We are pleased to announce that we will be co-hosting, and speaking at, the China Edge Symposium: Hospitality and Service for High Net Worth Chinese, in London on 3 July in London.
With the Chinese consumer being in the headlines almost every time a major brand issues its results, it is no wonder that luxury retail brands want to get a better understanding of how to attract, engage, serve…and sell to…Chinese buyers.
The China Dividend:
“Luxury fashion retailer Burberry posts 14% profits rise as Chinese sales surge” (Retail Week)
“Armani…said revenue for 2012 rose 16%…The strong numbers, in particular in Armani’s Far East region of China, Hong Kong and Japan, are motivating the company to aggressively expand…” (The Wall Street Journal)
A key point for brands to understand is that 60% of Chinese luxury spending happens outside of mainland China. Hong Kong is a big beneficiary.
But shopping destinations such as London also have an opportunity to attract these high-spending “global consumers”
With many brands and retailers cautious about international expansion, or with limited resources, in the current economic climate it makes sense to bring the Chinese market a little closer.
UK business groups, including the China UK Visa Alliance (“UKCVA”), which have lobbied the UK Government for reform of the visa system, recognise the importance of the opportunity that Chinese shoppers present:
“The UKCVA estimates that Britain misses out on around £1.2 billion of spending from Chinese tourists because we underperform in attracting them…New West End Company, the Business Improvement District for London’s West End, estimates that Chinese visitors spend nearly three times as much in the West End than the average overseas visitor – £1,688 compared with £567.”
Businesses need to take a long-term, strategic approach, localise their messaging and offers, engage online and through Chinese social media, target key travelling groups, be culturally aware, and know how to serve their Chinese visitors once they arrive in-store.
Burberry is an example of a brand that has successfully adopted some of these approaches, as reported in Jing Daily:
“Digital Strategy And Targeted Expansion Lead To Profit Turnaround”
“…After initially issuing its September profit warning and then reporting a dramatic turnaround last month, Burberry…reported 20 percent sales growth for the year ending March 31, as well as record-breaking profit numbers…Burberry’s digital strategy, which has been highly cognizant of e-commerce and social media, has paid off greatly, as a company spokesperson reported that the Chinese website’s traffic is up 70 percent…The brand has also not ignored Chinese tourists outside the mainland, installing Mandarin-speaking staff in its European stores.”
With these issues in mind, together with our specialist partners, we are delighted to launch the China Edge initiative, with our conference on 3 July: Hospitality and Service for High Net Worth Chinese.
China Edge is a collaboration of sector experts with a wealth of experience in China that brings you the knowledge of how to target, engage and retain wealthy customers from China.