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Market Force China CHINA READY: Preparing New York State Businesses for Chinese Tourists

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Page 1: CHINA READY: Preparing New York State Businesses for

Market Force China

CHINA READY:

Preparing New York State Businesses for Chinese Tourists

Page 2: CHINA READY: Preparing New York State Businesses for

Market Force China

Agenda

1. Who are the Chinese tourists likely to come to New

York State?

2. What do they want in their New York State experience?

3. How can New York State businesses be ready to deliver

that experience?

Page 3: CHINA READY: Preparing New York State Businesses for

Market Force China

Agenda

1. Who are the Chinese tourists likely to come to New

York State?

2. What do they want in their New York State experience?

3. How can New York State businesses be ready to deliver

that experience?

Page 4: CHINA READY: Preparing New York State Businesses for

Market Force China

5000 Years of Tumult & Transformation

1949 – Communist Revolution

1978 – Reform / Opening

2001 – WTO 2008 – Beijing Olympics

Colonial Humiliation

& Wars Chinese Dynasties

Shang

Xia

Zhou

Qin

Han

Tang

Song

Yuan

Ming

Qing

中国

© China Business Network – Janet Carmosky

Page 5: CHINA READY: Preparing New York State Businesses for

Market Force China

1990

2010

SHANGHAI

Page 6: CHINA READY: Preparing New York State Businesses for

Market Force China

A Walk Down Shanghai’s Nanjing Road

Page 7: CHINA READY: Preparing New York State Businesses for

Market Force China

What’s Hot in China Today … and What’s Not

Page 8: CHINA READY: Preparing New York State Businesses for

Market Force China

Chinese tourists are … Chinese tourists like … … and don’t like

Group-oriented Enjoying things together Going solo

Shy, but want to have fun Friendly, jokey Americans

Family-focused Honoring parents,

providing for children

English readers,

not English speakers

Practicing English Feeling lost

Narcissistic Photos of themselves,

bragging rights

Asking you to take their

photo

Safety-conscious Risky activities

Education-focused Universities, schools

Investment-minded Real estate

Self-conscious Respect Loss of “face”

Materialistic Luxury shopping

Chinese Tourists – Broad Brushstrokes

Page 9: CHINA READY: Preparing New York State Businesses for

Market Force China

Chinese Tourists – Vast Generational Differences

Age 45+ 30-45 Kids & 20-somethings

Born Before 1970 1970-85 After 1985

Background • Survived severe hardships

• Emerged out of poverty

• Family first-achiever

• Every year has been better than last

• Spoiled, only child • “Little emperor”

Travel Preferences

- Safe, conservative tourist sites

- Familiar food - Cost-conscious - “Make the children

happy”

- Luxury shoppers - Photo ops - Educational

shopping for kids - “Let’s keep up with

the Joneses”

- Heavy social media - Spend parents’ $ - Becoming

eco-conscious - Niche interests - “I want it all”

Page 10: CHINA READY: Preparing New York State Businesses for

Market Force China

Chinese Tourists – Important Regional Differences

Beijing, Northern China: - Heavier drinkers - More political - Warmer personalities

Shanghai: - Wealthy (reputation

for being stingy)

Hong Kong, Guangzhou: - Cosmopolitan - Flashy style - Cantonese language

Chengdu, Chongqing: - Newest wealth - Less sophisticated - Warmer personalities

Page 11: CHINA READY: Preparing New York State Businesses for

Market Force China

Chinese Tourists – Not All Alike

TRAVEL SOPHISTICATION High

Hig

h

SP

EN

DIN

G P

OW

ER

Super Rich

• Small, select group

• Some have little education

• Want money-can‟t-buy experiences

Business

Delegations

• Expense accounts

• 5-star focused

Upper-Middle Class Shoppers

Honeymooners • Materialistic

• Want bragging

rights, photo ops

Visiting Family

& Friends Seniors

• Budget conscious

Educational

Tourists

Real Estate

Investors

• „Smart‟ travelers

• Info hungry

Page 12: CHINA READY: Preparing New York State Businesses for

Market Force China

How Chinese Tourists See America

The good …

• Rich

• Free

• Diverse

• Friendly, well-mannered

• Clean, healthy

• Full of natural wonders

And the bad …

• Unsafe, scary (guns)

• Economic problems

• Inconvenient

• Slow

• Intimidating

Page 13: CHINA READY: Preparing New York State Businesses for

Market Force China

Agenda

1. Who are the Chinese tourists likely to come to New

York State?

2. What do they want in their New York State

experience?

3. How can New York State businesses be ready to deliver

that experience?

Page 14: CHINA READY: Preparing New York State Businesses for

Market Force China

Chinese Tourist Key Motivations

Chinese people come to America for for 3 main reasons –

shopping, education, and real estate

Page 15: CHINA READY: Preparing New York State Businesses for

Market Force China

Shopping • Chinese are crazy for luxury products

• Prefer prominent logos

• Like to share anecdotes about purchase

• Strong gift-giving culture

• Buy on behalf of friends

• Vitamins, supplements

• Attracted to discounts

• Tax free, duty free

Page 16: CHINA READY: Preparing New York State Businesses for

Market Force China

Educational Tourism • Famous universities

• Prep schools

• Boarding schools

• Summer camps

• Mother/father + 4 grandparents

accompany students

Page 17: CHINA READY: Preparing New York State Businesses for

Market Force China

Real Estate Investment

Purchasing priorities:

• New build, off-plan developments

• Top healthcare, education facilities

• Elite branded residences

• Chinese communities

Top Int’l Property Purchase Locations for Chinese Buyers:

1. Prime central London, UK

2. New York, USA

3. Sydney / Melbourne, Australia

4. San Francisco Bay Area & Los Angeles, USA

5. Paris, Bordeaux / Burgundy, France

6. Southeast Asia - Singapore, Thailand, Vietnam

Page 18: CHINA READY: Preparing New York State Businesses for

Market Force China

What else would Chinese tourists enjoy

doing in New York State?

Page 19: CHINA READY: Preparing New York State Businesses for

Market Force China

Taste of “Real America”

• Small town life

• Colonial homes

• “Old money”

• Sight seeing

• Antique cars

• Acted historical scenes

• Driving a car

• Playing baseball

• Horse riding

Careful: what we see as “charming” … they may see as shabby

Page 20: CHINA READY: Preparing New York State Businesses for

Market Force China

Lifestyles of the Rich and Famous • Mansions

• Wine tasting

• Movie star homes

• “Old money”

• Gourmet

• Yachts

• Private jets

• Helicopters

• Polo

• Golf

Page 21: CHINA READY: Preparing New York State Businesses for

Market Force China

Interactions with Friendly Americans

• Jokey photo-ops

• Fun group activities (ex: Macarena)

• Entertainment / shows

• Slapstick comedy

• Good looking people

• Dancing

Page 22: CHINA READY: Preparing New York State Businesses for

Market Force China

Nature (but in small doses)

• Scenic rest stops

• Clean air, clean water

• Kodak moments

• Quick, safe outdoor excitement

• Apple picking

• Organic foods

• Eco-tourism

Page 23: CHINA READY: Preparing New York State Businesses for

Market Force China

Gambling

• Baccarat

• Card games

• Horse racing

• Slot machines

• Bragging rights

Page 24: CHINA READY: Preparing New York State Businesses for

Market Force China

Chinese Tourists Not Interested In

• Beaches, sun tanning

• Night clubs

• Poor neighborhoods

• Shabby towns

• Chinatowns

Page 25: CHINA READY: Preparing New York State Businesses for

Market Force China

Agenda

1. Who are the Chinese tourists likely to come to New

York State?

2. What do they want in their New York State experience?

3. How can New York State businesses be ready to

deliver that experience?

Page 26: CHINA READY: Preparing New York State Businesses for

Market Force China

1 – Provide Chinese-Language Materials &

Custom Itineraries

• Websites, mobile apps

• Brochures

• TV channels, TV guide

• Welcome letter (hotels)

• Brochures, maps

• Museum captions

• Entertainment magazines

Custom itineraries:

- Shopping

- Education

- Real estate

- Small town America

- Luxury lifestyles

- Eco-tourism

- Gambling

Packaged to “speak” to Chinese tourists:

* Chinese historical references

* Chinese celebrity endorsements

Page 27: CHINA READY: Preparing New York State Businesses for

Market Force China

1 – Provide Chinese-Language Materials &

Custom Itineraries

Chinese tourist menu design:

1. Photo of each food item

2. Chinese-English translation

3. Price

Easy food recognition,

point-to-order

Page 28: CHINA READY: Preparing New York State Businesses for

Market Force China

2 – Train Staff to Welcome Chinese Guests

• Provide opportunities to interact

- Show interest, be chatty

- Play with their kids

- Invite to part-of-the-gang experiences

- Toast drinks, pour their drinks

- Pull them on stage

- For delegations, introduce boss to shake hands and

receive business cards (use both hands)

• Exploit Chinese passion for photography

- Offer to take their photos

- Jump in photos yourself, strike a pose

(and give them a hug!)

Page 29: CHINA READY: Preparing New York State Businesses for

Market Force China

2 – Train Staff to Welcome Chinese Guests

• Demonstrate you are interested in Chinese culture

- Learn a few common Chinese phrases

• Learn to say their names

- Use English name (or offer to give them one!)

- If no English name, use family name only

- Learn correct pronunciation of 10 most common

family names

Hello Ni hao 你好Welcome Huan ying 欢迎Thank you Xie xie 谢谢Good bye Zai jian 再见

Page 30: CHINA READY: Preparing New York State Businesses for

Market Force China

Page 31: CHINA READY: Preparing New York State Businesses for

Market Force China

2 – Train Staff to Welcome Chinese Guests

• Be careful to avoid:

- Talking politics

- Coming across as arrogant or condescending

- Letting Chinese guest “loose face”

- Mixing up Asian nationalities

- Over-reacting to lack of common courtesies

- Making assumptions about people (esp. about spending

power of otherwise humble Chinese guests)

Page 32: CHINA READY: Preparing New York State Businesses for

Market Force China

3 – Accommodate Chinese Dining Preferences

• Chinese eat collectively, like to share food

(may put dishes in middle of table)

• Enjoy buffets

• Prefer noodles, rice, cooked vegetables, spicy foods

• Smaller portions of meat

• Do not put ice in drinks (often request hot/warm water)

• Eager to try seafood (esp. lobster, crab)

• Less focus on desserts

• Not used to tipping

Page 33: CHINA READY: Preparing New York State Businesses for

Market Force China

3 – Accommodate Chinese Dining Preferences

Chinese tourists prefer to start their day

with their own food …

so provide a simple Chinese breakfast set

Noodles Fried dough

Rice soup

Hard Boiled Eggs

Page 34: CHINA READY: Preparing New York State Businesses for

Market Force China

4 – Prepare Technology to Accommodate Chinese

Tourist Needs

• Free Wifi (w/Chinese interface)

• Charging stations, adapters

• Unionpay

• QR codes

• Set up a WeChat account

Page 35: CHINA READY: Preparing New York State Businesses for

Market Force China

5 – Surprise Them With a Few Touches of Home

• Karaoke (w/Chinese songs)

• Games like Mahjong

• Photos of famous Chinese visitors

(Yao Ming, Jeremy Lin)

• Chinese DVD movies

• Welcome sign (欢迎) in window

Page 36: CHINA READY: Preparing New York State Businesses for

Market Force China

Best Practice: Hilton Huanying Program

Hilton Hotels & Resorts launched a program which

tailors their experience to the Chinese traveller

across three key touch points:

1. Arrival experience includes a front desk team member fluent

in Mandarin Chinese

2. Guest room offers amenities for Chinese travellers, including

tea kettles, Chinese teas, slippers, Chinese TV channels and a

welcome letter in Chinese

3. Breakfast includes traditional Chinese breakfast items

The program is currently offered at 15 Hilton European locations

Page 37: CHINA READY: Preparing New York State Businesses for

Market Force China

Conclusions

Chinese tourists are:

• Group-oriented, conservative, safety conscious

• Heavy social media users, love to share photos of themselves

Chinese tourists want:

• Shopping, education, real estate

• And new, deeper experiences to share with family & friends

Think about how to:

• Repackage offering in Chinese, customized for Chinese tourists

• Train staff to welcome Chinese tourists

• Accommodate Chinese dining preferences & technology needs

Page 38: CHINA READY: Preparing New York State Businesses for

Market Force China

For inquiries, contact David Turchetti at:

United States: (401) 263-7189

China: (+86) 1862-165-0505

[email protected]

Market Force China