Marketing to Asia: Meeting the Spending Needs of Chinese Travellers Philippe Charriol, Chairman, Charriol Group John Garner, Vice President Purchasing,

Marketing to Asia: Meeting the Marketing to Asia: Meeting the Spending Needs of Chinese TravellersSpending Needs of Chinese Travellers

Philippe Charriol, Chairman, Charriol Group

John Garner, Vice President Purchasing, DFASS

Who is DFASS ?

John GarnerPresident

DFASS (Singapore) Pte Ltd

• #1 in-flight Concessionaire worldwide• 22 years of industry presence under same

ownership• US$350M annual turnover• 5 of the world’s top 10 mega carriers global

contracts• 40 airlines partners• 74 distribution/warehouse facilities on

5 continents

Our Concession Airlines

• AeroSur• Air Astana• Air Canada• Air Jamaica• Air Transat• Avianca• American Airlines• Bangkok Airways• CanJet• Continental Airlines

• Continental Micronesia• Delta Air Lines• Gulf Air• Jetstar Asia• Northwest Airlines• Pluna• Silkair• Singapore Airlines• Tiger Airways• US Airways

Canada

USA

Jamaica

PanamaColombia

Bolivia

Uruguay

UK

Japan

SingaporeGuam

Bahrain

Kazakhstan

Belize Taiwan

DFASS operates a vast network with 74 stations/offices across 5 continents.

Understanding the China marketThe Economy

Fastest growing

economy

10% average annual GDP growth over last

30 years

3rd largest economy after USA and Japan

#1 exporter

#2 importer #2 trading nation

Where China Outrank USA

Where USA Outrank China

• IPOs• Foreign Currency

Reserves• Trade Balance

• Billionaires• Fortune Global

500• GDP• Top 50

companies by market capitalisation

Measured in USDMeasured in USD

Between 2008 to 2009

50,000 new Chinese millionaires50,000 new Chinese millionaires

4,000 new Chinese > US$10M4,000 new Chinese > US$10M

2,000 Chinese > US$100M2,000 Chinese > US$100M

100 Chinese billionaires

Understanding the China marketThe Targeted

Consumer

China - Most Populous Nationin theWorld

1.3 billion people20% of world’s population

Distinctive One Child Policy

Introduced 1979“Little Emperor”Provided for by 6 adults

Our Target Consumer• Chinese Elite• New Rich• Little Emperor (25-45 years old)• Both genders• Origin: Economic Hubs such as

Beijing, Tianjin, Shanghai, Guangzhou, and Shenzhen

Understanding the China marketChinese Consumer

Behaviour

Chinese Consumer Behaviour

• ‘Xin Gui’ or the new money consumer behaviour

• Chinese elite consumer ambivalence • Middle class have luxury aspirations• Hedonistic young generation• ‘Look at me’ mentality

‘I can afford this – Can you?’

• Group of key consumers that are diverse and different

• They buy everything from luxury cars to fashion goods, from cigars to watches, from Singapore to London

• Often shop in groups like the Japanese used to - but individual buying habits are different

• With 24 airline concessions

• With more than 60% of our airlines Concession partners flying to valuable Chinese destinations

• Advantaged position to identify consumer trends, buying patterns and leverage on them

Buying Behaviour

• From Pierre Cardin to MontBlanc• From L’Oreal to Chanel• From Tintamar to LV

Choice is driven by local marketing!

Buying Behaviour

Price is rarely an objection

… and discount is always welcome!

Cash is king

…and credit cards usage is limited

Understanding the China marketWhy do Chinese

buy from In-flight?

Counterfeit!

Genuine and buy with

CONFIDENCE

龙龍 or

Communicate in Simplified Chinese characters!

What do these numbers signify?

THE BOOM IN CHINA IS ON ITS WAY….

DFASS, Excellence by Choice, Not by Chance.

Thank you