Research On Influencing Factors Of China Duty-free Market

Begin with 1980’s,outbound tourism and consumption of luxury products as well as other activities becoming increasingly popular among Chinese people,along with the deepening reform and opening-up as well as steadily rising of the people’s living standard.Meanwhile,as China gradually plays an actively role during international communication and activities,inbound service level promote rapidly,it can be found more and more international traveler are more willing to have a visit and sightseeing in China.Those travelers with consumption potentials becomes the major group of duty-free products customers,whose consumption behavior continually stimulating China,even the international duty-free market’s prosperous.Recent years,following with relevant policies,such as the supply-side structural reform,the consumption standard of citizens rises accordingly.Those appropriate environment brings the rapid development of China duty-free market.Those reality motivate the consumption reflux back,market environment stabled in some degree,also,incurs the highly attention among whole duty-free industry as well as numerous premium brands.Therefore,under economic environment nowadays,China duty-free market deserves more attention and better development chance.In order to get deeper understanding of China duty-free market,the writer begins with the file consolidation towards on duty-free market development status and relevant research,then use econometrics and other methods to do the empirical study on related factors of China duty-free market,research the impact of those listed factors,so as to discover the related suggestion on the development of China duty-free market accordingly.Start with listed three aspects—travel,luxury consumption and relevant economic factors,this article set up with Lasso model basis on former work,and select the stronger factors in the end.According to the analysis of the model,there are three findings: Firstly,China duty-free market more influenced by consumption level of the citizens in China.Secondly,the stimulate function of domestic consumption towards on luxury goods more effectively than it happens in overseas.Finally,it can be expected that positive influence will be more obvious if travelers of China transfer their purchasing power from overseas back to China.