit and other challenges, more should be looking to see how they can engage with the second largest economy in the world and the biggest global tourist spenders. Chinese tourists account for around one fifth of the world’s total spending on tourism.”
Through their official partnerships with WeChat Pay and Alipay, JGOO provides brands with direct trading access to the Chinese market, connecting UK and European brands to Chinese shoppers and tourists. It not only provides a payments gateway for them to pay for British goods when visiting the country or when buying online via WeChat Pay and Alipay, it also has a team of Chinese nationals in the UK to help clients develop social media marketing campaigns via the WeChat platform – China’s most powerful marketing tool.
The findings from JGOO’s study have been highlighted in a report titled ‘Chinese consumers and their growing focus on the UK’.