marketing to asia: meeting the spending needs of chinese travellers philippe charriol, chairman,...
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Marketing to Asia: Meeting the Marketing to Asia: Meeting the Spending Needs of Chinese TravellersSpending Needs of Chinese Travellers
Philippe Charriol, Chairman, Charriol Group
John Garner, Vice President Purchasing, DFASS
Who is DFASS ?
John GarnerPresident
DFASS (Singapore) Pte Ltd
• #1 in-flight Concessionaire worldwide• 22 years of industry presence under same
ownership• US$350M annual turnover• 5 of the world’s top 10 mega carriers global
contracts• 40 airlines partners• 74 distribution/warehouse facilities on
5 continents
Our Concession Airlines
• AeroSur• Air Astana• Air Canada• Air Jamaica• Air Transat• Avianca• American Airlines• Bangkok Airways• CanJet• Continental Airlines
• Continental Micronesia• Delta Air Lines• Gulf Air• Jetstar Asia• Northwest Airlines• Pluna• Silkair• Singapore Airlines• Tiger Airways• US Airways
Canada
USA
Jamaica
PanamaColombia
Bolivia
Uruguay
UK
Japan
SingaporeGuam
Bahrain
Kazakhstan
Belize Taiwan
DFASS operates a vast network with 74 stations/offices across 5 continents.
Understanding the China marketThe Economy
Fastest growing
economy
10% average annual GDP growth over last
30 years
3rd largest economy after USA and Japan
#1 exporter
#2 importer #2 trading nation
Where China Outrank USA
Where USA Outrank China
• IPOs• Foreign Currency
Reserves• Trade Balance
• Billionaires• Fortune Global
500• GDP• Top 50
companies by market capitalisation
Measured in USDMeasured in USD
Between 2008 to 2009
50,000 new Chinese millionaires50,000 new Chinese millionaires
4,000 new Chinese > US$10M4,000 new Chinese > US$10M
2,000 Chinese > US$100M2,000 Chinese > US$100M
100 Chinese billionaires
Understanding the China marketThe Targeted
Consumer
China - Most Populous Nationin theWorld
1.3 billion people20% of world’s population
Distinctive One Child Policy
Introduced 1979“Little Emperor”Provided for by 6 adults
Our Target Consumer• Chinese Elite• New Rich• Little Emperor (25-45 years old)• Both genders• Origin: Economic Hubs such as
Beijing, Tianjin, Shanghai, Guangzhou, and Shenzhen
Understanding the China marketChinese Consumer
Behaviour
Chinese Consumer Behaviour
• ‘Xin Gui’ or the new money consumer behaviour
• Chinese elite consumer ambivalence • Middle class have luxury aspirations• Hedonistic young generation• ‘Look at me’ mentality
‘I can afford this – Can you?’
• Group of key consumers that are diverse and different
• They buy everything from luxury cars to fashion goods, from cigars to watches, from Singapore to London
• Often shop in groups like the Japanese used to - but individual buying habits are different
• With 24 airline concessions
• With more than 60% of our airlines Concession partners flying to valuable Chinese destinations
• Advantaged position to identify consumer trends, buying patterns and leverage on them
Buying Behaviour
• From Pierre Cardin to MontBlanc• From L’Oreal to Chanel• From Tintamar to LV
Choice is driven by local marketing!
Buying Behaviour
Price is rarely an objection
… and discount is always welcome!
Cash is king
…and credit cards usage is limited
Understanding the China marketWhy do Chinese
buy from In-flight?
Counterfeit!
Genuine and buy with
CONFIDENCE
龙龍 or
Communicate in Simplified Chinese characters!
What do these numbers signify?
THE BOOM IN CHINA IS ON ITS WAY….
DFASS, Excellence by Choice, Not by Chance.
Thank you