2. Online Travel in China
China
has
over
500
million
internet
users.
Sina
Weibo,
the
popular
microblog
has
over
300
million
subscribers.
Online
travel
in
China
is
growing
three
=mes
as
fast
as
the
total
market
and
taking
market
share
at
a
faster
rate
than
in
the
West.
In
2012,
close
to
25%
of
travel
will
be
booked
online
in
China,
up
from
just
5%
5
years
ago.
This
year,
80
million
Chinese
will
travel
abroad,
increasing
to
100
million
by
2015.
What
are
you
doing
to
capture
the
aIen=on
of
the
internet
savvy
Chinese
traveller?
Do
you
have
a
distribu=on
strategy
for
China
at
the
ready?
Roy Graff, ChinaContact
18 April 2012
3. About ChinaContact
• Bou=que
China
market
entry
specialist
for
the
tourism,
hospitality
and
internet
sectors
• Strategic
consulta=on
and
mentoring
for
market
entry
and
brand
development
• Direct
access
to
China’s
travel
trade
network
via
offline
and
online
distribu=on
and
marke=ng
• Social
media
engagement
and
marke=ng
3
4. Roy’s background
• 1992:
First
China
visit
• 1996:
Israel
tourism
office
representa=ve
in
Taiwan
• 1998:
Graduated
from
SOAS
with
BA
in
Chinese
&
Economics
• 1997-‐2000:
gta
-‐
Worked
with
Chinese
outbound
tour
groups
• 2000-‐2002:
Independent
travel
business
development
for
gta
• 2002-‐2003:
Independent
travel
division
area
manager-‐China,
gta
• 2003-‐2005:
Greater
China
E-‐commerce
Director,
gta
Country
Manager,
Octopustravel.com
• 2005-‐present:
Founder,
ChinaContact
Special
Projects:
– 2009
AgentRez,
Expedia
Affiliate
Network
– 2010-‐2011
Stream,
Travel
Leaders
Technology
4
5. Overview of the market
• GDP
growth
9.2%
in
2011,
8.5%
(est)
in
2012
• Retail
sales
up
18%
in
Dec’11
vs.
Dec’10
• The
New
Rich
– 1
Million
Chinese
Millionaires
(over
£1m)
• 15
Years
Younger
on
Average
than
in
the
West
– 60,ooo
with
Wealth
Over
£10m
– 115
Dollar
Billionaires
(Forbes)
– 520
Million
Middle
Class
by
2025
(McKinsey)
• £1
Trillion
Total
Disposable
Income
– 80%
of
Chinese
Luxury
Consumers
Under
45
• Compared
to
30%
in
U.S.;
19%
in
Japan
www.ChinaContact.org 5
6. Spending abroad
• Approx.
80
million
Outbound
Trips
in
2012
– From
70m
in
2011,
Spending
£45
Billion
– Average
12%
Growth
Year
on
Year
Since
1999
• Approx.
60%
of
Luxury
Spend
Outside
China
– 30%
of
Luxury
spend
in
Hong
Kong
/
Macau
– Duty
and
Tax
Benefits
to
Foreign
Purchases
– In
UK,
64%
Growth
in
Chinese
Spend
in
2011
to
£165m
– Approx.
£1
Trillion
Unreported
Wealth
• Spend
Outside
China
is
Unaccounted
For
– Average
Chinese
Tourist
Spend
Approx.
£5,200
• £4,000
on
Retail
Alone
www.ChinaContact.org 6
7. Where are they from?
• Not
a
Single
Market
– Many
Chinas
Lie
Behind
Sta=s=cs
• Define
by
Province
or
Region
– North,
East,
South
&
West
– Regional
Varia=ons
• East
vs.
West,
North
vs.
South
– Urban
–
Rural
Divide
• 51.3%
Urban
Popula=on
• Major
Income
Dispari=es
– Wealth
Focused
In
Eastern,
Coastal
Ci=es
7
8. Today’s workshop
• The
Chinese
digital
landscape
for
travel
• The
differences
between
social
media
in
China
and
the
West
• Distribu=on
channels
in
China
–
what
are
they
and
how
to
connect
to
them?
• Tips
for
building
your
brand
through
digital
marke=ng
in
China
www.ChinaContact.org 8
10. Differences Between
China and the West
• Internet
development
• Access
to
informa=on
• Social
and
Cultural
factors
• Economic
factors
www.ChinaContact.org 10
11. Distribution Channels in China
• Suppliers
• OTAs
• Whlolesale travel trade
• Retail travel trade
• Flash sales / Group-buy
www.ChinaContact.org 11
13. Strategies for market entry
• Business
setup
• Public
rela=ons
strategy
• Marke=ng
campaigns
• Distribu=on
and
access
• Working
with
the
right
partners
13