Online-Offline Fusion in the Chinese Market How to Generate Maximum Effect with a Limited Budget July 14th, 2021 About Us

Founded in 2012, 5 Star Plus is a Beijing based, international retail design and consulting agency specializing on the retail market and consumer products.

DESIGN: MARKETING: • Store Identity Design and • Marketing Research Rollouts, showrooms • Marketing Strategy • Concept Design • Online Marketing / Social • Graphic Design: Marketing Media Marketing Collateral • Press activities • Exhibition Stand Design • Event Planning • Event Design • Marketing brochures and • Logo and Visual Identity promotional gifts Design • Project Management • Branding • Virtual Showrooms Our Clients Barbara Seidelmann on CCTV Beijing | 2019 June

New Money is a business program which highlights the various aspirations of the future generation of Chinese entrepreneurs and airs weekly on China Global Television Network (CGTN). It takes viewers behind the scenes into China’s most cutting edge start- ups and disruptive business strategies. Our Managing Director, Barbara Seidelmann, was interviewed in relation to topic ‘Life Aesthetics’. Excellent Design Awards at WWSE 2018 Beijing, China Welcoming the Austrian President Austria Connect China 2018| Beijing, April 2018

AUSTRIA CONNECT China 2018 – “Let's Talk Strategy!” took place in Beijing from the 8th to 9th of April, marked a first for Austria, with the largest ever political delegation to visit a foreign country. Over 300 people attended the event on behalf of their Austrian companies or Chinese subsidiary to discuss new business models, attend talks, and conduct business. Thirty business contracts were signed during the event, collectively worth over 1.5 billion euros. 5 Star Plus Retail Design were honored to work alongside Advantage Austria to realize their theme of “Let’s talk strategy!” as design and implementation partner for the conference and event venues. Ex-President at Austrian Pavilion World Winter Sports Expo | Beijing, Oct. 2017

Dr. Heinz Fischer, former President of the Republic of Austria, visited the Austrian Pavilion which was designed and built by 5 Star Plus Retail Design for the World Winter Sports Expo (WWSE) in Beijing.

Mr. Fischer, who is also President of the Austrian Association for Promotion of Friendship and Cultural Relations with China, came to promote Austrian Winter Sports in China. Swiss National Pavilion – Exhibition Pavilion Design & Construction Client: Swiss Business Hub, Swiss Embassy | Location: Hainan | 2021 Swiss National Pavilion – Exhibition Pavilion Design & Construction Client: Swiss Business Hub, Swiss Embassy | Location: Hainan | 2021 Media Exposure

Architecture & Design Related Press Release

https://www.hainanexpo.or g.cn/information/484.html

https://ishare.ifeng.com/c/s/v002Uta5i141stgh http://cn.chinadaily.com.cn/a/202105/31/ https://www.163.com/dy/article/GBB9OP OLD62YDc2s5xGOiYhsr0TLN--B--HCUdg__ WS60b49b9ea3101e7ce9752924.html https://www.sohu.com/a/469604783_120368898 390514COK4.html

Swiss National Pavilion at Hainan Expo in May 2021 (CICPE 2021) Kjus Store Concept Design Client: KJUS | Location: China | 2019 UK Pavilion for the World Manufacturing Convention (WMC) 2019 Client: British Embassy | Location: Hefei | 2019 Collection Launch Expo Design & Event Management Client: Silhouette | Location: CIOF, Beijing| 2019

At CIOF 2019 Silhouette hosted an elegant and modern exhibition space using a white color scheme with accents of bright colors. The exhibition stand design was created with clean cut lines and minimal displays to showcase Silhouette’s unique and elegant products. The central element of the concept was an attention-grabbing feature wall with a 3-meter-wide video screen. The exterior of the stand had transparent screens to create an exclusive sense of privacy for guests inside. Heineken Bar & Restaurant, Concept Design Client: HMSHost | Location: China | 2018 Marketing References China - How is this Market Different? Consumer Psychology

Maslow’s Pyramid of Needs

New Needs Income

Old Needs

Changing needs (esteem → self-actualizations) Maslow's Pyramid of Needs Consumption structure in China As income increases, consumers seek to satisfy needs higher on the pyramid Targeting Tier 2-3 Cities in the Future

Tier 1 15m+ population US$300billion + Centrally governed

• Beijing • Shanghai • Guangzhou • Shenzhen

Tier 1.5-2 3m+ population US$68billion + Provincial capital

Tier 3 150,000population US$18billion + Prefectural Capital Characteristics of Post-1990’s Consumers

Low brand Online loyalty shopping

Enjoy instant Quality service

“Post-1990’s” Dividing time Customization consumer group for shopping

Focus on Use social experience media frequently Premium Brands Market in China

Source: Bain & Company Make a Statement, Be Different, Be Real

NOODLE DINER Galaxy SOHO Beijing, China Beijing, China

Importance of Walking Store LILY Beauty Salon Beijing, China Beijing, China What is Different in the Chinese Market?

Speed of the Market • The market is continuously changing requiring companies to constantly evaluate market trends and risks and adapting accordingly

Novelty Factor • Thanks to the rapid economic development, consumers expect a constant change. Companies that do not provide new information or products are quickly perceived as outdated.

Importance of Good Design • Comparatively short exposure to foreign brands and products – product quality is judged based on the positioning, marketing and store design aspects • If you look “high end”, you are perceived as “high end” What is Different in the Chinese Market?

Cultural Sensitivity • Need to stay true to a company’s core values and brand (no “full adaptation”) while displaying respect for Chinese requirements.

• VERY careful handling of cultural aspects and clichés (see the recent scandals of Dolce & Gabbana and Zara).

• Chinese see themselves as “global citizens” and want to be treated as such. Younger Chinese generations reject the more traditional work of older Chinese artists (e.g. architecture) Omnichannel Strategy, Personalization & Customer Experience Omnichannel

A multichannel approach to sales that seeks to provide customers with a seamless shopping experience whether it be through online shopping by desktop or mobile devices or brick and mortar stores. Personalization

• Tailoring customer’s needs

• Using data to learn purchase behaviors

• Targeted marketing based on past purchases and lifestyle information

• E.g. with loyalty cards to collect customer information, products that can be customized

• Importance of big data Customer Experience

Technology Slow Shopping Brand Imaging

• Interaction • Leisurely pace • Transparency • Virtual Reality • No pressure to • Matching social • Touchscreen make purchases values and lifestyle “Open Kitchen” Trend Interaction Area – Service as Core Element

Interaction area where goods are displayed along the wall creating an interest in the space. Quality inspection is done openly to put on a show in the space.

“Open Kitchen” concept Available Technologies for Pop-Up Stores, Exhibition Stands, Stores

Customers can choose certain information on the small screen, which will then been shown on the big screen Multimedia interactive experience area Communication & New Means for Branding The “Three C’s” of Communication

Clarity • Who are you (your brand / your company)? • Values? Vision & Mission • Key Services? Competitive advantage

Consistency • Maintain the same message throughout all channels and over time

Continuity • Regularity, people trust a brand when they continuously receive information through a number of channels. (not just a one time posting or press release) Communication Channels in China

• WeChat: All-in-One • Weibo: • QQ: Instant Messaging, emails • (: ) • Linkedin: Business Connections • Toudou YouKu: Youtube • Meituan – Dianping: Yelp • TikTok/Douyin and Miaopai: Creative music videos, videos • Baidu Zitiao / Tieba: Wikipedia, Forum • Douban: Combines Spotify, SoundCloud, Imdb and MySpace • Douyu and Yizhibo, Huya: Live streaming (Twitch, FB//youtube live) • Xiaohongshu: Platform for recommendation of products/lifestyle options, often endorsed by stars, links to e-commerce How Can I Communicate with My Customers?

• Create a strong brand story • Develop content with new and journeys. • Use emotions, passion, authenticity. • Talk about lifestyle more than about your products / services • Possible ways to develop content for your marketing channels: – Exhibitions – Events – Sponsoring – Showcases – Stories of the founders – Industry relevant information – Tips & advice • Stay people-centric rather than product/service focused. Make it personal. • Build trust Modern Branding Means

Branding: • Pop-Up Stores • Experiential exhibition stands • Roadshows • Cross-collaboration events • Sponsoring

Communication: • Influencer marketing, life streaming, link sharing strategy • New media (Wechat Apps, Douyin,…) • Video marketing, viral strategies • Lifestyle marketing (engagement/sponsoring in lifestyle sectors) • Corporate social responsibility • Personal channels instead of corporate channels IBU Stand at WWSE 2018 Client: International Biathlon Union | Beijing, China

IBU covered 108 m2, with 7 exhibitors hoping to introduce the Biathlon sport to China. Amongst these were not only companies exhibiting Biathlon sports gear, but the International Biathlon Union also sought to promote the sport as a whole, bringing knowledge and understanding to those who may not be familiar with the sport. Visual Identity Design / Branding Client: Crepanini| Location: Beijing| 2014 Goals for Modern Branding Means

• Create a strong impact, “wow!”

• Customer engagement

• Touchpoint between a company and their customers that has no stores

• Build trust

• Make customers post about you and recommend you!!! Swiss National Pavilion – Exhibition Pavilion Design & Construction Client: Swiss Business Hub, Swiss Embassy | Location: Hainan | 2021 Swiss National Pavilion – Exhibition Pavilion Design & Construction Client: Swiss Business Hub, Swiss Embassy | Location: Hainan | 2021

Stories about…

• People

• Teams / Individuals

• Emotions

• Challenges

• Achievements

• Fun

• Important Visits

• Background story – the brand

• Architecture & design

• Products

• Food, drinks, taste

• Experience elements Swiss National Pavilion – Exhibition Pavilion Design & Construction Client: Swiss Business Hub, Swiss Embassy | Location: Hainan | 2021 Practical Examples Case Study 1: Marketing Budget of 32,900 EUR

Client Background: Technical field, B2B, exporting to China, existing potential clients or 1-2 existing clients

Marketing Strategy:

1. 1 x Exhibition stand per year, 30 m2, technical expo

– Rent of the stand: ~45,000 RMB

– Design & build of stand: ~100,000 RMB

– Other related fees (organizer, administration, transportation): ~15,000 RMB

– Marketing of stand (video, photos, content generation, press releases & publications): ~20,000 RMB ______

Exhibition Stand Total Expense: 180,000 RMB (~23,500 EUR)

2. Wechat Marketing, 2 Articles per month, content provided by client: Yearly fee (12 months): 72,000 RMB (~9,400 EUR) Case Study 1: Marketing Budget of 32,900 EUR

Execution Examples with a similar Scope

Content on Wechat Press Coverage Exhibition and Pop-Up Stores Case Study 1: Marketing Budget of 134,500 EUR

Client Background: High end consumer appliances, B2C and B2B, exporting to China, existing potential distributors and good number of existing orders

Marketing Strategy:

1. 1 x Exhibition stand per year, 70 m2, design related expo

– Rent of the stand: ~280,000 RMB

– Design & build of stand: ~350,000 RMB

– Other related fees (organizer, administration, transportation): ~25,000 RMB

– Marketing of stand (video, photos, content generation, press releases & publications): ~50,000 RMB ______

Exhibition Stand Total Expense: 705,000 RMB (~92,000 EUR)

2. Wechat & , 2 posts per month, full content creation incl. videos: Yearly fee (12 months): 240,000 RMB (~32,700 EUR)

3. 1 x Co-branding and sponsoring of event OR influencer collaboration: 75,000 RMB (~9,800 EUR) Case Study 1: Marketing Budget of 134,500 EUR

Execution Examples with a similar Scope QUESTIONS & ANSWERS

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