SHOP Global Blue Visitors Magazine | Spring 2015 (English)

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for the top 10 globe shopper nations

When to expect globe shoppers? Available for download now.

the magazine about globe shoppers | issue 12 spring 2015

International Holiday Calendar

the magazine about globe shoppers | issue 12 spring 2015

good designs

Kim Colin talks about designing the product the consumer is really looking for.

‘bleisure’ trips

Mixing business trips with leisure is becoming more and more popular.

going further afield How can brands make it in the Chinese luxury market?

data’s getting bigger corporate.globalblue.com

corporate.globalblue.com/calendar

How retail companies are tackling growing business data. 1


Turn browsers into buyers with Tax Free Shopping

Foreign customers spend four times more than domestic customers. These lucrative globe shoppers are four times more likely to visit stores offering Tax Free Shopping from Global Blue. The service offers foreign customers a saving of up to 19%*, by allowing them to claim back sales tax on their purchases. Global Blue has spent 30 years building relationships with the world’s most valuable customers, isn’t it time you started? business.globalblue.com *Local variations apply.

Tax Free Shopping


content

6 what’s up —

News and updates from the international retail industry.

8 12 professionals trends — Three unique Global Blue partners, from three unique countries, share their tips on customer service in the highend luxury market.

— Traditionally travel has always been for business or leisure, but more and more people are successfully combining both into the one trip.

16 insight —

Nearly every retail brand is trying to break into the lucrative Chinese market, but only some succeed. What can we learn from them?

32 global news — All the latest news from Global Blue.

22 up close

— Kim Colin shares her philosophy on design, and why it needs to enrich and simplify people’s lives.

29 30 smart business dreams — Big Data is rapidly reshaping many industries and retail is no exception, but how can it be used to its full potential.

Using natural colours and materials, the Amangiri Resort blends seamlessy into the stunning Utah desert landscape.

34 market outlook

— Who is buying what and where? Get all the statistics and numbers that matter most in international retail.

This magazine is published by Global Blue. Website: corporate.globalblue.com | Email: visitors@globalblue.com | Project Manager Global Blue: Marie Bergfelt, mbergfelt@globalblue.com | Editorial board: Khalil Achkar, Manelik Sfez, Marie Bergfelt, Antonella Bertossi and Simon O’Connell, Global Blue. Mathias Lövström, Pierre Adolfsson, and Rasmus Winther, Spoon. | Editorial production: Spoon, Göteborg, Sweden | Editor: Pierre Adolfsson, pierre.adolfsson@spoon.se | Art director: Mathias Lövström, mathias.lovstrom@spoon.se | Website: www.spoon.se | Repro: Spoon, Göteborg, Sweden. | Printed by: Lenanders Grafiska, Kalmar, Sweden. | Translation: Språkbolaget, Göteborg, Sweden.


editorial The journey continues At Global Blue, our goal is to make tax-free shopping more hassle-free for travellers. We’ve already invested millions of euros in improving our technology to make the tax refund process even smoother, faster and easier for shoppers. This is just the first step of our journey and we’re not done yet. In this issue of Visitors, we cover some of the trends and news from the fashion, hotel and travel business which are taking centre-stage in 2015. Overwhelmed by the huge volumes of data out there in the retail industry? We show you how you can use it to spot business trends. In our feature article we take a closer look at the lessons learned from the first-movers into China. As the Chinese luxury market gets ever more sophisticated and segmented, opportunities remain for brands that have a truly unique story to tell. You can also read about why ‘bleisure’ or ‘bizcations’ are on the rise as travelers try to strike a balance between their work and private lives. We have interviewed several movers and shakers in the retail industry to find out what makes their business tick and share their secrets for success with you. And, last but not least, don’t miss our exclusive interview with industrial designer Kim Colin. I hope you enjoy this issue of Visitors!

david baxby President & CEO, Global Blue

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visitors portraits

stefano erculei Retail Director, Paul & Shark

“We are obsessed with quality and our customers understand this.”

seishi kimura

General Manager, Inbound Policy Business Strategy, Isetan Mitsukoshi Holdings Ltd.

“What all our stores have in common is our commitment to give customers what they want in terms of quality products, an environment that takes them out of their everyday existence, and exceptional guest service.”

kim colin

Co-founder of Industrial Facility

“In the old advertising world it was all about selling the product. Now, the relationship with the consumer doesn’t end at the point of sale.” Visitors

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new stores in bicester village Outlet centres are springing up everywhere as travellers scour the globe for bargains. Indeed, Chic Outlet Shopping, the company behind Bicester Village and Fidenza near Milan (among many others), has even opened two in China. For Chinese visitors to the United Kingdom, Bicester Village is the most popular tourist attraction outside London, and it’s recently got even more

attractive, with the opening of three new stores from top brands Oscar de la Renta, Gina, and The Kooples. When UK Prime Minister David Cameron asked the then Chinese premier how the UK could attract more Chinese tourists, he replied : “Build more Bicester Villages!” It’s not just the Chinese who are attracted by the more than 130 discount

outlets at Bicester, it’s also a huge draw for globe shoppers from The Middle East, for whom it is as big a draw (and for many bigger!) than the nearby historic university town of Oxford. Other recent arrivals at Bicester Village include All Saints, Chloe, Joules, Kurt Geiger, Loewe, Marc by Marc Jacobs, McQ by McQueen, and Pan Chai petite.

minna parikka renovates flagship store Minna Parikka footwear is instantly recognisable thanks to its surreal and playful designs, and the recently renovated Helsinki flagship store is a tribute to the eponymous designer’s quirky, feminine style. Conceived by Finnish star architect Joanna Laajisto, the Aleksanterinkatu boutique has witty details including the kissing booth area, which includes a lipshaped sofa and a neon ‘xxx’ sign. The current collection features leather loafers, and, for those committed to heels, the Angora range reigns supreme. Minna Parikka, Aleksanterinkatu 36, 00100 Helsinki, +358 (0)9 667554

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what´s up michael kors launched first store in lisbon New York luxury brand Michael Kors recently opened its first Lisbon store. The casual-chic aesthetic of the brand carries through to the interior design, with its sleek lines and glamorous touches such as zebra print furniture and large scale vintage photographs. The space offers accessories from both Michael Kors’s main line and the Michael label, including footwear, watches, eyewear and the ever-covetable handbags.

football stars open basel’s new nike store Nike has recently opened its first store in the city of Basel. To celebrate the store’s opening, Nike enlisted the help of key Swiss football players including Xherdan Shaqiri and Marco Streller, captain of the FC Basel team. The new store has three floors with different departments for specific sports, such as running, training and football. You can also find Nike’s extensive footwear collection, for every sport and style. Nike, Steinenvorstadt 24, 4051 Basel, +41 (0)61 965 2500

Michael Kors Avenida da Liberdade 108, Lisbon 1250-146 +351 21 340 3330 www.michaelkors.com

karl lagerfeld opened first
menswear-only store The king of the black and white wardrobe has opened his first menswear only store in Paris. Customers shop across two floors, which present the label’s full menswear clothing and accessories collections, including watches, colognes and small leather goods. Karl Lagerfeld Men’s 38 rue Marbeuf, 75008 Paris +33 (0)1 4563 6450 karllagerfeld.com

i’m standing still for a moment, which is good progress.

new figures

+49% –44% 2%

The increase in spending on Tax Free Shopping by Chinese residents during December 2014 compared to the previous year.

bertolt brecht German poet

The decrease in spending on Tax Free Shopping by Russian residents during December 2014 compared to the previous year.

The percentage of (nonEuropean) visitors to Europe who are Chinese residents at present.

photo: jörg kolbe

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karim slimani Director of Sales and Marketing, Royal Mansour Hotel

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professionals

pros at customer satisfaction how do you give the customer what they want? three professionals occupying very different areas of the luxury market talk about their businesses, their successes, and catering to their customers.

By Alannah Eames, Carol Akiyama, Claudia Flisi Photo Fred Leloup, Irwin Wong, Emanuele Capoferri

The Royal Mansour Hotel in the heart of Marrakech’s Old Town opened its doors in 2010. Today, this member of the Leading Hotels of the World hosts guests from around the globe who come to soak up its luxurious style and sumptuous décor, relax in its 2,500 square metre spa, or dine in one of its three restaurants under three-starred Michelin chef Yannick Alléno. Approximately 45% of the hotel’s guests come from Europe, 15% from the Gulf region, 15% from the US, and the remainder from Russia, Asia and South America. “There is no typical customer at the Royal Mansour. Every guest is unique and special, mostly staying three to five nights with us,” says Karim Slimani, Director of Sales and Marketing, who has been with the 53 suite hotel since the beginning.

The Royal Mansour Hotel offers two Global Blue services – Currency Choice and Tax Free Shopping. It is the first hotel in Marrakech to provide the Currency Choice service that allows guests to choose the currency they would like to use to pay their hotel bill. “80% of our guests have decided to use this service since we put it in place. We decided to offer this service in the knowledge that it matches the quality and level of service we strive to offer”. Many guests stock up on traditional Moroccan clothes, home décor items, bags and locally crafted jewellery in the hotel’s gift shop. Shoppers who spend over 2,000 Moroccan Dirhams (EUR 185) are refunded 13% of their total purchases; Global Blue offers them personalised assistance at the airport to process the refund. ▪

royal mansour, marrakech, morocco —

Opened: 2010 Employees: 550 Guests from: Europe, Gulf States, US, Russia, Asia, South America Global Blue customer since: 2014 Global Blue services: Currency Choice and Tax Free Shopping

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seishi kimura General Manager, Inbound Policy Business Strategy, Business Planning Division, Isetan Mitsukoshi Holdings Ltd.

isetan mitsukoshi group, tokyo —

Established: Mitsukoshi Department Store (1673), Isetan Department Store (1886), Isetan Mitsukoshi Holdings (2008) Employees: 12,000 Location: Domestic stores: 28, Overseas: 31 Global Blue customer since : 2012 Global Blue services used: Tax Free Shopping, Marketing Services

Seishi Kimura, General Manager of Inbound Policy Business Strategy at Isetan Mitsukoshi Holdings, points out that because of historical traditions, its department stores have their own individual style. The Isetan Shinjuku Main Store carries an air of modern chic while the Mitsukoshi Nihombashi Main Store is steeped in opulent culture. “What all our stores have in common is our commitment to give customers what they want in terms of quality products, an environment that takes them out of their everyday existence, and exceptional guest service,” says Kimura. Kimura has been with the company for 32 years, drawing on a broad range of experience from floor sales, advertising &PR, customer relations and business strategy. Today he heads the Inbound Business section of Isetan Mitsukoshi Holdings, Japan’s foremost department store brand in terms of overall sales and sales from foreign visitors. The Global Blue services the Isetan Mitsukoshi Group uses are Tax Free Shopping and Marketing Services. 10

“The multi-language Shopping Guides are very important to us,” explains Kimura. “I think foreign customers feel a sense of reassurance when they see the Global Blue logo on our tax free pamphlets. The information provided on the Global Blue website about us is also good exposure,” says Kimura. Based on the tax refund information, over 90% of foreign shoppers at the Isetan Mitsukoshi Group are from Asian countries, with China leading. Having Isetan Mitsukoshi Group stores in these countries gives them a sense of familiarity with the brand image. Global Blue’s impact has recently increased when, last October, the Japanese government expanded products to be exempted from its 8% consumption tax to include consumables such as food and beverages, cosmetics and medicine. Since this change, the Isetan Mitsukoshi Group has upped the number of stores offering Global Blue Tax Free Shopping services from 10 to 19. “Since the change, the total amount spent has doubled compared to the same period last year,” Kimura explains. ▪


For a 40 year old luxury sportswear company that invests almost nothing in TV advertising, Paul & Shark has established a remarkable global presence. It began in 1975 when Paolo Dini, son of the owner of a knitting mill in Varese, Italy, returned home from a holiday in the US. He had been inspired by a sign in a Maine sailmaker’s shop that read “Paul & Shark”, and decided to expand the family business into a line of high quality men’s yachting apparel. Today, the company operates in 73 different countries, 458 cities, and 474 points of sale, of which more than 250 are Paul & Shark monobrand boutiques. The explanation for this growth is simple, accord-

ing to retail director Stefano Erculei: “We are obsessed with quality and our customers understand this.” Although many Italian apparel companies flaunt their quality, few have the advantages of Paul & Shark – family owned and operated, located in an area with a long history of textile know-how, and enriched by innovation – including the patents to prove it. “Technological innovation is part of our research, but it does not drive the research. We develop products that can be worn by our customers on a daily basis.” The company’s well established presence in Russia and China benefits from Global Blue’s courses in salesmanship to different cultures. “The approach to the Russians and to the Chinese is very different. Russians want a great deal of attention from the outset; the Chinese may prefer to be left alone at first so they can browse independently before they ask for sales support.” Worldwide, the customers of Paul & Shark increasingly make use of the Global Blue card to facilitate tax reimbursement. The company itself takes advantage of practically all the services Global Blue offers, such as meetings with travel agencies, hotel shopping books and special events such as Expo 2015 in Milan. ▪

stefano erculei Retail director, Paul & Shark

paul & shark, italy —

Established: Founded in 1975 from a knitting mill dating back to 1921 Employees: 450 at company headquarters in Varese Global Blue customer since: 2002 Global Blue services: tax-free shopping, marketing services, Global Blue Academy – cultural sales training Visitors

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trend

blurring business and leisure ‘bleisure’ or a ‘bizcation’ – mixing a business trip with leisure or pleasure – is on the rise as time-strapped, cost-conscious, globetrotting business travellers try to balance their work and private lives. By Alannah Eames Photo Fabrice Lerouge/ONOKY

It’s a fact. People today work more than in the past, are connected 24/7 and are travelling more frequently on business. As employees are asked to do more and take less time off, travellers are increasingly extending their business trips into leisure travel, adding some sightseeing, dining and arts/cultural activities. It’s not just about saving money, it’s about making the best use of your time and energy. BridgeStreet Global Hospitality – which runs serviced apartments in over 60 countries – recently polled 640 international travellers. The survey showed that 83% of respondents use free time on business trips to explore the cities they are visiting, 96% believe they gain cultural experience and knowledge through business trips, over 50% of all travellers bring a partner or family member with them and around 78% feel that adding leisure days to business travel adds value to work assignments.

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According to New York-based travel intelligence magazine Skift, the Chinese and Brazilians are the best at ‘blurring’ their professional and private lives; at the other end of the scale are the French and Germans who ‘blur’ the least. Almost half of all American business travellers use their business trips to discover a new destination. Travel industry specialist Frederic Gonzalo has spent over 20 years within the hospitality industry. He attributes the rise in ‘bleisure’ travel to the fact that people have become increasingly pressed for time, especially as the number of women in the workplace grows and business becomes more global. “A lot of business travellers are on the road quite often and don’t know how else to strike the work/family balance. For Generation Y, business trips are not just about work but about quality time,” he says.

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more popular among younger employees According to a recent survey of 8,500 travellers conducted by Expedia, travellers under 30 years old take an average of 4.2 leisure trips per year compared to 2.9 trips amongst 31 to 45 year olds and 3.2 trips for 46 to 65 year olds. In North America, 54% of 18 to 30 year olds bring a partner on a business trip, versus 36% of those aged between 31 and 45, and 16% of 46 to 65 year olds. The BridgeStreet Global Hospitality survey found that 94% of travellers under 35 years old said they’re likely or more than likely to take a ‘bleisure’ trip in the next five years.

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valuable family time For businessmen and women travelling frequently, not losing touch with their families is a concern. So why not bring your family along and spend some quality time together in another part of the world? Frequent fliers often turn down the chance of a family weekend or holiday away, because they just want to stay at home. Loyalty card points can be redeemed against a partner’s airfare or to extend the hotel stay, making the trip more affordable.

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hotels add leisure lures

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bleisure activities Some business travellers take a later flight home to squeeze in a few hours to visit a museum or take a city tour. Others might extend a supplier meeting in China by two days to visit the Great Wall or Hong Kong. Most business travellers believe they gain cultural experience and knowledge during these trips, and feel that staying in a quality hotel or enjoying a good meal adds value to their work assignments and helps create a more balanced work life. Research from Virgin Atlantic shows that 61% of business travellers feel they have the best job in the world because of the travelling their positions involve. The Expedia survey found that, globally, 42% of those under 30 say they would spend more company money on high-end meals, than 26% of those aged between 31 and 45.

Most of the major hotel chains offer incentives to entice guests to add leisure time to their trips. Radisson Blu hotels, for example, offer a discount of 15–20% for stays of three nights or more. Marriott offers its loyalty club members the chance to extend their stay over the weekend with discounted rates on upgraded rooms and lounge access. Research by American Express and Starwood found that six out of 10 business travellers collect rewards and points on travel-related schemes and credit cards. Of these, four out of 10 use the rewards as a means to subsidise or upgrade their holidays.


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‘guilty’ factor, am i allowed? There’s only one looming question many business travellers ask: “Is this ok?” According to the Bridge­Street survey, only 14% of travellers said they are aware of a company policy about ‘bleisure’ trips and 59% said there was no policy. It’s a win-win situation: employees save on the cost of an air ticket and the employer has no additional costs but gets a more satisfied employee. The general view seems to be that as long as it doesn’t cost the company money, bringing a partner along is acceptable. Companies can also turn frequent business trips into a perk for employees who travel extensively, letting them collect loyalty points and take a partner with them every so often, as ‘compensation’.

“it’s important to get some rest and cultural experience”

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social media changes the equation ‘Bleisure’ travel is also being stimulated by the evolution of travel technologies. Savvy marketeers are using loyalty programmes and online cookies to inform customers about opportunities at their destination. Frederic Gonzalo helps the tourism industry to engage more with its customers via social media. “Nowadays, people put their lives on social media. Hotels, restaurants and destinations are monitoring their updates and adding suggestions on Twitter, Facebook and Instagram to build up the hype for the destination,” he explains. “Likewise, the industry wants to keep in touch with its customers after they leave – maybe that business traveller will return one day on a leisure trip.”

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Kristina Carlsson is a product manager in the textile department of Intersport. She travels around 10 times per year, often to London, New York and Miami, to keep up to date with the latest trends in sports clothes, to the company’s head office in Bern, Switzerland, and to Bangladesh and China for meetings with suppliers. “A typical trip involves a lot of work, jet lag and meeting fantastic people,” she says. While her job and the travel can be stressful at times, she believes seeing and experiencing new places, and indulging in some of her favourite leisure activities help to balance it out. Once her meetings are finished, she usually makes time for some shopping, reading, visiting museums, cafes or fine restaurants, or taking a foot massage. Why? “Because we all live a hectic and stressful life so it’s important to get some rest and cultural experience; it’s also great to have the opportunity to see new places,” she says. “For example, on a recent work trip to Hong Kong, I escaped from the hustle and bustle of the city after work to go trekking and enjoy the nature, while getting some exercise at the same time.” 15


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insight

lessons learned from the new gold rush as tales from struggling brands fill the news, is an emerging markets strategy still worthwhile, and if so, what lessons can be taken from the first movers into china?

By David Nikel

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“china still represents the single largest opportunity for luxury brands, but at the same time it requires a very deliberate and considered strategy.”

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ver the last 18 months, luxury retailers in China have struggled as uncertain economic conditions and a crackdown in corporate gift giving change the playing field. Yet the the latest analysis from Euro­monitor International predicts luxury markets in China, along with India, Malaysia and Indonesia, will continue to experience rapid growth this decade. As the Chinese luxury market becomes ever more sophisticated and segmented, opportunities remain for brands that have a truly unique story to tell.

a different animal Philip Guarino is the European Director of China Luxury Advisors, who counsel luxury brands and retailers on their China consumer strategy, ranging from market entry to digital to attracting, converting, and retaining affluent Chinese customers worldwide. “The fundamental issue is that China is a different animal from the rest of the world. There has been so much growth and change in a compressed period of time. Brands rushed in all at once and created a lot of noise on the ground. In turn, Chinese consumers were presented with so many new brands, especially in tier one cities like Shanghai and Beijing. They are still learning and making decisions, which means this is a critical time for luxury firms to build their brand 18

image in the market. Even brands at the top of their industry struggle to comprehend that although their brand is well known and respected in Europe and the US, it is unknown in China. You must roll up your sleeves and educate.” “China still represents the single largest opportunity for luxury brands, but at the same time it requires a very deliberate and considered strategy. As over two thirds of luxury consumption by Chinese consumers occurs outside of China, brands must take a global approach to this consumer, an approach that targets not just a geography but a global Chinese demographic. Being able to engage and track customers when they are shopping in London, Los Angeles or Tokyo and effectively offer consistently superior and personalised service will be a differentiating factor in building trust and loyalty. There is a great opportunity to engage consumers at key touch points around the globe: a brand can show its heritage, its “best” in its established locations or home base.”

essence of luxury Yann Debelle de Montby agrees with the need to focus on the essence of your brand. He is co-founder of Dream Manufacturer, a Shanghai-based creative design studio that helps international companies build or rebuild their brands. “Being number one worldwide means nothing in


insight success stories in emerging markets China, but conversely, being nothing worldwide means you could still be number one here. Your brand is so important to showing who you are and why you are so specific and different from other brands. China is a very complicated market, customer needs and expectations are moving so fast. What took the rest of the world 60 years has happened to China in the last ten.” “It’s not about adapting your brand to China. It’s about returning to the very roots of your brand, rediscovering it, and selling the dream. Driving a Bentley makes you feel special, that’s why you buy it, not because you want to buy a car. There is nothing rational about luxury, it’s about emotion. Many brands that came to China neglected that emotional part.

digital strategy Consumers in most emerging markets were introduced to the Internet through a smartphone, so tap-and-swipe is more intuitive than point-and-click. Social media, not print, will communicate your brand to the modern mobile consumer but it’s important to pick the right platforms and devise a strategy to reach local influencers. With many western websites blocked to Chinese consumers, your brand must be visible on the local platforms. You may not have heard of Qzone, Youku, Sina Weibo, Weishi or WeChat, but Chinese consumers have and use them daily. Their usage figures rival those

Philip Guarino, European Director of China Luxury Advisors

jimmy choo

Product placement on the popular ­Korean TV show “My Love From the Stars” spearheaded a comprehensive marketing campaign that drove almost $451 million of sales across Asia in 2014. The company understands its Asian customers frequently visit its flagship stores around the world, so adjusts its marketing accordingly.

goyard

Goyard has just one Paris storefront but that hasn’t stopped it succeeding in China, proving that smaller brands can make it with the right strategy. Despite a tight budget, Goyard built its retail presence through word of mouth and clever brand building activity on the ground.

jaguar land rover

Booming sales in China drove record profits for the premium car maker in 2014. Despite being Indian owned since 2008, the famous marques retain and emphasise their quintessentially British brand heritage. The premium models – the Range Rover Sport, new Range Rover and Jaguar F-Type – are all popular in China. Visitors

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Photo: Derrick Santini

Yann Debelle de Montby, co-founder of Dream Manufacturer

“don’t assume anything will be done the way you expect it to be done. assume nothing, and be prepared to invest significant time and energy into the process.”

of the biggest social apps in the rest of the world. Burberry’s digital strategy offers an interesting case study. Its website’s primary function is to be a brand builder. Content such as previous runway shows, product stories and brand history educates, while its significant social presence on messaging service WeChat and video sharing app Weishi promotes. Only on the e-commerce site is the focus solely on the shopping experience.

Invest in people Finding the right people to work with, from the highest level right down to your brand ambassadors, is key to success in emerging markets. Partnering with experts is strongly advised due to the problems with finding suitable locations and staff for a luxury retail operation. In China, demand for qualified and experienced staff is high, so expect a time-consuming search or be prepared to invest in a substantial training programme. This requirement is even more relevant if you look to booming second tier Chinese cities like Chongqing, Tianjin and Chengdu, or other emerging markets. Yann Debelle de Montby offers some honest advice: 20

“Success in the Chinese market requires great care and attention to detail, at the strategic level but even more importantly on the ground. Don’t assume anything will be done the way you expect it to be done. Assume nothing, and be prepared to invest significant time and energy into the process.”

a new global mindset Philip Guarino believes the key to success in emerging markets is adopting the right mindset at an executive level. “So many companies follow the old recipe: they open retail stores, hire a top level PR agency, spend huge amounts of money on ineffective print advertising and expect things to happen. Brands need to be more active on digital platforms, better utilise technology and engage Chinese shoppers not just in China but globally.” “In order to be successful, it is critical for executives to set a global approach to market development, customer service and business operations. Regions will no longer be able to work in silos, they will have to share more and more in order to service a mobile, global consumer.” ▪


Make spending easy, sell in your customer’s home currency

Foreign customers are happier to buy when they are sure how much they are spending. Currency Choice from Global Blue allows you to offer these globe shoppers the option of paying in their home currency. Removing uncertainty gives your customers peace of mind, while earning you commission on each transaction. Global Blue has spent 30 years building relationships with the world’s most valuable customers, isn’t it time you started? business.globalblue.com

Currency Choice


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up close

designing for today’s consumers architecture–trained designer kim colin has designed products for some of the world’s bestknown brands. she shares her inspiration, why she looks forward instead of being hampered by tradition, and the role of the designer in making products which simplify life for consumers.

By Alannah Eames Photo Chris Gloag

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“the hardest thing is to think beyond one’s individual needs and how to make the world a better place – how to reach people with a good message” Kim Colin

“Second Phone”, designed for Muji. In production 2002–2006.

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os Angeles native Kim Colin is co-founder of Industrial Facility, an industrial design company based in London. Yet this established designer started her career with a degree in art history and a Master’s in architecture. That led to a publishing job in London, commissioning books on architecture and design. “It was not a straight path,” she admits. It was in London in 1998 where she met Sam Hecht, an industrial designer, just back from a three year work stint in Japan. “We started a conversation back then and that fuels our studio today,” Colin recollects. With her architectural background and Hecht’s product designer skills, Colin believes it’s a perfect match. “We have a strong interest in the same topics but come at them from very different points of view. If you are an architect designing a building, you look at how it’s going to fit into the city and the environment. A product designer looks more deeply into the macros and at how details operate. It’s these two different ways of looking at things that enriches our work.” Despite having lived in London for almost 20 years,

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she hasn’t lost touch with her West Coast US roots and confesses to missing L.A.’s edge in creative fields such as graphics and the art world. “What I also love about L.A. is that it is the edge of the frontier – it’s the very last piece of land before you reach the Pacific Ocean. And L.A. looks forward and is not hampered by traditions like in Europe. Its architecture is really non-precious about buildings. You can scrap things and build something else. It’s not the feeling of permanence like you get on the East Coast [US] and Europe. Yes, I do like to look at history and respect it a lot but I’m not stuck there,” she adds matter of factly.

improving life What fascinates her as a designer is how we live with the things around us. “I’m really interested in the fact that products are often over-specified for what we want to live with. And they often don’t acknowledge that we have other products which do other tasks for us.” She shares the example of the very basic landline phone which she designed for Japanese retail giant Muji. “We wanted a very simple phone that would be used only for calling, dialling and picking up with no


other fancy features. The result was a quiet gadget like an extruded brick that fits on any horizontal base and does not need to sit in a cradle. It can be completely dormant in a room,” Colin says. So it’s no surprise then that good design for Colin means making something which is relevant to the way we live. “I appreciate part of it is all about fantasy and future ideologies but for me good design improves the way we live and good business practices.” Since she set out in the design world, globalisation and technology have brought both new challenges and opportunities for industrial designers. “I think the hardest thing is to think beyond one’s individual needs and how to make the world a better place – how to improve manufacturing, how to make distribution better, how to reach people with a good message,” she elaborates. “But it’s really important to think about designing products that will stay around for a while. We might want to design things that are quick, cheap and good but in our experience, you can’t have all three together – you can have two of these things but not three.” Colin believes that companies and products trying Visitors

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to have a more intimate conversation directly with their consumers is a huge opportunity for designers today. “In the old advertising world it was all about selling the product. Now, the relationship with the consumer doesn’t end at the point of sale. Things are getting more connected and more geared towards longer term relationships,” she says.

the internet of things Likewise, the Internet is forcing designers to look at technology in a different way. “One of the biggest areas of design opportunity, in my opinion, is the Internet, and how products are connected via the Internet. How can we manage all these relation­ ships?” Colin elaborates: “It’s one thing to have a thermostat that controls the temperature at home and provides the visibility to manage it. But what happens when we have ten things like that in our home all demanding our attention? Then, on top of it all, I have a relationship with my network provider, my phone manufacturer. There needs to be a relationship manager for all these things so that’s where I see the 25


opportunities for designers – to find ways to help manage these relationships.” Colin predicts that this will become a huge trend in the future. “I think we’ll see more connected products where the relationship with the consumer is even more intimate than before. Appliances, electronics et cetera will have a different relationship in how they are used. They’re already trying to do it with white goods; people are now trying to squeeze it into furniture; it’s been in fashion for ages. There’s no limit to what connected products can do. Time will tell in terms of longevity. Technology and longevity don’t always go together.”

keeping brands alive Colin’s no stranger to working with big global brand names like Hitachi, Issey Miyake, KitchenAid, Louis Vuitton and Muji. In addition, Industrial Facility is a creative advisor to US furniture giant Herman Miller for whom it designed the award-winning Locale Office, which is part of their ‘living office’, Formwork and Wireframe Sofa. Her products are simple, functional and contemporary with a sense of longevity, which pretty much sums up Colin’s style: a thoughtful reflection of how we live today. Locale, for example, is an office furniture system that promotes a collaborative work environment in an open plan office. It turns the 26

“dna is not a dead thing, it is a living thing. even if a company has a brand manual, the minute the brand becomes static, it dies.” Kim Colin

architectural scale of an open office plan into a tightly knit, compact neighbourhood where people can sit or stand at their desk or have a coffee. Modules are used to accommodate a variety of work styles and give variety during the workday. But does working with major brands and inserting their DNA into a product smother a designer’s creativity? “No,” says Colin. “DNA is not a dead thing, it is a living thing. Even if a company has a brand manual, the minute the brand becomes static, it dies. I think we are now in a new wave of understanding what brand DNA means. A lot of companies have gone through a phase of redefining their brands and then find that they can play this out theoretically but not in their products. It’s a dead end for many of them.”

consumers vs companies The designer’s role, she believes, is to figure out the true values of the brand, beyond what the brand manual says. “Often the designer is asked to take the brand somewhere. That ‘somewhere’ has not always been mapped out so it leaves a lot of space for creativity.”


chapter's name

kim colin Nationality: American by birth, a Londoner by choice. Background: Studied art history at UCLA; Master of Architecture degree from the Southern California Institute of Architecture (Sci-Arc); worked in architecture and publishing before founding the Industrial Facility with Sam Hecht in 2002. Favourite designers: “Achille Castiglioni (Italian) because of his creativity and lack of fear; Egon Eiermann (German) for his technically savvy but simple solutions.” Favourite design classic: “Dieter Rams’ Braun calculator. It was one of the first things I noticed growing up that took a stand, had a point of Dieter Rams’ Braun calculator view and its design made it better to use.” Inspiring places: “My favourite retreats are Hawaii as it’s just paradise, the north coast of Spain, which is very dramatic, and the drought of the Californian desert, especially after wet London. I do love London, which is a very stimulating place.”

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no 12 Spring 2015

According to Colin, it’s not rocket science. “Consumers want things that work well and don’t demand a lot of their time. Many designers are told to design products that grab consumers’ attention at the point of sale. But I think consumers want things that don’t shout at them. They want a nice friendly relationship with their products but don’t want a needy friend; it’s just like in a human relationship. It would be nice if designers truly thought about what we need and not just about what companies want to make,” she says. And that’s one of the best parts of her job: “The diversity. All projects you work on make you think. I enjoy the perspectives from different industries, the variety from fashion to white goods. We learn a lot from working on medical devices, for example, which might influence something we’re working on for Herman Miller, even though they are both operating in totally different industries.” Having been in the design world for over 20 years, Colin has some words of wisdom to share with upcoming designers. “It’s really important to learn the craft of making something but you also need to understand technology. A lot of design programmes give you an education in one or the other but the integration of both is key. Also, be wise and take your position, don’t waffle and compromise what you can do.” ▪ 27


St Petersburg to Sao Paulo, interviews to analytics, we have the insights you need

Foreign customers spend on average four times more than domestic customers. Intelligence from Global Blue gives you the crucial edge in the battle to win their custom. Putting the insights from the world’s most comprehensive foreign customer database at your fingers tips, Intelligence brings you closer to international shoppers than ever before. Global Blue has spent 30 years building relationships with the world’s most valuable customers, isn’t it time you started?

The world’s best shopping, better. business.globalblue.com

Intelligence


beyond business intelligence smart business

By David Nikel

The largest supermarket chains now own petabytes of data, the equivalent to all the academic research libraries in the United States. Valuable insights for personalising and improving the effectiveness of marketing campaigns and removing inefficiencies in distribution and operations are also on offer to luxury retailers if they can navigate this ocean of data. Within financial services, an early adopter of Big Data, the trend was driven by regulatory require-

big data explained Big Data is the next step in Business Intelligence. It’s a set of tools and techniques that uncover hidden trends from diverse, complex datasets, so large that new forms of integration and analysis are required.

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no 12 Spring 2015

ments and the need to better predict and manage risk. For retailers, omni-channel marketing, a seamless approach to the customer experience across all channels online, mobile, bricks-and-mortar, direct mail – is now a reality. An accurate online analysis reveals not only your brand champions but also their sphere of influence, allowing you to broaden your marketing beyond that specific customer. Powerful customer profiles can be generated, driving marketing campaigns across all touch points based on consumer behaviour and conversations on social media. Keri Smith, Senior Vice President of the Advanced Solutions Group at Opera Solutions, helps retail companies get a handle on their data and the possibilities lying within. “Wallet size information is avail-

able from credit card companies, online behaviour from the likes of Google Analytics and Omniture (Adobe), and demographic information from credit reference agencies and a variety of publicly available and proprietary data sources.” “There is such a buzz around this external data but it isn’t always a silver bullet. For an optimal outcome, we advise retail companies to focus internally first, then integrate external data, and, finally, apply the power of advanced predictive analytics to the combined data ecosystem. Integrating ERP, loyalty programmes, marketing systems, email systems and other legacy data across all brands and business units can be a powerful first step to drive higher precision marketing efforts, better site selection, and improved supply chain management, for example.” ▪ 29


amangiri resort Opened : 2009 Accommodation: 34 suites, 36 villas. Size: 243 hectares, 2,322 sqare metre spa.

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dreams

hidden desert oasis By Nic Townsend Photo Amangiri Resort

Visitors

In southern Utah, discreetly tucked away in the far corner of a protected valley, the Amangiri Resort manages to blend seamlessly into its stunning desert landscape by wrapping itself around the contours of the surrounding rock walls. Natural hues and building materials further integrate the resort into its environment, from where it can offer sweeping unspoilt views of the surrounding valley towards the Grand Staircase. The Amangiri Resort is located in the heart of America’s Grand Circle, surrounded by the Grand Canyon, Colorado River, Monument Valley and Grand Staircase. This rugged yet pristine environment, characterised by deep canyons, towering plateaus and endless desert, is home to some of America’s rarest species and unique forms of vegetation.

no 12 Spring 2015

By integrating so effortlessly into the desert landscape, the Amangiri Resort enables visitors to fully embrace this treasured place, while also enjoying luxurious accommodation and fine dining, as well as a host of rest and recreation activities. Every suite and villa has been specially designed to reflect its unique natural setting, with white stone floors, concrete walls and furniture made from rawhide and natural timber. Many suites also offer stunning panoramic views of the surrounding desert. In addition, the resort offers a swimming pool, spa, sauna, steam room, fitness centre and yoga pavilion. The surrounding national parks are ideal for hiking, while the nearby Lake Powell offers swimming, kayaking and fishing in pristine turquoise water.

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global news

global blue’s russia dossier now available The third in Global Blue Intelligence’s acclaimed series of in-depth studies into globe shoppers from a particular nation was launched early in 2015. This major study provides deep insights into the lives, and shopping and travel desires of Russia’s most upwardly mobile consumers. It is the result of a face-to-face survey of 600

Russians, as well as in-depth interviews with 18 opinion-forming travellers. It provides an invaluable guide in how to attract, serve, and sell to (easily) Global Blue’s second most valuable traveller nation. In 2015, Russians are behind only the Chinese, and worth three times as much as any other traveller nation to retailers and other tourist businesses.

By Simon O’Connell

Selfridges’ flagship store on Oxford Street is one of London’s most popular shopping destinations for tourists.

global blue opens lounge at selfridges Selfridges has launched a new Customer Services Lounge in the heart of its London store on Oxford Street, expanding its international customer services and catering to the Tax Free Shopping needs of customers. The impressive new Customer Services Lounge is triple the size of the previous one and offers a range of services, including tax refunds, currency exchange, a VIP area and a Mac Bar, 32

where customers are able to go online to further shop from Selfridges.com. The theatre desk, operated by Time Out, is another new service. Customers can book shows whilst visiting the store – a perfect end to a day of shopping. The new lounge, created by Londonbased design company Waldo Works, uses original architectural features to reference the early 1900s when

Selfridges first opened – a golden age of travel and opulence. Designed with a discerning international clientele in mind, the new space will be one of the top locations in London for Tax Free Shopping.

Selfridges 400 Oxford Street, London W1A 1AB, 0800 123400 (UK), +44 (0)113 369 8040 (international)


global news

global blue opens its first customer services lounge in milan The new Global Blue Lounge ­includes an exclusive relaxation area.

The first Global Blue Lounge in the luxury shopping district of Milan has recently opened for business. With exclusive services such as Tax Free Refund, a welcome and relax area, a delivery service and an info point, it serves as a hub for foreign visitors and global shoppers. Via della Spiga is one of Milan’s most historic and popular pedestrianised shopping streets. It is home to a host of exclusive boutiques housing the most famous Italian designer labels – clothing, accessories, jewellery, as well as antiques and new design. Despite being the centre of the city’s internationally renowned shopping district, Via della Spiga has not lost any of its medieval village charm. Many of the boutiques feature stunning window displays, as luxury and high fashion mingle with beautiful flowers and historic architecture in a timeless atmosphere. Today, over 30% of purchases by foreign visitors in Milan are made on Via della ­Spiga. Indeed, the street played a major role in Milan being named as one of Europe’s top 10 destinations in 2014 by European Consumers Choice. And Milan has every reason to expect 2015 to be one of the most exciting years in its recent history. Expo 2015 is poised to capture the world’s attention, beginning in May. Milan is the host city and visitors can look forward to a festival of art, culture, tradition, creativity, technology, innovation Visitors

no 12 Spring 2015

and – being Milan – shopping. The theme for Expo 2015 is Feeding the Planet – Energy for Life, and the city is preparing to host representatives from over 140 countries. Milan is a city with a unique charm that knows what it does best and why it is attractive. Via della Spiga lies at the heart of its identity as an international symbol of luxury shopping. Global Blue is delighted to be represented at such a prestigious location and looks forward to welcoming visitors to Expo 2015, and in the years to come.

25% of all tax free transactions are now digital 25% of all Tax Free Shopping transactions are now digital. A transaction is fully digital when: • all steps of the tax free process have been digitised • it is electronically issued • storage of the transaction is digital • the Customs validation is digital (no physical stamp needed), preferably also an automatic credit card payment – but that is not needed for us to consider it fully digital Electronic Tax Free Shopping has now been enabled at the border between Austria and Switzerland. Since December 2014, two of the busiest exit points between Austria and Switzerland have had self-service kiosks installed. Since March 2015, two more exit points have these kiosks. The kiosks enable travellers to receive an automatic Customs approval without queuing 24/7, i.e. even when the Customs office is closed. The kiosks not only digitally stamp the transactions, but also refund the travellers.

currency choice in australia

Milan’s Via della Spiga is home to one of the world’s most renowned shopping districts, but still maintains its historic charm.

Global Blue and Westpac, one of Australia’s top banks, have joined forces to provide a Currency Choice service to all the key merchants in Australia under Westpac’s acquisition. This is a significant milestone as it marks Global Blue reentering the Australian market. We are providing a one-stop-shop DCC solution to Westpac, with a standard payment processing service agreement. We have partnered with EFTex, an Australian 3rd party processor, to fill the payment processing service obligations towards Westpac. 33


global blue stats

every day, global blue serves 100,000 globe shoppers. here we take a closer look at tax free shopping transactions to find out who is buying what, where, and for how much?

globe shoppers sales and transaction development july–december 2014 vs 2013 In the second half of 2014, China cemented its vital importance to retailers who offer Tax Free Shopping: Chinese globe shoppers now account for a third of overall spending, and increased that spend by +19% over the

same period in 2013. Russian spending fell by –21% as the ruble plummeted in the second half of 2014, reducing travellers’ shopping budget. Residents of Taiwan and Hong Kong both increased their spending by +36%.

spending development vs 2013

transaction development vs 2013

average spending per purchase

19%

29%

743€

Russian Fed.

–21%

–25%

377€

United States

10%

2%

689€

Indonesia

–3%

–10%

630€

Taiwan

36%

35%

443€

Hong Kong

36%

27%

706€

China

Saudi Arabia

12%

8%

737€

Japan

–7%

–11%

525€

Kuwait

13%

7%

512€

1%

–4%

814€

Thailand

top five destination countries per outbound nation France benefits the most from the exponential increase in outbound tourism from China, and accounts for 24% of total spending, with a spending increase of +19% over the latter half of 2013. Close behind are Germany with 14% (+11%) of total Chinese spending, United Kingdom with 12% (+12%), and Italy also with 12% (+18%).

united states Italy France United Kingdom Germany Spain

indonesia

china

% of total

sales vs jul–dec 2013

avg spend

France

24%

19%

1 658€

Germany United Kingdom Italy Singapore

14% 12% 12% 10%

11% 12% 18% –2%

561€ 919€ 874€ 971€

% of total

sales vs jul–dec 2013

avg spend

taiwan

29% 15% 14% 9% 8%

–18% –24% –9% –43% –7%

659€ 336€ 1 249€ 132€ 382€

France Japan Italy Germany Austria

russian fed. Italy Germany France Finland Spain 34

Singapore France Italy United Kingdom Germany

% of total

sales vs jul–dec 2013

avg spend

29% 27% 13% 5% 4%

5% 18% –2% 11% 12%

853€ 1 220€ 738€ 340€ 566€

% of total

sales vs jul–dec 2013

avg spend

61% 17% 6% 3% 3%

–8% 10% 5% –11% –11%

535€ 1 710€ 945€ 738€ 474€

% of total

sales vs jul–dec 2013

avg spend

28% 19% 14% 9% 6%

28% 176% 13% 18% 15%

1 298€ 388€ 701€ 296€ 470€


chapter's market outlook name

top 10 most popular cities for tax free shopping

top 5 nationalities for tax free shopping

Paris and London are the most valuable destinations for Tax Free Shopping, with 17% and 13% of the total, respectively, and both grew their revenues slightly. Singapore and Milan both showed a slight drop in spending on Tax Free Shopping due to Indonesians and Russians respectively reducing their overseas spending.

Chinese globe shoppers have increased their spending and are now accounting for a third of the total Tax Free Shopping spend. Russians are spending a little bit less than before, but are still holding a strong second position.

top 5 nationalities

Top 10 cities

China Russia USA Indonesia Taiwan

% of total

33% 12% 4% 3% 3%

6. Seoul 3%

Top 10 cities

3. Singapore 9%

2. London 13% 8. Frankfurt 2% 1. Paris: 17%

7. Munich 3%

10. Vienna 2% 4. Milan 5%

9. Barcelona 2%

5. Rome 3%

to learn more, go to business.globalblue.com Visitors

no 12 Spring 2015

35


for the top 10 globe shopper nations

When to expect globe shoppers? Available for download now.

the magazine about globe shoppers | issue 12 spring 2015

International Holiday Calendar

the magazine about globe shoppers | issue 12 spring 2015

good designs

Kim Colin talks about designing the product the consumer is really looking for.

‘bleisure’ trips

Mixing business trips with leisure is becoming more and more popular.

going further afield How can brands make it in the Chinese luxury market?

data’s getting bigger corporate.globalblue.com

corporate.globalblue.com/calendar

How retail companies are tackling growing business data. 1


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