get ready for golden week

Get Ready For Golden Week

1. The Chinese Travel Market

2. The Growth of Golden Week as a UK event

3. Preparing Your Retail Environment for Golden Week

4. Supporting Store Footfall

5. Connecting with Chinese through Digital

6. Golden Week Promotional Opportunities

7. Q&A, Networking

Agenda

The Chinese Travel Market

Customer touch-points4

Travel AgentSearch EngineDisplay on Travel ForumTravel booking enginesSocial MediaAirport Departure’sVisa Centres

In-flight MagazineIn-flight Commercial’s

Airport ArrivalsMobile advertsChinese Social MediaHotel conciergeTour guidesChinese MagazinesIn-store MerchandisingEvents

2/3 prefer to make their own travel arrangements

78% are influenced by off and online marketing

Consult social media before planning travel 42%

France is 7th, Italy 8th and UK 11th most popular holiday destination for Chinese

2013 saw £3bn online travel sales, 14% total online travel sales

The largest travel booking site is Ctrip From 1st of July, it will be easier to apply for UK visitor visa

Evolution of Chinese Travellers

196,000 visits in 2013 (Source: VB)

When to capture them?

Most sales predicted 27th Sept -7th October and 8-13 Feb 2016

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

It takes 24.7 days from searching online to booking

I did not book in advance

1-7 days

8-30 days

1-3 months

4-6 months

7-12 months

More than a year

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Planning Booking

Online travel portals

Ctrip 54%

eLong 8.7%

LY.com 6.1%

Others 22.6%

Luxury Shopper’s Profile

56% of shoppers are young, born after 1980!

Up to 60% of Chinese consumers buy their international luxury & aspirational brands offshore

Chinese travelling abroad rarely have an international credit cardFocus on heritage, uniqueness and authenticity 83,000 Chinese students enrolled in 2012/2013, so don’t forget to target UK based Chinese!

The Growth Of Golden

Week As a UK Event

China National Day on 1st – 7th of October In 2013 Chinese spending at London’s luxury retailers soar by

20.7% vs the previous week.

A record 70,000 sales were made

The Golden Week Weekend shows the peak

shopping time with the avg. transaction value up

by over 38% vs the previous weekend.

What is Golden Week?

Source: Worldpay

Chinese taxfree shopping, peaks during

Golden Week

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Brand Protection is Critical for

China Entry

MANY FOREIGN COMPANIESFAIL TO REGISTER CHINESEVERSIONS OF TRADEMARKS

•••

“People’s way of thinking is a battlefield. If we do not occupy it, our enemy will.”Mao Zedong

You can strengthen a foreign brand identity with a Chinese name

English name

Chinese name

Ermenegildo Zegna

杰尼亚

• 819,000• 3,060,000

Hermes

爱马仕

• 8,460,000• 17,200,000

Chanel

香奈儿

• 29,600,000• 49,900,000

LouisVuitton

路易威登

• 3,580,000• 17,500,000

Chinese brand searches vs English brand searches on Baidu

Do you need a Chinese Name?

5

• Presence of brand ‘copy-cat’ – a Chinese version will likely exist, so make sure you own it!• Spend time and use an expert to create a Chinese

name that works in dialects• Use the suitable characters for luxury brand • Buying back trademarks is very expensive so ensure

you register “all the relevant” categories

RISKS Of Not Registering Your Trademark

Guest Speaker - Debbie Barrow, MD, Virada Training

Preparing Your Retail

Environment For Golden Week

Interacting with Chinese customers

Interact With Chinese

Customers

• Don’t over do eye contact

• Avoid a direct ‘no’

• No ‘witty’ banter

• Giving face earns respect and loyalty

Face (Mianzi) is everything

• Praise in front of group

• Influenced by others choices

• Same products for everyone in the group.

Collectiveness

• Recognise the senior member of group

• Pay them extra special attention.

Hierarchy

• Gift buying

• Referral business.

Family

FriendsBusiness

associates

Spheres of

trust

Relationships

• May reject compliments

• Will respect your opinions.

Modesty

• Look away from time to time

• Be yourself, but not too expressive

• Don’t assume understanding or agreement

• Avoid assumptions: try to understand body language from their point of view.

Behaviour Guidelines

Chinese food

Politics/human rights

Chinese traditions

Taiwan/Japan/Tibet

Zodiac signs

Sport

Celebrities

Pollution/Co2 emissions

Chinese culture

Family & friends

UK tourist spots

Fashion & trends

Religion

Chinese economy.

Conversation Subjects

• Ask if they have a list

• Display and point to items

• Speak slowly

• Simplify your message

• Speaking mandarin.

Different way to communicate

• Your friends will like it

• Lots of people like this one

• This is a good matching set

• This is the latest design

• This is a rare item

• This is popular in Europe.

Words to use when presenting

• Give your business cards in the right way

• Pass my details to your friends

• Allow them to take photos of you.

Leaving the best impression

Supporting Retailers GBtaxfree

Why GBtaxfree?

Partner with

Marketing Specialists

Ensure Maximum ROI from Spend and Rebates

Dedicated Account Manager

VIP Service

Cash Refunds Ready at Heathrow

and Gatwick Airport

Meet & Greet Service

Comprehensive Tax Free Training

Complementary Marketing

Taxfree GuideBrand Directory and Promotion

Fast & Stable

Technology

Staff trains customers in

ease of claiming refund

Customer purchases, often more than they

would otherwise!

Customer claims

money back and is happy

and tells others .

Retailers gets a

commission on each sale

Retailer reinvests

money back into

marketing, getting more customers

Using Tax Free as a sales tool

1.24 billion Mobile Subscribers in China/557m Mobile Internet users

620 million active social media users in China

180 million Active users of China’s social media platforms OUTSIDE of China

Connect Chinese Through Digital

Source: CNNIC (2012 – 2013) ;; We are social (2013)

Size matters34

79Percent

69Percent

38Percent

78Percent

Of Chinese Internetusers access the interneton Mobile, Compared to70% on PC.

Of Chinese hadpurchased a productvia their smartphone, compared to 46% of the US.

Of globalsmartphoneshipments are to China.

of Chinese smartphone usersincreased purchase intention with mobile ad.

Source: CNNIC (2012 – 2013) ;; We are social (2013)

Heavy Mobile Usage

Lenovo 11.65%Samsung 14.38%

Apple 11.48%

Xiaomi 14.97%

Huawei 10.18%

Data Source, HIS Technology,2015

Market Share,2014-2015

Apple only accounts 11.48% handset market share

124min/dayChinese users spent on mobile web catching up with 158min/day of U.S.

users

on Transportation Lunch Break

Getting up

Off Work

Before sleep

Casual Time Social Occasion

It’s always connected

When social sites, were blocked, they invented their

own

38

West vs East

86% 88%158% increaseover 9 months

84%

70%

44%34% 34%

17%12% 12%

DOUBAN WECHAT

(subscription)

WECHAT (serviceaccount)

YOUKU WEIBO

Aug-14 May-15

Source: Bomoda

Luxury brand’s using social channels

WEIBO AVERAGE ENGAGEMENT* /POST

898

5

* Includes Comments,Likes and Reposts

YOUKU AVERAGE VIEWS /VIDEO

204,688

30

WECHAT AVERAGE VIEWS/ARTICLE

69,968

399

Source: 2015 Bomoda Brand Digital Data Digest

Social engagement requires effort

The POWER of WeChat

Following celebrity 29

WeChat enables O2O experience for luxury brands

Baidu dominates the search market

54.02%

29.24%

14.71%

0.34% 1.69%

Baidu 360 Sogou Google Others

Source: CNZZ Dec 2014

China is BIG, so you need to target specific segments to increase impact

Make sure you use China friendly platforms to communicate with your customers.

Social can be effective to build awareness, trust and sales.

Mobile is a must, starting with Android devices. O2O strategy to drive footfall can be realized through

clever messaging and use of WeChat

Summary

Golden Week Promotional Opportunities

Activate all channels for maximum impact

IP address, browser language and contextual targeting to ensure relevant customer reach.

Connect & Consideration Deliver engaging and useful brand content and offer messages to increase user purchase intent.

Conversion Incentivize users to drive sales and content sharing.

CatchUse “Golden Week Offer” as a hook to trigger interests

Brand’s Chinese site & social pages

Scan WeChat QR code to receive offer.

Social Key Opinion Leaders (KOLs)

Social Media Competition

Encourage users to share Golden Week offer to win an exclusive prize

Targeted Display

eDM / Database

Targeted Social Ads

Traffic

Golden Week Offer

Traffic

Share to Win

Culture Training

We ChatPartners / ePR

Data Capture Form

Set-up the right retail environment to close sales

In-Store Redemption

In-Store Event

Chinese Magazine

Brand Story & Content Hub

• Display campaign contextual and behavioral, targeting Chinese who are planning to travel to the UK/European cities. (i.e.. Baidu travel)

• Chinese based Weibo and WeChat KOL’s in travel, fashion and shopping sectors.

• Social Competition e.g. win return flights to the UK to encourage users to share content.

• Specific Golden Week Promotional messages to provoke the desire and demand of brands to purchase during the trip.

• Promotional Period: 1st – 30th September

Reaching Chinese before they travel

51



Travel AgentSearch Engine

Display on Travel ForumTravel booking engines

Social MediaAirport Departure’sVisa Centres



• Utilize UK based Weibo and WeChat KOLs in travel, fashion and shopping sectors.

• Chinese magazines in the UK• Re-engage with users who follow

you on WeChat • Use offers and promotions such as

competitions, events to drive engagement.

• Promotional Period: 26th Sep – 17th Oct

Targeting Chinese in the UK

53


Brand Weibo & WeChat• Verified social account is key to trust• Develop content strategy• Content frequency WeChat vs Weibo• Original content vs retweet content • Social Competition and Activation

Brand website or landing page with key info• Build for mobile browsing• Localization rather than translation• Store locator and opening time

“TOP TIPS” for better engagement

Connect & Consideration Deliver engaging and useful brand content and offer message to increase user purchase intent.




Airport ArrivalsMobile advertsChinese Social MediaHotel conciergeTour guidesChinese Magazines

In-store MerchandisingEvents

The Golden Week (GW) offer promoted throughWeibo ad and KOL(UK Shopping talent, travel around UK.)

Brand stick the QR code on the window of store for users to scan WeChatQR code to get specificGW offer message

We push GW offer messageDirectly to users WeChat account on their mobiles, as well as store location/opening hours

Users show their GW offer message on WeChat to store staffto apply the specific discounts/GWP

In-store merchandising & redemption

GBTaxFree


How in-store event’s can support conversion


• Brand events are a useful tactic to increase footfall, and invite relevant customers to engage with your brand at a deeper level, and an opportunity to sell directly.

• With our extensive database and media contacts, we are able to handpick high quality Chinese customers, press and media and key influencer, to attend your events

Thank You Questions?

get ready for golden week

Business

chinese travel market

chinese students

chinese consumers

chinese spending

uk based chinese

travel forum travel

chinese taxfree shopping

golden week weekend