Retail centers all over the U.S. are beginning to bear some significant, perhaps unexpected, similarities in January and February, each with a unique touch to honor its large number of Chinese patrons for the Lunar New Year. The sound of cymbals and beating drums filling the food court of a shopping mall; lanterns strung overhead casting a red glow on the sidewalks of a strip center, the trees and storefronts adorned with brightly colored dragon decorations and large vibrant signs wishing luck and happiness in the coming year; costumed performers drawing crowds of shoppers taking a break from bargain hunting to partake in the festivities at an outlet mall.
Gong Xi Fa Cai!
Last year, the Year of the Monkey, before heading off to find the best deals available at the Citadel Premium Outlets in Los Angeles, California, Chinese shoppers who wished a happy new year to a customer service representative, a “Xin Nian Kuai Le” or “Gong Xi Fa Cai,” received a signature red envelope filled with discount vouchers and gift cards. Similarly, at Chicago Premium Outlets, Chinese guests received coupon-filled red envelopes with embossed gold monkeys on the outside, and fortune cookies with fun shopping and fashion related messages inside.
The Fashion Outlets of Las Vegas also hosted an authentic Chinese cooking demonstration to bring in the Year of the Monkey, while its Chicago counterpart hosted Chinese ribbon dancers, a kung fu show, and a performance by Shaobo Zhang, the “Crazy Violinist”.
Citadel shoppers were invited to view a Chinese-themed garden planted in the center court on their way to the Customer Service Center. There, the presentation of an AirChina boarding pass earned each shopper a complimentary tote bag filled with coupon books and gifts. These tourists who arrived eagerly seeking luxury items at discount prices were pleasantly surprised when they were also provided free access to the VIP Luxury Lounge featuring outlet converters to charge electronic devices, private lockers, snacks, beverages, and a place to relax throughout a long day of shopping.
Many malls, like the California Outlets at Orange, invite dance companies to perform the traditional Lion Dance. “We have noticed that Lion Dance draws in an audience from all types of backgrounds. Non-Asian audiences are drawn in from the noise and foreign appearance, and Chinese audiences are drawn in because of their knowledge of Lion Dance being a sign of good fortune,” said Melinda To, Events Coordinator for Southern Young Tigers Dance team. “When we were first asked to perform, we were surprised, but we were grateful that the traditional Lion Dance had an increasing awareness in the community and that this cultural show is making it out into the mainstream American malls,” she said.
Savings and a ‘Free’ Trip
In addition to the extra effort to draw Chinese shoppers during the New Year, in recent years, U.S. mall owners and retail operators have pioneered the movement to gear year-round marketing and promotions toward a Chinese audience in order to attract the foreign buyers to their U.S. centers. And it seems to be working.
Nianci Xu, originally from Guangzhou, China, moved to the United States almost ten years ago. “There was a saying back then, that Hong Kong is a shopping paradise. Now America is from Chinese perspective,” she shared.
Primarily due to China’s steep import tariffs and consumption taxes, luxury products can cost over 50% more if purchased in China. “It is much cheaper to get the same brand overseas because the consumer taxes are too high in China,” said Lu Min, a Shanghai resident. In fact, Min noted that purchasing items in the U.S. affords such significant tax-saving benefits, that it will often offset the cost of an airline ticket. Thus, Chinese natives are happy to fly here to purchase luxury brand clothing, shoes and purses, in addition to cosmetics, and electronics at a discount while getting essentially a free travel experience.
For those that are unable to make the trip themselves, there are many opportunities to hire someone to do it for them. “Some of the Chinese who travel frequently do shopping for others, even though we often have to pay a commission for this service, it still a lot of cheaper than doing shopping here,” said Min.
And if tourists want to shop, U.S. retail centers are more than happy to accommodate.
Breaking Down Language Barriers
Particularly outlet malls, but more recently at other types of retail centers across the Country, additional support services are offered to Chinese consumers in order to maximize their shopping experience. During a visit to the Wrentham Premium Outlets in Boston, Xu was elated to find brochures and other helpful information written in Mandarin, and even a ten foot tall sign in her native language promoting a Chinese credit card. “I didn't realize how big the market of Chinese shopping overseas really was until I saw this advertisement,” she said.
Similarly, taking only a few steps into Desert Hills Premium Outlets in California, shoppers will see large directories which provide information in both English and Mandarin, and at Woodbury Commons Premium Outlets in New York, Mandarin and Cantonese speaking guest service specialists offer directions, information, and comfort to the large number of patrons who visit each year from China.
Stores that frequently occupy retail strip centers are requiring Mandarin-speaking managers and sales associates in certain areas of the Country, both AT&T and T-Mobile topping the list. Locations in Center City, Pennsylvania; Flushing, Canal Street, and Brooklyn, New York, and most of their California locations try to maintain at least one associate fluent in Mandarin at all times. Tiffany & Co. is another retail tenant that requires Mandarin-speaking associates; their stores at the Easton Town Center in Columbus, Ohio, Orchard Town Center in Skokie, Illinois, and the King of Prussia Mall are actively seeking additional Chinese employees.
Even Lowes, a popular shopping center anchor tenant, requires a Mandarin-speaking sales clerk at many of their locations.
At both Seattle’s and Cincinnati’s Premium Outlets, an automated intercom message welcomes shoppers in Mandarin, frequent tours are conducted by Chinese tour guides, and most stores have international size conversion charts available.
“Chinese love to get bargains on name brands. Often brand name items are very expensive in china so they see these prices as very good and they love the sales. We host a lot of teachers and often they come back very happy after shopping and show me their goods,” said Grace Kim Soeter, who hosts both foreign exchange students, and is the director of the My American School’s English Camp in California, which has about 350 children ages 8 through 17 plus a number of teachers visit from China each year. The young tourists always want to return home with luxury brand bargains, so the Ontario Mills or Desert Hills outlet malls are now a permanent fixture on the Camp’s itinerary.
Impact on U.S. Economy
While Chinese tourists find relief in being welcomed so far from home, the benefit is mutual. According to a recent report by China Luxury Advisors and the Fung Business Intelligence Centre, total overseas spending by Chinese tourists is projected to reach $422 billion by 2020. The report also indicates that Chinese travelers already average retail spending of $2,555 per trip to the United States. The China National Tourism Administration reported that approximately 2.2 million tourists visited the United States from China last year, and they collectively spent more than $23 billion. Xu’s experience has been consistent with those statistics. “For all the people I know who have been to U.S. from China, they brought a lot from here and took it back home.” In fact, Xu’s friend visiting New York from China recently spent nearly $1,000 during a single day of shopping at Woodbury Commons. As a result, retail centers are striving to facilitate both easy payment and convenient transport of purchases for their Asian consumers.
Nearly all U.S. malls and outlet centers now have currency exchange kiosks or automated machines, and a growing number of retail centers, including all Tanger Outlets, the Beverly Center, “Southern California’s Premiere Fashion Destination” and the Mall of America have partnered with UnionPay, the leading bankcard company in China. In fact, shoppers who flash a UnionPay card at the customer service desk at the Fashion Outlets of Chicago receive a discount booklet, free luggage check, and boarding pass printing services.
Traveler and Shipping Accommodations
As for getting purchases back home, Citadel Outlets’ customer service center is now an “approved postal provider”, and can accommodate international shipping at standard USPS shipping rates. The center also offers boxes, packing supplies, and even greeting cards for purchase, allowing international shoppers to enjoy all that the outlet mall has to offer, and still travel home light. For those that prefer to bring their purchases home with them, outlet malls typically have at least one luggage retailer, and Chinese shoppers are often seen purchasing extra luggage to fill with their outlet finds. Citadel even recently opened a new “luggage re-packing center” for international travelers to sort out their purchases and re-pack their bags before heading to the airport.
Outlet centers across the Country have furthered their efforts to cater to Chinese tourists by participating in a plethora of ‘shop and stay packages’ in collaboration with hotels, travel agencies, spas, resorts and the like. An increasing number of outlet center owners are also teaming up with Chinese tour bus companies to provide round trip shuttle service from nearby tourist destinations, hotels, cruise terminals and airports. What used to be the cause for day-long frustration or hours at an airport bar, layovers and delays are now a welcomed opportunity for some last minute shopping before heading home to China.
There is an ancient Chinese proverb that says “A man without a smiling face must never open a shop.” For so long as Chinese consumers choose shopping as a top tourist activity, they can count on being greeted by U.S. malls with a smile.
