U.S. Retailers wanting to target Chinese Millennial Shoppers should now use English in their campaigns

Affluent Chinese Millennial Shopper - Gervois Magazine - China Elite FocusThey speak English now (Just in case you didn’t notice).

They are the millennial Chinese travelers in the United States.

They are the Chinese tourists coming to discover the United States of America and to buy high quality Made in USA products.

They are the Chinese businessmen and businesswomen coming to invest in American companies and create U.S. jobs.

They are the smart Chinese millennial entrepreneurs coming to America to create start ups and contribute to America’s leadership in future technologies.

They are the Chinese guests fed up to be disrespected in luxury hotels when asking if they really can afford to pay for a suite when they ask for one and are offered first the cheapest room available.

They are the Chinese businessmen walking into a bespoke suit company in New York City and asking for a hand made in America suit because they also deserve to wear the finest clothes. (No, they are not only interested in “I Love NY” Made in China T-shirts)

They are the Chinese travelers annoyed to be depicted by U.S. marketing agencies as using only Chinese social media networks such as Weibo and WeChat, when they are actually using Instagram, Twitter and Facebook to stay in touch with their U.S. friends and freely discover the world.

They are the tourists who have spent $40Billion in the U.S. in 2016

They are the LGBTQ+ Chinese travelers wanting to be as respected as any other tourist and find safe places to just be who they are.

They are the Chinese shoppers who find utterly ridiculous when Western luxury brands add a dragon or a Chinese symbol on a watch or a handbag and expect that they’ll specifically want to buy this model.

They are the Chinese tourists who are grateful for the warm welcome they have received by American people when they were doing horseback riding or cowboy shooting. (Yes, they are not only obsessed by shopping in large shopping malls but want to discover the various aspects of America’s culture and heritage).

They are the Chinese travelers who are proud of their Chinese cultural heritage and Chinese language, but who also speak English and prefer to read in English original stories about the United States.

They are the Chinese travelers who are fluent in English and understand exactly what some people say about them when they are traveling overseas.

Actually, they are exactly the same as any other traveler in America.

By Pierre Gervois, Founder of Gervois Hotel Rating, Publisher of Gervois Magazine, Hospitality & tourism keynote speaker and expert about marketing to outbound Chinese tourists.

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Chinese shoppers in the U.S. can now use WeChat Pay & Alipay, China’s leading mobile payment solutions

A Chinese shopper using WeChat Pay - China Elite FocusCitcon, the integrated payment and marketing platform, announced a strategic partnership to enable brands in North America to accept WeChat Pay and Alipay.

WeChat Pay and Alipay are the most popular and convenient payment options for Chinese consumers to purchase goods and services. Adding these payment options to retail point of sale allows brands to now tap into an even larger revenue stream from Chinese consumers who are the largest spender, and fastest growing traveler segment to the North America. The platform enables brands to optimize revenue growth without the costs and hassles of establishing a business entity in China.

WeChat Pay is a fully integrated payment solution within WeChat, the world’s most popular mobile social communications service with 936 million active users and Alipay is a super lifestyle app run by Ant Financial Services Group with more than 450 million active users. Together these platforms jointly account for 90% of China’s mobile payment market share. Both super apps allow users to book a trip, hail a taxi, order food, purchase movie tickets, pay for water and electricity bills, manage investments, perform transactions on e-commerce websites and more to create a cashless society.

“China is changing fast. Mobile payment is the new frontier of commerce and China is leading this trend. By providing an integrated and easy-to-use payment solution, Citcon is creating a future that takes payment and marketing to the next level, empowering global merchants to drive business growth with millions of Chinese consumers.”said Chuck Huang, Founder and CEO of Citcon

As the first payment partner of WeChat Pay and Alipay, in addition to major credit cards such as UnionPay, MasterCard, Visa, Discover and American Express, Citcon is a one-stop shop for merchants to connect with Chinese consumers and accept payments anywhere. Citcon’s stand-alone mobile point-of-sale (mPOS), easy-to-integrate API and software products empower merchants to optimize growth both online and offline, with an easy and affordable rate compared to credit card processing. In addition to the convenient payment solutions, merchants will also be able to gain in-depth consumer behavior insights, manage business performance, run marketing campaigns, guides users to merchants stores while saving their shopping preferences for future visits and manage lifetime customer loyalty programs.

“Accepting WeChat Pay is a smart move for U.S. Retailers. That will definitely help with the category of budget-conscious Chinese travelers who choose to travel in groups. But they must keep in mind that the most affluent categories prefer to pay with their international credit cards, who show their status when traveling overseas and offer more perks in terms of miles and reward points.” commented Pierre Gervois, CEO of China Elite Focus Magazines LLC, a media group specialized in luxury travel publications for very affluent Chinese outbound travelers.

Source: Citcon / Chinese Tourists in America

Luxury brands might have forgotten that Wealthy Chinese shoppers also wanted a good service

Bottega Veneta store ChinaKering, the French luxury group, is adapting its sales approach to better cater for increasingly sophisticated Chinese customers, according to group managing director Jean-François Palus.
“We’ve changed the way we conduct our business in China and the way we address Chinese clients when they’re abroad,” said Mr Palus at the Financial Times luxury conference in Lisbon on Tuesday.
“We learnt that a very serious risk is to become complacent, to think that it’s an easy business, an easy customer base, easy to open stores with good products and then people will come in. That was true for a moment but Chinese customers have become sophisticated and highly demanding and we need to adapt.”
Chinese consumers account for more than 30 per cent of global luxury consumption, according to consultant Bain, which is forecast to increase to 35 per cent by 2020.
How much of global luxury consumption Chinese consumers account for, according to Bain, a figured set to rise to 35% by 2020
In the past, luxury houses relied on rapidly opening up stores in China to fuel growth amid rampant Asian demand for their products, but this approach has been undermined by an economic slowdown in China.
In the final quarter of last year, Chinese consumers showed signs of returning, although notably shopping more in mainland China, while tourism in Europe has slowed in part owing to recent terrorist attacks.
In China, Kering is retraining shop assistants and replacing email communication with WeChat, China’s most popular social media platform with more than 800m daily users.
Mr Palus said: “The way the Chinese treat very important clients is different — they have a very candid approach to wealth.”
He pointed to a recent visit to a Gucci store in Beijing where the store manager told him he had hired the daughter of a billionaire to work with clients in the shop “because to talk to wealthy people in China, you need to be wealthy”. He added that bad feng shui in a shop can hurt client traffic.
According to Pierre Gervois, the New York Based Founder and Publisher of the STC magazine, a luxury travel publication for High Net Worth Chinese global travelers “HNWI Chinese clearly signaled about  five years ago that they wanted to purchase luxury goods outside China, to enjoy the full experience of the iconic flagship stores in London, Paris or New York”
“This new trend has not been immediately recognized by luxury conglomerates such as LVMH and Kering, that led to an inflation of store openings in China in the years 2010/2015, with little customer traffic, insufficient staff training, and in some cases damaging consequences in terms of brand image.”, Mr Gervois added.
Kering posted a 31.2 per cent rise in revenues to €3.57bn in the first three months of 2017, lifted by a 34 per cent jump in sales from luxury activities.
Among its brands, Gucci led the way, posting record revenue growth of 51.4 per cent for the three months — the latest sign of improvement under creative director Alessandro Michele. Other Kering brands such as Brioni and Bottega Veneta were doing less well than the likes of Saint Laurent.
Mr Palus said: “The market has become more difficult and the pace of growth has slowed down. In this environment you need to take market share from the competition.”
Kering was not looking at acquisitions, added Mr Palus. “We have so much on our plate with helping our existing brands tap their potential . . . we don’t have enough time to think about M&A.”
He said that Kering was also still adapting to digital platforms. “We need to open ourselves to what’s happening in other industries and other countries. Our industry needs to become less product-centric and become more customer-centric.”

Source: The Financial Times / Chinese Tourists Blog

How the U.S. is “importing” Chinese shoppers to boost retail industry

Chinese tourists family- Luxury Hotels of AmericaThe United States has long imported its food and fuel, its cars and clothes. Now the faltering economy has sparked a push for another type of import: shoppers.
For the first time, lawmakers, businesses and even White House officials are courting consumers from cash-rich countries such as China, India and Brazil to fill the nation’s shopping malls and pick up the slack for penny-pinching Americans. They are wooing travelers with enticements such as coupons, beauty pageants and promises of visa reform. The payoff, they say, could be significant: 1.3 million new jobs and an $859 billion shot in the arm for the economy over the next decade.
“They’re their own little stimulus program,” said David French, senior vice president for government relations at the National Retail Federation, a trade group.

Pierre Gervois, CEO of China Elite Focus, added “Chinese travelers are first, shoppers. The main reason for their leisure trip to the United States is shopping in 90% of the cases”. The trend underscores the depth of the United States’ reliance on countries once considered to be at the bottom of the global totem pole. The nation already counts on China and other countries to manufacture its goods, creating a $45 billion trade imbalance that is paid for with money borrowed from their coffers. Now officials are encouraging foreign travelers to buy some of those products back — and a growing number are happy to oblige. Guo Hui, 37, who lives in Beijing, recently returned home from a two-week tour of Yellowstone National Park, Houston and Los Angeles. He estimated he spent $2,000 to rent a car and pay for gas and lodging for himself and his wife. Then there was the Ed Hardy T-shirt, the Apple laptop, the HP laptop, even baby food and formula for his child, totaling an additional $6,000.


Still, Guo said prices are significantly cheaper than in China — a pair of Adidas sneakers costs only $25 at a U.S. outlet mall.
“For that price in China, you can’t even buy counterfeits,” he said.

In contrast, spending by American shoppers — long considered the engine of the nation’s economy — has slowed to a crawl as families struggle under high unemployment rates and depressed home prices. The U.S. gross domestic product last year grew an anemic 3 percent, while China’s and India’s shot up 10 percent. Brazil’s clocked in at about 7.5 percent.
Those shifting dynamics have spawned a movement to encourage foreigners to spend their newfound wealth in the United States, placing the country in the unfamiliar role of supplicant. Over the summer, President Obama’s jobs council deemed international travel among the “low-hanging fruit” for stimulating the economy. The Corporation for Travel Promotion, a public-private partnership created by Congress last year, will announce next month the first U.S. advertising campaign to promote the nation as a tourist destination. Rebecca Blank, the acting commerce secretary, called tourism a key component of “America’s exports success story.”
That’s because even though foreign shoppers are spending money in the United States, their purchases are counted as exports on the country’s balance sheet. This year, their spending is up 13 percent compared with last year, to nearly $87 billion.
The bulk of international tourism dollars comes from Canada, Japan and Britain. But Chinese spending is growing the fastest, up 39 percent in 2010, to $5 billion. Brazil’s growth was not far behind, with a 30 percent increase to $6 billion. India’s spending rose 12 percent to $4 billion.

“I don’t think you can expect foreign tourism to be a silver bullet” for the economy, said Brian Bethune, an economics professor at Amherst College. “But it makes an important difference. . . . It’s a no-brainer in some sense.”
That is why the Nevada Commission on Tourism lobbied to play host to the semifinal round of the Miss Chinese Cosmos beauty pageant, which wrapped up last week. The 18 contestants toured the state capital, attended a Wild West shootout in Virginia City and cruised in a Mississippi-style paddle-wheeler on Lake Tahoe with a Mark Twain impersonator. The seven-day extravaganza was broadcast to 225 million viewers across China.
“Part of it is the education for the Chinese of all that Nevada has,” said Larry Friedman, the tourism commission’s interim director. “The exposure potentially is huge.”
At the Fashion Outlets of Las Vegas, which sits along the California-Nevada border, travelers from China, Malaysia and South Korea have driven the shopping center’s tour bus business up 300 percent from a year ago, according to Ann Ackerman, director of marketing for AWE Talisman, which owns the mall. The center gives foreign tourists special coupon books, employs Mandarin-speaking customer service representatives and contracts translators to assist store salespeople struggling to break the language barrier. The outlets’ hotline can handle 150 languages and receives about 15 calls averaging 11 minutes each per week.
In Washington, about 10 percent of the city’s 17.3 million visitors are international travelers, but they typically stay longer and spend more than domestic tourists, according to Destination DC, the city’s tourism bureau. A foreign tourist typically spends $813 over a five-night trip, compared with $275 over a three-night stay for Americans.
Elliott Ferguson, the group’s chief executive, said the city has sales representatives in Britain and Germany and recently added one in Brazil. Last week, Iceland Air wrapped up filming of a promotional video about the District that will play on all of its flights.
Ferguson said his sales pitch focuses on the cosmopolitan aspects of the city — the food, shopping and night life — rather than politics.
“Washington is in the news every single day somewhere in the world,” he said. “But it’s not necessarily for things that make you want to come to our destination.”

But this Washington policy debate might be of interest to potential foreign tourists.
Last week, Rep. Joseph J. Heck (R-Nev.) introduced a bill aimed at cutting the time it takes to get a tourist visa to 12 days, citing waits at consulates in key markets that can stretch to more than 100 days.
The State Department has pledged to reduce wait times for appointments to 30 days, and a spokesman said it is adding a “significant” number of staffers in Brazil and China to keep up with demand. The bill is awaiting a committee hearing.
Guo, of Beijing, said he waited nearly two months for an interview for his visa. He said he is also frustrated that the pass is only good for one year, which means he could have to reapply before his next trip. New York, Miami and Orlando are on his list.
“I guess too many people want to go to the U.S.,” Hui said.

Article by Ylan Q. Mui.

Source: The Washington Post