This is a team project created as part of Uni curriculum.

1. Lucy Zhao Robert McKay Masahiro Noji Koushi Subramanian
BSN420 EY ASIAN GROWTH CENTURY INITIATIVE
TEAM 4
AN EXCLUSIVE, AUTHENTIC, SEAMLESS, LEISURE EXPERIENCE FOR THE CHINESE LUXURY TRAVELLER

2. Market and Business Opportunity
2014
Total Overseas Trips
100 Million
HNWI
65Mn
2020
Total Overseas Trips
200 Million
HNWI
~130Mn
Chief Concerns of
Chinese Travellers

3. Value Proposition
HNWI Size (2008) – 415,000
HNWI Size (2014) – 4 million
87.54% - Book with Travel
Agency Currently
94.13% - Forecasted to book in
the future
Value Proposition
Exclusive, Authentic, Seamless, Leisure Experience designed for the HNWI and
supported by an ecosystem of people, technology and partners.
Year 5 $360,000,000 34.24%
Year 1 $72,000,000 -12.50%
TTV Profit Margin

4. Investment Basis - Xiao Yao You Ecosystem
High-End Branded Store Digital Platform Marketing Channel
Travel partner network
Destination Cities, Luxury Brands and Luxury Hotel

5. Mapping the Customer Experience
Search Booking Decisions
Logistics
ExperiencesSharing

6. Customer Experience Pain Points
Lack of thorough,
practical info Visa, Insurance
Hassles
Cultural
Differences
您好 Hi!!
Language BarriersLack of thorough,
practical info

7. Xiao Yao You Customer Experience
Discovery
Experience
Assistance
Satisfaction
Connectivity Personal
touch
Seamless
experience

8. The Ultimate in Experience
Value Proposition
Exclusive, Authentic, Seamless, Leisure Experience designed for the HNWI and
supported by an ecosystem of people, technology and partner networks.
Shopping Adventure Wellness
Our Three Programs

9. Xiao Yao You Programs
Shopping Adventure Wellness
46% of the world’s luxury
products purchased by
Chinese consumers
71% of travelling budget
spent on shopping
US$106 billion total
spending
40% of them prefer
adventure tourism
32% of them consider
North and South Poles as
their dream travel
destination
88% of them consider
health as their top
investment
62% of them are
interested in health
tourism

10. Website and Mobile Site
xiao-yao-you.com

11. Thank you!

12. Appendices

13. Xiao Yao You Ecosystem
High-End
Branded
Store
Online
Ecosystem
Travel Partner
Network
Store Modelled after
Apple, Cartier, Nespresso
Designed to showcase
curated experiences
Exclusive Event to
promote the brand
and its lifestyle
affinity using CIEvents
capabilities in
Augmented Reality
1. Localised Digital and
Social Offerings with
content seeded by KOLs
2. App for Seamless journey
experience, including
geo-location, beacon
activation
Exclusive partnerships with
High-end Brand Stores to
ensure consistency of
experience
Destination partners
including Cities with
“China Ready” programs
to ensure authenticity

14. Xiao Yao You Customer Experience
Discover
Curated Experiences through digital platform,
In-store Events and Experiences
Complete localised ecosystem
- Connect with Family and Friends
- Connect with KOLs for expert
guidance, knowledge and assurance
Tickets
delivered in a
personalised
gift box
Enjoy an Exclusive,
Authentic,
Seamless, Leisure Experience
App activates preferences;
Choose from Chinese/
international dining; Pay
using China Union Pay
- App’s geo-
location
services alert
Concierge
An elevated shopping
experience that combines
brand content with travel
experience
App activates
beacons
Events, In-store experiences
Using Augmented reality for
the next must-see
destinations

15. Xiao Yao You Programs
Shopping Adventure Wellness
Luxury brands in Paris,
Milan, London, or Dubai
are very popular
Alipay, Tencent or China
Union Pay
Stylist or fashionista
consultation
Polar exploration: Both
North Pole and Antarctica
Unique Experiences:
Bhutan, Middle East,
Nepal
African Safari: Patagonia
Health check-ups and
consultation at top
hospitals or retreats in US,
France, Italy or Australia
Various types of Spa, Yoga,
meditation and beauty
programs and top-end
healthcare products

16. In-depth Market Analysis
Outbound tourism posting 18% y-o-y growth; 200 million Chinese tourists expected to travel overseas in 2020.
Growing Outbound Tourism Market
Beijing and Shanghai are the top two fastest growing cities in
terms of their importance to HNWI ; they will represent the
3rd and 4th most important cities in the world, respectively, in
10 years’ time (behind London and New York City).
China Accelerating Importance in Global Economy
- Tourist visas of some countries must be obtained by
designated travel agencies. Besides considering language
obstacles, most Chinese tourists choose tour services by
travel agencies.
- Up to 87.54% of Chinese tourists choose travel agencies
for outbound tourism services. In the near future, Chinese
tourists are still mainly reliant on travel agencies for
arranging their overseas tours. 94.13% of tourists say they
will continue to purchase tourism products by travel
agencies
- Currently, the diversity of outbound tourism products is
limited, thus most consumers choose travel agencies with a
well-established brand name.
- Travel insurance products have been accepted and
recognized by the majority of tourists. 73.65% of tourists
purchase insurance to guard against risks during trips
through travel agencies or travel websites (61.79%).
Travel Agencies and their place in Chinese tourism

17. Consumer Analysis

18. Tapping into the HNWI Consumer Market
Weibo will most likely be the first online touchpoint for your
brand in creating awareness. Rather than searching for your
official information through a traditional search engine,
Chinese consumers will typically first seek out an unfamiliar
brand on Weibo to see what the online community is saying
about it. This is where users will be exposed to your Weibo
account to learn about your brand through your content
posts and activities.
Once they like what you have to say and stand for, they may
selectively decide whether or not to follow you on WeChat,
essentially inviting your brand to be part of their private
inner circle. WeChat is a much more closed platform, and
enables brands to engage in much more targeted and direct
conversations with their audience to establish brand loyalty
and increase customer stickiness.
To Weibo or To WeChat
If brands are taking a long term view and are still devising a
strategy to enter the Chinese market, Chinese social media
is not only a great segue but more so, a much more feasible
(lower entry barrier) activation method for building a better
understanding of Chinese consumer trends in your industry
and gaining valuable insights from Weibo buzz, social data
mining and analytics tools.
Entering the SoLoMo landscape
Chinese travellers remain the undisputed fastest-growing
luxury buyers in the world; they allocate 71% their budget
on shopping when travelling overseas.
65% of China’s HNWIs favour online social media as their
preferred source of information.
More Luxury per Capita

19. Differentiation in Luxury Travel space
WeChat and Caesars Entertainment announced the launch
of the first connected hotel suite in America. By simply
scanning a QR code, hotel guests will be able to control a
number of elements in their suite via the WeChat app. The
app allows the guests to control certain facets such as
lighting, sound, door locks, curtains, thermostats and even
the coffee machine.
It’s crucial to know that this function, while available in
both English and Mandarin, is predominantly aimed at
outbound Chinese tourists. In Hotel.com’s survey, ‘2014
Chinese International Travel Monitor’, it was noted that
“language-related products and services” was ranked as
one of the most important amenities that Chinese travellers
want in international hotels, and remains the area in need
of most improvement.
Connected Hotel Suite on WeChat
Currently fashionable with apps such as Foursquare. While
visiting a city, players check into their favourite café and
collect points and badges online to redeem them for
vouchers or discount on their purchase.
The visitor is exploring the city on a scavenger hunt
adventure which runs on a mobile app. These gamified
walking tours may be themed differently, as they are limited
to altered locations. Gamified walking themes may range
from criminal investigations or literature walks to unravel
destinations’ secrets. With some gamified applications,
visitors are even able to create their own tours and
gamified hiking adventures.. The aim of these tours is to
discover hidden spots of a (un-)known place and compete
with other players.
The World Disney Company started early in using
Augmented Reality for visitor guidance and enhancing park
attractions. However, the next level is implementing games
by own theme to tell stories and create more engaging
experiences. The technology of mobile location-based
gaming provides a new format of heritage experience by
linking ordinary exhibition and interactive gameplay as a
digression to the past. The introduced game is placed at
Wartburg Castle, Germany touching on the history of the
location and addressing families and groups.
Augmented Reality and Gamification

20. Business Canvas
- Physical store
- Educated, experienced and prized staff and consultants
- Integrated, one-of-a-kind digital-and-physical
ecosystem
- Value-adding experiential services
- Commission Fees
- Referrals
- Carriers
- Hotels, Retreats,
Tour Agents and
Operators
- Cities,
Governments
- Luxury Brands,
Retail stores
- Event
management
- IT organisations
- Banks
- Bilingual service
providers
- Seamless
journeys
- Visa & Concierge
Services
- Bilingual /
Translation
- Social activities
- Key Opinion Leaders
and celebrity
program experts
- IT Experts
- Business
development
Exclusive, Authentic,
Seamless, Leisure
Experience designed
for the HNWI and
supported by an
ecosystem of
people, technology
and partner
networks.
- High-touch
experience
- Co-creation
- Personalisation
- Aligned brand
partnerships
Primary segment
High net worth
individuals (HNWIs) -
those who have
individual investable
assets in excess of 10
million RMB, or
approximately $1.6M
USD)
Secondary segment
HNWI families
Integrated
ecosystem
comprising Physical
Store, Digital and
Social Media and Key
Opinion Leaders
1
9
3
4
5 6
7
2
8

21. Risk Analysis
Risk Impact Likelihood Mitigation
Rapid increase of fixed cost (labor,
overhead, tax, etc.)
Critical Medium
Increase the price of the product
accordingly;
Raise commission fees
Customers may choose current known
travel agency instead of us
Critical High
Optimize marketing strategy;
Deliver exclusive services to customer
loyalty
Market penetration is small Critical Medium
Use various media channels to
propagate our brand
Travel programs are not attracting
target customer segments
Critical Low
Do extensive primary market
research;
Redesign the programs constantly
New staff(Chinese and English
speakers) might lack experience and
professional knowledge
Moderate Low
Provide job training through FC's
training program; or
Conduct trainings at hospitality
training organisations
Hiring new staff(Chinese and English
speakers) might be difficult
Moderate Medium
Partnership with local hiring
companies or outsourcing and invest
in getting the best staff

22. Cost and Revenue Projections
Five Year Projections
Yr. Total Transaction
Value (‘000)
Gross Profit
Margin
1 $72,000 -12.50%
2 $180,000 21.58%
3 $240,000 30.73%
4 $300,000 32.85%
5 $360,000 34.24%