Holiday Shopping; Consumers from Russia, China and India Tend to Look Local but Buy Global

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Byline: Emily Flynn Vencat

The Chinese may be en route to becoming the world's top luxury-goods consumers, but luxury sales in China are still shockingly low. That's because the resident rich do almost all their shopping abroad. For every dollar they spend at home on luxury goods, they spend three during trips to such places as Hong Kong, Europe and Japan. Sales in mainland China account for only 2 percent of the global luxury trade, but Chinese buyers are responsible for 11 percent of overall sector sales.

It's not hard to explain the discrepancy. In emerging economies taxes are high, accessibility of luxury shops is often low and, as more people travel abroad, it …