Favourable exchange rates boost Chinese spending in Russia

Despite facing an economic slowdown, data from the Moscow tourism department shows that 1.2 million Chinese tourists visited Russia in 2015, spending nearly $1bn, with many buying luxury goods. Anush Gasparyan of Fashion Consulting Group, attributes this to the yuan exchange rate against the rouble having almost doubled over the past year, making Russia relatively cheap for Chinese visitors. Also, consumers in China can pay up to 70% more for luxury goods than in Europe prompting some to shop abroad. Russian retailers have also lowered their prices to bring them more in line other European countries.

Despite the economic slowdown, the sale of luxury goods in Russia is going well. The number of Chinese tourists in Russia increased by at least one third in 2015, with many of them buying up Russia's luxury goods like never before.

According to Anush Gasparyan, commercial director of Fashion Consulting Group, the explanation for the trend is quite simple. Over the past year the yuan exchange rate against the ruble has almost doubled. Moreover, there is a very high tax on luxury goods in China and the prices for them are almost 70% higher than in Europe.

"So it would be logical to assume that buying luxury goods [in Russia] has become more advantageous for residents of China," Gasparyan said.