欢迎! Greetings! im2china

Transcription

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2 欢迎! Greetings!

3 Today s Team Boyd Group International is extensively involved in the analysis and forecasting of China-related aviation dynamics Airports:China - the only forecasts of traffic & trends at China s 50- largest airports The Annual China-US Travel Symposium Extensive independent research regarding China-US travel trends China Ni Hao - Futurist China-Welcome Programs Assisting BGI in researching China travel trends Jointly assisted in implementing the first fully functional China-Welcome airport program Principals include former #1 aggregator of China-US travel programs China Ni Hao - Futurist China-Welcome Programs IM2CHINA Digital Programs Provides end to end digital marketing consulting and campaign optimization across Chinese Internet media. Teams with BGI and China Ni Hao in media planning experience in the China market Creates WeChat, Baidu, and web platforms. Clients range from Las Vegas Airport, Port of Seattle, State of Georgia, to retail such as Bloomingdales

4 Why We re Here Today Establishing the Research Triangle brand in China to facilitate nonstop flights from the Middle Kingdom Exploring the emerging changes in China-US air travel and how we can optimize them Defining the challenges and opportunities facing the Research Triangle in attracting China access Discussing a regional participation Starting point for a clear long-term China-RDU plan

5 There s A Lot of Work To Do 1. Understanding of the strategic trajectory of the emerging dynamics US-China air transportation 2. Capitalize and optimize the current Chinese investment & presence in the Research Triangle 3. Position the Research Triangle ahead of the competition programs both here and in China 4. Build additional Chinese leisure traffic through North Carolina to cross-support eventual nonstop access from the Middle Kingdom

6 Making Research Triangle #1 Today, most US destinations, companies and venues are NOT China-Welcome, nor are they going in that direction... The competition is weak. Some very real examples... This is virtually the only obvious Chinese signage in one of the biggest hotels in Las Vegas it says to show your room card to the guard at the elevator and it s in traditional Chinese This is the free Smarte Carte sign in a US Customs facility The emergency card on two of the largest US carriers serving China. It s not only in traditional Chinese, but it says shopping cart not baggage cart!

7 China-Welcome Example The international info counter at one of America s largest gateways... Excuse me, do you have any Chinese materials regarding the airport?

8 Answer, after a short search... Why, yes. It s right here And it s on Concourse E

9 Session One: Let s get started... China-US Travel & Business Investment

10 A China-RDU Nonstop Will Drive More Business Investment Beijing-RDU Connect Point Depart Time Connect Length Arrival Time Carrier Efficency DFW 5:25:00 PM 94 10:16:00 PM American 88.6% Detroit 5:40:00 PM 160 9:58:00 PM Delta 99.7% Chicago 12:35:00 PM 140 5:05:00 PM United 98.5% San Francisco 5:25:00 PM :55:00 PM United 85.6% Toronto 6:45:00 PM :39:00 PM Air Canada 99.9% Shanghai-RDU ` Connect Point Depart Time Connect Arrival Time Carrier Efficency DFW 6:10:00 PM :02:00 AM American 90.7% Detroit 12:20:00 PM 102 4:50:00 PM Delta 99.9% San Franciscp 1:30:00 PM 70 5:43:00 PM United 89.3% Toronto 6:15:00 PM :39:00 PM Air Canada 99.8% There are four airlines and 4-5 time options to get from either Beijing or Shanghai to the Research Triangle But this is about the same as at other US airports A nonstop from a Chinese airline connecting hub will put the Research Triangle galaxies ahead of other regions competing for Chinese investment and visitation Flight schedules for Tuesday, February 20, 2018

11 Putting The Facts On The Table The necessary traffic and revenue levels for China nonstops won t happen without regional support and planning This is not like flights to Europe. A nonstop to China 75% more distance than RDU-Paris a very real risk and investment for any airline The China-US air market is entering a new phase new metrics as new revenue streams are developed Plus, the structure and management of Chinese airlines do not lend well to traditional marketing approaches the direction, planning and tactical decisions are generated entirely differently from US/EU airlines. The Research Triangle must develop a long term, cohesive outreach program that will demand that all sectors and stakeholders participate

12 The Chinese Airline System Hugely robust growing rapidly The single biggest airliner market in the world BGI forecasts over 5,600 additional jet airliners to see the skies with Chinese airlines in the next 10 years Mostly point-to-point the population centroids are huge Connecting systems are still in development Today, most inbound to US traffic today is generated singly from major Chinese cities... RDU represents the next phase in China-US airline expansion

13 China: Enormous Traffic Growth Top Airports Growth 2017 v 2013 北京 / 首都 Beijing 1 94,657, % 上海 / 浦东 Shanghai (PVG) 2 67,231, % 广州 / 白云 Guangzhou 3 62,679, % 成都 / 双流 Chengdu 4 48,867, % 昆明 / 长水 Kunming 5 46,748, % 深圳 / 宝安 Shenzhen 6 44,280, % 上海 / 虹桥 Shanghai (SHA) 7 40,610, % 西安 / 咸阳 Xi'an 8 40,025, % 重庆 / 江北 Chongqing 9 36,757, % 杭州 / 萧山 Hangzhou 10 33,889, % 南京 / 禄口 Nanjing 11 25,272, % 厦门 / 高崎 Xiamen 12 23,711, % 郑州 / 新郑 Zhengzhou 13 22,947, % 长沙 / 黄花 Changsha 14 22,446, % 青岛 / 流亭 Qingdao 15 22,337, % All China 43% growth Expansion of interior cities More hubs planned Domestic demand results in less connecting traffic For foreseeable future: Beijing & Shanghai will be the major gateways to US cities Source: Airports:China 2017 forecast.

14 Huge Potential For China-US Growth Airport City Est. US Potential Current Capture Net Opportunity Percent Captured 广州 / 白云 Guangzhou 1,344, ,026 1,173, % 成都 / 双流 Chungdu 1,028, , , % 深圳 / 宝安 Shenzhen 967, , , % 昆明 / 长水 Kunming 913,824 22, , % 西安 / 咸阳 Xi'an 802,945 32, , % 重庆 / 江北 Chongqing 789,112 25, , % 杭州 / 萧山 Hangzhou 690,534 10, , % 厦门 / 高崎 Xiamen 531,256 19, , % 南京 / 禄口 Nanjing 466,708 25, , % 武汉 / 天河 Wuhan 461,308 51, , % 长沙 / 黄花 Changsha 455,785 25, , % 青岛 / 流亭 Qingdao 443,287 34, , % 郑州 / 新郑 Zhengzhou 421,254 13, , % Totals 14,548, ,008 8,568, % Other than Beijing and Shanghai current service levels capture less than 6% of the potential China-to- US traffic The barriers are, 1) limited connecting operations and 2) very high current domestic demand i.e., limited feed aggregation Point: the market is not mature and past history is not an indicator of the future RDU is on the radar screen for the future

15 China-US Access Today In Transformation Other than New York, Los Angeles and San Francisco, flights are only to and from Shanghai and Beijing Currently, the service has been concentrated on large metro areas, particularly those with airline connecting hub operations Raleigh-Durham is a totally different and evolutionary destination. Traditional recruitment strategies are not applicable... The unique traffic generation at RDU is the key.

16 RDU. Part of The Next Wave First Tier Western Cities Paris, London, Madrid, etc. Major Chinese-centric regional leisure and vacation cities Seoul, Bangkok, Taipei Major long-haul vacation sites Sidney, Melbourne, Auckland, Guam easy expansion, high traffic North American Gateways high traffic demand, usually with a partner connecting hub Point: these represent the end of the first phase of Chinese air expansion... As the airline industry grows, the next sector business markets will be targeted

17 Let s Put Reality On The Table The China opportunity for RDU is a futurist concept This demands identifying emerging China-US air travel dynamics, and preparing for them The current dynamics of the market and of the air transportation system do not support nonstop RDU flights to China The China-US air market is entering a new phase traditional data and traditional air service development approaches will not apply Plus, the structure and management of Chinese airlines do not lend well to traditional methodologies the direction, planning and tactical decisions are generated entirely differently from US/EU airlines The Research Triangle must develop a long term, cohesive outreach program that all sectors and stakeholders can participate within in posturing RDU as a destination. Business-wise, this is the foundation for more investment in the region.

18 China-US Access Today In Transformation There is competition for attracting service from China most of it from larger metro areas, as well as a few cities where an airline has a connecting hub On the surface, this would make RDU appear to be at a strong disadvantage But that s not based on emerging business realities... In fact, RDU already has more China traffic than most of these cities

19 US Traffic - Top 8 China Cities Quiz: What is the fundamental difference between RDU and most of these other destinations? Answer: except for Charlotte, they have strong leisure traffic attractiveness locally RDU is business and educational oriented. RDU has more current China traffic than most of the competition... This is where RDU starts from... But it will change These data are based on the current and highly-constricted capacity channels between China & the US There is a window of preparation and opportunity for RDU Forecast 2017 traffic generated from top 8 Chinese airports. Source: BGI Airports:China Forecast Database

20 RDU Represents The Next Generation of China Service Characteristics of Current China-Served Airports City/Airport Major Population Airline Hub Road Hub Leisure Venue Seattle Yes Delta, Alaska No Yes San Francisco Yes - Strong Asian Community United Yes - Bay Area Yes San Jose Partial - Silcon Valley No No No Las Vegas Yes Partial -Hainan/JetBlue No Yes Los Angeles Yes - LA Basin American, United, Delta Yes- So Cal Yes Dallas/Ft.Worth Yes - Metroplex American Yes - Central Texas No Houston Yes United Yes - Gulf Coast No Atlanta Yes Delta Yes No Chicago Yes American, United Yes - I-80. I-90, I-55 No Boston Yes Partial - Hainan/JetBlue Yes - NE & CT Coast Yes Detroit Yes Delta Yes - SE Michigan, Indiana, Ontario No New York (JFK/Newark) Yes United, Delta, American Yes - Tri-State Area Yes Washington Yes United Yes - I-75 Corridor Yes Research Triangle No No No No Today, more specific and more complex approaches are needed to recruit China service

21 RDU-China Business Relationships So, What Is Changing? Beijing Chengdu Nanjing Shanghai Hefei Xiamen Shenzhen Current communities of business interest with RDU Beijing is most important, but does not have sufficient demand for nonstops without connecting support These are only examples opening connective service to China will develop new traffic channels and, investment in Research Triangle Point: any RDU service must be to a major Chinese airline connecting hub

22 Today, Challenges To China-RDU Nonstops RDU nonstops will need aggregation to/from multiple Chinese cities Read: Need for flights to a true connecting hub operation Beijing Capital Airport the most likely target - is now at max capacity Shanghai/Pudong is a weaker hub (China Eastern) Secondary connecting hubs currently insufficient US-China no bilateral, yet. There will be $30 million airliners highest & best use... New generation fleets coming

23 China Airline Systems Different Average daily departures Chinese carrier focus cities v US carrier connecting hubs Of the three major Chinese airline systems, today only Air China at Beijing has anything close to a meaningful connecting hub operation The Chinese airline system is straining to keep up with domestic capacity, as well as adding international spokes from major population centers to large international cities This current model is a major challenge for a market such as the Research Triangle... But it is changing

24 What Are Today s Options... China Eastern Daily Depts Comments Kunming 220 Poor Hub Location Shanghai Pudong 180 Limited Connectivity Xi'an 146 Limited Connectivity China Southern Daily Depts Comments Guangzhou 342 Poor Hub Location Beijing 122 Limited Connectivity Shenzhen 115 Limited Connectivity Air China Daily Depts Comments Beijing 328 Strong Connectivity Chengdu 122 Limited Access - Coastal China Shanghai Pudong 51 No Connectivity

25 The Game-Changer: Beijing Daxing Airport Under the current situation, recruiting connective nonstops to Beijing is not in the cards for RDU Daxing airport fully operational by 2020 will more than double capacity for Beijing... Current plan China Eastern (Delta Partner) and China Southern (American Partner) are expected to have major connecting operations at Daxing. Concept: over 300 departing flights daily each at least a doubling of capacity over today Air China (United Airlines Partner) expected to remain at Beijing Capital, with capacity to expand its current hubbing operations Timeframe planning must start now, with goal of having nonstop Beijing access by That planning must include positioning North Carolina as a leisure venue as well as a prime site for business development

26 Going Forward... To attract nonstop access from China, the Research Triangle and the state - must pursue the following objectives Paramount: Differentiate the Research Triangle as being more Chinafocused and more China welcome than other US venues Expand current business traffic base build on existing & future Chinese business investment Continue to establish awareness of the Research Triangle within targeted Chinese business venues Leisure Chinese traffic must be aggressively expanded in North Carolina Now, let s talk about how we can participate in making China- RDU air service a reality

27 Questions?

28 Session Two: Future China-NC Business Development Opportunities

29 Chinese Investments 2010~ , , , , Total Investment Overseas ($Million) North America Europe 120, Asia 100, , , , South America Africa Australia 20, Key reasons of 2017 s drop China government s policy needs Chinese enterprises to focus on One Belt, One Road Political impact before the new communist party s leadership are elected The risks and challenges from domestic economy Restrictions from foreign governments eliminated Chinese investments categories Real stories of 2017 are November 2017 has 34.9% YTY growth December 2017 has 49% YTY growth 314 global M&A projects, $96.2 Billion 22% direct investment, 78% financing

30 Key Decision Factors for Chinese Investors Business Environment Tax Advantages Friendly to Chinese Investors Government Support and Resources Local Chinese Communities Famous Universities Leading Research Centers Industry Leading Enterprises Close to Talent Close to Market and China Local Economy Strong Growth of Local Economy Close to Economy Center Unique Leadership in Some Industries Population Growth Popularity in China Quality of Living Crime Rate Basic Education, School Ranking Real Estate Market and Price Climate, Natural Environment, Transportation, etc.

31 How Does North Carolina Do on China s Internet?

32 One Chinese Page with Limited Information

33 NC Has One Tourism WeChat Account, But No B2B WeChat Account WeChat Search Result of North Carolina in Chinese NC Tourism s WeChat Account, but it could not be found on WeChat Search Memories in North Carolina - Personal Account Wind from North Carolina - Personal Account

34 See How Your Competitors Are Doing Example of Georgia

35 Georgia s Chinese Website Independent and China based webserver: WeChat Icon English Website Menu global template Title images with Chinese slogans Chinese Content Menu Greetings to Chinese visitors, and general introduction of GDEcD Contact with China business representative GDEcD s WeChat account s QR code

36 Georgia s WeChat Account IM2CHINA has launched WeChat business official account for GDEcD Registered a business subscription account with verification Designed and launched the Wechat mini-site Created and published weekly newsletter by professional editors Translate news-release and social postings of GDEcD into Chinese Engaged KOL to promote WeChat account and content Collect leads and communicate with subscribers on WeChat WeChat Account Profile Page WeChat Mini-site Structure Georgia s Business Environment Tax Advantage Manpower Advantage Logistics Advantage Quality of Life Business Support from GDEcD Policy Consultancy Company Registration Successful Cases About Us & Contact Us About Us Business Inquiry

37 Georgia s WeChat Postings GDEcD s WeChat Newsletter Index: All Organic Creation, Posting Once Per Week Georgia has acquired $6.33 billion global investment in FY2017: 3,292 views Atlanta The Emerging New Capital of High Technology in USA 7,602 views NCR invests $450 million for new headquarters in Atlanta 1,442 views Movie and TV Producing: $95 Billion Business in Georgia 1,776 views

38 Content Marketing For Georgia Wiki Pages Toutiao Posting

39 Baidu Advertising for Georgia Baidu Paid Search Ads on PC Baidu Paid Search Ads Baidu Newsfeed Advertising Baidu Display Advertising

40 Chinese PR for Georgia Editorials Publishing on Chinese Media im2 na a

41 How can North Carolina prepare to acquire more Chinese investments?

42 Understand Chinese Investors Pains Ernst & Young has interviewed 220 executives from Chinese enterprises Before the Investment Lack of knowledge of local markets, laws and tax environment 76% Lack of information about the investment target s business model, workflow and financial status 73% Lack of knowledge and experience to manage overseas investment 62% Investment Execution Lack of reasonable tax planning 73% Limited investment channels and high financing cost 65% Lack of efficient communication with parties of interest 57% After the Investment Lack of strategic consolidation planning 65% Barriers of culture and communications 51% Could not control the project after the deal is closed 36%

43 Deliver Right Messages to Right Audience B CEO, VP of Global Business, Owner of Mid-sized Business Power to Make Decision A BD or M&A Directors, Consultants, Small Business Owners Effort to Make Research C Chinese Network in USA D Decision Makers Families

44 Enlarge Your Brand Awareness in China Search on Baidu Customer search relevant keywords on Baidu and see your advertising, Wiki content, documents, Q&A, Social Share Customer will share or retweet your WeChat posting if they like the content PR News and Internet Content Customers see more news and content about your advantages, they will be more interested to learn Read Your WeChat Content Once per week, Chinese subscribers will receive the newsletter from your WeChat account Social Impact More people see your postings, and they will search on Baidu for more detail information Visit Your EDC Chinese Website Customer view the Chinese website, and find out what they are interested, and then either contact or subscribe WeChat account

45 Three Steps to Build An Attractive Brand Awareness for NC Sales Approach Consistent and Fresh Marketing Campaign Digital Properties Providing Accurate and Sufficient Chinese Content Chinese Representatives Chinese Delegations Trade Shows in China Social Media Marketing Search Engine Marketing Content Marketing Chinese PR Professional Chinese Website Active WeChat Account Updated Chinese Wiki, UGC Content

46 Section Three: Building & Keeping North Carolina China-Welcome

47 Building The Leisure Traffic This will be a critical part of the revenue support for China nonstops... Currently, North Carolina is not in line to capture its share of the nearly 23 million Chinese tourists expected to visit the U.S. over the next five years North Carolina and the Research Triangle are potential draws for tour groups and individual travelers... But it needs to reach out to attract this segment

48 Growing Middle Class Highlights Strength for Future 2010: 50 million 2015: 300 million (25% of population) 2020: 600 million (50% of population) Number One Leisure Activity for Middle/Upper Class is Travel There are 164 cities in China with a population of 1 Million, plus. Only 7% (97 million) of China s population have a passport

49 Expectations Reading 10,000 books is not as useful as traveling a thousand miles Chinese Proverb Travel is an investment in oneself, family and social network Learning /Discovery is a top motivation for travel abroad 75% of Chinese believe tourism is important in improving their quality of life and happiness The venues in North Carolina are highly compatible with the trends in Chinese visitation

50 Travel Trends 2018: More Sophisticated & Demanding Market is becoming more segmented incl. growth of independent local traveler looking for new experiences Increase in Small Groups/Family Friends (up to 12 people)-offthe beaten track/ experience driven Spend is changing from focus on shopping to restaurants and specials experiences

51 Considerations For Expanding China North Carolina Visitors In 2000 the U.S. was the 22 nd largest overseas destination market by 2020 the U.S. will be the largest. (Hotels.com Chinese International Travel Monitor 2016) Focus For NC: Authentic experiential travel emphasizing local life culinary, culture, history, shopping, nature and adventure Importance of digital presence in China. The importance of booking on mobile and sharing experiences on social media

52 They are visiting a whole lot more than Broadway The educational and cultural attractions in North Carolina are competitive with current Chinese leisure travel trends Attractions Categories Locations Dodge City Attraction Arizona Elvis Presley Home Attraction Memphis, TN George Ranch Attraction Houston, TX Mystic Aquarium Attraction Mystic, CT Texas Stockyards and Rodeo Attraction Forth Worth, TX The International Space Station Attraction Houston, TX Wisconsin Dells Attraction Wisconsin Harvard University Education Boston, MA Rice University Education Houston, TX Yale University Education New Haven, CT Grauman s Chinese History Los Angeles, CA Hearst Castle History Santa Barbara, CA Lancaster Amish Farm History Lancaster, PA Mark Twain s House History Hartford, CT Pilgrims Plantation & Mayflower History Plymouth, MA Witch Museum History Salem, MA Boeing Factory Industry Seattle, WA Naval Academy Military School Annapolis, MD

53 The Changing Travel Focus Is Being Driven by the Millennials By 2020, over 200 million outbound Chinese Travelers 35% will be years old Better informed, Make more International trips, Smarter shoppers, More adventurous, more budget conscious but getting more affluent The high-tech business base and the core attractions of North Carolina fit this template

54 Millennial Activities while Traveling Internationally Sightseeing 54% Shopping 51% Dining 50% Visiting Beaches/Resorts 31% Eco-Tours/Adventure 20% All of these emerging travel trends among the increasingly affluent Chinese Millennials describe the North Carolina opportunity perfectly.

55 Chinese Travelers are Tech Savvy Only 1 in 10 calls a traditional Travel Agent 75% use a digital device for planning /booking Over 60% plan to book via mobile These factors underscore the critical need for a strong and professional digital presence in China for the Research Triangle and for North Carolina

56 Experiential Travel This Describes The Potential for North Carolina

57 Bragging Rights / The Selfie Conspicuous consumption Cool consumption Social Desirability

58 Three Different Chinese Markets In The U.S. All Are Opportunities To Support China-RDU Nonstops Chinese Americans Chinese Students Tourists from China

59 Chinese Americans and Chinese Students Only 1 in 10 calls a traditional Travel Agent 75% use a digital device for planning /booking Over 60% plan to book via mobile Point: Digital Outreach In The US, Too

60 Making North Carolina China-Welcome It s what will set the state apart...

61 They Don t Leave Home Without It Most Chinese Travelers use credit cards/mobile payment systems No foreign exchange fees High Limit for purchasing in US$ It takes very little expense for North Carolina venues and vendors to accept these. In particular, AliPay & WeChat Pay are what the competition is probably missing.

62 When Chinese Guests Arrive at the Hotel Not just welcome, but expressing respect A concierge /staff member to greet them A flyer on the hotel in Chinese with all your services A letter saying Huanying in their room Free Wi-fi is essential A WeChat App for the hotel where they can see all the hotel services and promotions In-room menus in Chinese

63 Signage in Chinese to Assist Travelers and your Hotel A designated smoking area with close proximity to the hotel Signage for no smoking areas or directions to smoking areas Any spot where confusion could occur or a lack of information could cause a problem

64 Group Tour in front of Corning Museum of Glass, Upstate New York

65 China Welcome Shopping Experience at Corning Glass Museum Signage in Chinese Brochure/Flyer in Mandarin DVD in Mandarin to play on the bus prior to arrival Downloadable App and WeChat platform Accept Union Pay, and have signage Discount coupons and point of sale in Mandarin Wider aisles in the store for Chinese visitors Smoking area outside the store Marketing program for guides to visit store

66 China Welcome Can Take Many Forms

67 China-Welcome is a Mindset

68 Itinerary Development-Step 1 Review all Chinese Tours that are going through/near the region Review proximity to gateway airports with Chinese flights remember, these customers are fair game for supporting China-RDU service Review tourism assets that you have locally and regionally that will appeal to Chinese visitors Let s look at just a snapshot of what NC offers...

69 Increasing Visitation to North Carolina / Raleigh-Durham Scenery and Outdoor Activities Civil War History Museums-Railway, Motorcycle, Wright Brothers Festivals Music Bluegrass Food & Drink-Barbeque and Craft Beer Shopping Universities

70 Chinese Visitors in North Carolina Smokey Mountains National Park Calatoochee Valley Blue Ridge Parkway Outer Banks American Motorcycle Museum Wright Brothers Museum-Kitty Hawk Asheville Southport Old Cardinal Gem Mine Duke University, UNC, NCS, etc. Elizabeth Biltmore Outer Banks Iron Clad CSS Albermale National Whitewater Center NASCAR Hall of Fame USS North Carolina Pinehurst Moonshine Trail Old Salem

71 5-day Itinerary from New York to Tennessee

72 Itinerary Development 4~5-day from DC to NC

73 North Carolina Unique experiences

74 Next Steps to Build China Tourism Create itineraries from New York and Washington that stop in North Carolina Develop 2-3 day highlights itineraries for Chinese student population and their visiting families. Create Weekend trips for Chinese students-focus on soft adventure trips to Smokey Mountains or a film tourism experience. Build tourism segment as a future traffic base for China-RDU flights Chinese Website, Chinese Wiki, and use WeChat more effectively and efficiently

75 Questions?

76 Section Four: Let s Discuss Tailoring An Action Plan

77 Let s Bring It Home Priority One: Building the Brand of the Research Triangle in China Establishing an aggressive and expanded digital presence in China Work with Washington to encourage China-US bilateral - ASAP It will be important to establish North Carolina as a major itinerary choice for Chinese visitors The Research Triangle and the state must develop a coordinated, aggressive and stepped plan among all stakeholders

78 Let s Wrap This Up - And Get Going