Mailman X Business Weekly | June 14
Here is China’s top tourism business news that you need to know from this week:
Tencent’s WeChat is door to Chinese giant’s transformation
When Chinese social media giant Tencent Holdings announced last year that it was transforming itself into a “digital assistant for industries,” analysts immediately had one question: How? “WeChat is a very important tool,” said Dowson Tong, a senior executive vice president behind Tencent’s transformation. “Reaching out to consumers is definitely among the needs of many industries, such as retail and finance. At the end of the day, they are all serving consumers.” Read more here.
Mailman Take: The all-in-one-app is already used by 1.1b people worldwide. Mostly are Chinese consumers, who spend about 2 hours a day on WeChat and the app is an essential part of daily life for many in China. With so many users, data of these consumers will be invaluable to companies looking at China as a key market in the future. However, defining the role and responsibility for your WeChat account is equally as important as launching or maintaining a WeChat account as the industry is becoming increasingly competitive amongst brands.
Also this week:
Forget the Bahamas. China’s cruises are where it’s at
Over the past 40 years, China’s dramatic economic reforms have not only lifted millions out of poverty but also opened the country to international influence. Today, its booming middle class sips flavoured lattes at Starbucks, buys diamond engagement rings, and even decorates trees at Christmas. And now it’s embracing another Western tradition, one championed by sunburnt retirees and bachelorettes: The Cruise. Read more here.
China, Egypt promote tourism exchange amid strengthening ties: Chinese envoy
A growing number of Chinese tourists are expected to visit Egypt in the coming years as the ties between the two countries are building up, said Shi Yuewen, Chinese cultural counselor to Egypt. “Nearly half a million Chinese tourists visited Egypt in 2018 compared with only 300,000 in 2017, which is a big leap,” Shi told Xinhua. Read more here.
Airlines and casinos stand to take a hit from China’s warning against traveling to the US
China’s warning about traveling in U.S. — the latest shot amid the worsening trade war — could pose a threat to some airlines and casinos, although the overall impact on U.S. tourism would be manageable. While Chinese tourists spend heavily around the world, contributing to $270 billion abroad last year alone, they only accounted for 3% of the $1.1 trillion U.S. travel market in 2018, according to the U.S. Travel Association. In a worst-case scenario, the number of Chinese tourists to the U.S. could drop by nearly 50%, resulting in an $18 billion hit to travel spending, Bank of America Merrill Lynch estimated. Read more here.
How China’s growing inequality will affect luxury brands
China is experiencing a period of rapid economic growth powered by a combination of circumstances that includes the government’s anti-poverty campaign fupin kaifa (扶贫开发), a modernized economy, advancing technologies, a country-wide expansion of higher education, and large investments into research and development. But the spoils from this growth haven’t been distributed equally, and wealth disparity in China is growing. Read more here.
Alibaba’s 618 Mid-year Shopping Festival targets China’s less-developed regions
This year’s festival aims to engage customers in emerging cities, counties and villages across China. To do so, Taobao and Tmall are boosting promotional resources to elevate excitement and help brands reach this rapidly growing market. Altogether, over 200,000 brands and retailers will participate in the shopping event. Branded products are so far proving extremely popular. Read more here.
Across China: Shopping online for parents goes viral in China
Flowers or local snacks used to be popular gifts for Chinese parents, but in today’s digital world, more and more Chinese youth are turning to the Internet to buy goods and services for their loved ones. Guo Tong, 26, purchases nearly everything online ranging from snacks to cosmetics and clothes for her mother who lives in the city of Qinhuangdao, north China’s Hebei Province, around 290 km away from Beijing where Guo works. Read more here.
Mailman X is a China digital consulting agency for the travel industry. Reach out here for more information.