Limited-edition exclusives, tax refunds: Chinese luxury consumers in Japan

In 2024, Japan’s luxury sector rode high on a currency-driven boom. A weaker yen had sparked a wave of international tourism and luxury spending, lifting sales across top global brands. Cartier-owner Richemont, for instance, saw revenue in Japan soar 59% year-on-year in its fiscal first quarter, followed by consecutive quarters of 20% to 25% growth. The country’s appeal was magnified as the Bank of Japan ended its negative interest rate era and the yen slid to a near 38-year low, crossing 161 yen to the U.S. dollar. That weakness turned Japan into the ultimate luxury shopping destination, especially for Chinese travelers seeking value. “Indeed, due to the weak yen, Japan has increasingly been seen as a ‘luxury bargain’ destination over the past year or two. The trend has become particularly evident from last year to this year,” says Japanese fashion journalist and consultant Elie Inoue. “For Chinese travelers, luxury brands are clearly more affordable in Japan than in their home market, and the tax-free benefits make shopping even more appealing.” Though fast forward to 2025, and the picture looks more nuanced. On the surface, the numbers still dazzle. According to the Japan National Tourism Organization (JNTO), more than 6.7 million Chinese tourists visited Japan in the first eight months of 2025, up from 4.6 million a year earlier. Yet behind the travel surge, spending patterns tell a more complex story. Richemont reported that its Japan sales fell 15% year-on-year in Q1 fiscal 2025 (April-June), albeit against a demanding comparative from the prior year. Other luxury groups such as LVMH, Kering, and Burberry have noted similar softening as favorable exchange rates normalize and shoppers grow more price-sensitive. Japan’s Ministry of Land, Infrastructure, Transport and Tourism reported that the average shopping expenditure by Chinese visitors dropped 29% year-on-year in April-June 2025 to 97,162 Japanese yen ($659). In other words: more visitors, but smaller baskets. Shopper stories Still, Japan remains a “luxury bargain” by global standards. “In areas like Ginza and Omotesando, shoppers are not only seeking classic pieces from popular brands but are also drawn to limited editions and collaboration items, things that can only be found in Japan,” says Inoue. “In that sense, the mindset has shifted from simply ‘buying because it’s cheaper’ to ‘buying something special while in Japan.’” That sentiment is reflected by Chinese netizens’ conversations, with a focus on what can only be bought in Japan — a trend that is also fueling an appetite for limited-edition exclusives among the new generation of luxury consumers. Blogger @bobo captures the mood in a post: “Japan is a shopper’s paradise with tons of new releases, and they even have limited editions exclusive to Japan. The exchange rate is great, and the prices are [thumbs up].” The yen has dropped more than 25% against the yuan over the past five years, making goods in Tokyo’s Ginza or Kyoto’s boutiques roughly 20% to 30% cheaper than in mainland China. This perception of value continues to draw a new wave of short-stay, high-spending visitors, tourists who plan tightly, spend deliberately, and post obsessively. On Xiaohongshu (also known as RedNote), the hashtag “JapanShopping” boasts over 846 million views, filled with influencer guides to tax refunds and limited-edition drops. Many travelers now treat Japan as a destination for “strategic consumption” exhibiting on brief but intentional trips. Blogger “Yu eats grapefruit” (@昍妤吃柚子) described her four-day Osaka itinerary in a post on Xiaohongshu: “I came to Osaka just for USJ [Universal Citywalk Osaka]… I didn’t buy too much stuff, just things I couldn’t find in China, and I could get a tax refund, which was super cost-effective!” Her spontaneous purchase of a Chanel makeup bag and Miu Miu pieces due to the price post-tax refund and the items being sold out in China, illustrates a mix of value hunting and exclusivity seeking. Luxury wellness vacations Xiaohongshu consumption stories signal a broader shift in Chinese luxury behavior. According to JNTO, wellness travel now ranks among the top draws for Chinese visitors. Hashtags like “HealingSpa” (治愈温泉) (preodminantly referencing Japan) have amassed more than 145 million views on Xiaohongshu, featuring watsu, a form of aquatic bodywork, and other Japanese water-based therapies. “Travelling to Osaka is not just about food and shopping; those who truly understand life will also set aside time for a dialogue with their body and soul,” blogger “Summer dream in Japan” (夏梦在日本) posted on Xiaohongshu. Beneath the evident travel frenzy of the past two years lies a more cautious consumer. Many Chinese visitors are tightening budgets as domestic economic sentiment weakens. While they still travel, they spend more selectively, prioritizing price sensitivity and exclusive purchases. Value perception now evidently outweighs prestige. Even affluent travelers compare prices, chase limited editions, and expect tax efficiency. Ultimately, Japan’s luxury scene reveals how currency, culture, and consumer psychology intertwine and are constantly in flux.

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Limited-edition exclusives, tax refunds: Chinese luxury consumers in Japan