Capturing the October Golden Week Market: Strategies for Travelling Chinese Clients
For those unfamiliar, Golden Week is a seven-day national holiday in China that celebrates the establishment of the People's Republic of China. The holiday lasts from October 1 to October 7, a key travelling period for Chinese both within and outside of China.
With Chinese luxury spending increasingly shifting overseas, accounting for 40% in the first half of 2024, the October Golden Week emerges as a pivotal period for the luxury industry, brimming with significant commercial opportunities.
Destinations with streamlined visa policies and robust infrastructure such as Thailand, Japan, and Singapore, have emerged as top choices for Chinese tourists, while outbound travel to Europe, the US, and Saudi Arabia is also growing.
Let's step back and look at the Chinese luxury market's significance:
Luxury spending in China is forecast to hit USD$80.6 billion this year, according to the new China Luxury Market Insights Report from Boston Consulting Group (BCG) and Tencent Marketing Insights (TMI).
While aspirational to mid-tier customers (customers who spend USD$7,000 to USD$40,000) dropped their luxury spending by 17% in the first half of this year, the top-tier customers (customers with annual luxury spending exceeding USD$40,000) have increased their per capita spending by 12%.
The key driver of China's luxury market growth is the top-tier customer. The top 10 per cent of spenders in China now contribute 45% of total sales (up 5% from last year).
Here are key strategies to consider when taking care of Chinese luxury consumers:
๐ก Strengthen Your Client Facing Team's Branding
In the competitive world of luxury, especially among high-spenders, a well-rounded luxury personal brand is a powerful tool. It allows client-facing teams to distinguish themselves, engage with clients on a deeper level, and build trust and rapport.
A holistic luxury personal brand involves:
Cultivating a mindset of excellence
Mastering etiquette
Sharpening hosting skills
Acquiring in-depth product and industry knowledge
Presenting a well-groomed style
๐ก ๐๐๐ผ๐ถ๐ฑ ๐ข๐๐ฒ๐ฟ-๐๐ฒ๐ป๐ฒ๐ฟ๐ฎ๐น๐ถs๐ถ๐ป๐ด ๐๐น๐ถ๐ฒ๐ป๐๐
A major pitfall in luxury clienteling is the tendency to categorise clients by nationality.
While it's crucial to respect general Chinese cultural nuances, it's equally important to recognise the individuality of Chinese luxury consumers. Not all Chinese clients expect the same treatment. For instance, a Chinese customer in Paris Avenue Montaigne might be eager to learn about luxury on their first vacation from China, while another might be a seasoned luxury shopper with confident preferences.
It's crucial for luxury businesses to train their client-facing teams to treat every client as an individual, recognising and adapting to their unique preferences and communication styles. This approach fosters a sense of empathy and understanding, which is key to building lasting relationships.
๐ก ๐ง๐ต๐ฒ ๐ฃ๐ผ๐๐ฒ๐ฟ ๐ผ๐ณ ๐๐ป๐๐ฒ๐ป๐๐ถ๐ผ๐ป๐ฎ๐น ๐๐น๐ถ๐ฒ๐ป๐๐ฒ๐น๐ถ๐ป๐ด
Effective clienteling is like "exploring the client's universe." The more connections a Client-Advisor can make with a customer, the more intentional and personal the engagement will be. Some examples are:
Observing their fashion style: What are their colour, pattern, and formality preferences?
Understanding their shopping motivations: Do they shop for themselves, for gifting or both?
Exploring lifestyle insights: Would they appreciate any restaurant or lifestyle recommendations in your city?
Consulting their travel habits: Do they travel often to your cities? When will they potentially visit again? Would they appreciate shipping services or duty-free advice?
Gathering communication preferences: Do they prefer email or wechat communication? What types of information would they like to receive from you?
By embracing these strategies, your luxury business will stand out from the crowd โ in a way that engages the travelling Chinese effectively, and fosters lasting relationships.
