Today, it’s inconceivable for a brand, having a Chinese website targeting the Popular China, not to be registered on Baidu. When it’s not the case, it’s like not existing on the Chinese web. However, it’s not an easy job to be well positioned on Baidu, because some of your distributors also have websites in Chinese with your name on it, competing with your name, without mentionning distributors of your counterfiets…who, them, will have the advantage to get a website with the .cn extension, as not necessarily you, or will be hosted in China and will appear in a better position than you Chinese website. Brand Key words are jammed in China, and it’s not easy to be recognized. On the other hand, it’s not easy to obtain a website in “.cn”. You need a company in China, and yet it’s not the case of companies being only distributed or franchised. Baidu is complicated and the chinese internet is a headache.

You will say “if it’s not easy to be the first, let’s buy adwords which Baidu must “. Well yes, Baidu does, but it’s extremely complicated to buy Baidu adwords from France, because it can’t be bought directly to Baidu, and there are few authorized agencies abroad. Sometimes there is just one agency per country, and one not necessary wants to work with this agency which can eventually be very costly for a small brand, or a company such as a castle from Bordeaux, or a small ready to wear brand. Now, this purchase of key words must be considered by each company operating in China physically and virtually, so how to do it when one’s a small player. And how to optimize if one’s is bigger…

This is what Baidu , will explain us,with top level executives including  Sino American internet golden boy Kaiser Kuo, and in the end a group of 6 people. Baidu accepts China Connect invitation that will provide a full day training session. A day to explain, train, and dialogue with the Chinese giant and other participating expert speakers to challenge to Baidu will be at  Chinaconnect InTheCity the whole 27 of June, at la Maison de la Chine, Place Saint Sulpice.

Sign up and meet Baidu, the errors on the Chinese internet are always much more expensive to fix than a training day…;-)

http://www.chinaconnect.fr/inthecity2013/

The concept is based on a cocktail and business lunch at the Shangri-La Paris, once every quarter. The goal : hardcore networking. The stars: the top management of large up-and-coming Chinese corporations, Chinese and Hong Kong investment funds, French politicians (former minister Michele Alliot-Marie was there in December, finance minister Pierre Moscovici may come soon), and then French companies either in luxury or in heavy industry. The idea is to emphasise parity, with as many French as Chinese …

What’s in it for the luxury companies?

-        On the one hand, these top bosses are themselves rich and regularly host delegations of Chinese businessmen coming from the homeland. They are known as “great influencers”.

-        In addition, the quality of attendance and surroundings make this a “branded” event that some luxury companies already use to service their major Chinese VIPs visiting from China. It is always useful to introduce your Chinese VIPs to French politicians or renowned businessmen. The Chinese love this.

-        For those not yet established in China, it is also a good place to meet with investment funds  and discuss establishing a presence through joint ventures

-        Others will benefit from discussing Chinese strategy with native Chinese companies who are also subject to tough profitability objectives …

-        Finally, and most importantly, this is a great opportunity to make Guangxi, ie business relationships. The guanxis are give-and-take/win-win relationships between individuals which result from networking. Getting the right relationship at the right time, that’s the idea …

The Chinese Business Club was founded by real estate specialist Harold Parisot, who uses it as a service to his Chinese business customers. It is an astonishing economic model … which enabled Harold to introduce high level Chinese with high level French players.

If you think your company should be represented, please let us know, we can follow up  and defend your case with Harold Parisot.

We offer you a preview of the coming discussion :

1. People living in the North of China don’t like Cognac, but they do in the South of China. Is it possible to establish an equivalent “simplistic typology” for Wine? Can you please provide some details?

We can’t make generalizing conclusions about regional differences because every individual wine buyer has his/her own tastes and opinions, and rightly so. There is one thing that most Chinese wine collectors share in common, though, and that is their keen focus on the quality of wine. Therefore Christie’s Wine department is dedicated in sourcing and providing top-notch wines for our Chinese buyers.

2. How do you establish contacts with HNWI in the “Lower Tiers”?

For Christie’s Wine, there is no “higher” or “lower” tiers of clients or consignors—we value all of them and make the best effort to provide them with top-quality service and wines.

As for establishing contacts, we are constantly creating opportunities to make new connections via our auctions, private sales, events and educational programs. And an array of our recent online initiatives has made it more effective for us to reach out to an even larger and more diverse group of wine lovers and collectors.

3. How do you compete with Chinese Auction Houses like China Guardian?

History proves that the market grows faster and larger when there are more players involved. So we welcome competition in the industry, and believe it is a positive development for the wine and auction market, as it brings more wine collectors and buyers into the arena.

In Asia, the wine auction market has evolved to become more sophisticated and selective as buyers become increasingly experienced and knowledgeable. Like collectors from other regions throughout Asia, Chinese collectors tend to respond to wines of rarity, appropriate pricing and provenance, and pass over bottles of lesser quality. So it’s not hard to imagine that they are particularly interested in seeking “best of the best” wines. This phenomenon can be attributed to a steady rise in global awareness and interest in wine and connoisseurship.

Therefore, it is more important than ever for Christie’s Wine department to remain committed to China’s exciting wine market, dedicating ourselves to sourcing top quality wines, pricing them accurately, presenting them to the right audience, in the right place and at the right time. At Christie’s Wine, we offer a wide and diverse range of wines from all over the globe to cater to varying tastes of the collectors.

Meanwhile, Christie’s development strategy for the China market touches on all areas, with the goal of making Chinese collectors feel comfortable dealing with Christie’s—not only in Hong Kong or in the Wine department but throughout the rest of our salerooms and categories. To facilitate the needs of Chinese collectors, we localize content such as online catalogues and video clips, provide Chinese-speaking staff in international salesrooms, and have Chinese-speaking auctioneers at our Hong Kong auctions. In addition, we are also establishing more off-season sales, tours, exhibitions and other events year-round, as well as additional opportunities for private sales.

4. What kind of online/offline marketing strategy does Christie’s develop to create awareness?

In summer 2012, Christie’s launched its inaugural calendar of Online-Only wine sales to great fanfare, welcoming in new clients from 29 different countries around the world. Two more successful Online-Only sales followed, including a sale of rare wines and large formats direct from the cellar of legendary Chicago restaurant Charlie Trotter’s. These Online-Only sales have increased the global profile of Christie’s Wine department by facilitating the participation of a larger, more international audience. Meanwhile, to facilitate the China market, in 2012, starting from some major sales, our Christie’s Live interface, such as the data label for bidding, will be presented in Chinese.

Thanks to these online strategies, last year, our websites welcomed an 11% visitor increase compared to 2011, while 27% of all bidders participated via the internet. In the meantime, Christie’s Live saw a 4% increase in registrations compared to the previous year. Looking forward, the upcoming Henry Tang Collection sale in March marks the first time that the Prooftag Bubble Seal™ technology is used at an auction. It will be an effective way for collectors to trace and verify the authenticity of each bottle sold through this auction via the internet.

On the other hand, as the leader in the art community, Christie’s is committed to supporting and promoting art, especially through our educational programs. Christie’s Education, which was freshly introduced to China last year, provides various courses on art and wine appreciating and collecting. And its new wine course will start at the end of April in London.

There are now approximately 5% of Chinese tourists travelling as individuals. This maybe be a small absolute number, but it is the « creme de la creme » of Chinese travellers. In a very short time, these individuals could be seen buying dozens of Patek Philippe or Breguet watches, pairs upon pairs of Roger Vivier shoes, and so much more … These 5% are like the Arab sheiks and their petrodollars, spending lavishly and hunting out the new, limited series or products not available in China.

How can you attract them?

There are a few venues in Paris specializing in premium luxury and caring for this type of VIP. But these require having exceptional products to offer. Another solution is to open a « weibo » – which may include an online appointment system – offering a direct channel to contact and prepare the tourist. This is an excellent way to gain visibility on the internet and to promote the Chinese appeal of one’s store. Indeed, in China there will be no Facebook, no YouTube, no Twitter (all of which are blocked by censorship), while Weibo offers the equivalent of Facebook and Twitter combined.

There is also the media.

Vogue publishes a special edition on France in Chinese language, which is available specifically for these tourists at various newsstands, while « the Art Bank » specializes in the Place Vendôme area.

These magazines attract many tourists, because they reveal the addresses of the flagship stores in Paris. Here, they can learn that Place Vendome is only a 5 minute walk from the « Grands Magasins », and any other essential information required by these recent yet highly active consumer/tourists.

Beyond the 5%, there is the mass of Chinese « group » tourists – 80% of the total (the last 15% are business travellers). They will be less educated consumers – because they come from the heartland provinces of China – yet they include a large portion of new rich or people who have saved all their life. With these groups, it is necessary to focus on the guides. It is common knowledge that Department Stores provide generous commissions to Chinese guides. So when your brand has a dedicated « corner » in the Department Stores on Boulevard Haussmann, it is difficult for the flagship to compete with these stores based on commissioning. It is therefore important to study the relative positioning of the flagship store as opposed to the « corner » in a Department Store, and to sell this positionning to the guides in advance, for example through networking with their various associations.

And while it is always possible for those in the luxury business to attract Chinese clients, it is essential to facilitate the process, to make things easy, explaining where you are located, how the tax refunds are managed, what customer service is available in China, what limited editions of your products are sold only at the headquarters, etc … … As the French would say, « you cannot catch flies with vinegar » …

Indeed, with the multitude of wines now available to the Chinese – Bordeaux, Burgundy, New World wines, Italian or Spanish wines, and now even good Chinese wines such as Silver Heights, it is very important to demonstrate that:
- the wine is suitable for Chinese cooking
- for each specific dish there is a specific wine. For the Chinese, the food is more important than the wine. It is therefore essential to take each classic Chinese dish and associate it with this or that specific wine reference, so that the wine itself becomes a classic « Chinese » reference. This is how the marketing process works.

Dim Sum Siu Mai with

Making good food and wine pairings is very complex and requires skills which are as hard to find in France as in China. Indeed, one must combine a good Chinese restaurant with a strong Chinese sommelier, who understands the tastes of the Chinese but also masters the large offering of French wines. While it is difficult to find a good Chinese restaurant in France, it is at least as difficult to find a Chinese sommelier who knows the intricacies of all our French « Grands Crus », and can distinguish between two Médoc or two Saint Emilion. Once the pairings are selected and prepared, it still takes a specialized photographer and food stylist to present the food.

Chateau Cheval Blanc 2006 and Peking Duck

We thought long and hard about the question. A comment often made by the winemakers: as we are expensive « Grands Crus », we are often associated with expensive dishes such as shark fin soup and other endangered animals. Yet, on the one hand, these dishes are not necessarily good, and on the other they are rare and expensive but appeal much more to notions of medecine than to the talent of a culinary Chef. This dish may bring happiness and a long life, that dish may guarantee sexual pleasure … Such types of pairing food and wines are limited to matching the price of wine and food, and have little concern for the quality of the gastronomy.

Beggar's chicken with Pichon Longueville le Baron 2000

In addition, we needed to decide whether the food and wine pairings should be made in China, or in France with Chinese cooks, even if it meant a lower quality cuisine. The issue was resolved by the Shangri La, which opened its Shang Palace restaurant in early 2012, with a real chef – Frank Xu of Shenzhen – who came to the restaurant with his Chinese brigades. At last, we had found a Chinese restaurant worthy of the name in Paris.

The Shangri la also provided us with extraordinary competence in the person of its sommelier Zi, who was trained in France with the greatest French wines, practices them daily thanks to the menus of the prize-winning Shangri-la restaurants, and has an instinctive knowledge of Chinese cuisine.
Finally, we called on photographer Yoshi Omori to magnify the work of the Sommelier and of the Chef through iconic photos of the dishes, assisted (with regards to food styling) by The Last Supper Club in the person of Theophile Playoust.

Braised lobster with Corton Charlemagne 2006

Here are some wine pairings to illustrate this article:

Dim Sum Siu Mai with Taittinger Cuvée Prestige

Peking Duck with Château Cheval Blanc 2006

Beggar’s Chicken with Pichon Longueville le Baron 2000

Braised Lobster with Corton Charlemagne

Two hundred Chinese dressed in polo shirts and light trousers (for the minority of men), and for the women, as “Taitai”, ie the beautiful Chinese spouses in their most beautiful outfits, veils, long dresses showing bare shoulders, milky complexion and jewels galore. All gathered around a swimming pool and a cocktail with the idea to buy a yacht, and do business with a few handpicked western businessmen such as Chinese marina architect Emmanuel Delarue, yacht manufacturer Rodriguez or the owner of Fraser yachts, a company broker for yachts, as well as numerous other stars from the world of yachting.

China Rendez Vous has been organizing this event for five years and manages a feat that even international events such as the Biennale des Antiquaires cannot match : they bring together for an evening all the wealthy Chinese staying on the Riviera (whether on business or simply visiting boat shows in Cannes and Monaco), and for a moment, they set the tone of the microcosm that is the international Chinese jet set.

If only I could exploit the marketing potential of this event, many of my customers – jewelers, watchmakers, fine foods, wine and champagne producers – would feel quite at ease in such an environment. The event is like an uncut stone which deserves the greatest care. Our Chinese friends will realise during that one special evening that yachting is much more than a boat, it is a complete lifestyle, including costumed cruise, nightclub in Saint Tropez, casino in Monaco, palaces, jewels and marine watches. All the glitter of the Riviera and the shopping opportunities it offers.

Five years that the event has been organised – initially as a confidential gathering, then growing every year, sustained by the increasing flow of wealthy individual Chinese tourists to France. And of course, Cannes and Monaco are also destined to become key tourist destinations, as yachting becomes an increasingly important objective of the rich Chinese, as a hobby and especially as a unique status symbol which can be « shared » with one’s relationships.

China Rendez Vous and China Night are nonetheless an achievement and hold significant promise for the future. Let’s wish good luck and a boat-full of sponsors to China Night 2013.

We asked them three questions:

What do you want to do during your trip ?

What brands do you want to look for ?

What are your expectations vis-a-vis these brands ?

The discussion was carried out in an open format around these three questions, with additional questions asked to qualify the answers.

• Shopping is always a key part of the trip and whoever comes to Europe, for work or for leasure, will make sure significant time is set aside for this. Shopping should not be at the large department stores – “that’s for the middle class, we are not concerned, we prefer the service and choice available in the boutiques”.

• Expectations vis-a-vis the brands are very high and the wealthy Chinese have a hard time accepting that they cannot get tickets to quarterly fashion shows in the main European capitals.

• The three brands which the VIP want to meet are always the same – here the Chinese are not very imaginative : they want to visit Hermes for an unlimited supply of Birkin bags, shop at Chanel and visit the mythical apartments of Coco Chanel in the rue Cambon, or go to Louis Vuitton and buy three bags of the same type, because “it’s not expensive and Vuitton bags make good gifts”

• VIPs are also looking for discount prices, even if prices are already low in Europe compared to China. The VAT refund procedure (currently approximately 12% in France), which they don’t fully understand and think is a special discount for foreign buyers provided by the brands, is in this respect perceived very positively.

• After investigating the VIPs’ interest in visiting manufacturing sites or benefiting from in-store explanations by a “Brand expert”, it was apparent that the favored proposal was the in-store presentation – “it takes less time, and we can quickly return to shopping”

• Men very often hope to meet the brand managers to do business. The “business” theme is recurrent and the Chinese find it difficult to understand the highly selective distribution strategy of the brands. Nearly every VIP will recommend a store or shopping center where they would like the brand to be distributed. This is particularly true of real estate magnates who want to combine their business acumen with the pleasure of shopping. They will not hesitate to ask for a meeting with the President of the French Republic or with such and such minister to obtain openings for their business.
• Finally, the Chinese must absolutely be able to take pictures and put them on their weibos in order to share their trip instantaneously with their friends. It is what is called “saving face” in China.

What is extremely clear is that the very rich Chinese want to be treated in France similarly to the wealthy families of the Persian Gulf.  They view themselves as coming from the leading economic power, as part of the largest global fortunes, and therefore want to be treated as such . It is a question of “saving face” …

It means Shanghai Fine Jewelry and Art Fair, it is  the only fine arts and fine jewellery fair in Asia since 1995.

Who are you Maximin Berko ?

I grew up in a family of Art dealers. One branch of the family was living in Antwerp and is also related to the diamond world. I helped my family at the different art fairs around the world since more than 15 years.

I first went to China to study Chinese and do research at the Shanghai Museum for my PhD at the Sorbonne in Paris.

Between my Masters degree and my PhD, I worked 1 year at Sotheby’s in New York.

What is the story behind SFJAF ?

We were exchanging ideas with people I met through the museum, they told me it would be a good idea my parents would come exhibit their paintings in Shanghai as slowly there was demand, that was 2006. I was thinking hard about where we would organize that exhibition and slowly grew the idea that maybe other people would be interested to try the upcoming Chinese market. I made some phone calls and the enthusiasm of people was the base of our decision to start the SFJAF.

The past SFJAF editions were of course full of surprises. It was the first time a fair of this genre was organized in China and a lot of questions and challenges were discovered. Those led to the great success of the fair. The strongest image, professional exhibitors, grand decor, fluid customs procedures, enthusiast welcome from the visitors, good business and more elements make the SFJAF a unique platform in Asia. It is regarded as the most respectful event, which we highly appreciate of course.

Let’s speak about the coming 2012 SFJAF ?

The coming SFJAF is from the 3rd till the 11th of November 2012, the opening private viewing cocktail is on the 2nd of November 2012.

The venue is the grand Shanghai Exhibition Center, right in the heart of Shanghai next to the commercial centers such as Plaza66 and the hotels we partnered with such as the Portman Ritz-Carlton.

Historically the Shanghai Exhibition Center was built as sign of friendship between Russia and China, between East and West. But even before this Russian palace was built at that specific location once stood the Hardoon Gardens. Silas Hardoon was a rich businessman from Baghdad that made a fortune in Shanghai. He built these gardens with pavilions to host the first Western Art classes and meetings in China. This exact location nearly 100 years ago had the same function as we give it today. A bridge between East and West were visitors from all over China, all over Asia and even from around the world can appreciate and collect the rarest jewellery and fine art available.

Indeed, in Japan, various holidays such as the Emperor’s birthday and Constitution Day combine (more or less conveniently for the tourism industry, depending on the years) to provide 5 non-working days over a two week period, generally running from April 25 to May 8,. This “Golden Week” has long influenced European luxury consumption patterns, as many Japanese flocked to Europe take advantage of the public holidays, enjoy a good trip and good weather, and visit our cities.

The Chinese themselves are more radical. From the very start of the capitalist overture, they decided to give workers a week of vacation to celebrate Labor Day, which, outside the U.S., is usually on May 1st. For 20 years, planeloads of Chinese tourists would take this opportunity to leave for Europe and overrun major European tourist sites such as the Parisian department stores or Bucherer watch retailer in Switzerland. In those days, the Chinese year was punctuated by three weeks of vacation: travelers could enjoy the Chinese New Year week, the Golden Week around Labor day and the first week of October (October 8 celebrates the founding of the People’s Republic of China). Each of these weeks provided an opportunity for mass migration within the country but also for massive travel abroad. These trips to Europe, with growing Chinese purchasing power, have become key determinants in the sales curve of luxury boutiques, as their impact has grown increasingly strong, particularly in the areas of watches and leather goods.

Three years ago, noting the large number of “cultural” days in April and May, the government decided to review the holiday schedule in the second quarter of the year, and to adjust the balance between political and cultural holidays. From April 5 to 8, there is now the Qin Ming holiday, a time to pay respects to the dead – with three days in all, including a Saturday. Then from April 29 to May 1,  three more days for Labor day, and finally another three days for the Dragon Festival from June 22 to 24.

You thought that the Golden Week was dead? For certain social categories in China, especially the ones which can afford to work, it is no longer one but three Golden Weeks, where two days of paid leave allow you to have a full week to escape. Finally this new calendar is to a certain degree more comfortable, with fewer queues at airports, more choices in destinations, accommodations or activities. Since the ones who benefit most from this operation are the more affluent and better protect socially –this triple Golden Week has also tripled the turnover related to Chinese tourism, luxury, and travelling. It is no longer a single golden week but a “Golden Quarter” we are facing since 2010, for the greatest benefit of our tourism and associated industries. The Golden Week is dead, long live the Golden Weeks.

Networking there is so intense that I was often led to do business, even against my will, and in any case got to meet all the people who matter in luxury, whether clients or brands : all were present. Exhibitors that I had invited found what they were looking for, and much much more. A luxury metalworker  sold miles of hand-made, wrought iron gates to real estate developers, a leather goods company met with a crowd of interior designers and architects. An upscale travel agent made over 500 contacts … These were four days of intensely mixing business, sunshine, conferences and new relationships.

The clients are just as well B-to-C for jets, yachts, and luxury cars, as B-to-B , since the Chinese never forget to do business if the opportunity arises, be they shopping, visiting a yacht or enjoying a meal. And Hainan also provides them with a formidable platform to meet the brands face-to-face and to accelerate discussions.

Hainan is also an avenue of flashy pink felt, on the seacoast, lined on one side with the largest and the most beautiful yachts to visit from Azimut, Beneteau, and on the other side with the Royal Visun Marina complexe, where the conferences take place and which is packed with luxury boutiques. Finally, small houses with smaller booths for smaller luxury players, either B-to-C such as wines and wineries, or B-to-B  very focused on interior design and decoration.
Sanya airport, just a few miles away, handles the private jets.

The Hainan RV HNWI is dressed in Dunhill style sportswear with striped polo shirts in discrete/natural colors. Meanwhile, the women shine like jewels, carrying umbrellas and panama hats to protect themselves from the sun, along with black sunglasses and sunblock. They often wear long dresses with equally long sleeves to protect their milky skin color, or wear shorts underneath light clothing and lace veil which block sunrays. Hainan is a tropical island and the avenue is pink in the sunlight. One should protect oneself and avoid tanning. The women all display completely natural style make-up – which is actually very sophisticated. Everyone is very very very much in a hurry, not only to buy, but also to grow their business relationships with the French or European Art industries, not to mention attending as many exhibitor cocktail parties as possible… a heavy schedule …

This year’s Millionaire’s Fair shows a major trend that did not exist last year: There is now a clear opposition between the Riviera clients, which are « show off », industrious, statutory and the clients from the North, who seek culture and quality in the luxury goods. As a result, Hainan will organise two separate Rendez Vous in 2013 to treat differently those two types of clients, both in terms of brands present and in terms of services offered. This dichotomy is also at the heart of two new journals  from Excom, a publishing group specializing in the HNWI client and provider on both 2013 events, and which is led by two Golden Boys in Chinese luxury media : Olivier Burlot and François Amman. They will be launching Riviera magazine for the South, the sun, yachting, spas and sunglasses ; and in parrallel, Legacy magazine for the North, focused on the major new trend in Beijing, classic and collectors automobiles.

There are now over 2,700,000 holders of one million U.S. dollars in fairly liquid assets in China. It is no longer a niche but a market in its own right, which must be segmented to reflect the diversity in sources of wealth and in the behavior of this mass of millionnaires. The Chinese millionnaires no longer constitute one big market, but several well defined market segments.