Targeting Affluent Chinese shoppers the Bloomingdale’s way: Talking to the heart of Chinese tourists planning a U.S. trip

Bloomingdale's Interviews -Shanghai Travelers Club May 2015 -7The growing purchasing power of affluent Chinese travelers is making it more important than ever for luxury brands and luxury retail brands to adopt marketing strategies to target them. With Chinese third-party mobile payment systems like Alipay and WeChat Pay beginning to set up shop in popular global tourist destinations, catering to this traveling consumer is becoming easier to do, but it’s not a brand’s only option.

Digital intelligence firm L2’s recent report “Cross-Border and Travel Retail: Connecting Digitally with China’s Shoppers” discusses ways brands can be targeting consumers online both during their journey overseas and before they set off.

“[Luxury brands] are under-serving the traveling Chinese consumer, whether it’s through their own brand site and its functionality and capability, their WeChat account, or from leveraging things like WeChat Pay and Alipay,” said Danielle Bailey, head of Asia Pacific Research at L2. “It’s a huge missed opportunity for them to not engage on these platforms that Chinese consumers are using all the time. Their phone is their number one travel accessory.”

Brands that do engage consumers digitally abroad with an omnichannel approach are using platforms like Alipay’s “Overseas Travel Channel (支付宝境外游)” to give travelers exclusive gifts, better exchange rates, or let them find deals near where they’re going, all within the app on their mobile device. WeChat’s website within an app feature gives consumers the opportunity to reserve a product online to pick up in a store and access store locators in their own language that they can hand to a taxi driver en route.
But about half of Chinese travelers are doing research on what they want to buy abroad before they leave, and luxury brands have been adopting strategies to target these consumers, according to L2.

Bloomingdale's Interviews with Chinese customers -Shanghai Travelers Club May 2015 -4In a dissent opinion, Pierre Gervois, Publisher of the STC magazine, a digital travel media in Chinese Mandarin, said “The most important for retailers is not the way Chinese shoppers are going to pay. It’s a technicality. Chinese Customers who want to make a purchase have plenty of options: Cash, credit Cards or WeChat Pay.  The really important thing to do is to convince them to choose a particular retailer”

“Too oftenly, we see U.S. retailers being obsessed by Chinese mobile payment systems when their strategy should be focused on branding their image to Chinese millennial travelers, and create an emotional connection with their future customers, based on their brand values”, Gervois added.

A good starting point is to provide an international store locator on their official online store in China, a strategy about 72 percent of brands employ. However, brands can also take it a step further by adding a Chinese-language travel retail site that let shoppers research the products, compare prices, read reviews, view maps that direct them to duty free shops, and even let them purchase the product online in advance so that they can simply pick it up at the airport if they’re in a hurry.
To help consumers find these pages, brands are paying for search term generated Baidu ads. L2 lists the efforts of beauty brands as an example—many brands pay for cosmetics-related key words, while others, like Lancôme, are taking a more travel-centric approach, targeting consumers researching phrases like “South Korean vacation.”

Some high end retailers, such as Bloomingdale’s, choose a more qualitative approach, and advertise in luxury digital travel publications about the U.S., like the STC magazine, available for mobile but also in digital inflight entertainment.

Bloomingdale's Interviews with Chinese customers -Shanghai Travelers Club May 2015 -3With a very creative advertising campaign created by China Elite Focus Magazines in New York, they organized interviews of actual Mainland Chinese customers while shopping at their Third avenue flagship store.  The story of six actual Chinese Bloomingdale’s customers has been published in the digital edition of the STC magazine: It has much more impact than buying keywords on Chinese search engines and directly talked to the heart of Chinese consumers.

While maintaining an engaging physical presence in airports and shopping malls is always important for marketing to the Chinese shopper abroad, brands that understand how to make the most of China’s digital sphere are likely going to more efficiently connect with Chinese travelers who are in the process of creating their luxury goods shopping list for their next overseas vacation.

Source: Jing Daily / Skift / Chinese Tourists Blog

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Luxury Shopping in the United States: the 2016 big trend for Chinese shoppers

Shanghai Travelers' Club magazine Media Kit 2016The Shanghai Travelers’ Club magazine, the Chinese language publication read by China’s Elite global travelers has disclosed its much anticipated 2016 Editorial calendar yesterday. And clearly, Affluent Chinese shoppers love the United States! According to Pierre Gervois, the New York City based Publisher and Editor-in-Chief of this publication “The new generation of Chinese business travelers have clearly chosen the United States as their strategic country for their business browth. We have seen in the past two years a very strong interest from Chinese corporations – and wealthy Chinese invividuals- to invest in the United States. The more they come to the U.S. for business, the more they tend to come back with their family for a U.S. luxury leisure & shopping experience”

But It’s no more just about luxury shopping: Philanthropy and real estate investment are also hot topics. The January 2016 issue will have “Philanthropy in America” as its main feature. “Many Chinese CEO’s residing in the U.S. are willing to create their own philanthropic foundations in America, as they used to do in China. We’ll publish stories to help them to understand how to create a charity organization with all the necessary partners: banks, wealth management advisors & attorneys” added Pierre Gervois.

Driving a vintage 1960 Cadillac on Road 66 is also part of a true luxury American experience. (You can also rent a brand new Cadillac SUV). The march 2016 issue will feature a “Luxury road trip to America” story. Ralph Lauren ripped Jeans, Louis Vuitton beaten up keepall bag, vintage Rolex, Vincent Peach leather bracelet, a motel with neon signs, this is America.

After the success of the September 2015 men’s fashion issue “The Gentleman Traveler”, The September 2016 issue will also feature a Men’s fashion special edition, with in depth stories about America’s best fashion designers. “Having a tailor made business suit made in USA makes a statement for Chinese global business executives” said Tyron Cutner, the Shanghai Travelers’ Club magazine Men’s Fashion Editor.

“Winter Holidays in the American West” will introduce snow experiences in the American West: Colorado, Nevada or Arizona are beautiful in winter time and very desirable destinations for Chinese frequent travelers to the U.S. who had already visited New York and Los Angeles multiple times and want to experience a truly authentic American Christmas time. A lot of opportunities for U.S. luxury retailers to showcase their products and services to their Chinese customers.

Request the 2016 Editorial Calendar & Media Kit of the Shanghai Travelers’ Club magazine here.

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Bloomingdale’s smart strategy to target affluent Chinese shoppers in New York

Bloomingdale's advertising in Shanghai Travelers Club magazine - China Elite Focus 2015We have all seen these cheezy advertising campaigns made by department stores or western brands trying to attract Chinese tourists in the last years: Be assured that affluent Chinese tourists were also smiling…  But it is going to change. Exit the low quality shopping publications targeted to Chinese tourists that ended in the hotel rooms trash bins. U.S. and European Luxury brands and high end retailers start now to advertise seriously with affluent Chinese tourists.

Although luxury sales in mainland China have still remained in slowdown mode in 2015, and Hong Kong has recorded a significant slump as well, Chinese spending remains a potent force in the global luxury industry, propping up growth rates in developed markets worldwide.
This week, Hermès reported a 22 percent increase in global sales in the sAdvertisement Tower - Gervois Hotel Rating May 2017 featuring Pierre Gervoisecond quarter, with sales in Japan leaping 33 percent—a figure attributed in large part to an influx of big-spending Chinese tourists attracted by a weaker yen and easier travel. On a global scale, Chinese travelers are spending lavishly: a recent Global Blue report found that Chinese tourist spending jumped 87.8 percent in June, while spending on leather goods in Europe grew by an even more staggering 93.7 percent. Year-to-date spending growth sits at a whopping 110 percent.
These numbers contrast sharply with the situation in mainland China and Hong Kong, one that is particularly striking in formerly triumphant Hong Kong. Last week, Burberry reported a “double-digit percentage decline” there for the three months ending in June, while sales of Swiss watches in the former British colony were down 21.2 percent in June, despite 3.3 percent growth worldwide.

Woman reading Gervois magazine in a coffeeThese numbers further support the trend that growth is following Chinese tourists abroad, and brands need to keep up with their changing location preferences for travel—engaging outbound shoppers before they leave China and when they arrive overseas. Recent stats also illustrate the ever-shifting tides of Chinese travel patterns. Whereas Japan was, just a few years ago, faced with a Chinese tourist slump (caused in no small part by Sino-Japanese political tensions), the country is seeing a wave of Chinese arrivals and spending, owing to cooling attitudes toward Hong Kong and South Korea’s currency fluctuations and MERS outbreak.
Amid these rapid and unpredictable changes, what is clear is that brands need to have plans in place to quickly jump on opportunities, and ensure they’re able to reach and influence the Chinese outbound consumer wherever he or she happens to be in the world.
“Luxury retailers like Bloomingdale’s have well understood the importance of targeting affluent Chinese tourists”, said Pierre Gervois, CEO of China Elite Focus and Publisher of the Shanghai Travelers’ Club magazine, a high end publication in Chinese language for High Net Worth Chinese global travelers. “Bloomindale’s and the Shanghai Travelers’ Club magazine have launched a very creative marketing and PR campaign this spring showing actual Chinese customers and what it feels like to shop at the iconic Bloomingdale’s store in NYC.” Gervois added. This campaign has generated a considerable attention on Chinese social media and is the first ever campaign focused on the Chinese customer and the overall shopping experience in a U.S. luxury retailer. An example to follow for the industry.

Source: Jing Daily / Chinese Tourists Blog / Chinese tourists in America

New York City expects 1 million shoppers from China by the end of 2018

Chinese shoppers at Bloomingdales NYC - Shanghai Travelers ClubNew York City hopes to reach 67 million annual visitors by 2021, and a big part of the plan is attracting big spenders from places like China and Brazil.
Of that 67 million goal, New York expects 16 million will come from international markets, and 51 million stateside. Based on city figures, 965,000 tourists came from Brazil, and 809,000 from China last year, which ranked Nos. 2 and 3 in international tourism to the city.
“China’s been growing a little faster in percentage from a rate-of-growth perspective, so China’s been a huge growth market for us,” said Christopher Heywood, spokesman for NYC & Company, the city’s official tourism bureau. “Brazil in the last few years has also been [growing], and it still will grow this year, but our big focus is on China.”
An informal survey by China Daily of major US tourist cities finds that the Chinese and Brazilians are substantially increasing their visits.
New York expects 1 million visitors from China by the end of 2018, Heywood said.
Only a few years ago, Brazil and China were not ranked in the top three international markets for New York, but have overtaken European markets such as France, Germany, and Italy.
“One thing about Brazil and Chinese is they don’t mind coming in the winter months, so for Lunar New Year, a lot of our Chinese visitors come during that period,” Heywood said. “The Brazil market, they don’t mind the novelty of being in the snow and being in the cold, so they don’t mind coming in those winter weather months, which is exactly the time of year we want to fill the gap and create more demand during the first quarter,” Heywood said.
Las Vegas is seeing a steady increase of travelers from the two countries, which along with Australia, have been major growth markets for the gambling capital, despite not having direct flights to any of the three countries.
“Our market share and growth has been very good, and our growth in Las Vegas over the last three years has been slightly higher than the growth to the US from China, so we feel very comfortable about that,” said Rafael Villanueva, senior director of international sales for the Las Vegas Convention and Visitors Authority.
“We realize that we’re not going to go out there and get gobs and millions immediately, so we want to do it correctly,” he said. “As the second-tier cities in China start opening up, that’s going to be our volume market.”

“Chinese businessmen like Vegas to close business deals with their American business partners” noted Pierre Gervois, Publisher of the Shanghai Travelers’ Club magazine. ” we have seen a trend since the beginning of 2015, where Chinese Executives came to New York City for business, and organized a two days trip to Vegas, inviting their U.S. counterparts -sometimes in private jets-, in order to close their business deal and have good time”, Gervois added.
Those are the visitors who are going to the US to experience what Villanueva called the “sampler plate”. He said “they came and visited 10 cities in the two to three weeks they were here, and now they’re coming to the US to spend a little more time in San Francisco, Los Angeles and Las Vegas”.
Las Vegas welcomed 300,000 visitors from China in 2013, up from 263,000 in 2012, and 187,000 from Brazil in 2013, up from 161,000.
The Chinese make up a much smaller portion of Miami’s visitors, but there is growth. The city doesn’t have specific data on the number of Chinese tourists, only air studies completed by the city’s airport air service consultant, and it estimates that the Miami market generated 55,000 Chinese passengers in 2014.

Source: China Daily USA / Amy He