Wooing Chinese Tourists: Thinking Beyond Slippers and Kettles
Last week in Beijing, free Wifi was rolled out across 12,000 of the city's buses. It's great news for the millions of Internet-obsessed commuters in the capital, but also relevant for tourism operators in the West.
Imagine you were a tourist arriving at a hotel in say, Boston or Brisbane, having just come from China where free Wifi is the standard in hotels and even free on bus rides which cost less than 50c. The smiling clerk at the check-in desk tells you that Wifi costs $15 for one hour to $30 for 24 hours. As a value-focused Chinese tourist, your first impression of the hotel may not be great. And once you've cooled down, even if you did like the view from your room or the food at the restaurant, you'd be much less likely to share it with your friends given the extortionate cost of doing so. That's a big opportunity missed.
One of the most powerful way hotels and tourist attractions can promote their services to Chinese is through user advocacy on WeChat and Weibo. 84% of Chinese travelling internationally share the good and bad experiences from their trip on social media. For the under-35s, who account for two-thirds of outbound tourists, 42% consult social media when planning a trip away.
Hotels around the world are upping their game to woo the lucrative Chinese traveller. Slippers and kettles, Chinese TV beamed in, Mandarin speakers and Chinese porridge are important to offer, but that's where most stop.
As a tourism business, by understanding a Chinese visitor's journey - from planning to reminiscing, the role online channels play - and how best to utilise them, you can win the hearts and wallets of Chinese tourists, and create an army of authentic marketers for your services. We hope you enjoy this week's Skinny.
Chinese Consumers
Transparent Brands, Demanding Consumers: 22 min vid: 79% of Chinese consumers view transparency and honesty as important, versus 65% who think price is key, according to Cohn and Wolfe. Chinese consumers are more likely to follow brand issues and news than their Western equivalents, and are much less cynical of those brands. Chinese rate Western brands highly, whereas consumers in other developing markets typically trust local brands more.
Australia and China's FTA: The Long Game: There has been much celebration in the media about the Australia-China Free Trade Agreement, but it is no panacea. What does it mean for you?
China Just Knocked Off The Range Rover Evoque: Chinese auto maker Land Wind revealed its X7 at the Guangzhou Auto Show - a spitting image off the popular Range Rover Evoque. The X7 is expected to retail for ¥135,000 ($22,000) versus $80-109,000 for the original in China. In other fake news, the Chinese Government is lending its hand to certify authentic Buddhist and Taoist temples due to the proliferation of fake temples and monks trying to pry cash out of tourists.
Chinese Tourists
UK Rolls Out Red Carpet for China's Tourists: The UK's Great China Welcome initiative has attracted almost 200 hotels, restaurants, attractions and other hospitality businesses to become "China-ready" since launching this year - we're surprised more haven't signed up given it is free. Tourism Great Britain has also just launched a $2.5 million campaign asking Chinese to name 101 British landmarks. Similarly, the USA is wooing Chinese tourists with social media, fried dough fritters and a quiz.
Tourism Australia's Plan to Whet China's Appetite: Australia is spending $10 million on a marketing campaign to woo Chinese tourists. Food and beverage is central to the campaign, projected on big screens in subways and shopping malls, with 86 food bloggers, writers and critics coming to Australia. 28% of Chinese consumers who have not visited the country think Australia offers good food, wine, local cuisine and produce, whereas 76% who have visited the country think it has great food and wine, ranking Australia top for culinary experience.
China Online Travel Market Grows to ¥72 Billion in Q3: Between July and September, Chinese travellers spent ¥72.6 billion ($11.8 billion) online buying products such as air tickets, hotels and vacation tours - 20% more than in Q3 2013. Ctrip accounted for 55.9% of the OTA market, followed by eLong at 9.7% and TongCheng 6.3%. Ctrip's mobile app downloads grew 75% in the last quarter to 350 million.
Internet, eCommerce & Mobile
Four Reasons Why Chinese Consumers Go Online: 98% of Chinese use the Internet to explore new subjects such as brands, products and services. 88% use it to connect with family and friends and 89% to express opinions and be heard (versus 38% in the USA).
How Companies Use Wechat Official Accounts: There are now 5.8 million official WeChat accounts, with ecommerce, catering, finance, auto, real estate and hotels being the top industries.
Consumers Find Delayed Gratification Of Ecommerce More Rewarding: 82% of Chinese consumers are more excited about online purchases than in-store buys.
Food & Beverage
Sprouts and More – China’s Food Unsafety: The latest food scandal to hit China - 20 tonnes of toxic bean sprouts uncovered in Beijing containing poisons that can cause premature puberty, disrupted menstrual cycles and osteoporosis. Similarly, more than three quarters of the rice fields in central Hunan province have been contaminated with excessive levels of heavy metals or chemical waste.
Heinz Opens State-of-the-Art Infant Cereal Factory in China: To coincide with its 30th anniversary of having a presence in China, Heinz is opening its largest infant cereal production plant in the world in Guangdong.
Chinese Demand for Dairy Products Spurs U.S. Exports: U.S. milk exports to China were up 35% in January from a year earlier. Tetra Pak's analysis found China to be the world's largest flavoured milk market. UHT makes up 76% of milk sales, with lactose-free products filling an important need given such high levels of lactose intolerance. Most milk in China is sold in single serve packs.
Environment
Companies Take Note: Consumers Trust Climate Change Warnings : 82% of Chinese believe that the world's climate is changing due to human activities - the highest rate of 18 countries surveyed by National Geographic. 53% of Americans agree - the lowest rate in the world.
Education
China's Rich Want to Send Children Abroad for Education: 80% of China's wealthy plan to send their children abroad for education according to Hurun. Just 1% of Japanese do. The U.S. and UK are the top spots, with Australia, Canada, Switzerland, New Zealand, Singapore, France and Germany attracting most of the rest.
Auto
China Motorists Exceed 300 Million as Cities Struggle: China now has as many drivers as there are people in the U.S. It took just four years to add 100 million new drivers in China, and 35 of its cities now have more than 1 million vehicles.
That's the Skinny for the week! See previous newsletter here. If you have any comments and suggestions about our newsletter, please contact us at newsletter@chinaskinny.com.
