Union City, NJ – February 2012 – Hannelore Leavy, a 35 year veteran of the spa industry, founder of the Day Spa & International Medical Spa Association has entered into a contract with A Big Production Company, a twelve year old media/TV company specializing in the beauty industry.

A Big Production Company has formed a strategic alliance with Mobiltek Pacific Limited, Hong Kong, (www.likeface.com), the premier seller of prestige beauty products into Mainland China, to facilitate beauty product companies from around the globe to reach the worlds’ largest female market – a staggering 420 million women in Mainland China. Mobiltek Pacific Limited, which founded the very successful URL, www.likeface.com, launched in 2007, has become the leader in developing beauty product sales into Mainland China with over 400,000 members who buy products.

A Big Production Company, founded by beauty expert, Maria Camille, started working within China’s beauty industry in 2003 through securing airline in-flight TV programming on China Airlines. Concurrently, Camille established working relationships with Chinese partners within the beauty industry for product distribution and manufacturing. Starting January 2012, Mobilteck Pacific Limited and A BIG Production Company will provide the support needed for worldwide brands, who look to test, brand, educate and sell their products into China. Several of the key aspects, which differentiate their marketing approach, will be through providing Web TV news education and video uploads to mobile phones promoting products and product testing.

Previously, many product companies were locked out of the China market as the costs to enter where prohibitive for most. Now, through the resources of Mobiltek and A BIG Production Company, US, Canadian and European products can enter the market at a cost that is achievable for most.

Hannelore Leavy has joined Maria Camille/A Big Production Company who will head up the offering and organization with Mobiltek Pacific Limited for companies looking to enter the China market.

Why set your sites on the China market?

• Beauty product sales is the 5th largest consumer market in China.

• According to statistics, 100 billion dollars was spent on China’s beauty product market by 2007.

• Skincare products are now the major rage. They account for 40 percent of the total cosmetic market in China and are growing at a rate of 20 percent annually.

• China Business Weekly reports that foreign brands, including imported and joint-venture products, took 68% of China’s cosmetic market in 2003.These foreign brands have been enjoying an annual sales increase of 15% in recent years.

• Zhang Xiaodong, a trade consultant for China Informational Center of Daily Chemical Industry, says that “multinational companies have come to occupy a commanding position in the Chinese cosmetic market”.

• Foreign brands dominate the high-end market while joint venture brands have nabbed the middle market.

• There are 500 million internet users in China – compared to 64 million in the U.S.

• Ecommerce is one of the main avenues women buy beauty products.

• The Best News – Chinese women look forward to receiving beauty news and tips from the U.S. and Europe.

They like to learn new beauty secrets, what products are used, what the latest trends are and what

celebrities are doing. This is what Mobliteck Pacific Limited and A Bid Production Company will deliver!

For more information on how to take part, contact Hannelore R. Leavy, HRLeavy LLC, a Spa & Wellness Business Consultancy Company at 201-590-8115 or email: HRLeavyLLC@aol.com.

The People’s Daily (newspaper) reported that wealthy Chinese wield the world’s strongest purchasing power, with spending enthusiasts accounting for one-third of luxury purchases in European and North American markets.  The report also says 69 percent of all luxury holiday purchases in Hong Kong, Macao and Taiwan were made by mainland Chinese.

Government-controlled media also cite data showing that more than 70 percent of Chinese consumers buying abroad during the holiday period believe overseas luxury goods were cheaper than domestic goods.  About the same percentage of respondents said they believe they had more consumer choices abroad.

Have you ever looked to see what percentage of online shoppers are from the United States?  Or, better yet, what percentage of online shoppers speak English?

90%? 80%?

Surely at least 75%, right?  No – wrong.

This might shock you, but according to J.P. Morgan — reporting for the Department of Commerce — only 27% of online shoppers speak English.

By neglecting to communicate with the rest of the non English-speaking world, mainly the new market of Mainland China consumers, you’re costing yourself a mountain of money.

Bottom line: it’s time to take your business global.

With huge purchases in everything from airline tickets to cosmetics, the global market is exploding every year and studies can’t seem to keep up with the growth.

Your company could be earning more if you had the structure in place to make the sale work. And that’s a big IF. You have to know how that structure works and what it is.

Some of the biggest buyers of beauty products on the internet are from developing countries — China, Brazil, Vietnam and Egypt — indicating massive growth potential for online retailers that can specifically target these fast-growing markets.  But how can you properly sell to, say, China?

Specifically targeting foreign markets is more than finding a native speaker to write up some brilliant web copy.  After all, how will you know if it’s actually brilliant copy or a bunch of keyword stuffed auto-translated garbage?

In China, as in all countries, there are intangible elements to cultures that can make or break a sale, that’s where our job begins.

Here are some tips to get going on your international sales journey … into Mainland China

1. Take advantage of stable markets

Build your market within China with the age old marketing lesson of thinking “mass over time.” There’s no rule here saying you have to jump into a fast moving river. Stick with a plan of becoming stable within China and build on the stability this market will deliver for many years to come.  The numbers of consumers are enormous – more than you can almost imagine, so, build wisely and with stability.  Do not go in and blow your whole budget to try and corner the market right up front.

2. Find people to trust

You’re working outside your comfort zone, so work and partner with proven trustworthy business partners who can help you navigate these new waters.

As the world redefines how business is done – integrity, enlightenment of other cultures and harmony within business is what comes to mind.  This is what our industry as a whole must be built on and, as we share with China, this is our focus for cross culture success.

3. Take time for on-going research

The more you know about Chinese lifestyle, slang, favorites, customs and cultural elements, the easier it will be to make your product line a natural fit for the market.  We become a bridge for you in to obtain this knowledge.

4. Check out the competition within China

You want to be focused on your Brand as only you know how your product delivers and the benefits it provides.  As you position your products to sell into the largest buyers market in the world, you will want to see what has worked for other companies.  What & who is your competition! What slice of the market are they not serving? How can you set yourself apart or make yourself shine by comparison?

5. Seek your niche – don’t take big risks

Jump in with both feet, but don’t plunge into the deep end right away — the wading pool is a better place to start when you’re learning to swim in a new way.

Flex your foreign creative muscle first in a small pond trying to catch a few fish before you start trying to reel in millions. Better to make a tiny mistake through a staged start-up, than a huge glaring error in front of tens of thousands.

Many beauty companies think they need to enter China through obtaining self-space within the most prestige locations immediately. Think again. Unless, you have deep pockets – (Unilever, PG, L’Oreal, come to mind), don’t go down that road. But, also, don’t be discouraged. There is a better way, (and without risking upwards of six to seven figures) because there will be mistakes, and you will loose unless 100% of everything goes perfect and you have several years of start-up time to blow off – and you know the odds of 100% going right.

The smart way is to seek your niche first and start selling to consumers in a strategic way. Look at what sets your products apart from others. Then test that market with thousands of buyers in China (we do this for you). Test the price points, test the packaging, give out some samples, get customers to know you. Take time to “build your story” – develop the Brand you always dreamed of for China.  Sell enough products (in China) to pave a small but good start-up and grow profusely from there. This is the start-up we believe in – this is what we do for you. You will not take big risks and you will not pay exorbitant fees.

6. Scale your knowledge

As you start seeing what is becoming successful with selling your products to Chinese consumers, use this knowledge to scale your knowledge and add on additional product SKU’s to start building your particular niche.

Immerse yourself in your Brand story and build from there. Scale the idea. Keep building your own authoritative expertise within your line.

7. Don’t get overwhelmed

The world within China is a big place and it’s easy to spread yourself too thin. As you scale, keep honing your focus.

It’s far better to make a big hit with just one or a few products SKU’s that sell well, than to waste time creating “more is better,” and then be poorly executed in Brand story and distribution.

8. Visit the land you’re marketing to

It’s good to visit China if you’re serious about building a brand in China.  As we will be hosting a strategic tour to China (Fall 2012) for beauty industry professionals, this would be a premium opportunity to spend time to know the culture as much as possible and to meet key beauty professionals within China.  As you visit, you will also feel solid in the knowing that your products are already selling to Chinese consumers through our distribution platform. This is one of the great benefits in partnering with us – it does not take years of planning.

Consider this trip as a reconnaissance mission to gain information on the target. You’ll have the company of traveling with other beauty professionals from around the world and also be able to visit with key beauty professionals in China.

Making a China launch successful

You don’t need to start from scratch when you’re constructing your master plan for entering China.  The road map is well constructed where you can enter quickly and with all the right elements mentioned above.

Consider these stats from the JP Morgan research:

• The most popular items sold online in China include clothing, shoes, accessories, travel, cosmetics, and nutritional items.
• China e-commerce revenues are expected to grow by 25 percent in 2012
• $681 billion was spent globally in 2011 — the bulk of this from China.  How much of that did you take home?
• Of that, only $187 billion was spent in the United States, leaving $493 billion for the rest of the global market
• It’s anticipated that global ecommerce spending will grow to $963 billion by 2013

Inspiring, right?

You’re probably feeling the urge to act quickly. The buyers world moves fast, and timing is important.

Fortunately, the world of China is a big place. And there’s still plenty of room for those looking to expand into this market.

A great time to start

Online shoppers prefer to buy from familiar sites, so this is to your advantage as our on-line beauty store currently has 400,000 Chinese consumer members and is growing more each month.

Statistics show that 60 percent buy from the same site repeatedly. Kudos to you if it’s your products being displayed within our “New Arrivals” section.  You’ll be up-front and center to start your China launch and new income to your business.

The key point is the importance of capturing millions of new online shoppers as they make their first purchase on the internet. When shopping sites capture customers early, and create a positive shopping experience, they will likely capture their loyalty and their money.  This is what we are accomplishing day in and day out with new buyers.

The opportunity is huge in China, even with new recession fears looming, by looking to expand while at the same time making sure to watch your start-up dollars, you can build your market instead of wondering where your next sales will come from.

If you ask famous economists and business experts, most will tell you that a recession is a great time to start a business. The current global market conditions are making the internet and China expansion an even more attractive market than ever for there are 420 million women in China between the age of 17 and 57.  That’s more consumers than all of America, Japan and Europe combined.

It’s time to go global

If you get started, you’ll surely profit. Leverage your previous successes by taking those first baby steps out of your comfort zone.

Cultures and perceptions shift in new countries, but the rules of marketing are always the same.

Build an audience, earn their trust, learn what they most want, then sell that to them.

It works every time, regardless of language or location.

Look forward to hearing from you –

My Best,

Maria Camille, Director

An interesting study was done over this last year by Starcom Media Vest Group which covered over 510 locations across China, targeting less-developed cities and towns where the vast majority of consumers live.  The “Yangtze Study” included interviews with 13,507 people ages 13 to 45 in what Starcom said was one of the first studies of this scale to be conducted in China.

The study showed that Chinese living in even the smallest communities are widely going online for entertainment and communication, spending about as much time on the computer as their peers in Shanghai and Beijing.

While marketers have thoroughly analyzed Chinese in the urban tier-one cities of Beijing, Shanghai and Guangzhou, there’s much less understanding about how to effectively target the 721 million consumers in rural communities and the other hundreds of millions in less-developed cities.

Many of the study’s findings reinforced existing information about consumers in lower-tier markets. They are more pragmatic than their big-city counterparts with realistic life goals — owning a business was a common response.

The study showed that consumers are just as worried about product safety and quality as other Chinese, though they realize they have less access to information and therefore seek reassurances that they’re making the right purchase. Price and value are major drivers of purchasing decisions — a simple giveaway can spur a rural shopper to buy an item.

But what researchers didn’t expect to find was that media consumption in some of these communities was not far off from trends in the biggest cities.

“The biggest thing that surprised me from a pure media standpoint was the penetration of digital in terms of peoples’ everyday lives. (Instant messaging program) QQ was everywhere,” said Lisa Richert, Starcom MediaVest’s director of strategy for North Asia. “When we think about the habits of digital and peoples’ behaviors — chatting, entertainment, communications — it’s universal. It’s everywhere across China.”

(It’s not an exaggeration to say that QQ is everywhere. Operator Tencent reports nearly 702 million active instant messaging accounts as of this summer.)

A 21-year-old woman in rural southern China said she hasn’t watched TV in a year. Instead, she gets everything she needs on her computer.

“There’s a real concern that TV in the lower tiers has become a bit obsolete, I feel,” Mr. Tan said. “Right now with content in the hands of people, they’re choosing the computer more so than the TV.”

Chinese are spending more of their time on the web: the average consumer is online 3.25 hours per day, vs. 2.21 hours with TV and .51 hours around out-of-home ads. Those in tier-three cities spend the most time online out of all Chinese consumers, 3.57 hours per day on average.

Online video is also hugely popular. The study found that Chinese spend an average of 1.76 hours per day watching videos on computers, with consumers in tier-two markets, which include provincial capitals and economically developing cities, watching almost 2 hours per day.

“TV is still huge, but the comment that comes back is we need to move away from thinking of TV as the only sense of video content. It is truly video content,” Ms. Richert said, listing examples such as traditional TV shows, content from brands or programming created by video-sharing sites like Youku and Tudou. “It’s about content and people are finding different ways to consume it.”

1. Go digital

With the largest population of internet users in the world, China is a digital playground for marketers.

China’s luxury buyers are younger compared with those in traditional luxury markets. They are tech-savvy and spend an increasing amount of time on computers and smart phones.  In the next couple of years, the dominant luxury buyers will be 25-to-35 years old.

The potential for buying luxury goods online is huge, but not enough brands take advantage of e-commerce opportunities.

2. Embrace diversity

The sheer size of the country and huge disparities in economic and cultural development among regions means that there is no “Chinese” luxury consumer. It’s a heterogeneous market with distinctively different groups. While the majority of the country is still in the process of being introduced to the concept of luxury, the most affluent and discerning luxury consumers are going beyond fashion and accessories. Art collections, private jets, European-style private education and customized luxury trips are just a few examples of China’s luxury market becoming more mature and diverse.

3. Keep an eye on Chinese brands

China is a very new market and currently does not offer much in the way of tradition and heritage, nor its “own” luxury brands–but that’s changing.

Shanghai Jahwa has created Shanghai Vive, a new line of homemade and high-end cosmetics. Jahwa opened the first Shanghai Vive boutique last summer in the newly refurbished Peace hotel. The brand brings a touch of old Shanghai history and glamour, reflecting the town’s heyday in the 1930s. It’s the first such high-end local cosmetics line, with beautiful lavish packaging–and prices to match.

4. Look north and west

Luxury is expanding beyond first tier cities, because China’s rich do not just live in Shanghai, Beijing, and Guangzhou. Luxury brands are waking up to this fast and focusing their efforts on building brand awareness in second and third tier markets. Chongqing, with one of China’s highest GDPs, is becoming a mecca for luxury brands. Gucci, Prada, Louis Vuitton are all setting up shops there. But don’t forget cities like Harbin, Dalian, Wenzhou, Taiyuan, and Urumqi. The battle of the luxury brands will definitely be played out in these other areas.

5. Offer experiences and get personal

Success for luxury marketers depends on more than good branding. They need to go beyond the big numbers, and understand what consumers are trying to achieve, then help them fulfill that dream and goal. What makes a luxury item seem luxurious is how it makes the consumer feel, what experience it provides, and the message it sends to the buyer’s entourage.

Luxury marketers need to offer a personal relationship and realize customers are looking to gain knowledge and expertise. For these wealthy consumers, the big price tag and the label alone do not necessarily equate luxury, but personalized service and a unique experience will give them an edge over their peers.

Luxury brands will continue to thrive by establishing a one-on-one relationship, and focusing on educating customers.

Demand for fast growth is driving multinational marketers into smaller and smaller cities — but in China, small is a relative term.

China has over 160 cities with a population above one million. The U.S., by comparison, has nine. Most foreign marketers start with Beijing, Shanghai and Guangzhou and then add provincial capitals, but those markets, known as the first and second- tier cities, cover just a sliver of China’s territory.

Today, companies are looking closely at China’s third- and fourth-tier cities and beyond, where the creation of new wealth, particularly through manufacturing and industries like mining, has led to tens of millions of consumers with spending power.

“These days, China’s economic excitement is in its smaller markets. Third and fourth-tier cities are booming,” said P.T. Black, Thoughtful China’s senior creative director.

Over the last few years, digital media has become an important game-changer, in terms of communication, entertainment and shopping, making it easier both for lower-tier consumers to learn about foreign brands and for marketers to reach those consumers.

“We’re seeing a digital evolution taking place,” Mr. Tan said. “Online video is huge in China. We’re seeing a lot of houses in lower tiers where they don’t actually have TV sets at home. A lot of people are saying, ‘My computer is now my TV.’”

Digital media isn’t just changing the way consumers absorb entertainment and brand messages, it is also changing the way they shop.

“Availability of brands is no longer dictated by just physical retail presence. A lot of people in tier three and tier four cities are buying things online…on [Alibaba Group's B2C e-commerce website] Taobao, and that is somehow changing the entire spectrum of what people can buy and where they buy things,” said Kunal Sinha, Ogilvy & Mather’s chief knowledge officer for China.

Luxury products are one of the fastest-growing categories, and the internet plays a role there, too, by sharing trends from first-tier cities and the West.

For instance, lower-tier consumers “regard themselves as just as fashionable as upper-tier people. It’s just that they have a different comprehension of [fashion tastes],” said Tim Schlick, DDB Group’s head of strategic planning for Greater China.

Lower-tier consumers do focus on value, a calculation based on price, quality, reputation and the ability to provide the all-important Chinese sense of “face,” Mr. Schlick said. “Lower-tier consumers tend to go the extra mile to find the brand that provides the most value. It doesn’t matter if it’s a local brand or international brand.”

BEIJING — China will become the world’s largest inbound and outbound tourist market within five to seven years, according to UN World Tourism Organization Secretary General Taleb Rifai.

China received 53 million foreign visitors in 2010, putting the country in third place after overtaking Italy three years ago.  The China Tourism Academy, meanwhile, reports that by 2015, China will become the number one source of international tourists, with 100 to 130 million visitors traveling to foreign countries, where they will spend an estimated $150 billion.

The China Tourism Academy forecasts that 57 million Chinese visitors will spend close to $68 billion in foreign countries this year. In 2010, 54 million Chinese traveled abroad, spending approximately $55 billion, a 60% increase since 2005.
Source: Xinhua News Agency

As part of a comprehensive effort to spur job creation, the administration mapped out a national strategy to make the US the world’s top travel and tourism destination.  More than one million American jobs could be created over the next decade if the US increases its share of the international travel market.

The emerging markets such as China, Brazil and India are especially targeted in his plan as tourists from the three countries contributed about $15 billion and thousands of jobs to the US economy in 2010.

The number of travelers from China is projected to grow by 135 percent by 2016 as compared to 2010.  In addition, Chinese tourists currently spend more than $6,000 each, per trip, according to the Department of Commerce.

Under the executive order, the non-immigrant visa processing capacity in China will be increased by 40 percent this year and 80 percent of non-immigrant visa applicants will be interviewed within three weeks of the receipt of application.

According to the UN World Travel Organization (UNWTO), China is the fastest growing travel market in the world, and is estimated to reach 100 million international travelers by 2020.  In December 2007, the US and China signed a memorandum of understanding (MOU) to facilitate Chinese group leisure travel from China to the United States.

Among the 1,073 visitors, many made the trip for cosmetic surgery. South Korea is attracting medical tourists from China with its short distance and advanced technology, ROK’s Yonhap News Agency reported.

Total Chinese visitors to ROK reached 2.05 million in 2011, a 23.6 percent increase from 2010.