How to tap into the 1bn Chinese spending opportunity
More than 1.5 million Chinese nationals were granted visas to enter the UK in 2018, and student applications have climbed by 30,000 in the first quarter of 2019. According to VisitBritain, tourist spending will grow 40% to exceed £1 billion this year.
To enable retailers to benefit from the surge in Chinese spending, a research report and education programme has been launched by the three leading suppliers of services needed by businesses to successfully target and serve consumers from China. They have produced a retail report and will run workshops that enable maximum sales returns from all visitor groups from China.
Tax-Free Shopping sector world leader Global Blue, payment platform company Adyen, and Chinese marketing consultancy Emerging Communications have undertaken major research into Chinese consumer shopping and payment habits based on a tour of China that involved extensive interviews of consumers, key spending influencers, brands and technology companies. Research also included an investigation of Chinese shopping experiences and the development and use of advanced retail technology.
Based on the research, a detailed report titled, ‘Retail lessons from China and how to sell effectively to Chinese audiences in the UK’, has been created to support British retailers and hospitality companies.
In addition, workshops will take place to provide comprehensive information on how to successfully engage with Chinese consumer audiences, drive sales traffic, provide optimum service levels, and create peer recommendation and repeat business.
Helping British businesses make the most of the Chinese opportunity
The first workshops will take place in London on the 24th of October and Manchester on the 31 of October. Each is designed to be a one-stop briefing for retailers managers on what they need to know about marketing, payments and tax refund in order to drive sales and serve Chinese consumers in the UK.
The majority of UK retailers are yet to fully capitalise on the opportunity presented by Chinese consumers in the UK. Research released by the three companies reveals that only 43% of retail and hospitality businesses believe that Chinese consumers are important for their business, and 42% believe they need to improve the customer experience they provide for international shoppers.
On average, each Chinese student studying overseas spends more than $100,000 a year, according to UnionPay. They receive, on average, three visitors from home each year. Home Office figures for the first quarter revealed a near 70% increase in approvals for Tier 1 residential visas for Chinese nationals; Tier 1 visas require proof of £2 million in liquid assets.
“With Chinese tourists budgeting more than £5,300 per trip, and rising numbers of Chinese nationals entering the UK in the last year, the potential opportunity for businesses is too big to ignore. By joining forces and pooling expertise with Global Blue and Emerging Communications, we want to help UK businesses realise this opportunity – helping to understand the key touchpoints, technology and marketing platforms to create a customer experience that appeals to Chinese consumers..”
– Myles Dawson, UK managing director, Adyen.