The Chinese Wall
SEVERAL MILLION MILLIONAIRES
Although the Chinese, who in principle can afford to travel, are still a very limited category in percentage terms, "several million Chinese millionaires" are able to bring a dozen European economies out of the crisis, experts say ironically. In addition, consumption will dominate in China for at least 5–10 years ahead of the standard and quality of life, which means that even a tourist with low incomes will save on food in order to spend money on shopping.
"The increase in the number of tourists from China has already partially led to the creation of offers and programs in St. Petersburg aimed at this audience," says Ivan Pochinshchikov, managing partner of IPG.Estate. – In shops, restaurants, shopping centers that are located in places with a high tourist flow, owners have already begun to duplicate price tags and menus in Chinese, luxury brands create vacancies for consultants with knowledge of Chinese, for example DLT. Souvenir shops partially change or expand their assortment, offering amber products, goods with symbols of the Soviet Union and communism, in addition, souvenirs with Putin's image are in demand among Chinese tourists. In addition, the Amber & Art network has appeared in St. Petersburg, which is focused exclusively on wealthy tourists.
According to Mr. Pochinshchikov, the Chinese Friendly program is used by almost all souvenir shops in St. Petersburg, some of the premium projects, and some small objects exist solely due to the flow of tourists.
"In particular, those that are located near the Park Inn hotel on Vasilyevsky, where many tourists from China traditionally stay," Ivan Pochinshchikov notes. As for the format of shop tours, which market participants talk a lot about, it is currently poorly developed in St. Petersburg. But, taking into account the upcoming growth in demand, I can say that short-term shopping tour programs will be popular – it is important that the market can offer options. For example, amber, fur, ingredients for Chinese medicine (badger and bear fat, honey and others), which in Russia are cheaper than Chinese analogues. The ice broke in December: as part of the roadshows in Beijing and Shanghai, TSUM offered options for shop tours and new programs in the VIP-travel segment, and announced (in addition to the possibility of paying with UnionPay cards) the introduction of the popular payment system Alipay in China.
"Now the market of shopping tours to Russia is being held and actively developed by Chinese tour operators," notes Anna Lebsak-Kleimans. "Taking into account the constant growth of the flow of guests from China to Russia, most likely, an increasing number of operators will offer shop tours to Russia, however, it will be quite difficult for Russian tour operators to push Chinese colleagues out of this market."
While the tourist season in Moscow and St. Petersburg lasts only four months, however, the active promotion of Russia at the government level as a country for all-season holidays has already increased hotel reservations from November to March. "Mercury, Bosco, Avica, Hines, Crocus Group, Fashion House and Vnukovo Outlet Village should continue investing in Chinese projects," says Marina Malakhatko, Director of CBRE Retail Premises in Moscow. "According to some tenants working for Chinese tourists, the average check of individual luxury brands when buying by Chinese citizens is about 1.8 thousand euros."
However, even against this background, it is risky to build a shopping center "for the Chinese" even in St. Petersburg, the players are convinced. "On the one hand, the object will definitely be popular with Chinese tourists," in whatever part of the city it is located, " Ivan Pochinshchikov reflects. For example, in St. Petersburg, in the Krasnoselsky district, the Baltic Pearl Company, which is a subsidiary of the Shanghai Overseas United Investment Company, is implementing a project of integrated development of territories, building up the Baltic Pearl microdistrict. The area is an important point in the list of attractions for Chinese tourists. Perhaps the shopping center will also become an important attraction, but in this case it will be necessary to create a concept that will combine two target audiences - Chinese tourists and residents of the city, since it will be difficult to survive 12 months of the year exclusively on tourists. In addition, in order to attract foreign guests to such an object, it is important to take into account all cultural peculiarities, and ethnic Chinese should manage the object.
In the meantime, outlets and discounts, which have an important advantage of proximity to airports, are actively included in the program of work with Chinese guests.
Outlets are very popular with Chinese tourists, agrees Anna Sibirkina. "We are actively working to adapt the service in outlets in Moscow and St. Petersburg, where guests from China are already visiting, buying clothes, accessories and cosmetics."
Nastasia Zhikhar, Deputy Director of the Center for Asia and the Pacific at the MIRBIS Institute, is convinced that cafes and restaurants should work actively in tandem with shops. "The inclusion of traditional Chinese cuisine in the menu will facilitate the adaptation of potential buyers," explains Ms. Zhihar. It is the lack of the usual food for many Chinese that becomes a stumbling block in traveling and the reason for the reluctance to travel outside of China in principle. Shopping malls and shops in the street retail format should work with navigation, as well as price tags in Chinese, which greatly increases the loyalty of guests. Another important point is the awareness of the staff about the Chinese mentality and knowledge of the basic etiquette of Chinese society. If store owners are interested in attracting Asian guests, they certainly need to take this point into account.
To be continued
Author: Ekaterina Reutskaya
Photo: Shutterstock.com
