SERVICING CHINESE CLIENTS

90.000 Chinese tourists in Iceland – A new market niche, but how to best service them? By Danielle Neben In 2018, there were nearly 90.000 Chinese tourists in Iceland. And the forecast is for this figure to increase with potential direct flights from China and increased number of Chinese with passports. Today only 8.7% of the Chinese population have a passport – about 120 million people. It is predicted that the number of Chinese passport holders will double to 240 million by 2020. And many are looking to travel to unique destinations like Iceland. A new market niche for the retail and tourism industry Chinese tourists are the biggest spenders globally having overtaken American tourists in 2012. In 2017, they spent $258 billion – 20% of the world’s total spending on tourism. How to service Chinese? Being aware of some key cultural differences with the Chinese can go a long way in providing them superior service. (Picture below from Shutterstock) Chinese culture is hierarchical in terms of age and seniority. When receiving a group of Chinese tourists, it is important to always address the most elderly person. In Iceland, we tend to service 2 to 3 persons at a time in a store. In their culture, providing them with your full attention for the entire sales process is key. It is also polite to give and receive with both hands, whether business cards, gifts or store items. This will show respect and that you care for the value of the goods you are exchanging. (Picture below from Haoyintong123.com) Have you ever seen a menu in a Chinese restaurant? They will always have pictures. It is not for the foreigners. Chinese people are visual and for them, a picture tells a thousand words. Using pictures in marketing and information is very helpful. The concept of “face” or “losing face” is quite complex. For the Chinese, losing face can be seen in situations such as questioning or yelling at someone in front of others. For example, tour guides on tour buses will shout to everyone to put on their seat belts to ensure their safety. And when walking around, they will speak very loudly to those who have not fastened their seat belts. For a Chinese person, this is losing face. Why not create an A4 paper where a picture of someone with a seat belt that you can point out to the person? This can be used in many situations. When dealing with difficult situations, always use a low voice and give an option as a way out of the problem. (Picture below from Shutterstock). Numbers have significant importance in China. The number 8 is their lucky number. Do not use the number 4 or give a clock as this represents death. In China, you will not see 4th floors in buildings. When giving gifts, consider giving in pairs of 2, 6 or 8. If you are invited to a dinner, giving 8 oranges is well received. To learn more about Chinese culture, I recommend “Culture Shock! China (A Survival Guide to Customs & Etiquette)" by Kevin Sinclair. Speaking a little bit of Chinese can go a long way Here are a few basic Mandarin Chinese words and phrases: Hello: Nǐ hǎo (nee how) Thank you: Xièxiè (shieh-shieh or Icelandic sjé-sjé) You’re welcome: bié kèqì (if someone says xièxiè, you say: boo ke chee) Yes: Shì (sheh) No: Bù shì (boo sheh) Goodbye: Zàijiàn (Zhai-jian) Iceland: Bīngdǎo (you say: bing dow) But how to market to this new market niche? The Chinese do not use Western internet providers, such as Facebook, Google and Amazon. They have their own ecosystem in using the internet. E-Commerce is offered by a multitude of providers such as Alibaba (Taobao and AliExpress), JD.Com and Tencent Holdings. Baidu is the leading Chinese language internet search provider (the Google equivalent). Areas that retailers and tourism companies can focus on to improve their services include offering Chinese mobile payment options, having translated information (menus, in-store marketing) and Mandarin speaking staff. And free wifi is always in demand. Chinese mobile payment solutions show 56% increased sales The mobile payment market is dominated by two apps, AliPay and WeChat Pay (like Visa and MasterCard in Iceland). Because Chinese did not have land lines and went straight to using mobile phones, paying by phone became popular because credit cards never gained popularity. In a recent white paper with Alipay and Nielsen, 91% of Chinese tourists said that they were more likely to buy from a merchant if they had Chinese mobile payment services. Chinese tourists will spend more on shopping. 58% of merchants surveyed said foot traffic increased, while 56% saw a rise in sales. This is a trend that we are also seeing in Iceland. On the Alipay app, there is a page on Iceland where each merchant is profiled on the app in Chinese, with coupons for gifts or discounts. This gives excellent exposure for Chinese tourists to look up the stores – not only when they are in Iceland, but before they travel here. It is very similar to TripAdvisor and with the GPS link, the tourists can see which stores are nearest to their location. Key Chinese holidays to consider in your marketing and communications plan The Chinese have different Chinese holidays to the West. The two major ones are Chinese New Year (January or February) and Mid-Autumn Festival (in September or October). There is a 7-day holiday period for both holiday periods. Many travel to Iceland during these dates. By focusing and adapting to this new Chinese tourist segment, this will enable your business to grow in the near future and the long term. For more information on accepting mobile payments or how to market on Chinese platforms, contact: danielle@icelandchinatradewinds.com