Luxury Tourism Program ONE Travel Conference January 2015 Melanie Rudin Director of Marketing and Business Development

Founded in 1900 World’s Largest Watch Retailer Offers over 100 Luxury Watch Brands 35 Locations Nationwide Who is Tourneau?

Tourneau Clients Throughout the history of our company the domestic customer has been our focus and the lion’s share of our business. Our locations in major tourism cities means we also have a very strong international customer following. While we serve customers from every part of the globe, as with many of you- China is a major consumer and a group to which we pay close attention.

Every client wants the same things from a luxury retailer They want luxury goods delivered with exemplary care at the best possible price. In order to provide our foreign clients with this experience we offer some very basic things: - Sales professionals who ideally speak the language of our clients and are familiar with etiquette and protocol - Collateral in multiple languages - Acceptance of preferred form of tender - Pricing and policies that are the same across all stores/channels - Contingencies for after-sale care and communication

Chinese Travelers Travel in groups Appreciate value Are frequently shopping for others or for gifts Buy in multiples and often at widely divergent price points Use a price range as a starting point Are accustomed to being waited on by multiple sales professionals

Tour Groups Subject to a code of conduct and a clear structure for procedure Are treated as well as the guests that they bring Are made aware of that bargaining, despite its’ cultural origin is not accommodated Are given alternatives to price consideration (such as GWP) as a way of maintaining relationship with their guests

Selling 80% of Chinese luxury purchases are for gifts-suggest multiples Introduce clients to new brands/styles they may not yet know Upselling is seen as an acknowledgement of client status- show your best and most rare items Even if you have Mandarin-speaking sales professionals, attention from management during the sale is much appreciated

Think Globally-Act locally The domestic Chinese customer has significant influence over visitors from overseas Students are not only a big opportunity while in school they now stay up to five years after completion of their degree Data capture- with the new 10 year visa, tracking clients from China and continuing engagement for future visits is advisable

Recommendations Keep up with the news- estimates say the Chinese consumer is maturing 5 years for every year in terms of taste and awareness Think young- Chinese luxury consumers are 20 years younger than their US counterparts Be consistent but flexible- create programs and efforts that can be sustained but be ready to make adjustments as the market changes Educate- yourself and your staff. A few polite phrases and cultural norms are easy to learn and much appreciated Share- work with your counterparts at other retailers/organizations to learn about changes in the market, best practices and best partners

Thank You for Your Time! Melanie Rudin 10