The clever brands worldwide have found the best and most appropriate way to attract Chinese tourists.
The attractive payout that these tourists offer has changed global marketing strategies who do not want to miss this lucrative opportunity. China’s outbound tourism has not only given international brands growth but also has undermined the local markets and their outdated marketing strategies. Chinese travelers are the major source of earning now for many industries worldwide. This includes retail and consumer goods, the transport industry, leisure, and hospitality. There has been a positive change in the characteristics of Chinese tourists, notably an increased receptivity to international brands, this makes them the target for worldwide leading names to market their products to.
The upsurge in Chinese outbound tourism
Over the past few years, the number of Chinese travelers heading abroad has gone through the roof. According to official data, in the year 2015, almost 120 million Chinese tourists traveled abroad. This number is expected to increase two fold in the next ten years. This has given international markets a new way to make their fortune in the next decade.
The spending of the Chinese
The Chinese tourists consist of the world’s richest travellers. Along with the propensity to spend of the wealthy, there is also continued growth of the middle class in China, attributable to the increasing growth of China’s economy. Many in China are entering into the middle class who are also inclined to spend more on fun activities like traveling, with more free time and disposable income.
The Chinese Millennials
The vast majority of Chinese tourists traveling abroad consist of the youth. According to a report, almost two thirds of the Chinese outbound travelers are ‘millennials’. This is important for the international brands to know because these young tourists have 24/7 access to the internet, and they use it as their first source of information. The vast majority own a smart phone and engage digitally with brands ‘on the go’. This presents new prospects for the marketers to adapt to they need to use the right platforms and messenger apps that are trending in global markets. The young Chinese tourist also has no aversion to traveling abroad, which is commonly found in the older Chinese generation. As China opens up to the world so do Chinese seek to travel abroad too.
The Chinese have an unparalleled love for shopping
When the Chinese tour abroad they spend approximately $3000 per person and half of this amount is spent on shopping. One reason for this is that the prices of international brand products in China is higher, so they prefer cheaper goods from abroad, it is seen as a bonus of traveling.
Important points to be considered by international companies while marketing their products to Chinese tourists:
For Chinese travellers international companies need to find the best lines and models and work on their branding; to actually market your products to the Chinese is not so easy. They have now become more refined and mature in their demands. They know what they need and how and where to get it. With the advent of digital marketing and its growing trend in the Chinese business community the competition between brands is increasing. The old approach of “build it and they will come” is no longer valid now. Rather a more targeted approach is required to reach the customer. The brands should be proposing their unique value, putting emphasis on the major considerations of customers and hence catering to the specific demands of the Chinese travelers.
1: Target the travelers before they travel:
This is important because your offer to entertain their needs will govern their destination choice. It’s also important to consider that the Chinese do not go everywhere. They are very sensitive with their choice of destination and the Chinese tour providers must understand these trends. The trending social media use among young Chinese travelers has made this very easy. International brands can now advertise their services and goods online to a wide audience. Then when the customer reaches a location, the brands start the in-market workup. Companies locate the customers if they are planning to travel based on travel agency contacts and data, they can market directly to them regarding their products and location. It is therefore easy for the traveler to visit the company’s store when it’s present in the area they are visiting. This strategy, has been followed by the leading luxury brands of the world.
2: Target the independent travelers:
Individual travelers are known to spend more. But they also are savvier in their pre-travel research. In both cases, the brands find them better customers than the travel groups because there is more room for marketing initiatives as well as sale.
3: Know the Chinese culture and traditions:
The Chinese are known for their resistance when it comes to cultural deviations. Brands, hospitality, leisure and travel providers must know Chinese culture and should best cater for their needs.
To summarize, the Chinese tourists have revolutionized the traditional marketing strategies to a more technology-based and digital one. To grow your market share you need to be active on Chinese specific platforms and utilize the best strategy to attract overseas consumers.