China Edge Ltd. Plan. Engage. Deliver. China Market Services for Luxury Retail & Hospitality
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1 China Edge Ltd. Plan. Engage. Deliver. China Market Services for Luxury Retail & Hospitality Conference Highlights Service and Hospitality for High Net Worth Chinese 3 July, 2013, London
2 The China Edge Conference Service and Hospitality for High Net Worth Chinese 3 July 2013, At The May Fair Hotel, London Sponsored by ELLE Magazine The China Opportunity Know Your Customer Attracting and Engaging Customers Reaching Service Excellence
3 Service and Hospitality for High Net Worth Chinese Conference recap video on YouTube:
4 #chinaedge
5 Presentation Outline China is a Must-Have, Not a Luxury China s Global Consumers Engage & Serve Challenges 3-D Toolkit
6 Global Consumers Image: J. Gordon 60% of luxury spend is offshore Consumers driven by experience, exclusivity, gifting not just savings / duty-free Millionaires & middle classes drive growth Trends incl. anti-corruption (short-term, targeted impact); urbanisation (long-term, wide impact) Chinese travel is taking off 83m trips, 67bn spend; 100m by 2015? Top 10% spend over 6,500 per trip
7 Engage & Serve Image: J. Gordon Be relevant & localise But no dragons required! Multiple options for entry / engagement Be buzzy for branding Social media is mainstream & essential Be online for consumer research In Chinese, on Baidu (off Flash) Be welcoming China-friendly service & payments
8 Challenges Intellectual property Register wide & early Monitor & enforce protection is possible Culture & Crisis Understand & adapt to sensitivities Image: Weibo; Business Insider Don t hurt the feelings (like Zadig & Voltaire) Is China a cost or investment? Tailor strategy to resource constraints What s the cost of missing China?
9 China Edge Toolkit Image: J. Gordon Strategy Short & long-term Start at home & develop into China Marketing Proactive, in-market multiplier & consumer targeting Service Leads to home & away sales Culture, language, information Promotions, payments & privileges
10 Thank You! Jeremy Gordon Director, China Edge Connect with me on LinkedIn:
11
12 Hype or Goldmine? $1, $1, $1, $1, $1, $ $ $ $ $- Per person Per person Real opportunity or media hype? Long term trend since 2005 Strong growth in visitor numbers and av. per person spend Source: VisitBritain
13 Who are the HNW Chinese? Young 73% of luxury consumers are under 45 Average age of a millionaire is 37 (vs. 57 in U.S.) New 1st-time buyers accounted for 67% of the luxury growth Majority from 2nd & 3 rd tier cities Brand conscious Brand is #1 driver of luxury experiences Key Segments Modern Business Owners International Professionals Nouveau Riche Second Generation Rich Delegations and Officials Traditional Business Elites
14 Where are Chinese HNWI from? Modern Business Owners International Professionals Nouveau Riche Traditional Business Elites Second Generation Rich Government Officials Hong Kong Taiwan
15 What Motivates HNWI Chinese? Sense of self Luxury consumption helps show that one has arrived Traditional culture of Face is central to this feeling Drivers Extend Business / Asset Portfolio Education for Self / Children Relaxation or Adventure Shopping for Self / Gifting Health and Beauty
16 Catering to HNWI Chinese Respect & Understanding Overcome instinctive distrust Engage at a personal level Learn to see beyond the clichés Key Issues Information Trust Loyalty Cultural Understanding Food
17 Reaching HNW Chinese Have a multi-channel strategy and marketing plan To push demand & ensure appropriate distribution Localise wisely with bespoke content Not simply translation And protect your brand well Have a clear focus of your target market As China is too big and complex to cover it all Where? In the UK Chinese Travel Trade Chinese Media Digital Marketing Social Media
18 Thank You! Roy Graff Director, China Edge Connect with me on LinkedIn
19 #chinaedge
20 Millionaires Online When they are not on social media sites they are on news portals 63% prefer Sina 35% prefer Sohu 83% of Chinese millionaires use the internet daily They frequently engage & curate content on social media
21 Online Engagement China boasts the highest social and ecommerce engagement of any country The social media landscape is highly segmented with niche platforms for specific audiences
22 Organic and Paid Social Weibo has many paid options Reach 100% of your fans with Weibo s new promoted posts Great for competitions or events Weibo is not the Chinese Twitter It has a mix of functionalities from both platforms
23 Organic and Paid Search Browsing habits of Chinese audiences are fundamentally different Don t need an overly simplified customer journey More willing to find the information they need Google Baidu Baidu BrandZone is a powerful tool But can be expensive
24 Thank you! Arnold Ma Director, China Edge Connect with me on LinkedIn uk.linkedin.com/pub/arnold-ma/26/44b/99
25 #chinaedge 25
26 Services to Foreign Visitors Language(s) Online & in-store Transaction services UnionPay, cash options Specific cultural norms and customs Helps drive transactions
27 Peaceful & Harmonious Culture Competition & Conflict Maintain inner harmony Non-assertive approach 27
28 Face Lian Confidence of society Mian Zi Prestige, reputation 28
29 Reciprocity Receive Repay Exchange value Mutual benefit Sustain the net 29
30 Relationships Guanxi Harmony Reciprocity Face Trust 30
31 Thank you! Yu Sun Director, China Edge 31 Connect with me on LinkedIn
32 The China Edge Directors Jeremy Gordon Strategy & Risk Roy Graff Travel & Tourism Arnold Ma Digital & Social Yu Sun - Training Michaela Wolf Luxury Marketing
33 Jeremy Gordon Over 20 years China experience in trade, investment and consulting Director of China Business Services, focused on strategy & risk Previously China Business Specialist at UK Trade & Investment (UKTI) China luxury experience includes: Publishing, jewellery, retail, private club
34 Roy Graff Over 18 years of hospitality, retail and tourism industry experience in China Led the development of independent travel business in China on behalf of Gullivers Travel Associates Fluent Mandarin Chinese speaker and student of Chinese philosophy, literature and poetry Managing Director of ChinaContact, working with luxury businesses on strategies and implementation of China market access
35 Arnold Ma Digital Marketing Director at Qumin, London s first UK-China Digital Agency Digital Marketing experience on both client and agency side Hands-on China Digital experience includes: Luxury/Fashion, Education, Technology, Travel, etc. arnold@chinaedge.co.uk
36 Yu Sun Cross-cultural consultant with special focus on Anglo-Chinese communications in business Provides cross-cultural training, coaching and business strategies to international companies to improve business performance through effective communication Has worked with the Shanghai government and European Commission as a senior project manger, and as a trainer for Harrods yuyu@chinaedge.co.uk
37 Michaela Wolf Experienced luxury marketing executive & consultant Expertise in 360 Degree customer relationship management strategies to deliver direct ROI, using new technology and digital experiences Well connected in the luxury sector in the UK and internationally
38 China Edge Ltd. Plan. Engage. Deliver. China Market Services for Luxury Retail & Hospitality
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