Professional Talk at ESSEC Business School Antonio Acunzo CEO, Marketing that Works Pte Ltd Singapore, on Thu 12 Feb 2015
Marketing that Works!: our business units Start2Asia & Ready4USA Effective Tools for Foreign Market entry USA: Florida New York Greater China: ASEAN: China Hong Kong Macao Taiwan Brunei Cambodia Indonesia Laos Malaysia Myanmar Philippines Singapore Thailand Vietnam E India
Marketing that Works!: our business unit MTWBESPOKE Bespoke Business Consulting for Luxury and THL Bespoke Marketing applying creativity to magnify the unique selling features of your brand, products and services for an effective luxury market-entry plan. Bespoke Destination Marketing to spotlight your destination or hotel and attract travel and tourism business from target markets. Bespoke Events creating extraordinary awe-inspiring and one-of-a-kind M.I.C.E. events globally delivering exceptional returns and long-lasting memories. Bespoke Press Office to keep buyers and media updated on the competitive advantage of your products. Bespoke Business Consulting advising Luxury companies on how to excel and succeed in luxury markets defining style, designing luxury, and developing global. Bespoke Strategy maximizing innovation and internationalization to make your luxury market-entry effective and exclusive. www.marketingthatworks.us/mtwbespoke.html
Marketing that Works!: our timeline 2005 2009 2010 2013 2014 founded Marketing that Works! in Miami, Florida, and developed our first Joint-Venture Project in China for a Canadian MNC established Marketing that Works! in Singapore as strategic foothold for managing market-entry projects in Asia, the region that drives global economic growth launched Start2Asia, our business unit exclusively dedicated to advising companies eyeing East for their international business strategy in the ASEAN and Greater China markets launched Ready4USA, our business unit exclusively dedicated to advising companies eyeing West for developing new business in the USA market with a focus on Florida launched MTWBESPOKE, our business unit offering bespoke consulting to Luxury Goods, Design & Home Décor, THL and Food & Wine companies, and opened our Liason Office in Kuala Lumpur
Marketing that Works!: a structural understanding of Asian and USA markets with a modern thinking approach Sustaining a profitable growth in the competitive and selective ASEAN, Greater China, and USA markets, requires powerful marketing strategies that enable companies to build, nurture and maintain long-term and profitable business relations.
Why Singapore? 12 good reasons to consider Singapore 1 2 3 4 5 6 7 #1 BEST COUNTRY IN THE WORLD TO DO BUSINESS, ACCORDING TO 2012 WORLD BANK EASE OF DOING BUSINESS INDEX #5 IN THE WORLD COMPETITIVENESS SCOREBOARD 2013 AAA CREDIT RATING: ONLY ASIAN COUNTRY TO HAVE AAA CREDIT RATING FROM STANDARD & POOR S, MOODY S, AND FITCH STRATEGIC BUSINESS HUB IN ASIA, AND GLOBAL HOME BASE TO ASIAN MARKETS SAME TIME ZONE (GMT +8) AS HONG KONG & CHINA BUSINESS FRIENDLY: 100% FOREIGN CORPORATE SHAREHOLDING IS ALLOWED BUSINESS FRIENDLY: FULL TAX EXEMPTION FOR NEWLY INCORPORATED COMPANIES BUSINESS FRIENDLY: BUREAUCRACY-FREE & CORRUPTION-FREE ENVIRONMENT 8 GLOBAL BUSINESSES TO ESTABLISH THEIR ASIA HEADQUARTERS IN SINGAPORE 9 10 11 12 MULTICULTURAL SOCIETY WITH ENGLISH AS MAIN BUSINESS LANGUAGE ONE OF THE HIGHEST LIVING STANDARDS IN THE WORLD MASTER PLAN 2008: MAKE SINGAPORE A GREAT CITY TO LIVE, WORK AND PLAY IN INTERNATIONAL LIFESTYLE & BEST QUALITY OF LIFE FOR EXPATS is a business unit of
ASEAN: 2013 stats at a snapshot ASEAN Country BRUNEI Population 422,675 Land Area (sq km) 5,765 GDP ppp (US$ billions) 22.25 GDP per capita ppp (US$) 54,800 GDP real growt h rate 1.4% Indust rial produ ction growth rate 1.5% Trade (US$ millions) 16,856 FDI total net inflow (US$ millions) 908.4 CAMBODIA 15,458,332 181,035 39.64 2,600 7.0% 9.5% 18,664 1,274.9 INDONESIA 253,609,643 1,904,569 1,285 5,200 5.3% 4.3% 381,721 18,443.8 LAOS 6,803,699 236,800 20.78 3,100 8.3% 11.0% 6,159 426.7 MALAYSIA 30,073,353 329,847 525 17,500 4.7% 5.0% 423,930 12,297.4 MYANMAR 55,746,253 676,578 111.1 1,700 6.8% 11.4% 18,503 2,620.9 PHILIPPINES 107,668,231 300,000 454.3 4,700 6.8% 9.0% 117,382 3,859.8 SINGAPORE 5,567,301 697 339 62,400 3.5% 1.7% 788,117 60,644.9 THAILAND 67,741,401 513,120 673 9,900 2.9% -3.1% 477,302 12,999.8 VIETNAM 93,421,835 331,210 358.9 4,000 5.3% 5.0% 227,793 8,900 Total 636,512,723 4,479,621 2,476,427 122,376.5 (source: CIA World Factbook, ASEAN) is a business unit of
Middle Class Consumer Spending 2009-2030 regions by color inner ring: 2009 outer ring: 2030 USD5.8 trillion USD11.1 trillion EUROPE USD8.1 trillion ASIA-PACIFIC USD32.6 trillion +571% growth NORTH AMERICA (USA & CANADA) USD5.6 trillion USD4.9 trillion top 3 markets: ASEAN Greater China India SUB-SAHARAN AFRICA USD0.6 trillion MIDDLE EAST & NORTH AFRICA USD0.4 trillion USD0.8 trillion USD1.9 trillion USD1.5 trillion USD3.1 trillion CENTRAL & SOUTH AMERICA is a business unit of
Middle Class Consumer Spending 2009-2030 REGION 2009 2020 2030 ASIA-PACIFIC 4,952 23% 14,798 42% 32,596 2.7 billion middle class consumers by 2030 in the Asia-Pacific region 59% EUROPE 8,138 38% 10,301 29% 11,337 20% NORTH AMERICA (USA & Canada) 5,602 26% 5,863 17% 5,837 10% CENTRAL & SOUTH AMERICA 1,534 7% 2,315 7% 3,117 6% MIDDLE EAST & NORTH AFRICA 796 4% 1,321 4% 1,966 4% SUB-SAHARAN AFRICA 256 1% 448 1% 827 1% WORLD 21,278 100% 35,045 100% 55,680 100% values in USD trillions (source: American Chamber of Commerce) is a business unit of
12 industries experiencing strong growth in Asian markets
Marketing that Works!: our core focus on Luxury and THL
Luxury Asia: Market size by Country #1: ASIA THE LARGEST TARGET MARKET FOR BRANDS INDIA THAILAND MALAYSIA CHINA HONG KONG TAIWAN SINGAPORE VIETNAM SOUTH KOREA TAIWAN INDONESIA JAPAN PHILIPPINES MARKET SIZE (in EUR billions) ASEAN: SINGAPORE 2.5 MALAYSIA 0.9 THAILAND 0.9 INDONESIA 0.8 VIETNAM 0.3 PHILIPPINES 0.3 GREATER CHINA: CHINA 15.0 HONG KONG 7.0 TAIWAN 4.5 MACAU 0.9 JAPAN 21.0 SOUTH KOREA 8.3 INDIA 1.0 (source: Bain & Co. 2013)
Luxury Asia: Luxury Categories and Products PERSONAL LUXURIES EXPERIENTAL LUXURIES HOME LUXURIES AUTOMOBILES CLOTHING & APPAREL COSMETICS, FRAGRANCES & BEAUTY PRODUCTS FASHION ACCESSORIES JEWELRY PENS, WRITING INSTRUMENTS & DESK ACCESSORIES WATCHES WINE, LIQUOR & SPIRITS PET PRODUCTS DINING ENTERTAIMENT HOME SERVICES PERSONAL EDUCATION & EXECUTIVE EDUCATION REAL ESTATE SPA, MASSAGE, BEAUTY & COSMETIC SERVICES TRAVEL YACHTING ART, ANTIQUES & COLLECTIBLES FURNITURE, LAMPS & FLOOR COVERINGS GARDEN & OUTDOOR HOME DECORATING FABRICS, WALL & WINDOW COVERINGS KITCHEN APPLIANCES & BATHROOM EQUIPMENT KITCHENWARE & COOKWARE LINENS & BEDDINGS TABLETOPS, DINNERWARE, STEMWARE & FLATWARE ELECTRONICS & PHOTOGRAPHY EQUIPMENT
Worldwide Luxury: Market size by Luxury Product Categories (2014) 865 351 223 150 58 39 19 18 7 1 PERSONAL GOODS CARS HOTELS WINES & SPIRITS GOURMET FOOD PRIVATE JETS DESIGN FURNITURE YACHTS CRUISES TOTAL 2014 2013-2014 YoY growth 2% 10% 9% 5% 2% 9% -1% 2% 5% 7% values in EUR billion (source: Bain & Co.)
Luxury Asia: Linking Product to Consumer the Means-Ends Chain Different perspectives of the Means-Ends Chain CHINESE VALUES CHINESE ATTITUDE TOWARDS PRODUCTS PRODUCT BENEFITS NEEDED BY CHINESE CUSTOMERS PRODUCT ATTRIBUTES DEVELOPED FOR CHINA MARKET WESTERN VALUES SYSTEM WESTERN ATTITUDE TOWARDS PRODUCTS WESTERN PRODUCTS BENEFITS WESTERN PRODUCT ATTRIBUTES SELF-KNOWLEDGE PRODUCT
Luxury Asia: Louis Vuitton stores network timeline in Asia
Luxury Singapore at a snapshot
Luxury Singapore: Singapore is a shining beacon in Luxury Asia and the key regional hub for Luxury in ASEAN From transit to trendy: creating a luxury destination and a luxury hub Singapore evolved into a sophisticated cosmopolitan travel destination in a matter of 3 decades #4 global destination by international overnight visitors (2013) (after London, Bangkok and Paris, and ahead of Dubai and New York) Setting the vision: Prime Minister Lee Hsien Loong proved to be instrumental in setting the vision of a Singapore with that kind of vibe you only get in places like the Big Apple and la Ville Lumiere Integrated Resort Concept: Not just casinos with slot machines but integrated resort concept as a strategic solution blending: hotels (mid to high leisure, Luxury and M.I.C.E.) fine dining restaurants shopping malls convention spaces theme parks = dynamic thinking in terms of infrastructures, architectural landmarks, urban landscapes and concepts that have redesigned the skyline = Unique Selling Proposition
Luxury Singapore: Singapore is a shining beacon in Luxury Asia and the key regional hub for Luxury in ASEAN Marina Bay Sands: 3 55-floor towers hotel with 2,561 rooms and suites the world s largest skypark 120,000 sqm of meeting space the largest M.I.C.E. facility in town the Shoppes at Marina Bay Sands: designer and high-end boutiques the largest Louis Vuitton Maison in South-East Asia 6 fine dining venues by celebrity chefs the ArtScience Museum and, of course, the Casino in brief, the world s most expensive building at US$5.5 billion (in comparison Burj Khalifa in Dubai, the world s tallest structure at 829.8 m. stands #19 at US$1.5 billion target visitor: M.I.C.E. with higher spending power than traditional leisure visitor Resorts Worlds Sentosa: 6 hotels & 60 dining venues the Universal Studios Singapore (first and only in SEA) celebrating 10 million visitors in just 2 years 7 theme parks in brief, the 2 nd world s most expensive construction at US$4.98 billion
Luxury Singapore: Singapore is a shining beacon in Luxury Asia and the key regional hub for Luxury in ASEAN Luxury Trade Shows: Maison & Objet Asia (10-13 March 2014 and 2015) 200 exhibitors and 10,000 design professional visitors in 2014 450 exhibitors in 2015 Luxury Hospitality: a record-high 15,567,923 international visitors in 2013 (+7% YoY) SGD23.5 billion in tourism receipts (+2% YoY) SGD2.9 billion in hotel room revenue (+3.9% YoY) Luxury Hotel occupancy: average 88% with a peak of 92% during the month of August 2013 standard average room rate: SGD437 RevPAR: SGD383.10 Most recent new luxury hotels in town: Sofitel So Singapore, opened in May 2014 134 rooms and suites Luxury boutique hotel designed by Karl Lagerfeld blending timeless French elegance with a chic Singaporean twist The Westin Singapore, opened in November 2013 305 rooms and suites high-end contemporary design with the motto For a better you
Luxury Singapore: Singapore is a shining beacon in Luxury Asia and the key regional hub for Luxury in ASEAN Official Entry Gate: Singapore Changi Airport world s best airport in 2013 by Skytrax ranked in the top 3 positions as best airport in the past 14 years over 50 million passengers (53,726,087) #5 busiest airport by international passengers traffic (after London- Heathrow, Dubai, Hong Kong and Paris-CDG efficiency all across the airport experience from check-in to boarding = Changi Experience A major driver for marketing Singapore: F1 Grand Prix which elevated Singapore s standing as a prime destination for the peculiarity of the night race generating S$200 million from tourist dollars for 3 days Marketing Singapore: Your Singapore meant to differentiate Singapore by offering a bespoke experience creating an emotional bond with the destination and a sense of freedom for the multiple offer of unique and creative activities = attracting discerning travellers with the right budget to enjoy the next level of personalized service
Luxury Singapore: Singapore is a shining beacon in Luxury Asia and the key regional hub for Luxury in ASEAN Singapore is a shining beacon in Luxury Asia Singapore as key regional hub for Luxury in ASEAN Singapore market size: EUR2.5 billion EUR5.5 billion for ASEAN EUR27.4 billion for Greater China (China, HK, Macau and Taiwan) EUR223 billion for Global Personal Luxury Market Size EUR865 billion for Worldwide Luxury Markets strong spending power US$62,400 as GDP per capita the highest number of millionaires per capita in the world 1 every 30 Singaporeans is a dollar millionaire 3,870 are multi-millionaires with net worth >US$30 million significant contribution from foreign tourists Singapore ranks #5 by value of tax free shopping after France, Italy, UK and Germany 20% of total duty-free @ Changi by Singaporeans (+11% YoY) 25% of total duty free @ Changi by Chinese (+25% YoY) Emergence of niche brands (like Jo Malone, Laduree): not eroding mainstream luxury brands developing their own market share alluring discerning customers and targeting the new younger urban sector
Luxury Singapore: Singapore is a shining beacon in Luxury Asia and the key regional hub for Luxury in ASEAN Singapore is France s third major trading partner in Asia and the leading trading partner in the ASEAN region: French trade with Singapore: EUR8.5 billion in 2013 >25% food products, agricultural and consumer goods >20% aviation sector >600 French companies are based in Singapore 50 years of diplomatic relations in 2015 between France and Singapore strategic partnership signed in 2012 to foster bilateral relations French FDIs in Singapore and ASEAN: SGD10.8 billion invested in Singapore, making France the 6 th largest FDI investor in the Lion City SGD15.7 billion invested in ASEAN, mainly in Indonesia and Thailand Air France launched its new luxury cabins and in-flight service to Singapore as first destination in Asia: conceived and designed with the passenger in mind and reflecting the art of welcoming guests a-la-francaise introduced on 29 Sep 2014 on Paris/Singapore/Jakarta B777 featuring 4 La Premiere Suites, 58 Business Class seats, 28 Premium Economy seats and 206 Economy seats
Luxury Asia: the trends Luxury Trends registered in 2014 Growing upper-middle Class as the emerging consumers Japan market as best performing (+10% YoY) ASEAN markets 2 nd best performing in Asia (+6% YoY) Chinese spending 3 times more when abroad than domestic Top spenders by consumer nationality: Chinese 29%, American 22%, European 21%, Japan (13% Growing constructions of new Luxury Hotels Men-only stores becoming increasingly popular, especially in China Shoes as top performing category within Personal Luxury Fine Wines outpacing high-end Spirits, although Vodka is becoming trendy in Asia Growing demand for Gourmet Food Slow downward trend for Design Furniture Solid growth for Luxury Cars and growing customization, with super SUVs as the next emerging segment Yachts market demand growing at single-digit pace Airport channel remains fundamental for Beauty and increasingly attracts Fashion brands
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