Mailman X Business Weekly | April 12th
Here is China’s top tourism business news that you need to know from this week:
Mailman Expands APAC
Mailman has expanded outside of China and opened an office in Singapore to beef up its presence in South East Asia. In addition, it has hired a host of executives around SEA to lead its business. They are Edoardo Lipari Agung Harsya in Indonesia, Thana Wongmanee in Thailand, Erick Bui in Vietnam and Rahul Bali in India. Mailman has also poached Goal.com’s former head of Asia, Bima Said, as its new vice president. The regional expansion aims to provide Mailman clients with a more efficient platform to grow their audiences in APAC, while also helping client’s sponsors to better activate digital activity throughout the region. Read more here.
We are excited to announce our new office and expansion to help clients in the greater APAC region. As a digital agency, we help organizations navigate China’s digital landscape. Just last week we announced our official expansion into SEA (Indonesia, Vietnam, Malaysia, India, Japan, South Korea, and Thailand). Our sports and tourism office work hand-in-hand, often helping destinations as they look to promote sports tourism. Our office will be focused on creating localized content for each country and its relevant digital main channels (ie. Facebook, Instagram, Twitter, and any market specific channels). As we expand we will be continuing to focus on sports, tourism & retail across all markets. Let us know how we can help you explore both China and beyond.
Also this week:
Increase in Chinese Students Reaching 2+ Years in advance
“Chinese students now are searching earlier, almost two years in advance, which is quite new because it used to be around 12 to 18 months,” said Sinorbis chief executive Nicolas Chu. In 2018, the decision to go overseas was made by the entire family in 45% of cases and 31% by the solely by the student, which the report noted was reflective of increasing independence among China’s young people. But while Chinese students were trending towards independence when making a decision to go overseas, Chu said it was still crucial for “universities to tailor their marketing to both the students and their parents”.
Read more here.
China becoming the Digital Trade Leader
“Digital trade” refers to the production, distribution, marketing, sale or delivery of goods and services – domestically and abroad – supported by cross-border digital flows. Digital trade enabled up to 3.2 trillion yuan of economic value in the domestic economy in 2017, equivalent to nearly 4 percent of China’s 82.08 trillion yuan GDP that year. This is significant, considering the economic value estimated for other Asia-Pacific economies ranges between 1 and 3 percent. Read more here.
Viking and China Merchants to Build a Cruise line for Chinese Cruise Market
This will be a wide-ranging partnership covering from product development to sales and marketing. Further, China Merchants Group’s shipbuilding subsidiaries will partner with the joint venture to design and build new ocean cruise ships dedicated to the Chinese market. “We see Viking’s way of cruising less as a trip and more as a lifestyle,” said Torstein Hagen, Chairman of Viking. Read more here.
How Airbnb is taking on local competitors amid push into China
There’s strong competition in China — Airbnb currently has just 7 percent of the home-sharing market, dwarfed by domestic leaders Tujia and Xiaozhu, who together account for nearly half of the market. Airbnb has found popularity with Chinese millennials, who make up 69 percent of Airbnb’s customers in the country. Around 70 percent of Chinese millennials own their home – a higher percentage than Americans across all age groups – and they often list their homes when they travel. Millennials in China outnumber the entire population of the U.S. Read more here.
TikTok adds 188 million new users in Q1 2019 despite Challenges
Taking the globe by storm, the app has lured in 188 million new users, recording a 70% annual growth, according to Sensor Tower. The app was also the third most installed app globally across the App Store and Google Play after Facebook’s WhatsApp and Messenger. TikTok raked in USD 18.9 million globally through in-app purchases, registering a 222% growth from the same period last year. While top TikTok spenders were from the United States and China, nearly 89 million or half of Tik Tok’s new users are from India. Read more here.
Luckin Coffee Expands to 14 more cities in China
Coffee culture continued to grow in China. Its rapid expansion is part of the plan to become China’s biggest coffee chain by sales and store location, displacing market leader Starbucks, which had 3,600 locations in China in 2018 and plans to reach 6,000 by 2022. Yet Luckin Coffee’s unapologetic “growth-first” strategy—prioritizing customer discounts, marketing, and store expansions—has come at a marked cost. Read more here.
Self-driving startup AutoX wins backing from Dongfeng, eyes China market
California-based autonomous driving startup AutoX shifts its focus to promote the use of self-driving technologies in the Chinese commercial vehicle sector. Founded in 2016 by Xiao Jianxiong, a former assistant professor at Princeton University, AutoX focuses on the advanced L4 autonomy technology, meaning the car is capable of navigating itself except in extreme weather conditions. In August 2018, it launched a pilot program in San Jose, California for its grocery delivery business, allowing users to try out ordering fresh produce on its mobile application and receiving goods via self-driving cars. Read more here.
Mailman X is a China digital consulting agency for the travel industry. Reach out here for more information.