Mailman X Business Weekly | May 24, 2019
Here is China’s top tourism business news that you need to know from this week:
Thailand’s tourism sector may win in China-U.S. Trade War
Thailand has a good chance of benefiting from the ongoing China-U.S. trade war, analysts said, as mainland Chinese tourists opt for travels closer to home instead of booking for western trips. According to the Bangkok Post, the Tourism Authority of Thailand (TAT) is closely monitoring, if Beijing will move to block Chinese tourists from making trips to the United States. If this happens, Thailand’s tourism sector will make a move. Read more here
In 2018, the United States captured one of the highest share of the total China outbound tourists spending, but the Trade war between the United States and China is directing Chinese tourists off the U.S. to more welcoming nations. During the Labour Day holiday in early May, the US already dropped 4 positions as the most popular travel destination, in comparison to last year. Whereas western trips will decrease, other countries, such as Thailand will benefit from the ongoing Trade war. With all that said, it’s becoming ever more important to make sure your owned digital channels and city tourism strategy has a welcoming tone to offset any trend that may be happening.
Also this week:
Are you up for China?
It’s the fastest growing market in the world with 10 trillion dollars to spend but there are plenty of pitfalls and challenges. “The China market cannot be understood from what you see – you really need to dig into what’s happening,” explained Mika Kanai, media and digital marketing general manager, Shiseido China. And that’s exactly what Chinese and UK experts were tasked with at Campaign’s latest Breakfast Briefing in May. Claire Beale, global editor-in-chief at Campaign hosted top speakers from Tencent, The Trade Desk, Fortnum & Mason and GTB to explore what Chinese consumers look for and explore the opportunities that China offers western brands. Read more here.
Online shopping in China goes luxury, with men in black delivering Hermes
Shoppers from China accounted for one-third of global spending on luxury items last year, and Chinese luxury consumption will nearly double to about 1.2tril yuan (RM724.62bil) by 2025 from 770bil yuan (RM464.96bil) last year, consultancy McKinsey & Co estimated in a report published April 26. But many in China are now making those high-end purchases online, a challenge for companies that have built their businesses and the aura around their brands by coddling shoppers inside swanky stores with personal service. Read more here.
Baidu posts quarterly loss as its business becomes impossible to keep track of
Some companies in China are going to have to deal with challenges of a trade war, tariffs, government oversight and other issues that might weigh on earnings. But what about the so-called Google of China in that mix? Baidu Inc. (NASDAQ: BIDU) was getting destroyed in its earnings reaction. The reason is simple: the Chinese search engine giant posted its first quarterly loss since 2005. Read more here.
Secondhand shopping becoming a first choice in China
Everything old is new again. At least in China, where the popularity of shopping for pre-owned products online is on the rise. The trend is being driven by a new consumer focus on sustainability and the rise of “recommerce” super apps, which integrate all possible functions related to shopping for secondhand goods. Read more here
Social App Little Red Book starts to eliminate Micro-influencers and more
This week, China’s leading social commerce platform Little Red Book, which has acquired over 250 million registered users as of today, has rolled out a slew of new policies to regulate this fast-growing brand-influencer platform. One of the rules redefining the eligibility of its influencers immediately wiped out over 13,000 people, leading to an earthquake in China’s influencer community. Read more here.
Nepal bans Chinese digital wallets
Nepal said that it has banned popular Chinese digital wallets Alipay and WeChat to prevent the loss of foreign currency earnings from tens of thousands of Chinese tourists. Over 150,000 Chinese holidaymakers visited Nepal last year, many using digital wallets to pay in hotels, restaurants and shops in tourist areas – especially in Chinese-run businesses. Read more here.
China Southern Airlines sees potential to expand tourism exchange with Mexico
The exchange of tourism between China and Mexico has great potential ahead and will grow further due to the fledgling aerial relationship between the two nations, said a senior executive of China Southern Airlines on Wednesday. Read more here.
Mailman X is a China digital consulting agency for the travel industry. Reach out here for more information.