China Edge Conference Summary, July 2013
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China Edge Conference Summary, July 2013

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China Edge: Service and Hospitality for High Net Worth Chinese - A summary presentation from the China Edge conference at the May Fair Hotel in London, on 3 July

China Edge: Service and Hospitality for High Net Worth Chinese - A summary presentation from the China Edge conference at the May Fair Hotel in London, on 3 July

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    China Edge Conference Summary, July 2013 China Edge Conference Summary, July 2013 Presentation Transcript

    • ©ChinaEdgeLimited,2013 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
    • ©ChinaEdgeLimited,2013 •  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
    • ©ChinaEdgeLimited,2013 Service and Hospitality for High Net Worth Chinese Conference recap video on YouTube: http://youtu.be/rSsLISFcruM
    • ©ChinaEdgeLimited,2013 #chinaedge
    • ©ChinaEdgeLimited,2013 •  China is a Must-Have, Not a Luxury •  China’s Global Consumers •  Engage & Serve •  Challenges •  3-D Toolkit Presentation Outline
    • ©ChinaEdgeLimited,2013 •  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 Image:J.Gordon
    • ©ChinaEdgeLimited,2013 •  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 Image:J.Gordon
    • ©ChinaEdgeLimited,2013 •  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
    • ©ChinaEdgeLimited,2013 •  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 Image:J.Gordon
    • ©ChinaEdgeLimited,2013 Thank You! Jeremy Gordon Director, China Edge Email: jeremy@chinaedge.co.uk Connect with me on LinkedIn: www.linkedin.com/in/jgordon
    • ©ChinaEdgeLimited,2013 #chinaedge @chinacontact
    • ©ChinaEdgeLimited,2013 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
    • ©ChinaEdgeLimited,2013 • 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?
    • ©ChinaEdgeLimited,2013 Hong Kong Taiwan Modern Business Owners International Professionals Nouveau Riche Traditional Business Elites Second Generation Rich Government Officials Where are Chinese HNWI from?
    • ©ChinaEdgeLimited,2013 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
    • ©ChinaEdgeLimited,2013 • 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
    • ©ChinaEdgeLimited,2013 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
    • ©ChinaEdgeLimited,2013 Thank You! Roy Graff Director, China Edge Email: roy@chinaedge.co.uk Connect with me on LinkedIn www.cn.linkedin.com/in/roygraff
    • ©ChinaEdgeLimited,2013 #chinaedge
    • ©ChinaEdgeLimited,2013 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
    • ©ChinaEdgeLimited,2013 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
    • ©ChinaEdgeLimited,2013 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
    • ©ChinaEdgeLimited,2013 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
    • ©ChinaEdgeLimited,2013 Thank you! Arnold Ma Director, China Edge Email: arnold@chinaedge.co.uk Connect with me on LinkedIn uk.linkedin.com/pub/arnold-ma/26/44b/99
    • ©ChinaEdgeLimited,2013 25 #chinaedge
    • ©ChinaEdgeLimited,2013 Services to Foreign Visitors • Language(s) •  Online & in-store • Transaction services •  UnionPay, cash options • Specific cultural norms and customs •  Helps drive transactions  ©ChinaEdgeLimited,2013
    • ©ChinaEdgeLimited,2013 27 • Competition & Conflict • Maintain inner harmony • Non-assertive approach Peaceful & Harmonious Culture ©ChinaEdgeLimited,2013
    • ©ChinaEdgeLimited,2013 28 Face •  Lian •  Confidence of society •  Mian Zi •  Prestige, reputation ©ChinaEdgeLimited,2013
    • ©ChinaEdgeLimited,2013 29 Reciprocity •  Receive – Repay •  Exchange value •  Mutual benefit •  Sustain the ‘net’ ©ChinaEdgeLimited,2013
    • ©ChinaEdgeLimited,2013 30 Relationships •  Guanxi •  Harmony •  Reciprocity •  Face •  Trust ©ChinaEdgeLimited,2013
    • ©ChinaEdgeLimited,2013 31 Thank you! Yu Sun Director, China Edge Email: yuyu@chinaedge.co.uk Connect with me on LinkedIn www.uk.linkedin.com/in/yuyumedia ©ChinaEdgeLimited,2013
    • ©ChinaEdgeLimited,2013 •  Jeremy Gordon – Strategy & Risk •  Roy Graff – Travel & Tourism •  Arnold Ma – Digital & Social •  Yu Sun - Training •  Michaela Wolf – Luxury Marketing The China Edge Directors
    • ©ChinaEdgeLimited,2013 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 jeremy@chinaedge.co.uk
    • ©ChinaEdgeLimited,2013 • 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@chinaedge.co.uk Roy Graff
    • ©ChinaEdgeLimited,2013 • 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 arnold@chinaedge.co.uk
    • ©ChinaEdgeLimited,2013 • 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 yuyu@chinaedge.co.uk
    • ©ChinaEdgeLimited,2013 • 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 michaela@chinaedge.co.uk
    • ©ChinaEdgeLimited,2013 China Edge Ltd. Plan. Engage. Deliver. China Market Services for Luxury Retail & Hospitality www.chinaedge.co.uk twitter: @chinaedge info@chinaedge.co.uk