The Power of Globe Shopping in 2014 - Global Blue

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Globe shoppers are international tourists for whom shopping is a fundamental part of their travel experience. The advent of this new market segment has changed forever the face of retail and luxury, with a global business volume representing more than 48 bn Euros in 2013 just in Europe, Singapore, South Korea and Japan. Globe shoppers are a more powerful force than the Chinese market alone according to retail and luxury experts.

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The Power of Globe Shopping in 2014 - Global Blue

  1. 1. UNDERSTANDING THE UHNW CONSUMER LONDON, June 14 Manelik Sfez @GlobalBlueBiz
  2. 2. UNDERSTANDING THE UHNW CONSUMER LONDON, June 14
  3. 3. UNDERSTANDING THE UHNW CONSUMER LONDON, June 14
  4. 4. UNDERSTANDING THE UHNW CONSUMER LONDON, June 14
  5. 5. The power of globe shopping UNDERSTANDING THE UHNW CONSUMER LONDON, June 14
  6. 6. globe shop∙per /ˈglōbˌSHäpər/ noun 1. a person who considers shopping as a fundamental part of their travel experience. “globe shoppers are the sixth continent for the retail industry”
  7. 7. noun 1. a person who considers shopping as a fundamental part of their travel experience. “globe shoppers are the sixth continent for the retail industry” 2. a fast-growing retail market segment, which global worth was estimated at more than EUR 48 billion in 2013. “building growth from globe shoppers – the world’s most valuable customers.”
  8. 8. glob /ˈglōbˌS noun 1. a per funda “glob the r 48% 56% 82% Russians Mid-Easterns Chinese “Shopping is my priority when I travel” Source:GlobalBlue
  9. 9. “g th 2. a f wh th “b wo40% 60% Share of sales for luxury brands Domestic shoppers Globe shoppers
  10. 10. Jean-Paul Agon “Travel Retail is a key channel for winning over one billion new consumers; it is present around the world as a sixth continent.”
  11. 11. Where do they come from?
  12. 12. 27% 17% 4%3%3% 46% JAN-DEC 2013: top 5 globe shopper nations by share of total spent China Russia Indonesia USA Japan Others Source: Global Blue Analytics
  13. 13. 22% 20% 5%4%3% 47% JAN-APR 2013: top 5 globe shopper nations by share of total spent China Russia Indonesia Japan Thailand Others 27% 17% 3%3%3% 47% JAN-APR 2014: top 5 globe shopper nations by share of total spent China Russia Indonesia USA Japan Others Source: Global Blue Analytics
  14. 14. Angela Ahrendts “Investors should switch their focus from China to the TLC (Travelling Luxury Consumers), a more powerful force than the Chinese market alone.”
  15. 15. Where do they shop?
  16. 16. 18% 16% 15%12% 11% 27% JAN-DEC 2013: top 5 destination countries by share of total spent France Italy UK Germany Singapore Others 18% 16% 16%12% 12% 27% JAN-APR 2014: top 5 destination countries by share of total spent France UK Italy Singapore Germany Others Source: Global Blue Analytics
  17. 17. How much do they spend?
  18. 18. € '815 € '647 € '608 € '509 € '501 € '356 China USA Indonesia Japan Market Russia JAN-DEC 2013: average spend of top 5 globe shopper nations € '870 € '846 € '648 € '514 € '502 € '358 Thailand China Indonesia Japan Market Russia JAN-APR 2014: average spend of top 5 globe shopper nations Source: Global Blue Analytics
  19. 19. Source: Global Blue Dossier “The growing complexity of the Chinese globe shopper”
  20. 20. Welcome to the new normal
  21. 21. Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Ja 2012-2014: year-on-year growth rate of Chinese total spend 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% -20% -30% -10% Source: Global Blue Analytics
  22. 22. 2 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec 2012-2014: year-on-year growth rate of Chinese total spend 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% -20% -30% -10% Source: Global Blue Analytics
  23. 23. -13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 2012-2014: year-on-year growth rate of Chinese total spend 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% New tourism law -20% -30% -10% Source: Global Blue Analytics
  24. 24. Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan 2012-2014: year-on-year growth rate of Russian total spend 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% -20% -30% -10% Source: Global Blue Analytics
  25. 25. 12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 De 2012-2014: year-on-year growth rate of Russian total spend 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% -20% -30% -10% Source: Global Blue Analytics
  26. 26. 13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 2012-2014: year-on-year growth rate of Russian total spend 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% -20% -30% -10% Crimean crisis Source: Global Blue Analytics
  27. 27. The Chinese spending slowdown
  28. 28. - 25 50 75 100 125 150 175 200 225 Milliontravellers Chinese outbound travel growth 2002-2020 Source: Global Blue based on CNTA, Xinhua, UNWTO
  29. 29. Middle-class households in China by 2020 (MasterCard)
  30. 30. The Chinese spending slowdown Not related to outbound travel New tourism law Anti-corruption storm Full stop of official travel Destination shift to USA / Australia Change in travel purpose Rise of FIT / decline of groups Impacted W&J, boosted F&C
  31. 31. Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan 2012-2014: year-on-year growth rate of Chinese spend on Watches & Jewellery 140% 120% 100% 80% 60% 40% 20% 0% -20% -40% Source: Global Blue Analytics
  32. 32. 12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Ja 2012-2014: year-on-year growth rate of Chinese spend on Watches & Jewellery 140% 120% 100% 80% 60% 40% 20% 0% -20% -40% Source: Global Blue Analytics 18th National Congress
  33. 33. 3 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 2012-2014: year-on-year growth rate of Chinese spend on Watches & Jewellery 140% 120% 100% 80% 60% 40% 20% 0% -20% -40% Source: Global Blue Analytics
  34. 34. The Russian spending slowdown
  35. 35. The Russian spending slowdown Rouble has been falling for a year Russian spending down 8.5% in 2014 Economy was hit before the Crimean crisis Crimean crisis impacts spending, not travelling Outbound travel still steadily increasing 5% Frankfurt and Milan mostly hurt in March
  36. 36. What can we expect for the future?
  37. 37. In 2014 we expect stronger tourist arrivals in APAC (and USA) than in Europe
  38. 38. Nation 2014 2015 2016 China 13% 13% 13% Russia 9% 13% 15% Japan 2% 3% 3% Indonesia 8% 8% 9% USA 2% 2% 2% General outbound travel Europe-bound travel Nation 2014 2015 2016 China 6% 9% 7% Russia 5% 7% 6% Japan 0% 0% 0% Indonesia - NA - - NA - - NA - USA 2% 2% 2% Source: Global Blue based on CNTA, Xinhua, Euromonitor, TTG Asia, Jakarta News, Tourism Economics, UNWTO, PATA, TourMIS.
  39. 39. Travel growth from core markets still positive, with a stress on APAC Major globe shopper currencies to strengthen against EUR and SGD A better economic outlook, yet with downside risks Rise of middle-class in China, but with travel ban for officials and new tourism law
  40. 40. Globe shoppers are a demographic, not a geography.
  41. 41. Is your company structured to harness their power?
  42. 42. Thank you.

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