Download - China outbound-traveler
P 2Quick warm-up fact: Shanghai population is 23 million = London, Madrid and Singapore combined
Image/Video: SkyFall 007 Shanghai fly-over
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Consumer Intelligence PracticeThe CI Practice uses best in class tools and methods to discern behavioral insights that drive design and business strategy for products, services and experiences
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8The number is considered good luck. This is for several reasons, including that it sounds like the word for prosperity
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In 2003, A telephone number with all digits being eights was sold for CN¥2.33 million (approximately US$280,000) to Sichuan Airlines in Chengdu, China
8 is so popular, it plays an important role in the everyday culture and shows up in interesting ways
P 148 facts…
Chinese Flag: The red represents the communist revolution; the five stars and their relationship represent the unity of the Chinese people under the leadership of the Communist Party of China. The larger star symbolizes the Communist Party of China, and the four smaller stars that surround the big star symbolize the four social classes (the working class, the peasantry, the urban petite bourgeoisie and the national bourgeoisie). Wikipedia
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1.4 Billionexpected to reach 1.5 billion by 2050 population growth is slowing and aging male/female ratio out of balance
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316% growtheconomy grew 7x as fast as America’s in the last 10 years America’s combined growth rate was 43%
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170 millionoutbound trips by 2020 about 100 million trips now only 10 million outbound trips in 2000
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30% taxon many products, especially luxury, purchased in China a strong disincentive to purchase at home
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40%Chinese spend this amount of their travel budget on shopping this is 2x as much as American and Japanese tourists
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The outbound Chinese tourist has the same level of wealth at the age of forty as Westerners’ have at the age of sixty
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Chinese purchase the “10 Fingers” Cartier, Tiffany, Chanel, Rolex, Dior, De Beers, Versace, Prada, LVMH, D&G.
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Foreign brands tend to be equated with quality; a strong reputation is important when considering a luxury purchase. Recognizable brand names also signal achievement and respect to others.
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There are two “Chinas” New money - new to shopping and luxury and service Older money - have higher expectations around service
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Anti-corruption and anti-extravagance efforts have curbed conspicuous consumption of luxury items. This has contributed to somewhat slowed growth of the luxury market.
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Chinese luxury preferences are beginning to shift from conspicuousness to understated luxury consumption, with more value on function (quality, craft) than symbolic consumption (logos, signaling wealth to others).
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Luxury shoppers ask others to shop
Shoppers often ask family or friends who are traveling to shop for them
Shoppers have contacts in different countries who will research, purchase and ships items abroad to collect a commission
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Chinese want in-China price comparison transparency Yet many shops in Europe only provide prices in Euros and Pounds
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Chinese travelers are looking for high quality, authentic and local products, and increasingly, experiences
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Chinese desire western style UX experiences and value online experiences that emphasize trust and authenticity
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Because of strong group orientation cultural values, friends and family influence the shopping process and purchase decision.