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Business / Industries

China's tourism needs more than rice cookers

By WANG ZHUOQIONG/WANG WEN (China Daily) Updated: 2015-04-20 07:40

Luggage sector

An increasing number of Chinese tourists are in need of stylish and convenient travel. As a result, the luggage sector has also been boosted due to the fast rise in outbound and inbound tourism in China. Frank Ma, president of Samsonite Greater China, said its business in China had grown 18 percent last year, outstripping its expansion in 2013.

In addition to its existing traditional distribution channels, Ma said its active participation in e-commerce, which increased more than 100 percent year-on-year in 2014, contributed to its impressive growth in China.

Multiple product portfolios, including a high-end luggage brand, Samsonite and American Tourist have also enriched its customer coverage.

The outdoors market, which is surging rapidly in China, is the company's next priority as it plans to market bags suitable for outdoor and leisure activities, he said.

Samsonite plans to open 140 outlets in shopping malls and department stores in China this year. Of these, around 20 will implement the company's multi-brand strategy.

As tourism becomes increasingly popular in China, the nation's travelers are requiring higher quality travel equipment and luggage, Ma said.

Caravan market

Although there is still a huge gap between the number of caravans produced in China and those in Europe and the United States, the Chinese market has great potential, according to industry experts. Total sales reached at least 800 million yuan at the 10th China RV and Camping Exhibition in March.

Figures from the China Association of Automobile Manufacturers show that the average annual sales of caravans are around 1,000 and the total number is expected to exceed 20,000 this year. Meanwhile, the market also offers great business opportunities for Chinese manufacturers.

As the world's largest automobile builder, caravan manufacturing is almost the last blue ocean in China's vehicle industry, said Dong Yang, deputy director of the association.

There were around 30 firms manufacturing RVs in China in 2013, according to the China Recreation Vehicle and Camping Association.

Airplane production

The recession in Western economies has given some Chinese companies the opportunity to boost their general airplane production capacity through purchasing manufacturers in the West.

China Aviation Industry General Aircraft Co Ltd bought a 100 percent stake in US-based Cirrus Design Corporation in 2011, the first purchase of an aircraft manufacturer in a developed economy by a Chinese company.

More Chinese enterprises will partner with international builders and jointly explore the Chinese market, said Gao Yuanyang, director of the General Aviation Industry Research Center at Beihang University in Beijing.

"China will be not only a leading general aviation market globally, but an important part of the airplane manufacturing chain," he said.

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