New Business Proposal
Upcoming SlideShare
Loading in...5
×
 

New Business Proposal

on

  • 1,438 views

Internship 2012 summer

Internship 2012 summer

Statistics

Views

Total Views
1,438
Views on SlideShare
1,417
Embed Views
21

Actions

Likes
0
Downloads
24
Comments
0

1 Embed 21

http://www.flairli.com 21

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    New Business Proposal New Business Proposal Presentation Transcript

    • Luxury Brand Proposal Davy Chai Flair Li 2012.8
    • THE GLAMOUR MARKET
    • “Luxury market soon recovered from the economic downturn.”
    • worldwide luxury market overviewMarket forecast 207 billion US $ retail value of global luxury goods in 2015 19% 174 billion US $ retail value of global luxury goods in 2010
    • “The Asian market rises”
    • The emerging market drives the growth of the global market“Asian market shines during the darkeconomic recession.”
    • The market growth of emerging market 43% 6% Worldwide Worldwide Emerging market Developed market value grew between value grew between 2005-2010 2005-2010“Emerging economies are becoming the main driver oftoday’s luxury goods industry.”
    • The potential of Asian market The comparison amongtop 3 biggest luxury markets(2010-2011) $Billion 86 80 70 69 65 58 Americas +8% Europe +7% Asia-Pasific +19% 2010 2011 Source: http://www.bain.de/Images/Bainbrief_Luxury_Goods_Study_10thEdition.pdf
    • OUR TARGETS Who why
    • Asian US marketshopper
    • Target marketWeAsiantravelers shoppers
    • Target marketAsian-American residentsAsian travelers
    • Why should we target Asian travelers?$8.3 billionThe estimated contribution ofAsian travelers to US luxury market (2011)$2.6 billionThe estimated expenditure of theAsian-Americans in U.S. luxury market (2011) Resource: the data of AA market is calculated by timing the population percentage of AA with us whole luxury market sales
    • Why should we target Asian travelers? The sales of luxury goods contributed by Asian travelers account for 50% 15% of ofEurope luxury market US luxury market The expenditure comparison of Chinese luxury Shoppers spent in outside Asia and inland market (2011) $15B~$18B vs. $16B
    • Asian trevelersmarket profile Market volume Buying power Characteristics Key findings
    • The number of Asian travelers to the US and proportion 26% 7.2 million The number of Asian travelers 74% arrived in the U.S. in 2011 v.s. 27.9 million in total 24% the growth of Asian travelers to the U.S. from 2009 to 2010Resource:U.S. Department of Commerce International Trade AdministrationOffice of Travel and Tourism Industries
    • Top 6 regions of Asian travelers to the U.S. TOP AISAN COUNTRY VISITORS TO US(2011) Region/ Country of % ChangeRank 2011 Residence (2011/2010) 1 Canada 21,028,000 5% 2 Mexico 13,414,000 0% 3 United Kingdom 3,835,300 0% 4 Japan 3,249,569 -4% 5 Germany 1,823,797 6% 6 Brazil 1,508,279 26% 7 France 1,504,182 12% 8 South Korea 1,145,216 3% 9 Peoples Republic of China 1,089,405 36% 10 Australia 1,037,852 15% … … … … 13 India 663,465 2% 22 Taiwan 290,313 0% 36 Philippines 166,829 -6% 37 Singapore 159,302 14% 41 Hong Kong 128,512 -2% Resource: U.S. Department of Commerce International Trade Administration Office of Travel and Tourism Industries
    • Asian travelers buying power 2011 top 10 markets to U.S.Asian travelers contribution to ($Million) 2011 U.S. travel market $23billion $23,968 24% $16,660 $13,223 $9,366 29% $6,769 $6,590 $5,743 $4,694 $4,601 $4,475 Asia Europe Other regions Resource: U.S. Department of Commerce International Trade Administration Office of Travel and Tourism Industries
    • Asian travelers buying power comparison by regions Household income(median average) v.s. per capita spending on each trip(2011)$100,000 $6,000 $4,864 $5,000 $80,000 $4,014 Household Income $3,903 $3,500 $4,000 (median average) $60,000 $3,262 $3,000 per capita spending on $40,000 trip(excluding fare) $2,000 $20,000 $1,000 $0 $0
    • Asian travelers buying power comparison by regions Per capita spending on each day v.s. per capita spending on each trip (2011)$500 $6,000$450 $427 $4,864 $5,000$400 per capita spending on$350 $3,903 $4,014 each day (excluding $3,500 $4,000$300 $3,262 fare)$250 $3,000 per capita spending on $193 trip(excluding fare)$200 $141 $2,000$150 $102 $106$100 $1,000 $50 $0 $0
    • Who are Asian travelers? Pure purpose of trip of Asian travelers (2011) Japanese 16% 86% Korean 37% 72% Business & Convention Chinese 37% 72% Leisure & Visit Indian 57% 50% Friends/Relatives Taiwane… 38% 79% Gender portion of Asian travelers (2011) Average age of Asian travelers(2011) 25% 42 44% 38% 38% 40 51% 38 37 Female 36 Male 75% 62% 62% 56% 49%Japanese Korean Chinese Taiwanese Indian
    • Where do Asian travelers go? U.S. Top destinations 2011 for Top 10 busiest airports in general Asian travelers (cities) travelers market to U.S. (2011) 2011 Airport 2011 Enplaned New York City- Rank Passengers WP-Wayne 1 New York JFK 11,704,700 Honolulu 2 Miami 8,821,900 Los Angeles 3 Los Angeles 8,065,200 22% 4 Newark 5,710,000 San Francisco 5 Chicago OHare 5,144,8009% 6 Las Vegas Atlanta 4,675,50013% 22% 7 San Francisco 4,316,000 Washington, D.C. 8 Houston Bush 4,198,400 18% 9 Washington 3,117,700 Chicago Dulles 10 Dallas/Ft. Worth 2,603,000 Boston
    • What do Asian travelers do in the US? Top 3 most common activity participation of Asian travelers while in the United States(2011)Sight seeing Shopping Dining in the restaurant 46% 91% 80%
    • Asian travelers characteristics prepaid package Length of Stay in United States (median nights)50% 40%40% 25 2130% 24% 24% 20 19% 15 1120% 7 7 10 410% 3% 5 0% 0 Korea 43% China India 37% 1.7 55% Average party size Japan Taiwan ese ese 31% 31% OR % of first trip to the US
    • Asian travelers characteristics Information Sources Used for Trip Planning (multiple response: top 4 of 12) Japan South Korea China India TaiwanTravel Agency 48 % 37% 29% 43% 54%Personal Computer 45% 49% 35% 23% 27%Tour Company 24% N/A N/A N/A N/ATravel Guide 17% N/A N/A N/A N/AAirline Directly N/A 14% 25% 13% 19%CorporateTravel Dept. N/A 11% N/A 24% N/AFriends/Relatives N/A 11% 15% N/A 15%
    • Key findingsoThe average age of Asian travelers to the US are 40, which’s aroundmiddle age. Chinese are the youngest whose average age is 36.oBased on the household income, they are considered as middle toupper middle class in their own societies, which means they havemore economical flexibility.oShopping is the most common activity when they are travelling in theU.S across all these regions.oDestination preference: metropolis + resorts.oMost of the Indian travelers come to U.S. for business trip, thus, theyare more likely to be males, stay longer and travel aloneoOver half of the Chinese travelers came to U.S. for the 1st time whichimplicates that they have less acknowledge and information oftraveling in U.S. comparing with other Asian regions.
    • Asian Travelers Insights Study Brand preference Psychological motivationSegments of purchasing behavior Segments of tourism demand
    • Top 3 luxury groups and 2011 global sales volume of Asian favored brands €23 Billion €15 Billion €7 Billion LVMH Richemont PPR Louis Vuitton Cartier Gucci Bulgari Montblanc Bottega Veneta Fendi Alfred Dunhill Brioni Givenchy Chloé Yves Saint Marc Jacobs Lancel Laurent Sergio Loewe Piaget Rossi Céline Ralph Lauren watch BoucheronParfums Christian and jewelry company, 50% Alexander Dior TAG Heuer
    • Asian favored brands 1.Louis Vuitton 1.Louis Vuitton 1.Louis Vuitton 2.Cartier 2.Coach 2.Gucci 3.Bulgari 3.Hermes 3.Burberry 4.Gucci 4.Gucci 4.ChanelTIER 1 5.Chanel 6.Tiffany 5.Chanel 6.Bottega Veneta 5.Hermes 6.Prada 7.Versace 7.Bulgari 7.Cartier 8.Dior 8.Cartier 8.Armani 9.Prada 9.Dior 9.Etro 10.Armani 10.Tiffany 10.Ferragamo Ermenegildo Zegna Dunhill MIU MIU Givenchy Valentino Bally Fendi Hugo Boss Celine Aigner Canali Estee Lauder Longines Patek philippe Max Mara DKNYTIER 2 Moschino Tag Heuer Jimmy Choo Calvin Klein TOD’s SWAROVSKI Piaget Ralph Lauren Lancome Testoni Shiseido Marc Jacobs Source: China: http://www.yxqing.com/article-2620-1.html *Data for Indian not available Japan: http://www.jmrn.com/UserFiles/File/DCLB_JMRN.pdf Korea: by combining the Financial Supervisory Service and Duty-free shop sales data.
    • Why Asian shoppers want to buy luxury goods? Self-driven Social-driven Perceived value product-related Functionality IndividualismConspicuousness Collectivism
    • segments of luxury shoppers based on different motivationsIndividualism Intellectual shopper Luxury lover Luxury follower Status seekerSocial-driven self-driven
    • 4 types of Asian luxury travel tourists for different tourism demand segments IDENTITY oSuper-active, independent-minded and educated Premium oLook for highly personalized and authentic travelluxury tourists experience oregardless of the price due to the precious time Luxury trip oFocus on high quality of service and comfort explorer oPay more attention to social status oMore followers than pioneers in their choice of destination Streetwise oYounger purchasers oLess purchasing power oSearch for the best possible value for the trip Standard oPrimarily look for relaxation and a change of pace luxury oPrefer resort places travelers
    • Characteristics of each type of Asian luxury tourist High Budget High demand of Long Self- Frequency concern personalized trip preparing time Premiumluxury tourists Luxury trip explorers Streetwise purchasers Standard luxury travelers
    • New touch points of luxury market Online Smartphone
    • Distribution channelswholesale Sales through third party distributors Retail Distribution managed in-house Sales transactions are completed online. It can be Online operated as both a retail as both a retail and retail wholesales distribution channel
    • Current trend wholesale Retail Online Retail •Department Websites operated byTraditional Company store established retailers such as formats owned/franchised •boutique department stores, wine branded stores clubs ,fashion e-boutiques Transactional brandedEmerging •Outlet stores •Brand websites websites, luxury outlet e- formats •E-boutiques •social networks stores, iPad apps, social networking Emerging trend All-Digital platforms E-stores Social networks Personal mobile devices
    • Luxury customers online behavior Channel of Channel of informationoUse the Internet to gain a better purchasing gatheringunderstanding of luxury brandsand productsoLuxury online shopping isdramatically growing and peopleshop for discount and brands thatare not available in China.Online is an important channel forresearch but not buyingoA recent survey showsaccelerating shift to onlinepurchasing among luxuryconsumersoDepartment-store doors andsales have been steadily declining Source: http://www.jingdaily.com/chinas-female-driven-luxury-e-commerce-market-to-surpass-3-billion- in-2012/18347/
    • Why Asian luxury shoppers prefer physical stores? The reasons of why they chose retail stores for purchasing over e-stores AUTHENTIC SizeReal appearance DEVIATION SERVICE
    • Smartphone penetration rate of target Asian regions50% 36% 35% 34%25% smartphone 14% penetration rate 9%0% Taiwan Urban Urban korea Japan India China Source: http://www.ipmirror.com/gomobi/whyGoMobi.html http://communities-dominate.blogs.com/brands/2011/12/smartphone-penetration-rates-by-country- we-have-good-data-finally.html http://www.livemint.com/2012/06/20165308/Smartphone-usage-on-the-upswin.html
    • Chinese Smartphone penetration rate by age groups and top tie cities among the internet users over 40 40% 25% 36% Tier3 47% 25% 28% cities 30~39 51% 27% 22% Tier2 50% 27% 23% cities 20~29 53% 26% 21% Tier1 55% 21% 24% citiesunder 19 49% 18% 32% 0% 25% 50% 75% 100% 0% 25% 50% 75% 100% currently Im using one smartphone or more currently I m using both the smart phone and feature phone I only have feature phones Source: http://www.d2c-china.cn/news_detail-5.html
    • KoreaSmartphone penetration rate by age groups 56% 40s Korea 74% 30s n 92% 90% 20s under 19 0% 50% 100% •The smartphone penetration rate is relatively higher across all the age groups compared with other target Asian markets. •Smartphone market in Korea is currently dominating the whole industry which left less choices for consumers. Source: https://wiki.smu.edu.sg/digitalmediaasia/Image:Mobile_Internet_Users-Demographics.jpg https://wiki.smu.edu.sg/digitalmediaasia/Digital_Media_in_South_Korea#Mobile http://www.newmediatrendwatch.com/markets-by-country/11-long-haul/63-south-korea http://nielsfootman.com/android-winner-korea-smartphone-boom/
    • JapanPenetration rate of smartphone by age groups 20s 40% 30s 34% Japanese 27% 40s 15% 50s -10% 10% 30% 50% Source: http://nielsfootman.com/android-winner-korea-smartphone-boom/
    • JapanJapanese 50s+ 27% 12% n=323 40s 46% luxury 20% n=414 purchases 30s 53% General public 26% n=497 20s 68% 36% n=224 0% 20% 40% 60% 80% Using smartphone is more common among Luxury shoppers than the general public across all age groups. Source: mckinsey
    • IndiaIndian Smart phone penetration rate % of the mobile phone users (Mar. 2012) over 40 5% 36-40 8% 31-35 8% 25-30 Indian 8% 18-24 13% 5% under 18 0% 10% 20% Source: nilsen
    • THE END. Thank you.QUESTIONS?