Milan quietly gears up for return of big-spending Chinese tourists

SOME stores in Via Montenapoleone, the heart of Milan’s most exclusive shopping area, are displaying clothes and accessories dedicated to Chinese New Year after two years of pandemic disruptions, even though Chinese tourists are yet to return to the Italian city in big numbers.

On and around the elegant street, stores such as Salvatore Ferragamo, Loewe and Hublot have placed clothing and backdrops featuring meadow and rabbit motifs in their windows, as China prepares to usher in the Year of the Rabbit.

Other shops have opted for a more subtle approach, displaying small capsule collections of essential fashion items while discreetly applying the theme to their interiors.

Upmarket department store La Rinascente has taken this approach by showcasing, for example, a collection from Italian luxury brand Gucci, and also giving prominence to spirits popular among Asian customers on its shelves.

Mariella Elia, chief financial officer of La Rinascente, said that Chinese business travellers have been returning to Milan since last autumn. The retail group, which has stores in other cities including Rome, was looking forward to a bigger upturn.

“We expect a return to pre-pandemic levels from the third quarter of 2023,” she said, adding that Chinese tourists “have always been an important group of customers” for the company.

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With travel curtailed, spending by Chinese nationals had dropped to as little as 17 per cent of the global personal luxury goods market last year, consultancy firm Bain estimated. This was compared to 33 per cent in 2019.

Malls from Macau to Bangkok are aiming to lure Chinese holiday shoppers with red-lantern displays, special dances and discounts.

In early 2020, before the pandemic, La Rinascente had a bright red window display to mark the Chinese New Year and also purchased advertisements in China. It expected to resume that advertising next year. REUTERS