HOW LUXURY BRANDS CAN REACH CHINA’S ‘CASH-RICH, TIME-POOR’ TRAVELERS

As the number of outbound Chinese travelers continues to rise, their trips are getting shorter.

According to a newly published study on Chinese travel trends by IPK International, the average length of international trips by Chinese travelers nearly halved between 2007 and 2014 even as total travelers rapidly increased. Although Chinese tourists spent an average of 10 nights abroad in 2007, that number dropped to 5.5 in 2014. This decrease was powered by short international trips lasting three nights or less, which grew by a staggering 444 percent in that time period, while the number of longer trips declined.

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These statistics mean that Chinese travelers are “cash-rich,” yet “time-poor” on their trips—which illustrates how luxury brands must aggressively compete to become worthy of travelers’ limited time. The good news is that 80 percent of international Chinese trips are currently for leisure, and shopping remains a favorite activity.

There are several key ways brands can reach short-term travelers. First, creating a quality experience is key—the report found that Chinese travelers are increasingly shelling out for first-class hotels, with 55 percent opting for luxury lodging and fewer spending on budget accommodations. This means that experiential luxury is becoming a growing priority, and it’s not just hotels, but boutiques that need to respond to this trend.

For luxury brands, a significant presence in top Chinese travel destinations is crucial, and this means they need to look to Asia. Shorter flights make the region a popular destination for Chinese tourists with limited travel time—according to IPK’s study, Asia accounts for 68 percent of all trips by Chinese travelers. This was followed by Europe at 18 percent, Australia/Oceania at 9 percent, and the rest of the world at 5 percent. Brands should also make sure they have a presence in top Asian cruise stops—over the past seven years, cruise participation among Chinese travelers has increased by over 1,300 percent, and these sea-bound tourists are doing serious shopping when they disembark at ports along the way.

With such short travel times, Chinese tourists often conduct significant research prior to their trips—including what products they’ll be buying. To reach these travelers, brands need to have a strong digital presence that makes it easy for them to research store locations and product information before they leave. This includes not only information on the brand’s official website, but a comprehensive WeChat account that offers product descriptions, a global store locator, and customer service live-chat that can address requests regarding any region in the world.

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Wanna drive Chinese tourists to your shop? iQubator,based in Shanghai,China, can promote the overseas shops of the international brands through Chinese Social Media and own website to increase awareness of the brands in China.

Don’t hesitate to contact us now !

(source: http://jingdaily.com)

Fashion find-French Fashion in Shanghai

French Fashion is really a hot topic in China. We came to visit Madame Shanghai (No. 284 South Xiangyang Road, inside Shanghai French Concession) the other day during this hot summer in Shanghai. There iQubator team met Justine, the founder of Madame Shanghai, and also did the interview with her.

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Entrance of the shop

iQubator: When did you start your business in Shanghai?

Justine:I arrived in Shanghai seven years ago. But first it was for my school, I was in a business school in France and I came to Shanghai for a two-year exchange program. For two years I was doing international management. I loved Shanghai so much so I decided to stay longer. I worked in foods and hospitality industries first, and then I went on to study Chinese. About two years ago I had the idea of opening this shop. In Shanghai there are many fast fashion chains such as H&M, Zara, but there aren’t many independent designers or smaller brands. Between the mass production fast fashion and the luxurious brands such as Louis Vuitton or Chanel, there is no middle ground. So I opened Madame Shanghai. All the brands I carry in my shop are quite famous in France. You see many French girls dressed in these brands. I wanted to introduce these brands to the Chinese market. The store was officially opened nine months ago.

iQubator: Why did you choose to start a career in Shanghai, China?

Justine: During my first two years of studying in Shanghai, I loved the city so much. When I first arrived, I was only 20 years old, so I feel like I have grown up here in this city. It’s my home now.

iQubator: Where do you find the brands and products?

Justine: When I decided to open the shop, I asked my friends in France to help me select the brands because I was in China for 5 years and I was not aware about the trends anymore! To buy the collections, I go to Paris twice a year, to meet directly with the brands at their showroom, or during fashion fairs.

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iQubator: How do you think the brands in your store fit the Chinese market?

Justine: I’m still discovering and learning. When I first opened the shop, I got positive feedbacks from the customers. It’s really popular among the expat community because they know of the brands, and the Chinese customers started picking up and liking it more and more. The brands are French, young, new and colorful.

iQubator: What differences do you find between the foreign and the Chinese customers?

Justine: The Chinese customers are very interested in the quality, they always ask about the materials and the fabrics. They are also very interested in styling. For example, if they find a skirt that they like, they will ask me how they can find a top that goes with it. They are more picky, and they ask more questions. The foreigners are more independent, they don’t ask many questions normally.

iQubator: How do you explain your style?238301517987452014

Justine: I think my style is really French actually! Which means, it is really simple. I love confortable but fashionable clothes. Black is my favorite colors to wear, it is easy to match with everything. This summer, I love jumpsuit, they are really convenient when I don’t know what to wear in the morning!

iQubator: How is the sales going?

Justine: It’s getting better and better. In July it’s a bit slow because many people are on holiday.

iQubator: Through which channels do you promote your store?

535846396854562511Justine: For my foreign customer group, I mainly focus on Facebook and Instagram. And for the Chinese, I have two WeChat accounts. I have a personal account and an official account for my store. I would post articles and interesting sources about my store.

 

iQubator: Do you have promotions in the store?

Justine: I mainly organize events, and I have a rooftop terrace. Where I gather some friends and customers, and I offer wine onsite. I also participate in the designer market. I just participated one in The Cut last Sunday.

 

iQubator: What is your favorite piece in the store?

Justine: Can I only pick one?! (laugh) I will pick top three.162452048592468890

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iQubator: If you were a color, what would it be and why?

Justine: My favorite color is actually pink… You can see that everything is pink around me, from my pens to my iPhone case! It must be my inner child speaking. I never dress in pink though!

iQubator: What is your soonest project coming up?

Justine: I’m hoping to start some sales and offer some discounts, get the sales going during the slow month.

iQubator: Have you thought of opening up another store or expanding into other cities?

Justine: At the moment, I want to focus on this one and maybe move to a more convenient location. But in the future, of course I expect growth and expansion.