China Edge: Service and Hospitality for High Net Worth Chinese - A summary presentation from the China Edge conference at the May Fair Hotel in London, on 3 July

1. ©ChinaEdgeLimited,2013
China Edge Ltd.
Plan. Engage. Deliver.
China Market Services
for Luxury Retail & Hospitality
Conference Highlights
Service and Hospitality for
High Net Worth Chinese
3 July, 2013, London

2. ©ChinaEdgeLimited,2013
• The China Opportunity
• Know Your Customer
• Attracting and Engaging Customers
• Reaching Service Excellence
The China Edge Conference
Service and Hospitality
for High Net Worth Chinese
3 July 2013,
At The May Fair Hotel, London
Sponsored by ELLE Magazine

3. ©ChinaEdgeLimited,2013
Service and Hospitality
for High Net Worth Chinese
Conference recap video on YouTube: http://youtu.be/rSsLISFcruM

4. ©ChinaEdgeLimited,2013
#chinaedge

5. ©ChinaEdgeLimited,2013
• China is a Must-Have, Not a Luxury
• China’s Global Consumers
• Engage & Serve
• Challenges
• 3-D Toolkit
Presentation Outline

6. ©ChinaEdgeLimited,2013
• 60% of luxury spend is offshore
• Consumers driven by experience,
exclusivity, gifting – not just savings / duty-free
• Millionaires & middle classes drive growth
• Trends incl. anti-corruption (short-term, targeted
impact); urbanisation (long-term, wide impact)
• Chinese travel is taking off
• 83m trips, £67bn spend; 100m by 2015?
• Top 10% spend over £6,500 per trip
Global Consumers
Image:J.Gordon

7. ©ChinaEdgeLimited,2013
• Be relevant & localise
• But no dragons required!
• Multiple options for entry / engagement
• Be buzzy for branding
• Social media is mainstream & essential
• Be online for consumer research
• In Chinese, on Baidu (off Flash)
• Be welcoming
• China-friendly service & payments
Engage & Serve
Image:J.Gordon

8. ©ChinaEdgeLimited,2013
• Intellectual property
• Register wide & early
• Monitor & enforce – protection is possible
• Culture & Crisis
• Understand & adapt to sensitivities
• Don’t “hurt the feelings…” (like Zadig & Voltaire)
• Is China a cost or investment?
• Tailor strategy to resource constraints
• What’s the cost of missing China?
Challenges
Image: Weibo; Business Insider

9. ©ChinaEdgeLimited,2013
• Strategy
• Short & long-term
• Start at home & develop into China
• Marketing
• Proactive, in-market multiplier &
consumer targeting
• Leads to home & away sales
• Service
• Culture, language, information
• Promotions, payments & privileges
China Edge Toolkit
Image:J.Gordon

10. ©ChinaEdgeLimited,2013
Thank You!
Jeremy Gordon
Director, China Edge
Email: jeremy@chinaedge.co.uk
Connect with me on LinkedIn:
www.linkedin.com/in/jgordon

11. ©ChinaEdgeLimited,2013
#chinaedge
@chinacontact

12. ©ChinaEdgeLimited,2013
Hype or Goldmine?
$-
$200.00
$400.00
$600.00
$800.00
$1,000.00
$1,200.00
$1,400.00
$1,600.00
$1,800.00
2005 2006 2007 2008 2009 2010 2011 2012
Per person
Per person
Source: VisitBritain
• Real opportunity or media hype?
• Long term trend since 2005…
• Strong growth in visitor
numbers and av. per
person spend

13. ©ChinaEdgeLimited,2013
• Young
• 73% of luxury consumers are under 45
• Average age of a millionaire is 37 (vs. 57 in U.S.)
• New
• 1st-time buyers accounted for 67% of the luxury growth
• Majority from 2nd & 3rd tier cities
• Brand conscious
• Brand is #1 driver of luxury experiences
• Key Segments
• Modern Business Owners
• International Professionals
• Nouveau Riche
• Second Generation Rich
• Delegations and Officials
• Traditional Business Elites
Who are the HNW Chinese?

14. ©ChinaEdgeLimited,2013
Hong Kong
Taiwan
Modern Business Owners
International Professionals
Nouveau Riche
Traditional Business Elites
Second Generation Rich
Government Officials
Where are Chinese
HNWI from?

15. ©ChinaEdgeLimited,2013
What Motivates HNWI
Chinese?
• Sense of self
• Luxury consumption helps show that one has ‘arrived’
• Traditional culture of Face is central to this feeling
• Drivers
• Extend Business / Asset Portfolio
• Education for Self / Children
• Relaxation or Adventure
• Shopping for Self / Gifting
• Health and Beauty

16. ©ChinaEdgeLimited,2013
• Respect & Understanding
• Overcome instinctive distrust
• Engage at a personal level
• Learn to see beyond the clichés
• Key Issues
• Information
• Trust
• Loyalty
• Cultural Understanding
• Food
Catering to HNWI Chinese

17. ©ChinaEdgeLimited,2013
Reaching HNW Chinese
• Have a multi-channel strategy and marketing plan
• To push demand & ensure appropriate distribution
• Localise wisely with bespoke content
• Not simply translation – And protect your brand well
• Have a clear focus of your target market
• As China is too big and complex to cover it all
• Where?
• In the UK
• Chinese Travel Trade
• Chinese Media
• Digital Marketing
• Social Media

18. ©ChinaEdgeLimited,2013
Thank You!
Roy Graff
Director, China Edge
Email: roy@chinaedge.co.uk
Connect with me on LinkedIn
www.cn.linkedin.com/in/roygraff

19. ©ChinaEdgeLimited,2013
#chinaedge

20. ©ChinaEdgeLimited,2013
Millionaires Online
• 83% of Chinese millionaires use the internet daily
• They frequently engage & curate content on social media
When they are not on
social media sites
they are on news
portals
• 63% prefer Sina
• 35% prefer Sohu

21. ©ChinaEdgeLimited,2013
Online Engagement
• China boasts the
highest social and
ecommerce
engagement of
any country
• The social media
landscape is highly
segmented with
niche platforms for
specific audiences

22. ©ChinaEdgeLimited,2013
Organic and Paid Social
• Weibo has many paid
options
• Reach 100% of your
fans with Weibo’s new
promoted posts
• Great for competitions
or events
• Weibo is not the
Chinese Twitter
• It has a mix of
functionalities
from both
platforms

23. ©ChinaEdgeLimited,2013
Organic and Paid Search
Google Baidu
• Browsing habits of
Chinese audiences are
fundamentally different
• Don’t need an overly
simplified customer
journey
• More willing to find the
information they need
• Baidu BrandZone
is a powerful tool
• But can be
expensive

24. ©ChinaEdgeLimited,2013
Thank you!
Arnold Ma
Director, China Edge
Email: arnold@chinaedge.co.uk
Connect with me on LinkedIn
uk.linkedin.com/pub/arnold-ma/26/44b/99

25. ©ChinaEdgeLimited,2013
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#chinaedge

26. ©ChinaEdgeLimited,2013
Services to Foreign Visitors
• Language(s)
• Online & in-store
• Transaction services
• UnionPay, cash options
• Specific cultural norms and customs
• Helps drive transactions

©ChinaEdgeLimited,2013

27. ©ChinaEdgeLimited,2013
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• Competition & Conflict
• Maintain inner harmony
• Non-assertive approach
Peaceful &
Harmonious Culture
©ChinaEdgeLimited,2013

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Face
• Lian
• Confidence of society
• Mian Zi
• Prestige, reputation
©ChinaEdgeLimited,2013

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Reciprocity
• Receive – Repay
• Exchange value
• Mutual benefit
• Sustain the ‘net’
©ChinaEdgeLimited,2013

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Relationships
• Guanxi
• Harmony
• Reciprocity
• Face
• Trust
©ChinaEdgeLimited,2013

31. ©ChinaEdgeLimited,2013
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Thank you!
Yu Sun
Director, China Edge
Email: yuyu@chinaedge.co.uk
Connect with me on LinkedIn
www.uk.linkedin.com/in/yuyumedia
©ChinaEdgeLimited,2013

32. ©ChinaEdgeLimited,2013
• Jeremy Gordon – Strategy & Risk
• Roy Graff – Travel & Tourism
• Arnold Ma – Digital & Social
• Yu Sun - Training
• Michaela Wolf – Luxury Marketing
The China Edge Directors

33. ©ChinaEdgeLimited,2013
Jeremy Gordon
• Over 20 years’ China experience in trade,
investment and consulting
• Director of China Business Services,
focused on strategy & risk
• Previously China Business Specialist at
UK Trade & Investment (UKTI)
• China luxury experience includes:
Publishing, jewellery, retail, private club
jeremy@chinaedge.co.uk

34. ©ChinaEdgeLimited,2013
• Over 18 years of hospitality, retail and tourism
industry experience in China
• Led the development of independent travel business
in China on behalf of Gullivers Travel Associates
• Fluent Mandarin Chinese speaker and student of
Chinese philosophy, literature and poetry
• Managing Director of ChinaContact, working with
luxury businesses on strategies and implementation
of China market access
roy@chinaedge.co.uk
Roy Graff

35. ©ChinaEdgeLimited,2013
• Digital Marketing Director at Qumin, London’s
first UK-China Digital Agency
• Digital Marketing experience on both client and
agency side
• Hands-on China Digital experience includes:
Luxury/Fashion, Education, Technology, Travel,
etc.
Arnold Ma
arnold@chinaedge.co.uk

36. ©ChinaEdgeLimited,2013
• Cross-cultural consultant with special focus on
Anglo-Chinese communications in business
• Provides cross-cultural training, coaching and
business strategies to international companies to
improve business performance through effective
communication
• Has worked with the Shanghai government
and European Commission as a senior project
manger, and as a trainer for Harrods
Yu Sun
yuyu@chinaedge.co.uk

37. ©ChinaEdgeLimited,2013
• Experienced luxury marketing executive &
consultant
• Expertise in 360 Degree customer
relationship management strategies to deliver
direct ROI, using new technology and digital
experiences
• Well connected in the luxury sector in the UK
and internationally
Michaela Wolf
michaela@chinaedge.co.uk

38. ©ChinaEdgeLimited,2013
China Edge Ltd.
Plan. Engage. Deliver.
China Market Services
for Luxury Retail & Hospitality
www.chinaedge.co.uk
twitter: @chinaedge
info@chinaedge.co.uk