Report On International Marketing Management: China

Nowadays China tourism and hospital industry has become vital part in the world for tourism market, little is known internationally about the hospitality industry and tourism market trend and also the consumer segment. This assessment reviewed at least 30 articles and approximately 14 references to refer. The investigation of hospital industry for market in china had showed necessary and indeed for the contents. Primary research showed the hospitality industry market trends and also the major branding in china. Attractiveness and introduction for china has analyzed the positive and negative impacts. Most of the research under review used a qualitative and quantitative research. Investigation and articles data being collected from the mentioned references and follow by the secondary research to conclude the overall investigation.

Introduction

China is the world’s most populous country. it has a continuous culture stretching back nearly 4,00 years and originated many of the foundations of the modern world. Moreover, China has a land area of about 9,634,057 square kilometers and claimed as third largest country. In china, there are lots of dialects, and over eighty dialects can’t communicate with each other. As of 2015, China is the fourth most visited country in the world with 56.9 million international tourists per year but in year 2016 the number of tourist increased to 59.27million. As China easily rank second in the world for traveled and simply the tourism’s contributed GDP (943.1 billion in 2014) and first in the world for travel and tourism’s contribution to employment (66,086,000 jobs in 2014). Based on direct, indirect and inducted impact, accounted for 9.3 percent of China GDP. Moreover, the hospitality industry in China has witnessed a dramatic changed and also the development for hotel industry are fully demanded, therefore the Chinese government agencies and foreign investor involved and developed various of building for new hotels and push China’ hotels markets for tourism purpose in globally. According to the reports showed from hospitality and hotel industry, Inn the five years through 2018, the hotel and hospitality industry has been growing 8.4% on average to an estimated $70.1 billion. The rapid devolvement of tourism in recent years has driven developments of hotels in china. For foreign enterprises, which have a significant impact o the industry development, have introduced the brand and chain management concepts and high service standards to China as they have strong dominant positions in high end market but have recently started moving into lower star segments.

Key consumer segments (domestic and Foreign)

China has been recently attracting major foreign brands in many different sectors. Zara, H&M, Swatch and others Internationally loved companies have already settled in china. Therefore, before entering the china’s market segmentation strategy to make sure, that their products sui tastes of potential new customers. Chinese consumers have specific demands, and some international chains have launched brands and concepts expressly for the Chinese market such as Accor's Mei Jue instead of the Grand Mercure brand, InterContinental's Hualuxe, and Movenpick's Rui Xiang.

The right network of locations, products, services, and amenities is also crucial. The latter two are especially important in China, where F&B (food and beverage) and spas account for more than 50 percent of hotel revenues. Investment in brands, distribution, and a strong local loyalty program is another key to winning visitors — a solid brand and distribution could increase revenues by 20 percent or more. Our consumer study shows that 50 percent of upper middle-class Chinese are influenced by loyalty programs when choosing a hotel. InterContinental Hotels Group (IHG) has the largest active loyalty program in China, with 2 million members.

To capture the growing demands of vacation travelers, major hotel chains such as Starwood and Marriott and boutique operators such as Club Med and Banyan Tree are increasing their vacation-resort footprint across China. This trend is not limited to high-end properties. Domestic budget operators, aware that 63 percent of budget accommodations are for leisure travelers — versus 42 percent of high-end accommodations — are considering opening up budget resorts.

China's vacation-rental market is also taking off, and is expected to double in size annually over the next two years to reach $1 billion in 2015. Leading players include Tujia, Airizu, YTX, and Mayi. Tujia, with investments from China's leading online travel agency Ctrip and major U.S. vacation-rental firm HomeAway, dominates the high-end market. Tujia caters to travelers seeking hotel-style services in their rental accommodations such as room maintenance, pick-up and delivery, and restaurant-guide assistance.

The time-share format, although not new in China, is still in its infancy. Domestic players such as HNA's Club Vac, Tianlun Vacations, and Freedom Vacation Club are time-share leaders. While many Chinese still largely view time-shares negatively — 58 percent of respondents cited company bankruptcy as the reason for their disapproval and 40 percent complained about inflexibility — attitudes have begun to change as they have become acquainted with the time-share concept in mature markets.

Critical review the impact of cultural, social, political and economic factors on marketing strategies

Social and Cultural

The impact of cultural, social, political and economic for China, for examples the great wall of china, it attracts more tourist. Moreover, it also brings the nations together as the great wall of china being one of the ancient world heritages and also a significant for china. Furthermore, there are 420 million internet users in the country as there is internet access, Chinese user often shop online. TaoBao is the largest local e-commerce websites.

Economical

Beside that the economical for the hospitality industry will generating more money to the government and the economy. It also creates jobs, leading to employment within the tourism and hospitality industry and also provides opportunities for small scale business enterprises, which is important in rural communities and generates extra tax and revenues, such as airport and hotel taxes which can be used for schools, housing and hospitals and bring money to the government and the locals.

Environmental

For the negative impact is that, as more tourist are lured into the trap known as “tourism” they are also being disrespectful to the chine culture by breaking the brick out of the great wall of china for souvenir purpose. Almost 1/3 Great wall of china has been disappeared under the pressure of millions of tourist each year, causing the destruction of the wall. Political As far as we concern about the political for this industry, these are also classified under both positive and negative impacts of tourism. To prevent further loss of the architectural wonders and cultural heritage of the great wall, the Chinese government has chosen to enacted the laws to protect the great wall, by also raising funding for the wall protection, restoration and maintenance by the visitors.

Technological

A Major technological problem in China is that the development of the B2C industry does not have a safe and stable online payment system. Based on the perspective of Ortolani (2005) there had been only 1 percent credit card penetration in china.

Legal

The legal framework for e-commerce is still in its early stage. China has little experience for drafting e-commerce legislation for topics like intellectual property rights protection and tax. There aren’t any regulations supporting the privacy, recognition of digital signatures, consumer rights and validation of electronic contracts yet.

Attractiveness

As China has the largest market in the global and is known as Asia’s most attractive consumer market claimed by: Bloomberg. More over China has at least 12 top rated tourist attractive attractions in China and 40 beautiful places t to visit in China. Such as Shanghai known as a city of commerce, Guilin with beautiful scenery and most unique mountains and the river (Li River) the most beautiful river and etc. The reasons why for being so attractive simply caused by the ancient history, urban wonders, picturesque landscapes and cultural experiences and also claimed as history land. More over China do has a continental climate, though the country has an ocean coast and latitudes range from tropical to Siberian, meaning that the temperatures and weather differ strikingly across the country.

Trends

The future trends for China such as the technology trends for smart in room devices and cloud computing system, this also to reshaping the current industry. As the hotel and tourism has undergone much change over for past decade. As consumers look to save money, hotel technology has catered to their desires, offering from virtual views of rooms to automated check in and check out functionality and even virtual concierges.

Challenges & Opportunities

Meanwhile China currently have an estimated n2.5 million hotel rooms. But it doesn’t mean the Chinese market has reached its saturation points. China has 1.3 billion populations. On a per capita basis, china has just four hotels rooms for every 1000. Meaning to say the country still have plenty of rooms to growth. Besides that, many foreign visitors complain of having to listen to staff practice their English, making them feel like unpaid language tutors. Therefore, they need improvements for the language for communication purpose.

Conclusion and Recommendation

From the above discussion had shown the impotency of understanding the trends or products are directly affected toward hospitality industry and also the positive and negative impact coz direct and indirect to the cultural. With the huge numbers of population, China has been easily become the number one tourism market for china hospitality industry. The market boomed overnight and bringing profits and reputation from the global. Therefore, for tourism spot, hotel industry even for local F&B Industry, (SMEs) and etc., gaining from the positive impact. Eventually china market and number of tourist increased and became overload, that caused a lot of damages, polluted air, contaminated water, wastage and trash in the local. The local government should maintain and control in order to have a sustainable environment for tourism to the local hospitality industry. Besides that, to understand and being respect to the local cultural is necessary needed. Hereby, the local government should run more campaign and awareness to the public. As the research also showed that those key players have the advantages for the consumer segment. No doubt, the background of the player has strong and stable financial support in order to supply the demand for the market but there are still plenty of rooms to improve, especially languages. As English is the international language. Due to high demanding, china actually attracted the foreign investor to create the necessity for the market. Eventually the local need to improve the particular language age especially English to have better communication and understanding.

Moreover, for china technology also make a lot of changes such as their payment method such as WEI XING ZHI FU BAO (WECHAT PAY). The consequences make less people to use credit cards from the bank. Besides that, online shopping was part of the trend and the local did it successfully. In the current moment the hospitality industry was looking forward to implement and applied the latest technology to their nature of business for hospitality industry and also to maintain the reputation and company upgrading to cope with the trend and consistency for the market.

Mixing business with politics was often essential in china, where government owned entitles still hold considerable sway over economic life as it happened as a combination structure. Major international hospitality brands have had a presence in china, by investing into large mixed use projects, which include hotels from international developer. Moreover, the local government owned all land in china and leases commercial space on a 40 years’ term to the developers.