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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
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• The China Opportunity • Know Your Customer • Attracting and Engaging Customers • Reaching Service Excellence
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
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Service and Hospitality for High Net Worth Chinese
Conference recap video on YouTube: http://youtu.be/rSsLISFcruM
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#chinaedge
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• China is a Must-Have, Not a Luxury
• China’s Global Consumers
• Engage & Serve
• Challenges
• 3-D Toolkit
Presentation Outline
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• 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
Global Consumers Im
age: J. Gordon
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• 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
Engage & Serve Im
age: J. Gordon
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• Intellectual property • Register wide & early
• Monitor & enforce – protection is possible
• Culture & Crisis • Understand & adapt to sensitivities
• 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?
Challenges
Image: Weibo; Business Insider
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• Strategy • Short & long-term
• Start at home & develop into China
• Marketing • Proactive, in-market multiplier &
consumer targeting • Leads to home & away sales
• Service • Culture, language, information
• Promotions, payments & privileges
China Edge Toolkit Im
age: J. Gordon
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Thank You!
Jeremy Gordon Director, China Edge
Email: [email protected]
Connect with me on LinkedIn: www.linkedin.com/in/jgordon
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#chinaedge
@chinacontact
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Hype or Goldmine?
$- $200.00 $400.00 $600.00 $800.00
$1,000.00 $1,200.00 $1,400.00 $1,600.00 $1,800.00
2005 2006 2007 2008 2009 2010 2011 2012
Per person
Per person
Source: VisitBritain
• Real opportunity or media hype? • Long term trend since 2005…
• Strong growth in visitor numbers and av. per person spend
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• 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 & 3rd 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
Who are the HNW Chinese?
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Hong Kong
Taiwan
Modern Business Owners
International Professionals
Nouveau Riche
Traditional Business Elites
Second Generation Rich
Government Officials
Where are Chinese HNWI from?
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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
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• Respect & Understanding • Overcome instinctive distrust • Engage at a personal level • Learn to see beyond the clichés
• Key Issues • Information • Trust • Loyalty • Cultural Understanding • Food
Catering to HNWI Chinese
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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
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Thank You!
Roy Graff Director, China Edge
Email: [email protected]
Connect with me on LinkedIn www.cn.linkedin.com/in/roygraff
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#chinaedge
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Millionaires Online
• 83% of Chinese millionaires use the internet daily • They frequently engage & curate content on social media
When they are not on social media sites they are on news portals
• 63% prefer Sina • 35% prefer Sohu
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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
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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
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Organic and Paid Search
Google Baidu
• Browsing habits of Chinese audiences are fundamentally different
• Don’t need an overly simplified customer journey
• More willing to find the information they need
• Baidu BrandZone is a powerful tool
• But can be expensive
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Thank you!
Arnold Ma Director, China Edge
Email: [email protected] Connect with me on LinkedIn
uk.linkedin.com/pub/arnold-ma/26/44b/99
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#chinaedge
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Services to Foreign Visitors
• Language(s) • Online & in-store
• Transaction services • UnionPay, cash options
• Specific cultural norms and customs • Helps drive transactions �
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• Competition & Conflict
• Maintain inner harmony
• Non-assertive approach
Peaceful & Harmonious Culture
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Face
• Lian • Confidence of society
• Mian Zi • Prestige, reputation
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Reciprocity
• Receive – Repay • Exchange value • Mutual benefit • Sustain the ‘net’
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Relationships
• Guanxi • Harmony • Reciprocity • Face • Trust
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Thank you!
Yu Sun Director, China Edge
Email: [email protected]
Connect with me on LinkedIn www.uk.linkedin.com/in/yuyumedia
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• Jeremy Gordon – Strategy & Risk • Roy Graff – Travel & Tourism • Arnold Ma – Digital & Social • Yu Sun - Training • Michaela Wolf – Luxury Marketing
The China Edge Directors
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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
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• 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
Roy Graff
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• 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 Ma
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• 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
Yu Sun
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• 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
Michaela Wolf
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China Edge Ltd. Plan. Engage. Deliver. China Market Services
for Luxury Retail & Hospitality
www.chinaedge.co.uk
twitter: @chinaedge