The opportunity is huge..The opportunity is now!

Nigel AshtonChina Post International

The facts• Population 1.34 billion (4+ x USA)

The facts• Population 1.34 billion (4+ x USA)• The Chinese “middle class” is bigger

than USA population! The “consumer class” is estimated at 140 million

The facts• Population 1.34 billion (4+ x USA)• The Chinese “Middle class” is bigger

than USA population! The “consumer class” is estimated at 140 million

• 70m+ trips abroad by Chinese in 2012 (est 100m by 2020)

The facts• Population 1.34 billion (4+ x USA)• The Chinese ‘Middle class’ is bigger

than USA population! The “consumer class is estimated at c 140 million

• 70m+ trips abroad by Chinese in 2012 (est 100m by 2020)

• High propensity to spend – Chinese spent over $54 billion abroad in 2012 – average spend per head while in USA - $7,200

The facts• Population 1.34 billion (4+ x USA)• The Chinese ‘Middle class’ is bigger

than USA population! The “consumer class is estimated at c 140 million

• 70m+ trips abroad by Chinese in 2012 (est 100m by 2020)

• High propensity to spend – Chinese spent over $54 billion abroad in 2012 – average spend per head while in USA - $7,200

• Chinese travelers cite shopping as one of their key activities whilst traveling – shopping/cultural pursuits/visiting family

The facts• Population 1.34 billion (4+ x USA)• The Chinese ‘Middle class’ is bigger

than USA population! The “consumer class is estimated at c 140 million

• 70m+ trips abroad by Chinese in 2012 (est 100m by 2020)

• High propensity to spend – Chinese spent over $54 billion abroad in 2012 – average spend per head while in USA - $7,200

• Chinese travelers cite shopping as one of their key activities whilst traveling – shopping/cultural pursuits/visiting family

• China’s wealthy elite have generated a whole new market for the world’s luxury personal goods makers, estimated to be worth $25 billion a year - likely to leapfrog Japan and the United States to the $28 billion top spot by 2015

The Chinese opportunity

• Huge numbers of visitors to USA and growing every year

• Have significant disposable income and want to spend it (spent $5billion worldwide during 1 week! Golden Week 2012)

• They love shopping and particularly luxury goods – gives them social cachet

• Opportunity to create ongoing relationship with the consumer

• Scale of the opportunity is staggering

The best way to reach this high spending consumer

The Chinese Traveler – Essential USA

• 3 issues published, 4th due April 2013• Issue 4 is being rebranded as “The Chinese

Traveler – Essential USA”• The magazine that reaches the Chinese visitor

to the USA with absolutely no wastage• A unique media proposition for advertisers

Our USP

• Timing: Distributed to travelers when they receive their visa to travel to the United States

• Targetting: Only distributed to visa applicants• Environment: The visa office – a single

purpose environment, government run• Accessibility: Magazine is free to travelers• Unique: Solus media in visa office – over 2,500

copies distributed each day

High quality publication & client list

• CVBs: Anaheim, Cannery Row, Colorado, Denver, Fairfax, Fort Lauderdale, Fort Worth, Georgia, Minneapolis, New Orleans, Pennsylvania, Utah…

• Hotels: Aqua, Hilton, Loews, Sherry Netherlands, Sheraton, Times Square…

• Tourism: Boston Symphony, Grammy Museum, Hard Rock, Kennedy Space Centre, Legoland, Mohawk Museum, Natural History Museum, Salem, Sealife, Universal, Warner…

• Travel: Avis, Eagle Rider, Enterprise, Midway, NY Water Taxis…

High quality shopping clients

Ala Moana - AWE Talisman - Bal Harbour - Beverly Center - Bloomingdale’s - Cabazon - Citadel - DFS – Farmers Market - Florida Mall - Forum Shops - Fur Vault - Galleria Dallas - Grand Canal Shoppes - Louisiana Tax Free - Macy’s - Mall of America - NorthPark - Outlets at Anthem - Paragon Outlets - Premium Outlets - Shop America - Shops at Columbus Circle - Simon Properties - South Coast Plaza - Tanger Outlets - Texas Tax Free - The Mills - Tommy Hilfiger

Developing a lasting relationship with the Chinese consumer

• The Chinese Traveler – can help you attract the consumer….

• Our new proposition can help you monetise that consumer interest and build the lifetime value from that relationship

“51st State Shopping”

• Keen shoppers know that dragging your purchases across the continent to home is not part of the attraction

• It risks loss, damage, theft, excess baggage charges and a lot of hassle

• Our new service solves the problem• We provide the customer with a Miami address• The retailer sends the customer’s goods there. We receive

them, consolidate them, and then deliver them to him at his address in China

• A one stop solution – tracking of goods received and sent, clear returns procedure, seamless administration between retailer, us and consumer

Our new Distance Fulfilment Service

• Once the consumer is back home, if his shopping experience with you was positive, he will probably want to keep buying from you via the Internet

• Given that there are 242 million online shoppers in China (c.245 million internet users in USA) and they spent $47 billion overseas on credit cards in 2011 (66% rise) , this is a major opportunity

• 51st State Shopping receives the goods, processes them and sends them back to their home in China

• This service already exists for Latin American & Middle Eastern consumers

• Our relationship with the Chinese government makes this possible in China

• This product will be launched during 2013• As we fine tune our model, I would welcome

your input, comments and suggestions and how we partner with you

China – the biggest commercial opportunity in our lifetimes

China – the biggest commercial opportunity in our lifetimes

“It’s time for the luxury travel industry in the United States to realize that their future Chinese guests are now no more looking for discounted trips, but expect a high quality of service in the very best hotels and luxury retailers. They enjoy travelling independently, making their own itineraries, and trying more sophisticated luxury lifestyle experiences.”

Pierre Gervois of Shanghai Travelers Club

China – the biggest commercial opportunity in our lifetimes

Thank you for your time