Serving international shoppers during the holiday season. 4 th December 2018
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1 1 Serving international shoppers during the holiday season 4 th December 2018
2 Agenda 2 1 Vinod Paul, Head of Business Intelligence and Insights Sales seasonality Key nationalities Monthly arrivals 2 Said Chaarawi, Head of Retail Sales Development How to prepare your international CRM Building lasting relationships Serving Chinese, Arab, Russian and American shoppers 3 Q&A Session
3 3 Seasonal Insights Vinod Paul, Head of Business Intelligence and Insights
4 SiS Mix % Sales Seasonality: Total 4 RU New Year Easter Dragon Boat Festival USA Independence day Golden Week Christmas 3.0% China New Year Eid al- Fitr 2.5% Eid al- Adha 2.6% Diwali 2.5% 2.0% 1.9% 1.9% 1.9% 2.1% 2.0% 1.8% 2.0% 1.6% 1.5% 1.0% 0.5% 0.0% Wk 1 Wk 4 Wk 7 Wk 10 Wk 13 Wk 16 Wk 19 Wk 22 Wk 25 Wk 28 Wk 31 Wk 34 Wk 37 Wk 40 Wk 43 Wk 46 Wk 49 Wk 52
5 Top 5 Nationalities: Christmas vs Full Year Sales Mix 5 Xmas Sales Mix Full year Sales Mix CHN 20% CHN 29% RUS 8% USA 8% USA 7% RUS 7% UAE 4% HKG 5% HKG 4% KOR 4% The Rest 56% The Rest 48%
6 SiS Mix % Sales Seasonality: Chinese Tourists 6 RU New Year Easter Dragon Boat Festival USA Independence day Golden Week Christmas 4.0% China New Year Eid al- Fitr Eid al- Adha 3.7% Diwali 3.5% 3.0% 2.5% 2.2% 2.3% 2.4% 2.0% 1.5% 1.5% 1.7% 1.6% 1.7% 1.8% 1.4% 1.0% 0.5% 0.0% Wk 1 Wk 4 Wk 7 Wk 10 Wk 13 Wk 16 Wk 19 Wk 22 Wk 25 Wk 28 Wk 31 Wk 34 Wk 37 Wk 40 Wk 43 Wk 46 Wk 49 Wk 52
7 SiS MiX % Sales Seasonality: Russian Tourists 7 RU New Year Easter Dragon Boat Festival USA Independence day Golden Week Christmas 4.0% 3.5% 3.4% China New Year Eid al- Fitr Eid al- Adha Diwali 3.0% 2.6% 2.5% 2.2% 2.0% 1.5% 1.7% 1.5% 1.6% 1.8% 1.9% 1.6% 1.4% 1.0% 0.5% 0.0% Wk 1 Wk 4 Wk 7 Wk 10 Wk 13 Wk 16 Wk 19 Wk 22 Wk 25 Wk 28 Wk 31 Wk 34 Wk 37 Wk 40 Wk 43 Wk 46 Wk 49 Wk 52
8 SiS Mix % Sales Seasonality: USA Tourists 8 RU New Year Easter Dragon Boat Festival USA Independence day Golden Week Christmas 4.0% 3.5% China New Year Eid al- Fitr 3.4% Eid al- Adha Diwali 3.0% 2.8% 2.5% 2.4% 2.5% 2.2% 2.2% 2.0% 1.9% 1.9% 1.5% 1.4% 1.2% 1.0% 0.5% 0.0% Wk 1 Wk 4 Wk 7 Wk 10 Wk 13 Wk 16 Wk 19 Wk 22 Wk 25 Wk 28 Wk 31 Wk 34 Wk 37 Wk 40 Wk 43 Wk 46 Wk 49 Wk 52
9 SiS Mix % Sales Seasonality: Middle East tourists 9 RU New Year Easter Dragon Boat Festival USA Independence day Eid al- Adha Golden Week Christmas 5.0% 4.5% China New Year Eid al- Fitr 4.5% Diwali 4.0% 3.5% 3.0% 2.5% 2.0% 1.9% 2.3% 2.1% 2.0% 2.4% 1.5% 1.4% 1.1% 1.0% 0.5% 0.5% 0.6% 0.0% Wk 1 Wk 4 Wk 7 Wk 10 Wk 13 Wk 16 Wk 19 Wk 22 Wk 25 Wk 28 Wk 31 Wk 34 Wk 37 Wk 40 Wk 43 Wk 46 Wk 49 Wk 52
10 Monthly Shopping Growth: Europe 10 Y-Y Sales Growth % 25% 20% 15% 10% 5% 0% -5% -10% -15% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
11 Monthly Arrivals & Shopping Growth: Europe 11 Sales vs Arrivals Growth: Total Sales vs Arrivals Growth: Total Growth Gap Sales Arrivals 40.0% Spend performance stronger than arrivals driven mainly by USD strength / EUR weakness 30.0% Spend performance lower than arrivals mainly due to the reverse of the strong 2015 RMB position USD weakened versus 2H16/1H17 with spend performing lower than arrivals 20.7% 20.0% 16.4% 10.0% 12.4% 10.3% 13.1% 6.5% 5.6% 3.4% 3.8% 1.9% 0.0% -1.4% -0.1% -2.9% -3.4% -2.7% 1.0% -3.1% -0.1% -2.8% -4.4% -1.5% 0.0% -10.0% -7.7% -5.1% -5.5% -5.6% -6.6% -7.1% -20.0% -14.3% -11.5% -15.8% -15.9% -18.3% -12.3% -30.0%
12 Destination Arrivals Growth: Europe 12 TOTAL GBR FIN Dec-17 Dec % +1.7% +9.7% +2.7% +19.1% +8.5% DEU +8.4% -0.6% AUT +4.7% +7.5% ESP FRA ITA +6.9% +5.4% +15.4% -3.0% +10.5% +4.3%
13 Source Market Arrivals Growth: Europe 13 Russia China Hong Kong South Korea +9.3% +8.2% +12.5% +6.1% -8.1% +9.5% +14.7% -5.1% Dec-17 Dec-18 USA +3.4% +14.7% Japan -7.0% +16.0% Brazil +14.6% +3.8% Taiwan +7.5% +18.9% Kuwait +20.8% +7.7% Australia +43.5% -11.7% Saudi Arabia Qatar UAE India Thailand +6.5% +5.4% +50.0% +24.2% +5.0% +29.9% -6.7% +2.0% +31.5% +15.4%
14 14 Sales to international shoppers Said Chaarawi, Head of Retail Sales Development
15 15 Every retailer in Europe naturally focuses on local shoppers during the holiday season This is extremely important as European customers are trend setters However, it is equally important to make sure that tourists who will visit European destinations this year are also well catered for This will ensure that your store maximises the benefit from the significant purchasing power of international shoppers.
16 The holiday season in Europe, in particular, has a special emotional appeal for tourists from all over the world. 16
17 As with every shopping season, preparation is everything 17 Talk to your retail teams about the opportunity Tourists in general have high expectations of the festive atmosphere in Europe This is an ideal opportunity for building lasting relationships with international shoppers Salespeople should aim to enhance international shoppers holidays Consider contacting previous international shoppers to gather information Prepare your CRM data capture forms Tourists, in general, may think that retail prices in December in Europe are higher than the rest of the year so make sure to present the price the right way.
18 Presenting Price the Right Way 18 How much is this? Retail Price Price after VAT Savings
19 Chinese Shoppers 19 Chinese love the European lifestyle and the holiday season in Europe provides another great reason for them to visit and enjoy different destinations in the continent. Often, Chinese customers stay longer than other nationalities. This allows them to benefit from the sales season in January and buy plenty of presents to be given during the Chinese New Year (5th February 2019). Christmas celebrations are especially popular among Chinese youth who exchange presents on Christmas day and tend to shop in-store rather than online during this period. China Daily reports that Christmas Eve is the biggest in-store shopping day of the year.
20 Middle East Shoppers 20 Although the majority of Middle East shoppers are Muslims, there are millions of Christians from Egypt, Lebanon, Morocco and other countries who celebrate Christmas, and many of them choose to spend the holiday season with their families in Europe Middle East shoppers from GCC countries can have impressive purchasing power, and are drawn to the glamour of European cities during this season. Typically, they prefer to spend New Year s Eve in Europe They can be impulsive buyers and don t plan their shopping list. They tend to buy what they fancy while browsing the stores in major markets.
21 Russian Shoppers 21 Russian Orthodox Christmas is on 7th January 2019, so Russian customers shop up until the day before A big tradition in Russia is to give lavish presents during Christmas for children and loved ones, and to shop for expensive clothing to be worn during New Year s Eve Russian shoppers like to buy in sets so always present the look, not the product.
22 American Shoppers 22 American shoppers can be your most positive and upbeat customers during this season. They expect friendliness from salespeople and a happy, seasonal atmosphere in the store They tend to start their shopping for Christmas earlier than other nationalities, in line with Black Friday which coincides a day after Thanksgiving in the USA. Anticipate American shoppers visiting your store from mid-november onwards.
23 Q&A 23
24 thank you 24
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