chinese pax focus - info - oct. 2012

CHINESE PAX FOCUS

A diptych research Quan%ta%ve & Qualita%ve

JMG-‐Research -‐ 114 Rue de Montreuil -‐ 75011 Paris -‐ France -‐ Tel. +33 1 83 62 19 92 -‐ Fax +33 9 72 14 53 65 www.JMG-‐Research.com -‐ contact@JMG-‐Research.com

Your contact: Jérôme Goldberg +33 6 61 66 24 71

Profiling behaviors in China and abroad Pre-‐launch presenta[on October 2012

China Travel Retail: Up it goes…

© Chinese PAX Focus October 2012

Thanks to a more than rapid sale growth, China was ranked Country #8 in 2008,

#4 in 2011, and should end 2012 as #3…

Source: Genera[on Research

2003 2004 2005 2006 2007 2008 2009 2010 2011 China (US$ M) 216 327 401 527 714 841 1 306 1 745 2 486 Share of Asia 4,6% 5,2% 7,0% 6,7% 7,8% 8,4% 12,6% 13,7% 15,5% Share of World 1,1% 1,3% 1,5% 1,8% 2,1% 2,3% 3,8% 4,5% 5,4%

In Skin Care, China was already ranked Country #2 in 2011,

vs. #12 in 2008!

Chinese PAX: More they go…


In 2011, 70.2 M (+22% vs. 2010) Chinese travelled abroad.

71% visited close territories like Hong Kong, Macau or Taiwan 29% went to more far des[na[ons like Europe or Americas.

In 2012 1st half, 38.6 M Chinese travelled abroad (+20% vs. 2011).

We can expect 80 million overseas trips by the end of 2012.

By 2015, more than 100 M Chinese will travel abroad each year!

Source: Ministry of Public Security / China Na[onal Tourism Associa[on

Chinese PAX: More they shop…


Per capita spending by outbound Chinese travelers remains among the highest in the world.

Ex: in France, in 2011, they represented only 1.5% of foreign

visitors, yet they accounted for 25% of untaxed purchases in France.

Ex: At Heathrow Airport -‐ Harrods Shop,

the average spend during 4Q11 was: £ 2,500 £ for the Chinese, vs. £ 696 for the Russians and £ 250 for UK ci[zens!

Source: Global Blue / BAA

Chinese PAX Focus: Bemer understandings…


Our goal, with such global work, is to be able to highlight: §  What these somehow different Chinese have in common and what is specific when

they travel, §  What they like or not, do or don't, §  What they expect, both at airport and during the flight, §  How they feel about Luxury brands, product categories, services, etc. Key benefit for our Industry will be to bemer understand how to improve the way to engage with the Chinese, during depar[ng and returning trips.

We will focus on: §  General behavior while travelling. §  Specific behavior during both outbound and inbound last trips, at the airports

and during the flights.

Chinese PAX Focus: Bemer understandings…


In our "Shopping Behaviors in Airports" research already published, we started to highlight how the Chinese have a specific way to handle Travel Retail Shopping. As among the Chinese, very different behaviors can be seen, based on the place they live, to go further from the 'average' Chinese, we will focus on 3 groups of Chinese Interna[onal Travellers:

§  One living in Shanghai §  One living in Beijing §  One living in second-‐[er ci[es

To have a global understanding of both the "what" and the "why", we will set up our research as a diptych, with:

§  One quan[ta[ve part, where we will ques[on a total of 4,500 Chinese Interna[onal Travellers.

§  One qualita[ve part, where we will interview face-‐to-‐face 24 Chinese Interna[onal Travellers.

Your interest to subscribe…

This research is aimed primarily at the Trinity members: brands, operators and landlords. As a manufacturer, you will then bemer understand:

§  what they are expec[ng of your product category… §  what can have an impact on them once in the shops… §  what amracts them and helps to improve the sales… §  which targets can be targeted… §  etc.

As an operator or a landlord, you will then bemer understand:

§  what exis[ng & future passengers are expec[ng to find in the shops… §  what kind of cross-‐selling you can push… §  what can help you to improve foovall and conversion… §  what can be done to improve the shopping experience… §  etc.


Your interest to subscribe…

All subscribers before the start of the fieldwork will be granted the op[on to inject specific ques[ons in the quan[ta[ve ques[onnaire, based on criteria from the database:

§  Either on all respondents…

§  Or specifically to some of them, based on criteria like age, gender, business/leisure travel, frequent travellers/non-‐frequent…

§  Or specifically to some of them, with selec[on on answers like categories/sub-‐

categories/brands checked or bought (or not checked!), shop visitors or non-‐visitors, etc.

As well as specific topics in the qualita[ve discussion guide.


Methodology & sample -‐ Quan[ta[ve part…

We con[nue to rely on CAWI (Computer-‐Assisted Web Interview) to get the raw informa[on. Our previous reports have validated that, as expected, we receive reliable data and in line with on-‐loca[on interview results. We have selected a leading online panelist to handle this part of the research. A total of as many as 4,500 Chinese interna[onal travelers will be interviewed, selec[ng people aged 18+ having travelled abroad by airplane at least once in the last 6 months, and based on the city they live in :

§  SHANGHAI: 1,500 respondents.

§  BEIJING: 1,500 respondents.

§  2nd TIER CITY: 1,500 respondents.


Methodology & sample -‐ Qualita[ve part…

A total of 24 Chinese interna[onal travelers will be interviewed, selec[ng people aged 18+ having travelled abroad by airplane at least once in the last 6 months, and based on the city they live in :

§  SHANGHAI: 8 interviews (4 men / 4 women).

§  BEIJING: 8 interviews (4 men / 4 women).

§  XIAN: 8 interviews (4 men / 4 women).

They will be recruited based on factors like: age, gender, level of revenue, number of interna[onal travel per year, kind of des[na[on, reason for travelling, etc. We will rely on a local Chinese partner to moderate the interviews under our supervision.


Key Topics -‐ Quan[ta[ve part…


Global behaviour in Travel Retail: §  Frequency of visi[ng Shops by key category §  Frequency of purchasing by key category

Various percep[ons: §  Travel Retail price vs. domes[c price §  Travel Retail exclusive range (products / gixs) §  Promo[ons

Specific behaviour during last trip (outbound / inbound): §  Key reasons for visi[ng Shops / for non-‐visi[ng Shops §  Categories visited / purchased §  Brands purchased §  Key reasons for purchasing §  Basket size / value §  Impulse vs. planned purchasing (at category / brand / line levels) §  Purpose of purchase (own use / gix / request / etc.) §  Key reasons for visi[ng shops but not purchasing

Key Topics -‐ Quan[ta[ve part…


Various percep[ons: §  Usual moments of purchase / Preferred moment §  Shop staff §  Pre-‐Airport informa[on research §  Reac[ons to promo[ons

Booking: §  Buying [ckets (Online / travel Agency / etc.) §  Check-‐in (Online / at the Airport / etc.)

Inflight: §  Frequency of Inflight magazine reading §  Frequency of Inflight purchasing §  During last outbound & inbound flights, categories purchased §  Key reasons for purchasing

Subscribers ad-‐hoc ques[ons

Etc.

Key Topics -‐ Qualita[ve part…


Approach of shopping: §  Main dimensions amached to shopping: values, pulls, barriers §  Main categories of goods shopped, for which reasons: func[onal, impulsive,

gixs… §  Posi[ve and nega[ve issues about shopping in general §  Favourite spots of shopping in the local market and why §  Role of offer, brand, price, sales people, etc §  Source of documenta[on and informa[on §  Role of the internet §  All personal histories about recent shopping sessions, in the local market and

elsewhere (spontaneous) §  Local vs abroad shopping

Focus on shopping ac[vi[es while traveling and the duty free shop visited, in se and vs. Chinese local market:

§  All personal histories about shopping while traveling recently §  Posi[ve and nega[ve experiences §  All improvements expected in shopping abroad

Key Topics -‐ Qualita[ve part…


Focus on Duty Free shopping:

§  Pulls and barriers for entering & for buying in a duty free shop §  Best duty free shops and why §  Best and worst experiences §  Role of the internet in influencing duty free shopping §  Source of documenta[on and informa[on §  End-‐mo[va[on for buying: gixs, order, for him-‐herself, … §  Reasons for buying or not buying at the departure or return trip §  Role and percep[on of offer, brand, sales people, etc. §  Percep[on of prices, appeal of special sales §  For each category: strengths and weaknesses in the duty free, reasons for

buying or not buying the category in the duty free §  Focus on airline shopping in se et vs. airport shopping §  All specific ques[ons from subscribers §  All spontaneous ideas for improving the duty free shop experience: brands,

products, service, space and [me organiza[on §  Subscribers ad-‐hoc topics

Timing…


§  October 2012 Project setup §  November 2012 Finaliza[on of the ques[onnaire & Online survey setup

Finaliza[on of the discussion guide

§  December 2012 Quan[ta[ve part: data collec[on Qualita[ve part: interviews in China

§  January/Feb. 2013 Data processing and analysis §  March 2013 Key Facts presenta[on mee[ngs & Report delivery

§  April 2013 Data analysis based on ad-‐hoc requests.

Company: Invoicing details: Subscriber name: Email: Date: / / 2012 Signature: Intra-‐EU VAT n°:

Chinese PAX Focus -‐ Subscrip[on Form

The given budget excludes taxes. VAT will be added on orders invoiced in France. 50% of the budget will be invoiced upon subscrip[on; 50% upon report delivery.

Please return by email, fax [+33 972 145 365] and/or by regular mail

q  SubscripCon Contact us

Includes: -‐ Key Facts Presenta[on mee[ng (if in Europe; for outside of Europe mee%ng, contact us) -‐ Report (PPT format) -‐ Confiden[al ad-‐hoc extracts -‐ Access to the quan[ta[ve database (SPSS format)

JMG-‐Research -‐ 114 Rue de Montreuil -‐ 75011 Paris -‐ France -‐ Tel. +33 1 83 62 19 92 -‐ Fax +33 9 72 14 53 65 www.JMG-‐Research.com -‐ contact@JMG-‐Research.com

chinese pax focus - info - oct. 2012

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