The average spend of Chinese shoppers, at 330 euros (US$360), may just be half of that of the Middle Easterners (600 euros), but the former’s prolific numbers and sheer growth certainly makes both markets, in addition to Russia, key ones for Value Retail, the creator and operator of Chic Outlet Shopping Villages in Europe and China.
The Chinese market, in fact, has been nothing short of “fantastic”, registering double-digit growth in gross sales each year, according to Desirée Bollier, chair, Value Retail Management, who spoke to TTG Asia on the sidelines of the recent WTTC Global Summit in Bangkok.
“(Growth for) England and Italy are skyrocketing, while others are seeing good double-digit growth,” she remarked. England is always “a success” with Chinese consumers while in Italy, a relatively new destination for this market, growth has soared to “triple digits”.
Value Retail has no intention to open new Villages in Europe but will expand and upgrade its current nine outlets in the continent. “We change 25 per cent of our retail space each year to give customers reasons to come back,” said Bollier.
The flagship Bicester Village in the UK last year welcomed its own train station, with direct services from London, and will soon see 30 additional boutiques, while Fidenza Village, just outside Milan, recently underwent a 30 million euros expansion.
But opportunities to tap the lucrative Chinese market doesn’t lie just on European shores.
Within China, Suzhou Village – its first outside Europe and launched in 2014 – is undergoing a second phase of expansion, as part of a government-sponsored masterplan that also features luxury hotels and resorts including a Banyan Tree, a film studio themed park by the Huayi Brothers, among other facilities.
Shanghai Village opened its doors in May 2016, and now a third location in China is expected to be confirmed within this year, according to Bollier.
Value Retail also has many partnerships inked with Chinese companies, including Air China, China Eastern Airlines, Ctrip and UnionPay, to offer exclusive privileges for its Chinese clients.
The combined presence in Europe and China helps to reinforce the awareness of Chic Outlet among Chinese consumers. “The Chinese discover us in Shanghai and Suzhou and then visit us in Europe or vice versa – there’s cross fertilisation.”
While one tier of Chinese shoppers is relatively immature in expenditure and seeks just traditional luxury brands to satisfy cravings, Bollier notes on the other hand the rise of the sophisticated set who has been to Europe several times and looks towards novel experiences and undiscovered brands.
“The Chinese learn and adapt very fast, and are disruptors in many ways,” she observed, citing key opinion leaders that the company engages as marketing ambassadors – “basically rainmakers” who can influence the Chinese masses.
And even as FITs increasingly make up a bigger share of its Chinese market than tour groups, Value Retail still sees the importance of travel agents by dangling benefits such as private sales and gift vouchers for them.
“Seeing the need for education (among agents and operators on Chic Outlet), we have 70 tourism officers educating agents and working closely with NTOs for promotion,” Bollier said.
