vendredi 24 février 2017

Tips to Develop the top 100 cities in China

Brands are familiar with the Asian power markets of Hong Kong, Tokyo, Seoul, Shanghai and Beijing. However, as profit margins shrink in these key markets, retailers are turning to the less well-known Tier II Chinese markets to take advantage of double-digit growth.

The Tier I cities of China such as Beijing, Shanghai, Guangzhou and Shenzhen have developed economies and have become familiar names in the West, especially after the 2008 Olympic Games and the 2010 World Expo. Small, on the other hand, are much less understood by the Western world. It is these rapidly developing metropolis that will drive China's growth in the coming decades. Here are 5 keys to succeeding in these flourishing retail markets.

1. China's Distribution market Situation 

China's retail sector has contributed significantly to overall GDP growth, especially in recent years. In some markets, such as Chengdu, the growth of retail trade has even seen rates higher than that of general GDP. The city is showing a new class of consumer who wants the latest in fashion and household goods.

China's retail market is the second largest in the world, with only the United States selling more dollars. According to China Daily, retailers have scored US $ 3.87 trillion with China retail sales shooting up 13.1% from 2012. Level II cities make up larger shares of that amount as growth In Tier I cities decelerate to the lower half.

International retailers are finding attractive markets outside of Tier I cities. With available revenues increasing at much faster rates in Tier II cities, Chinese consumers in these markets eagerly snatch western brands and luxury goods.

Digital in China ! 

When surveying customers at their largest outlets in Shanghai and Hong Kong, national and multinational retailers are discovering that a growing share of sales comes from wealthy visitors from smaller cities. Retailers now see the need to establish a presence on line via Digital Marketing in smaller cities to serve the nouveau riche distributed throughout China.
See more information about Digital in China

2. Understanding the local market 

A retail brand will be directly associated with its location and selection of projects within a Chinese market. As in any part of the world, a carefully selected location will be needed to maximize potential and success in a new city.

Tier II China may present unique challenges when it comes to the selection of sight. The main locations can be very difficult to identify without the help of a local presence or consulting firm. Brands should be careful in selecting real estate partners who not only have the knowledge of the market but also the interests of retailers in mind. Steps to ensure the agent is on your side include confirming which developers work and which side pays the agency fee. International developers including Daxueconsulting  as well as local developers like China Resources Land have considerable experience working with foreign brands on their projects throughout China.

Check at this Report about food in China

They will provide professional management and service and reduce the risk of a smaller owner leaving the business. Smaller homeowners are also known for selling busy stores, often forcing the current tenant. Trademarks should be ready to sign contracts in Chinese and understand contractual obligations and evictions are handled differently from market to market.

3. Think, learn, and react locally

The perception of the brand in China is paramount for retail success. Chinese consumers put a lot of weight on how the use of a particular brand will be perceived in their social circles before making a purchase; Price is of secondary importance.

This is good news for luxury brands; Occasionally, Chinese shoppers will see their shop windows and buy entire cabinets without looking at the price. But what about the small international brands that want to jump to the Chinese market?

  1. Use Baidu Instead of Google 
  2. Use Wechat Facebook
  3. and Use Weibo instead of Twitter

Smaller retailers need to be realistic about their brand's market knowledge. They may have to invest in large advertising, marketing and social media campaigns before Chinese consumers begin to understand and accept them. Patience, creativity and commitment are fundamental to this whole process.

mercredi 15 février 2017

Chinese outbound traveller: a huge booming market

Until 2013, Hong Kong was the preferred destination for outgoing tourists from China, due to its cultural similarity, travel costs and accessibility through distance travel. On top of that, Hong Kong offered a shopping paradise, and that was a strong motivator for Chinese tourists at that time. But since 2014, a growing number of Chinese tourists exit for other destinations that experience historical and cultural experiences, as well as shopping.

At the beginning of November 2015, the top five destinations for Chinese travelers were South Korea, Thailand (263%), Hong Kong (%), Japan (+ 157%) and Taiwan (+ 54%).

Europe remains the most popular destination for Chinese traveling outside Asia, showing a 97 percent increase in the number of air visits and overnight stays over the past four years. Followed by North America (+ 151%) and the Middle East (+ 177%). Africa remains the least visited destination by Chinese tourists - but with signs that this could change, as visits have increased by 306 percent of the increase since 2011. Laurens van den Oever, Global Head of Travel and Hospitality Research at GfK, commented: "Outbound tourists in China remain strategic in Hong Kong and their businesses - but other destinations are jumping ahead to win Favors Destinations such as Hong Kong need compensation for the new breed of young independent travelers, in order to understand how to better attract and capitalize on the growth of tourism output from China.

In France, Chinese tourists spend on average 40% of their budget once there in shopping. Expenditure exploded with a 40%-increase between 2011 and 2012, thanks to a more favorable exchange rate and higher wages.

The new whole of China: not "tourists", but "travelers"

According to GfK data, half (50%) of travelers from China are aged between 15 and 29 years - the millennium group - while more than one-third (37%) are between 30 and 44 years of age and 10 % 45 to 59 years. The size of the millennium group within China's travelers makes it a commercially attractive target audience for destinations that seek to attract Chinese tourists. This attraction is enhanced by the fact that two-thirds (66 percent) of the Chinese Millennials belong to the high-income bracket. Not only that, but their financial situation must increase as their careers progress, since September Millennials out of ten occupying executive or professional positions.
source : 

Chinese social networks are undoubtedly the right channel; it starts to be a well-known fact given how much we have all heard about the Chinese tourist wave. According to data released by the United Nation, We are talking about 100 million Chinese tourists who have spent $129 billion worldwide.

Understanding the desires that motivate this section is important for travelers from China is therefore paramount.

An annual study by GfK shows that the Chinese Millennials are more ambitious than their predecessors, aged 50 and over - and more hedonistic in their willingness to spend money to indulge and have pampered. They are also slightly less price sensitive, the larger buyers of luxury goods in Asia Pacific.

Almost more important for the travel market is that the Chinese Millennials also cherish freedom more than their parents or grandparents; They want the ability to pursue their passions and go after meaningful, adventurous and exciting experiences. They are also technologically smart with almost everyone have a smartphone and are heavily involved in sharing experiences on the social media platform.

For destinations that seek to attract this lucrative group, then, the ideal approach is to approach it not as tourists but as independent travelers who respond to opportunities to plan personalized travel.

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