Mailman X Business Weekly | August 30th
Here is China’s top tourism business news that you need to know from this week:
WeChat Mini Programs and AI: Simplifying outbound travel
More and more Chinese outbound travelers are able to communicate in English, shifting the language problem in many countries rather to the side of the locals who might only be able to speak their local language, like German, French or Russian. Time to get a deeper understanding of all these new developments, if you want to keep all the millennials coming out of China happy and buying from you. Read more here.
In the last 5 years, Millenials have become the largest outbound travel group from China. As many know this group of travelers is tech-savvy, using apps to function throughout their everyday lives. The tech-savvy nature of these young travelers is decreasing the barrier to travel by enabling language assistance, mapping, and payment. Apps like WeChat are opening the doors to Chinese travelers, to get off the beaten path and discover the road “less traveled.” It is important for destinations, attractions, and marketers to these travelers to understand the different platforms and the best way to create a deliver an experience that will lower the barrier of access to this group from payment options to delivering useful content for their trip.
Also This week:
China encourages pilot no-go areas for fossil fuel cars
China, the world’s largest vehicle market, will support regions that pilot area off-limits to fossil fuel cars amid efforts to create a timetable for phasing out polluting vehicles. In a statement, the Ministry of Industry and Information Technology said buses and taxis will be encouraged to introduce more environmentally friendly vehicles to replace those running on petrol and diesel. Read more here.
Consumption Upgrade Powering Demand doe Luxury Goods
Chinese consumers are expected to contribute 41 percent to the global luxury goods market by 2025, up 8 percentage points from last year, as more young consumers are willing to pay for exclusive products amid the country’s consumption upgrading and digital marketing boom, experts said. Read more here.
China is racing to launch digital currency ahead of Facebooks Libra
After five years of research and system development work since 2018, the PBoC is almost ready to launch its CBDC, the deputy director of the bank’s payments unit Mu Changchun revealed at a forum last week. Trials for the currency have been ongoing and the institution is reported to be testing multiple approaches for the project. If things proceed smoothly, the PBoC expects it could launch the currency sooner than Libra. Read more here.
Chinese sportswear giant Anta reports robust H1 performance
China’s largest sports products group Anta saw the robust financial performance in the first half (H1) of this year thanks to its multi-brand strategy, investment in innovation and expanding the retail network. Anta Sports Products Limited raked in 14.81 billion yuan (about 2.07 billion U.S. dollars) in revenue in H1, up 40.3 percent year on year, according to the company’s interim results released Monday. Read more here.
Meituan highlights Q2 2019; annual transactions per customer increased to 25.5
Total Gross Transaction Volume (GTV) on Meituan Dianping’s e-commerce platform grew by 28.7% to RMB159.2 billion in Q2 2019 from RMB123.7 billion in Q2 2018. Annual transacting users in the last twelve months ended June 30, 2019, grew by 18.4% to 422.6 million from 356.9 million in the last twelve months ended June 30, 2018. Read more here.
Two decades on, Ctrip hopes to emerge even stronger: CEO Jane Sun
Even as the online travel company celebrates two decades of operations, with over a group-level monthly active user base of 210 million by the end March this year, Jane believes that Ctrip is well-positioned to take on emerging challenges. The domestic online travel category is ripe for further expansion. Ctrip underlines that it has reached 25-30% of the population in the first-tier cities and much less than 10% in lower-tier cities. Read more here.
Chinese to make 800 mln trips in National Day holiday: Ctrip
First-tier cities including Shanghai, Beijing, and Guangzhou remained the largest sources of visitors while county-level cities marked a faster growth in terms of tourist numbers. More than half of the travelers will be young people aged between 20 and 40, while nearly one-third of tourists will be children with their parents, the booking data showed. Read more here.