On September 30, JD.com announced its latest move in Hong Kong, committing an initial investment of RMB 1.5 billion (approx. USD 205 million) with no upper limit set for future funding. The investment will focus on price subsidies, logistics subsidies, and service enhancements.

According to JD.com, Hong Kong users can now enjoy free shipping for self-operated products with purchases over RMB 299, covering categories such as electronics, home appliances, fashion, and beauty products, with delivery as fast as the next day. This marks a significant expansion of JD’s services in the Hong Kong region.

Meanwhile, Alibaba, JD’s long-time rival, has also made strategic moves in Hong Kong. Recently, Alibaba announced that Taobao would invest RMB 1 billion (USD 137 million) to make Hong Kong a free shipping zone. In August, Taobao started piloting free shipping for apparel in the region, and this recent development expands free shipping across all product categories.

The Battle for the Hong Kong Market

In recent years, JD.com and Alibaba have continually funneled large amounts of resources into their Hong Kong operations, aiming to capture a market that is growing at a much faster rate than the mainland’s e-commerce sector. Hong Kong’s e-commerce market has been expanding rapidly, with the Hong Kong Special Administrative Region government reporting that online sales accounted for nearly 10% of total retail sales in 2022, an increase of 21% year-on-year.

The allure of this fast-growing market is undeniable for both platforms, but the Hong Kong market also serves as a crucial stepping stone for their broader international business ambitions. For JD.com and Alibaba, the success of their logistics and e-commerce operations in Hong Kong will pave the way for further expansion into global markets.

Logistics: The Backbone of E-commerce Expansion

JD.com’s recent RMB 1.5 billion investment in Hong Kong will be channeled primarily into improving logistics infrastructure and service offerings. This includes subsidies for product prices and shipping costs, as well as optimizing delivery services.

As part of its Hong Kong expansion, JD.com has introduced free shipping services for various categories, with no time or product restrictions. The company has also launched a special “One-Item Free Shipping” section, offering free delivery on selected products such as small home appliances and fast-moving consumer goods.

In June 2023, JD Logistics established its first supply chain industrial base in Hong Kong. This supply chain hub allows JD.com to provide flexible storage solutions, including temperature-controlled warehouses for different product categories. The new facility has significantly boosted order volumes, with shipments from JD’s self-operated warehouses in Hong Kong rising more than 10-fold compared to last year.

Alibaba, on the other hand, has also made logistics a priority. In late September, the company announced a RMB 1 billion investment to expand its “Free Shipping to Hong Kong” initiative, which covers all product categories. As part of this initiative, consumers can enjoy free shipping on purchases over RMB 99, with delivery times reduced to just 3-4 days.

Both companies are addressing long-standing logistical challenges in Hong Kong, such as the high cost of land and labor for last-mile delivery services. By focusing on building a robust logistics network, JD.com and Alibaba are positioning themselves to handle the growing demands of the local market while laying the groundwork for future international expansions.

Hong Kong as a Gateway to Global Expansion

As growth in mainland China’s internet sector slows and user acquisition plateaus, expanding internationally has become more urgent for Chinese tech giants. Platforms like JD.com and Alibaba are now turning their attention to overseas markets, where they aim to replicate their domestic successes.

Hong Kong serves as an essential testing ground for these expansion plans. For instance, Meituan’s food delivery service, Keeta, quickly became the leading food delivery platform in Hong Kong, capturing 44% of the market within months of its launch. Meituan has since used its Hong Kong success to explore opportunities in regions such as the Middle East.

Similarly, Alibaba and JD.com are leveraging their Hong Kong operations as a blueprint for broader international growth. Alibaba’s “Taobao Tmall Overseas Growth Plan” has been expanded beyond apparel to include merchants from all industries, supported by Alibaba International’s logistics and user operations teams. The company has also committed to subsidizing shipping costs for overseas buyers.

JD.com’s focus on logistics infrastructure, particularly in Hong Kong, mirrors its ambitions to build a global supply chain network. The company has made significant investments in its cross-border delivery services, enabling faster shipping from Hong Kong to mainland China and other regions.

The Stakes Are High

The push into Hong Kong is not only about tapping into a lucrative local market but also about gaining experience and building infrastructure for a much larger global play. As companies like Alibaba and JD.com accelerate their overseas expansions, a successful Hong Kong strategy is crucial.

With both companies competing fiercely to capture market share in Hong Kong ahead of the Double 11 shopping festival, this market is becoming a crucial battleground for their international ambitions.

The report highlights the branding strengths of nine major Chinese cities, all making it into the top 100 global city brands. This includes Shanghai (54th), Beijing (58th), Shenzhen (73rd), Chongqing (74th), Macau (81st), Guangzhou (85th), Chengdu (89th), and Nanjing (93rd).

Key Findings from the Report:

1. Hong Kong’s Global Standing:
   • Hong Kong ranks exceptionally in “Familiarity” (9th globally) and as a “Global Important City” (10th).
   • Known as one of Asia’s largest financial centers, Hong Kong’s favorable tax system, straightforward listing procedures, and robust regulatory framework make it highly attractive to foreign investors.
   • With the easing of travel restrictions, Hong Kong is poised for a strong economic rebound this year.
2. Shanghai’s Financial Influence:
   • Ranking 14th in “Global City Influence,” Shanghai asserts its position as a globally impactful financial center.
   • The city leads China in “Future Growth Potential” (7th) and “Strong and Stable Economy” (18th).
3. Beijing’s Global and Cultural Impact:
   • Beijing scores high in “Global Importance” (13th) and “City Familiarity” (20th).
   • Renowned for its exquisite royal palaces and museums, Beijing is also China’s leader in rich history and heritage (31st globally), making it a popular tourist destination.
4. Shenzhen’s Business and Trade Value:
   • Shenzhen ranks as China’s most valuable city for business and trade (16th globally).
   • The city excels in “Ease of Employment” (4th), “Ease of Starting a Business and Innovation” (5th), “Access to Skilled Labor” (6th), and “Ease of Doing Business” (10th).
5. Chongqing’s Emerging Presence:
   • Known as China’s “Mountain City,” Chongqing, despite limited global familiarity (98th), outranks other Chinese cities in various domains among those who know it.
6. Macau’s Tourist Appeal:
   • Macau leads China in “Lifestyle” (32nd), “Entertainment” (35th), and “Openness and Warmth” (57th), maintaining its allure as a tourist destination.
7. Guangzhou’s Manufacturing Ambitions:
   • Poised to become one of China’s leading manufacturing hubs, Guangzhou consistently ranks in the top 20 for “Access to Skilled Labor” (15th), “Ease of Doing Business” (15th), “Personal Tax Benefits” (17th), and “Ease of Employment” (18th).
8. Chengdu’s Financial Sector Growth:
   • Envisioned as a national financial center in Western China, Chengdu is gaining a reputation in financial technology, rural finance, and consumer finance.
   • The city ranks second in China for “Future Growth Potential” (33rd) and “Investment Reputation” (52nd).
9. Nanjing’s Friendly Business Environment:
   • As one of the nation’s most business-friendly cities, Nanjing ranks second and third in China for “Corporate Tax Benefits” (10th) and “Ease of Employment” (13th) respectively.

The Brand Finance report showcases Chinese cities’ diverse strengths and growing global recognition, positioning them as key players on the world stage.

China’s domestic tourism saw 2.826 billion person-trips in the first half of 2018, an increase of 11.4% year-on-year. Among them, urban residents went on 1.997 billion person-trips, increased by 13.7% compared with the 829 million person-trips made by rural residents, an increase of 6.3%, according to National Ministry of Culture and Tourism.

The revenue of domestic tourism amounted to 2.45 trillion yuan (US$357.12 bn), increased by 12.5% from H1 2017. Specifically, 1.95 trillion yuan (US$284.24 bn) was from urban residents, an increase of 13.7% while 500 billion yuan (US$72.88 bn) came from rural residents, an increase of 8.3%.

Revenue from international tourism totaled US$61.8 billion in H1 2018, up by 2.8% year-on-year. To be specific, the spending of foreign tourists was US$35.4 billion, grew by 4.6% compared with the spending of US$14.2 billion by Hong Kong tourists, a decrease of 2.5%, the spending of US$4.2 billion by Macau tourists, an increase of 4.2%, and the spending of US$7.9 billion by Taiwan tourists, an increase of 4.2%.

International tourists went on 69.23 million person-trips to mainland China, decreased by 0.4% year-on-year. Among them, 14.82 million person-trips was made by foreign tourists, an increase of 4.0%. Hong Kong tourists made 39.08 million person-trips, a decrease of 2.7% compared with 12.33 million person-trips made by Macau tourists, an increase of 1.1% and 3 million person-trips made by Taiwan tourists, an increase of 4.1%.

Sorted by transportation methods, ships accounted for 3.3%, flights for 17.1%, trains for 0.8%, cars for 22.5% and foot passengers for 56.2%. During the same period, overnight tourists made 30.72 million person-trips, increased by 2.0% year-on-year.

Among them, 11.44 million person-trips was made by foreign tourists, an increase of 4.4%. While 13.88 million person-trips came from Hong Kong tourists, a decrease of 0.8%, 2.71 million person-trips came from Macau tourists, an increase of 4.9% and 2.7 million person-trips came from Taiwan tourists, an increase of 4.1%.

Of the 23.77 million person-trips made by foreign tourists, Asian tourists accounted for 76.7% of the total. While sorted by the age group, those between 25 and 44 years old accounted for 50.3% of the total.

The top 17 countries ranked by the number of tourists traveling to China were Myanmar, Vietnam, South Korea, Japan, the United States, Russia, Mongolia, Malaysia, Philippines, Singapore, Canada, India, Thailand, Australia, Indonesia, Germany, and the United Kingdom.

Chinese outbound tourists went on 71.31 million person-trips, an increase of 15% year-on-year.

Overall, Chinese residents’ willingness to travel were 83.0% and 84.8% in the first two quarters of 2018, respectively, an increase of 1 percentage point and 3.7 percentage points year-on-year.

China online travel market overview 2018; better performance seen on mobile

Growth in Hong Kong retail sales remained positive in September 2017, up 1.5%year-on-year, according to the latest Mastercard SpendingPulse™ Hong Kong Report.

Sales recovered from the impact of typhoons in September and were boosted by the launch of new electronics products. Year-to-date sales growth is also positive for the first time since 2015.

Sales in the health and beauty sector saw the strongest growth, while jewelry, clothing and furniture sales continued to recover in September. At the same time, there was close to zero growth in the grocery sector.

“It is encouraging to see consistent spending growth in Hong Kong over the past five months. It shows better consumer confidence in Hong Kong and also reflects increased spending by Mainland Chinese tourists as their numbers rise,”

said Sarah Quinlan, Senior Vice President, Market Insights for Mastercard Advisors.

It will be important to see this spending growth continue as it comes after 21 months of contraction. The trend shows that the economy is on more stable footing with the consumer leading its return.

Analyzing local retail performance and spending, the macroeconomic report uses aggregated and anonymous transaction data, along with all other payment forms including cash, to offer insight into consumer spending trends, providing an early overview of market indices to help retailers, investors, card issuers, banks and government agencies in their decision-making processes.

China’s retail sales grew by over 10% to US$4 trillion in Q1-Q3 2017

Southeast Asia received the most Chinese tourists during this year’s National Day holiday according to a recent report by WeChat.

Hong Kong returned as the most popular destination. The most remote location for check-in for Chinese tourists is in Greenland. 6.4 billion red packets were sent via WeChat during the Mid-Autumn Festival this year!

Tourism during 2017’s National Day holiday (referred to as “Golden Week” in China) was driven by families, who accounted for the largest proportion of travelers at 42%. Surveys show that many traveled with their children; such travelers made up 32% of the total and their numbers increased by more than 50% over 2016.

Another large chunk of travelers went in company with their parents (10%). Among families, the majority were what are known as “2+1” families with a single child, but the number of “2+2” families travelling over the holiday also increased by 50%. Beyond families, some other key demographics who travelled in numbers over the holiday were groups of friends (22% of all travelers) and couples (20%); individual travelers made up just 6% of the total.

Some 60% of travelers were women, who are more likely to take time off to take children or parents travelling. They were more likely to book tours, cruises, and local excursions, as well as to travel independently. Those born after 1980 and 1990 are driving an increasingly youthful travel market; travelers between 31 and 45 years old made up 33% of the total, while those between 19 and 30 accounted for 27%.

Finally, Golden Week travel highlighted several trends in the Chinese travel market, most especially a continuing shift from pre-packaged and group tours to independent travel; this year the number of travelers in tours and traveling independently was nearly evenly split (45% vs. 44%), a marked shift from years past, in which the majority of tourists traveled as part of a tour group or package, not on their own.

China online tourism market analysis 2017

The Hong Kong Tourist Board (HKTB) announced on July 31^st that the total number of visitors arriving in Hong Kong in June was over 4.2 million, down 1.9% from a year earlier.

In the first half of this year, there were roughly 27.81 million arriving visitors, up 2.4% year-on-year. HKTB said it would continue to organize and publicize a number of major events in the second half of the year to attract more overnight visitors to Hong Kong.

According to the figures released by HKTB, the total number of visitors to Hong Kong in June of this year was over 4.2 million, down 1.9% from the same period last year. Regarding the total number of visitors to the Mainland, 3.1 million were recorded, compared with 3.21 million in the same period last year, down 3.4%. There were more than 1.1 million international visitors, up 2.4% over the same period last year.

Fewer daytime visitors

A spokesman for the Hong Kong Tourism Board said that the decline in overall visitor arrivals was mainly impacted by the decline in the number of daytime visitors who don’t spend the night. According to the data, in June this year, there were only 2.15 million daytime visitors, down 5.1% from the 2.27 million passengers seen over the same period last year; of which local visitors accounted for 1.79 million this year, down 6.1% from the 1.9 million seen over the same period last year.

International daytime visitors were also down 0.2%, from 365,000 in June of last year, to 364,000 this year.

Total number of overnight visitors increased by 1.7%

2.05 million visitors made overnight trips to Hong Kong in June of this year, up 1.7% from 2.01 million in the same period last year. Among them, there was a 0.6% increase in local overnight visitors and a 3.7% increase in international overnight visitors. Particularly notable in the regional market were the tourist streams from Indonesia and Japan, which saw the highest increases with a year on year increase of 34.7% and 27%, respectively. As for the global market, numbers of overnight visitors from outside the region also grew 2.4%, of which German tourists were particularly notable, with a 7.9% increase.

In the first half of this year, the number of visitors to Hong Kong was nearly 27.81 million, an increase of 2.4% over the same period last year. There were more than 13.55 million overnight visitors, up by 5% from 12.43 million in the same period last year. The number of daytime visitors rose slightly to 14.76 million, compared with 14.73 million in the same period last year, translating to 0.2% growth. A spokesman for the HKTB said that during the second half of the year it would continue to organize and publicize major events to attract more overnight visitors to Hong Kong.

Shanghai is the most popular city among Chinese, followed by New York, according to an Ipsos survey. Check out the top 10.

Chinese favor Asian cities or cities with more Chinese such as Singapore, Hong Kong, Tokyo, and etc. Only Paris and Zurich from Europe made it to the top 10.

Singapore is the top choice of living among Chinese, followed by Vancouver.

Mobile social content sharing insights in China 2017

China continued to lead international outbound tourism with a 12% increase in spending in 2016, followed by the United States, Germany, the United Kingdom and France as top five spenders according to UNWTO.

Spending on travel abroad saw 4% growth in 2016 to 1.2 billion international tourist arrivals.

International tourism expenditure from China grew by US$11 billion to US$261 billion, an increase of 12%. The number of China outbound travelers rose 6% to 135 million in 2016.

Three other Asian outbound markets among the first ten showed very positive results: South Korea (US$27 bn), Australia (US$27 bn), and Hong Kong (China; US$24 bn).

Continue to read: China travel market overview 2016

Travelers from mainland China contributed 35% of Hong Kong’s total retail sales in 2016, which is up from 15% 10 years ago.

Visitors from mainland China now account for 75% of the tourist arrivals in Hong Kong according to Hong Kong Tourism Board reports, up from 54% in 2006.

Mainland travelers spend an average of 2.7 nights in Hong Kong per trip and spend more than ¥20,000 (US$2,900) each time they visit. And while 5 in 10 visitors buy jewelry and watches on their trips, some visitors who come to enjoy the food (51%) and culture (40%) who spend 10% more during their stay than those who come just to shop.

According to Nielsen’s recent study, Hong Kong covers off on the top 6 reasons that consumers look for when they consider regional travel. Online travel agencies and social media are dominant influencers to mainland Chinese travelers, at 95% and 49%, respectively according to Nielsen.

Also read: China Outbound Travel Forecast 2016-2021

Chinese consumers’ confidence continued to rise in 2016 according to Mastercard Index of Consumer Confidence. The outlook in China (80.8, +4.8) continues to increase due to improvement across all five components, with Stock Market (+9.1) contributing the most to the increase.

Hong Kong saw more than 10 point improvements while Taiwan saw more than 10 point decreases.

India tops the index as the most optimistic market in Asia Pacific, followed by Myanmar, Vietnam, Philippines and Bangladesh. Overall, consumer confidence in Asia Pacific continues to hold steady, showing stability (within +/- 5 points from the last survey) in nine out of 17 markets.

Mastercard Index of Consumer Confidence Data – H2 2016

Related: Social, mobile the key driving forces of Chinese post-90s

Google launched Android Pay yesterday in Hong Kong to speed through purchases in stores and in apps.

Hongkongers can now use Android Pay at over 5,000 locations in Hong Kong where contactless payments are accepted, including stores such as at 7-Eleven, Circle K, Fortress, Mannings, Maxim’s Cakes, MX, McDonald’s, Pacific Coffee, PARKnSHOP, SmarTone, Watsons, Wellcome and more. Android Pay also stores your gift cards, loyalty cards and special offers right on your phone.

Android Pay works with MasterCard and Visa cards from BEA, DBS, Dah Sing Bank, Hang Seng Bank, HSBC, and Standard Chartered Bank in Hong Kong.

Hong Kong, Macau and Taiwan were the top three inbound tourism sources in January 2016 according to China National Tourism Administration.

Also read: China Travel Market Overview for Q4 2015

China had 109 million outbound tourists who spent a total amount of US$229 billion on shopping in 2015 according to GFK. China was the largest outbound country in the world.

GFK’s survey showed that more than half of Chinese travelers were between 15 and 29 years old, 37% between 30 and 44 years old, and about a tenth between 45 and 59 years old.

The top five most popular travel destinations of Chinese travelers have been South Korea, Thailand, Hong Kong, Japan and Taiwan since the beginning of 2016. Europe was also a popular outbound destination of Chinese tourists. Chinese travelers visiting Thailand, South Korea and Japan in November 2015 grew by an increase of 263%, 112% and 157% respectively.

Thailand, South Korea and Hong Kong were the most favored destinations among the post-85s and post-90s in China in 2015. Since 2014, a large number of Chinese tourists began to pay more attention to the cultural landscape and historical heritage of tourism destinations instead of convenient transportation and low travel cost. Travel for shopping was a new trend among Chinese outbound travelers.

Two-thirds of China post-85s and post-90s were high-income groups according to GFK and they will be expected to spend more on travel in the future. Understanding likes and dislikes of China’s travelers especially the post-85s and post-90s were essential for attracting these travelers.

Also read: China Travel Insights for Chinese New Year 2016

A total number of 220 million Chinese residents will travel overseas with a total spend of $450 billion in 2025 , up from 120 million residents spending $250 billion in 2015 according to Goldman Sachs’ report.

120 million Chinese tourists will travel overseas in 2015, with 70 million traveling to Hong Kong/Macau, around 5 million to Japan, Korea, and Taiwan, 12 million to ASEAN, and 2 million to the US; and, two thirds of current outbound travelers are millennials (15-35 years old), estimated by Goldman Sachs.

70 million Chinese travelers who visited Hong Kong and Macau in 2015, where it doesn’t require a passport but a permit to enter.

Only 4% people in China currently holds a passport and this figure are expected to reach 12% within 10 years. The number of travel-ready millennials who will graduate from Chinese universities in the next 10
will reach 74 million.

The number of Chinese residents who will visit Japan will reach 16 million in 2025, up from 5 million in 2015. The average cost of a package tour to Japan is $2,000, including money spent on shopping ($1,000). Korea, Australia and Europe are also expected to become tourist hot spots.

Also read: China Travel Market Overview for Q4 2015

As of 31 December 2015, the number of travel agencies in China reached 27,621 according to China National Tourism Administration.

The top ten inbound traveler regions by the total number of person trips are Hong Kong, Taiwan, South Korea, Macau, the U.S., Malaysia, Singapore, Japan, Thailand and Russia.

China travel agencies organized a total number of 42.18 million person trips and received 45.29 million person trips in Q4 2015, an increase of 14.68% and 14.59% YoY.

Jiangsu (17%), Shanghai (9%), and Zhejiang (9%) are the top 3 travel destinations in China in Q4 2015.

Southeast Asia countries are among China’s most popular outbound tourism destinations, accounting for 27% of total person-trips in Q4 2015.

Also read: China Travel Insights for Chinese New Year 2016

Alipay is the largest third-payment online payment platform in China. And, Alipay is not satisfied to be only an online payment solution and made great attempts expanding offline in 2015.

Nanjing Alipay Street

Alipay set up the first “Alipay Street” in Nanjing with all restaurants in that street accepting electronic payment through Alipay. Simply by scanning the code could customers finish payments which improves the payment efficiency and avoids the circulation of counterfeit money.

WenZhou Alipay Food Fair

After entering supermarkets, convenience stores, hospitals and taxi-calling industries, Alipay began to enter the food fair markets in 2015. Wenzhou, a city in Zhejiang province, had the first “Alipay Smart Food Fair” in September 2015 where the smart weighing scales could generate the QR code for customer payments.

Beijing Alipay Transportation Card Service

Alipay launched the self-serving machine that citizens could withdraw cash from their transportation cards to their Alipay accounts. Citizens just needs to insert the card in the machine and then scan the QR code. Citizens could also buy cards and top up balance on these machines. About one hundred these machines have been put into use in Beijing and Shanghai.

Shanghai Alipay Breakfast Car

Alipay launched “Alipay Breakfast Car” in Shanghai with QR codes. Customers could pay on Alipay when buying breakfast in the hush morning eliminating the need for getting the change. Shanghai currently has 600 breakfast cars and another 1,000 will be available later.

Lijiang Alipay City Service

Lijiang, a city in Yunnan province, was a famous travel destination city in China. Alipay cooperated with Lijiang government that the city would be fully connected with Alipay payment. At present, Lijiang traffic violations, tourist attractions and other functions could be enquired on Alipay and in the future travelers will be able to use Alipay to buy attractions tickets, tour guide, map guide, and book transportation tickets.

Hong Kong Alipay Offline Shops

Hong Kong had more than 5,000 retails stores covering all fields from beauty make-up, electronics, gold, and jewelry to clothing, department stores, food and so on supporting payment by ALipay. On the basis of payment in the scan code, Alipay promised to support exclusive discounts for customers for the arrival of the new year.

Guangdong Alipay City Service Province

21 cities of Guangdong province had fully connected Alipay urban services in 2015. Citizens could enquire vehicle violation query, buy attractions tickets, renew Hong Kong and Macao Entry Permits, and etc.

Beijing Alipay Parking Lot

Alipay has announced a strategic partnership with smart parking platform ETCP and 500 parking lots in Beijing with nearly 100,000 parking spaces connected with Alipay. After following the “ETCP stop” service to bind their license plates on Alipay, car owners could park cars easily. ETCP license plate recognition technology would automatically photograph and calculate the license plate parking time, and get deductions from Alipay.

This service would also be available in Shanghai, Chengdu, Chongqing, Wuhan, Foshan, Dongguan, Huizhou, Xi’an, Nanjing, and Shenzhen.

Also read:China Offline Mobile Payment Insights in 2015

The advertising business admanGo’s survey data shows that internet advertising accounts for only 14% of total advertising spend in Hong Kong in Q3 2015.

Most online advertising were on PC or laptops in Hong Kong while only 4% targeting the mobile devices. TV advertising accounted for 30% of the overall advertising spend, newspapers 30%, and magazines 9%. 39% advertising is focused on print, higher than the overall China’s advertising on print media.

China’s online advertising is expected to account for 43.7% of the entire advertising market, 23.7% from mobile. Print media advertising accounta for 9.0%, TV 29.3% which are declining year after year predicted by eMarketer. And the total advertising market in Hong Kong is estimated to increase by 6.2% compared to last year with the fastest growth from online adverting according to ZenithOptimedia.

Also read: China Social Media Marketing Trends in 2015

The Hurun Report recently published The Chinese Luxury Traveler 2015, for the fourth consecutive year. The report revealed the features of Chinese traveling enthusiasts, including their decision-making process, social media habit, travel trend, sales and gifting preference.

Here are top ten highlights from The Chinese Luxury Traveler 2015.

1. More foreign travels – average traveling expense for past year

More than 200,000 Chinese traveling enthusiasts traveled to different countries for four times and 33 days on average. For the data 33 days, leisure travels are increased by 10% to 20 days, business 13 days. Last year, the total population of off-boarder travelers were 116 million, up by 17.8%, on basis of China Tourism Academy.

2. Stronger presentation of traveling agencies – DIY travelers fewer than 30%

Traveling agencies processed approximately a half of total hotel bookings. China’s Top 12 Agencies for Mainland-based Luxurious Foreign Travels include 8 Continents, Wild China*, Diadema, HH Travel, My Tour, Magic Travel*, Ctrip, Sinbad Travel*, Zanadu, CITS, CTS and CYTS.

American Express performed best in areas of Hong Kong, Macau and Taiwan. Top 5 Agencies for Hong Kong-based Luxurious Foreign Travels include Wincastle Travel, Cathy Pacific Travel, American Express, Swire Travel and Westminster Travel.

Top 5 Agencies for Macaw-based Luxurious Foreign Travels are Macaw CYTS, Macaw CITS, Macaw CTS, Hong Thai Travel and American Express.

Top 5 Agencies for Taiwan-based Luxurious Foreign Travels are Asuka Travel, Royal Jetway Express, American Express, ITIS and Lion Travel.

Mr. Hu Run said, “the list is formed on basis of surveys on over 70 managers of luxury hotels globally, which performed by ILTM, GHC Asia famed for public relations in luxury travels in Asia, and Hurun. It’s the first time we created the lists of the most popular agencies in Hong Kong, Macau and Taiwan areas. “

3. Destinations

South Pole traveling is increasingly popular. According to the survey, the most impressive and frequently visited destination among all is South Pole. The main reason appeals to 49% travel enthusiasts is spectacular natural views, seconded by rare animals and vegetation, 19%, and travel surprise, 17%. Additionally, cruise tour is a hit last year. Maldives is particularly attractive to Chinese rich people, and Australia, the top destination for all the riches, second by France, without any surprise.

Great Britain and Italy are the two countries increasingly attracted to travelers, in sharp contrast with German and Swiss that see a drop in interested travelers. Moreover, exotic destinations like Hawaii and Dubai enjoy the popularity among rich people in recent two years, while Sanya and Tibet are of great appeal among all China attractions. For those traveling enthusiasts, they made traveling decisions on foreseeable creative experience. Furthermore, medical tour is a hot topic nowadays. 60% Chinese rich people have taken medical tours before.

Pros and Cons of Top 5 Destinations. Travelers usually visited United States of America for business and family purposes, and gave a low rating to food. Japan is the primary choice for shopping and earns the highest food rating. Both France and Great Britain attract a great number of travelers for shopping and business, while Great Britain rated higher than France in food. For Australia, it is the absolute right choice for leisure and holidays, in the meanwhile travelers rarely visited the country for business, food, family or shopping.

Also read: Understanding Chinese Luxury Travelers

Shoppers from China spent 18% more on Tax Free Shopping in 2014 compared to 2013 according to Global Blue.

Global Blue’s Top Ten Globe Shopper Nations in 2014 (growth vs. 2013)

1. China (+18%)
2. Russia (-17%)
3. USA (+8%)
4. Indonesia (-10%)
5. Japan (-12%)
6. Taiwan (+29%)
7. Hong Kong (+25%)
8. Thailand (-10%)
9. Saudi Arabia (+15%)
10. Kuwait (+18%)

China and Russia are by far the most lucrative countries of origin for globe shoppers, with Chinese globe shoppers now accounting for almost one third of all Tax Free Shopping spend followed by Russia (14%), United States (4%), Indonesia (3%) and Japan (2%).

Five of the top ten increased their Tax-Free Shopping spend by more than 15% in 2014 – Taiwan, Hong Kong, China, Kuwait and Saudi Arabia. Almost 50% of purchases were related to fashion and clothing, followed by the watches and jewellery at 17%. In 2014, the number of Chinese transactions increased by a significant 38% according to Global Blue.

Paris remains the most popular shopping city.

Find out more about China Online Travel Market 2014-2017 here.

John Ross, former economic advisor to Ken Livingstone when he was Mayor of London, criticized western media coverage of Hong Kong’s too hypocritical on his official verified Weibo account, which attracted hot discussion of Chinese netizens.

He says in his Weibo post:

It’s inconvenient for me to comment on Hong Kong’s 2017 elections, because I, after all, am not Chinese. But the western media reports on Hong Kong was hypocritical. In the British 150 years’ colonial rule in Hong Kong, the British never allowed the election of Governor of Hong Kong; the United States had not protested Britain. Now China developed a political system much more democratic than the United Kingdom, but the United States had strongly protested the Chinese government.

His post on Weibo has attracted over 72,000 likes, near 130,000 re-posts with more than 20,000 comments.

John Ross is a British academic, journalist, blogger, advisor to multinationals and economic commentator who previously was a socialist political activist and worked as an economic advisor to Ken Livingstone when he was Mayor of London.  John Ross is senior fellow of Chongyang Institute for Financial Studies, Renmin University of China. He has over 242 thousand fans on Weibo.

Read more: Weibo Users V.S. China Social Media Users

In TNS Connected Lif study, it found that one third (33%) in mainland China, 32% in Hong Kong, watch online video every day, on either PC or mobile devices:

The same study also found that 66% of people in mainland China and 75% in Hong Kong watch TV on a daily basis:

Almost half of people (48%) globally who watch TV in the evening simultaneously engage in other digital activities, such as using social media, checking their emails or shopping online.

Source: Connected Life study, TNS

In August 2013, China outbound travelers kept growing, Asia was the main destination for Chinese tourists.

Data showed that Hong Kong, Macao, Thailand and Singapore were the top choices of Chinese outbound travelers. And the number of travelers to Australia surged 40% compared to last month. 

Reasons for the fast increase were: first, Summer vacation was a major tourist season; second, New Zealand lower the requirements for visa to Chinese tourists; third, Australia launched China 2020 strategic plan.

Recently, more and more Chinese choose New Zealand for visiting. According to estimation of New Zealand, during the five years from 2013 to 2018, Chinese’s consumption in New Zealand would go up 13%, equal the consumption of Australian tourists.

The annual financial report of Alipay, part of Alibaba Group, showed that half of Alipay revenue came from Taobao. In the top 10 cities of per capita Alipay expenditure listed in the statement of account, four cities of Taiwan are included. Perhaps more surprising is that Taiwan’s Chiayi City climbs atop. The per capita Alipay expenditure of Chiayi is 180% of Hangzhou, where the headquarters of Alipay locates.

At the present stage, the volume of business transactions of Taiwan accounts for less than 1% of the total volume of Taobao. In 2012, Taobao officially set up an office in Taiwan. While on 11 November, 2012, the total sales volume of Taobao reached 19.1 billion yuan, which amounted to twenty times the daily volume of retail sales of Hong Kong. This indicated that Taobao has the ability to deal with 1205 orders in one second. This is almost four times the speed that Amazon.com made during the Christmas in 2012. Analysis suggests that there are 16.8 million netizens in Taiwan, as many as four times the that of Hongkong. 

Chen Yuqiao, the CMO of pgmall.com.tw, which is the largest lady bags manufacturer in Taiwan, said that Taobao will reshuffle the online shopping industry of Taiwan. Huang Wengui, the COO of mayuki.com.tw held nothing back when talked about Taobao. He said that Taobao is the best online shopping platform in the world and the second one is RaKuTen.

Half of the goods from Taobao shipped to Taiwan are taken on by Dong-Feng Express Company. The VP of this company roughly estimated that there are 10,000 packages shipped to Taiwan every day. That is, there are at least 3.65 million packages shipped to Taiwan every year via Taobao.

Taobao estimated that there will be 3 million Taiwan users after three years. At that time, one in seven Taiwanese can buy directly from Mainland through Taobao. This will have a impact on Taiwan’s roadside stalls, which have the same source of goods.

Consumer confidence also fell by one point last quarter in China from 105 to 104 according to third quarter global online consumer confidence findings from Nielsen, a leading global provider of insights and analytics into what consumers watch and buy.

According to the same Nielsen survey, Global online consumer confidence fell for the seventh consecutive quarter as confidence in 31 of 56 global markets measured declined. Top concerns of online consumers in Asia Pacific are economy, job security and work/life balance.

Asia Pacific continues to dominate the list of most optimistic countries with seven of the top 10 highest consumer confidence scores hailing from this region. India, despite a decline of five points, retains the top spot with an index of 121, followed by Saudi Arabia, Indonesia, Brazil, Philippines, Thailand, United Arab Emirates, China, Hong Kong and Malaysia.

On the contrary, Taiwan scored only 87 points, down by two points.

According to Nielsen’s report on Hong Kong digital behavior, 87% of Hong Kong consumers have used the Internet in the past 12 months, compared to neighboring markets such as Singapore (67%), Malaysia (38%), Thailand (31%), Philippines (30%) and Indonesia (19%).

Internet usage in Hong Kong is particularly high among those aged 12 to 44 with over nine in ten accessing the Internet on a monthly basis.

The top three application on mobile phones and tablets in Hong Kong are search, email and news.