View Travel Retail under Covid-19
From China's Standpoint
Sharing Session - TRBusiness x Jessica's Secret
International & Domestic Flights Data Overview01
Internat ional Fl ights Data & Government Pol icy
Shan
g…
Beijin
g
CHN HK
Guang
…
Bang
kok
Seou
l
Taipe
i
Toky
o
Singa
p… LAPa
ris
New…
Frank
furt
International Departure Chinese Population in May YOY
2018 2019 2020
The "Five Ones" policy continues,
• The international flight policy of "one airline, one country, one route, one week, one flight" came into effect at the end of March, and will remain in June.
Shan
g…
Beijin
g
CHN HK
Guang
…
Bang
kok
Seou
l
Taipe
i
Toky
o
Singa
p… LAPa
ris
New…
Frank
f…
International Arrival Chinese Population in May YOY
2018 2019 2020
25k 18k 15k 10k 5.9k 6.3k 2.3k 4.5k 2.9k 2k 2.6k2.2k 1k
5.5k 3.7k 2.8k 3.9k 2.8k 8.2k 2.5k 4.9k 3.3k 8.3k 6.5k3.7k 2.8k
The Sign that indicates outbound travel resume,
• The 14-day quarantine policy for outbound travellers returning to China.
• Estimately $850 ~ $1200/person self-paid quarantine fee
Data source: Partner - Oriental Travel Retail Observer
China's Fl ights to Major Internat ional Dest inat ions
266k
1.04m
1.8m
1.03m 972k 946k
333k
1.4m
2m
1.1m 1.08m 1.01m
23.6k 71k 22k 14k 11k 10k
0-19 yrs 20-29 yrs 30-39 yrs 40-49 yrs 50-59 yrs over 60 yrs
201820192020
Chinese Outbound Travellers Age Distribution in May YOY Data
2.8m
3.2m
78.5k
3,2m
3.7m
73.5k
Gender Distribution of Chinese Outbound Travellers in May YOY Data
May 2020
May 2019
May 2018
Data source: Partner - Oriental Travel Retail Observer
China's Domestic Fl ights Data
Beijin
g
Shan
g…
Guang
…
Cheng
…
Shen
z…
Kunm
i…Xi'
an
Chong
…
Hangz
…
Nanjin
g
China Domestic Departure Population in May YOY
2,018 2,019 2,020
Beijin
g
Shan
g…
Guang
…
Cheng
…
Shen
z…
Kunm
i…Xi'
an
Chong
…
Hangz
…
Nanjin
g
China Domestic Arrival Population in May YOY
2,018 2,019 2,020
1.4m
8.7m
13.8m
9.5m
7m
4.5m1.9m
10m
13.9m
9.3m
6.8m
4.2m
1.3m
7.4m 7.6m
4.6m
2.7m1.1m
0-19 yrs 20-29 yrs 30-39 yrs 40-49 yrs 50-59 yrs over 60 yrs
201820192020
Chinese Domestic Travellers Age Distribution in May YOY Data
25.6m
26.2m
15.8m
19.4m
20.1m
8.9m
Gender Distribution of Chinese Domestic Travellers in May YOY Data
May 2020
May 2019
May 2018
841k
1.5m
1.1m
1.4m1.2m 1.1m 1.1m
1.3m
962k
622k949k833k
1.4m1.2m
1.5m1.2m 1.1m 1.1m
1.3m
627k
Data source: Partner - Oriental Travel Retail Observer
China Domestic Fl ights to Hainan
CDF Sanya
Guang
zhou
Beijin
g
Shan
ghai
Shen
zhen
Chang
sha
Zhen
gzho
u
Chong
qing
Hangz
hou
Wuh
an
Cheng
du
China Domestic Arrival in Hainan in May YOY
2,018 2,019 2,020
86.8k
349k
446k
263k 248k
169k101.6k
346k401k
232k214k
139k
87.5k
295k
221k
119k93k
42k
0-19 yrs 20-29 yrs 30-39 yrs 40-49 yrs 50-59 yrs over 60 yrs
201820192020
Chinese Domestic Travellers to Hainan Age Distribution in May YOY Data
862k
774k
489k
706k
662k
372k
Gender Distribution of Chinese Domestic Travellers to Hainan in May YOY
May 2020
May 2019
May 2018
49k
9.4k
42k
57.2k 58.8k51k 52k
48k49.8k
40.3k
Data source: Partner - Oriental Travel Retail Observer
Government 's Support to Chinese Travel Retai l
• Hainan FTP/FTZ , duty free shopping allowance raised from RMB30,000 to RMB 100,000.
• Wangfujing Group was granted with 8th duty-free license.
• It is said that 1 or 2 more duty-free licenses will be granted soon.
Source: China Daily , TRBusiness
Succession of Emergency in China
• A sudden wave of Covid-19 outbreak took place in North-east area of China in May.
• New Covid-19 cases confirmed at Beijing Xinfadi wholesale market on June 11th.
• Epidemic is under well control with Chinese government's effective measure, but estimately will be accompanying for a long time.
• Resuming date is unpredicted.
Source: China Daily , Baidu Big Data
Impact on OTAs in China
On February 29, a document from Baicheng Travel website showed that the company decided to close the company and start preparation for liquidation.
On June 10, Shijiebang, the company which was named as "online travel startup", famous of its customized outbound tours service, had ceased operations.
Kaissa : - 64.22 million CNY
Zhongxin/Uzai.com : - 29.06 million CNY
Zhongqinglv/AoYou.com : - 198 million CNY
TuNiu.com : - 200 million CNY
Ctrip.com : - 1.2 billion CNY
Tourism listed organizations Q1 Performance was all in negative growth
Impact to Jessica's Secret & Reaction
-0.4
-0.2
0
0.2
0.4
0.6
0.8
1
1.2
Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20
Total Users MOM
Total users droppedby 57 % in last half year on Jessica's Secret App
Indicates the impact on outbound traveling
Jessica's Secret Team Reaction
80%
20%
Pre Covid-19 Key Projects Share
APP
Data Analysis
20%
80%
Under Covid-19 Key Projects Share
APP
Data Analysis
The epidemic is not necessarily a bad
th ing . I t he lps us to p r e s s that
Pause button, and to accomplish
things that have been left behind
for a long time.
—— Mirko Wang, CEO of Jessica's Secret
Jessica's Secret Users' Demographic under Covid-1902
19.22%16.51%
12.26%
8.13%
5.41% 2.55% 2.47% 2.27% 2.05% 1.98%
Shan
ghai
Jiang
su
Zheji
ang
Beijing
Guang
dongAnh
ui
Sichu
an
Shan
dong
Liaonin
gHub
ei
Active Users Share - Provinces (Mar-May,2020)
Jessica's Secret User Demographic
22.49%
10.33% 9.49%6.94% 6.90%
2.59% 2.54% 2.50% 2.45% 2.41%
Shan
ghai
Hangzh
ou
Beijing
Nanjin
g
Suzh
ou
Guang
zhou
Wux
i
Shen
zhen
Cheng
du
Ningbo
Active Users Share - Cities (Mar-May,2020)
Gender Ratio
28%72%
Age Distribution
26.65%
34.91%
20.03%
8.84%
6.99%
2.58%
18-24岁
25-29岁
30-34岁
35-39岁
40-49岁
50岁…JESSICA'S USERS: AGE
DISTRIBUTION
More than 80% users are the Millennials
40.80%
15.66%
6.58% 5.88% 4.54% 4.08% 4.02% 3.91% 2.33% 2.05%
China
Korea
Japan
Austra
lia
Thail
and UK
HongKong USA
Spais
h
Fran
ce
Top 10 - Most Searched Destionations (Mar-May,2020)
Jessica's Secret User Demographic
97.30%
0.54% 0.54% 0.42% 0.38% 0.24% 0.21% 0.14% 0.12% 0.11%
China
USA
Austra
liaJa
pan UK
Canad
a
Singap
oreKore
a
Thail
and
New Z
ealan
d
Active Users Share - International Destinations (Mar-May,2020)
10.99%
8.68%7.36% 6.93%
4.62% 4.18% 4.10% 3.64% 3.05% 2.83%
Louis
Vuitto
nGuc
ci
Este
e Lau
der
Chane
l
La M
erDior
Lanc
ome
SK-II
Cartie
rYS
L
Top 10 - Most Searched Brands (Mar,May 2020)
30.83%
13.69%
6.89% 6.88% 5.96% 5.80% 5.52% 4.35% 4.24%2.56%
Sunr
ise (S
hang
hai)
CDFG (S
anYa
)
King Po
wer
Sunr
ise (S
hang
hai)
DFS (H
K)
Meil
an D
uty F
ree
Sunr
ise (B
eijing
T3)
Kix (O
saka
)
Lotte
(Seo
ul)
Shilla
(Seo
ul)
Top 10 - Most Clicked Shops (Mar-May,2020)
Jessica's Secret Index - May,2020
Beauty Care 38%
Accessories10%
Bags40%
Liquor&Tabacco 12%
Popular Category Share in May, 20201. Lamer The Treatment Lotion 150ml
2. Estee Lauder Advanced Night Repair Synchronized Recovery Complex II Duo
3. Estee Lauder Advanced Night Repair Synchronized Recovery Complex II 50ml
4. Louis Vuitton NéoNoé Rose Poudre
5. Louis Vuitton Mini Dauphine
6. Gucci GG Marmont small matelassé shoulder bag 443497 DTDIT 1000 black leather
7. Estee Lauder Advanced Night Repair Duo 1items
8. Clarins Double Serum Duo Complete Age Control Concentrate 2x50ML
9. Chanel Lambskin Gold-Tone Metal Black Mini Flap Bag
10. Gucci Online Exclusive Preview Gucci 1955 Horsebit bag GG Supreme/brown
In-depth Travel Retail Industry Big Data Research03
Price AITracking Platform
ü Data covers over 60 regions, 980 shops
ü Shops including duty-free store, department store, brands official site, and Tmall.
ü View multiple discounted prices (special offer, membership credit, cashback, etc), and view discount details.
ü Support to export in speadsheet with multiple formats.
Jess ica 's Ch inaMedia Moni tor ing P la t fo rm
Jess ica 's S imple Index
ü Monitor Chinese major media platforms data & info.
ü Acquire first-hand informaiton discussed regarding your brand/shop by Chinese consumers.
ü Promptly identify shops' pricing level in global market.
ü Retrieve the cause to the price fluctuation, narrow down to category, brand, even single SKU.
Jessica the Elf - Big Data Intel l igence Price Grading
• Continuous optimization on customer-end
service.
• Score is calculated according to a grading
algorism model.
• Grading scale from 0.1 to 10.
Jessica's Secret 'sTravel Retail Recovery Plan04
Assist Retailers - “0 Commission” Plan
“Jessica's Secret”releases some or all of our commissions from retailers to
travellers. (Cashback)
“Jessica's Secret”may waive part of the commissions if retailer offers the best deals of
all channels to JS users.
Conventional Model:Discount+Commission
New Model 2:The Optimal Discount
New Model 1:Discount + Cashback
“Jessica's Secret”gets commission from retailers
Assist Brands - Complimentary Targeted Exposure
Complimentary Promotional Info Exposures
To help brands & retailers delivering promotional news (discounts, GWP) to the targeted audiences.
Comprehensive Chinese E-commerce Service with Low Initail Fund
A small Initial Fund is only what needed for establishment , the rest part of development cost could be covered when business resumes.
Assist Retai lers - Low-cost Chinese E-commerce Renovation
Assist Retai lers - Low-cost Chinese E-commerce Renovation
ü Domestic products deliever to China directly
ü Activate the private traffic / exisiting usersü Expand customer base
Live-streaming
Reaction ofTravel Retail E-commercein Covid-19 Era
Initial Stage
Mid Stage
Post Covid Stage
ü Lasted much longer than offline shopsü Achieved more cash inflowü Launched new products released during epidemic (Hermes Lipstick)ü Attracted more trafficü Implemented promotions to ease burden on inventory timely
ü Maintain online traffic and regular exposure to customersü Implement Promotions & home delivery services for loyalty membersü Connect sevices with live-streaming sellingü Avoid severe econimic loss
ü Promptly resume to normal businessü Keep customers updated with latest launches, promotional
campaigns
ShillaDuty Free
Lotte Duty Free
Sunrise CRM
Hainan Duty Free
King Power Duty Free
DongWha Duty Free
Shenzhen Duty Free
HyundaiDuty Free
Offshore Duty Free
Shilla IparkShinsegaeDuty Free
SM Duty Free
CEO - Mirko Wang : [email protected]
Head of BD - Stephie : [email protected]
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