Assignment on Management - Chinese Consumers

Running head: MANAGEMENT
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Name of the Student
Name of the University
Author Note

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Table of Contents
Chapter 1: Introduction....................................................................................................................2
Background..................................................................................................................................2
Problem statement.......................................................................................................................3
Purpose of the research................................................................................................................7
Aims and objectives.....................................................................................................................7
Research question........................................................................................................................8
Chapter 2: Literature review............................................................................................................8
Destination Management.............................................................................................................8
Destination Marketing...............................................................................................................12
Inbound tourism and Chinese consumer behaviour...................................................................18
Tourism at Bicester village........................................................................................................22
Chapter 3: Methodology................................................................................................................24
Research philosophy..................................................................................................................24
Research approach.....................................................................................................................25
Research design.........................................................................................................................26
Sampling....................................................................................................................................27
Data collection method..............................................................................................................27
Data analysis method.................................................................................................................28
Ethical consideration.................................................................................................................30

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Summary....................................................................................................................................31
Chapter 4: Findings and analysis...................................................................................................32
Chapter 5: Discussion....................................................................................................................44
Chapter 6: Conclusion and recommendation.................................................................................49
References......................................................................................................................................52

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Research topic: To evaluate the reasons that encourages Chinese consumers to choose
Bicester village as a second top destination inside the England
Chapter 1: Introduction
Background
The tourism industry can be defined as the industry that deals with travel for pleasure or
business. The tourism industry, as a part of the service sector has become a crucial source of
income for a good number of regions as well as even for entire countries. It is one of the fastest
growing economic sectors across the world that plays a crucial role to ensue effective socio
economic progress of the nation.
Destination management can be defined as a strategic approach that is used by
organizations in order to gain competitive advantage. For effective destination management, an
organization needs to have an effective idea of local knowledge, resource expertise along with
implementation of events, activities, transportation as well as program logistics. One of the chief
activities f destination management includes having responsibility for marketing the destinations.
Along with this, it is highly crucial for the organizations to find appropriate strategies for
managing the marketing activities that will be beneficial for both the stakeholders as well as the
destination, since they possess divergent varieties of stakeholders (Pike 2015). The chief role of
destination management is to implement effective strategies for attracting visors along with
promoting the tourism of the place in their domain.
Considering the fact that the profit margin of a tourist area is highly dependent on its
number of tourism, the number of tourists from China is the highest across the world. In the year
2018, the total number of the Chinese residents who have travelled overseas was 149.7 m that

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have increased the outbound tourism from the start of the new millennium by 1326 percent.
Within a limited time range of 20 years, China has become the most powerful outbound market,
leaving aside the US. The United Kingdom is found to be attracting 260,000 Chinese tourists
each and every year. The chief tourist’s places that are mostly visited by the Chinese tourists
include art, galleries, parks and museums (Adeyinka-Ojo, Khoo-Lattimore and Nair 2014). The
top destination for Chinese tourists visiting the United Kingdom is Buckingham palace, being
this Queen Elizabeths’s official London residence. The second most popular tourist destination
in UK after the Buckingham palace is the Bicester village. The Bicester Village has been formed
by the US real estate investor Scott Malkin who had combined his knowledge of selling luxury
goods with the US outlet mall concept for creating a new kind of shopping center. Thus the
Bicester Village is also considered as a shopping village.
Problem statement
According to data obtained from Prayag, Cohen and Yan (2015), it has been found that
Chinese consumers proffers to shop in the commercial centers not only to consume services or
products but for various other reasons. These reasons include socializing, understanding the
culture and traditions of the tourist place, window shopping and others. The Bicester Village
refers to one of the most popular outlet shopping centers that are located in the outskirts of
Bicester Village and thus in one of the most attractive locations to visit for the tourists. The
mentioned tourist’s spot looks like a small town with high street shops. Each of the houses
includes a luxurious brand like Prada as well as Gucci (Murdy and Pike 2012). Malkin had
founded Value Retail Plc. in 1992 with Bicester village being the first center. The tourist center
is made to look like a small street shop with each of the houses comprised of luxurious brand like
Prada as well as Gucci. On an average, goods are found to be sold at 40 percent of their listed

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price. Considering the fact that more than 80 percent of the total tourists who come to visit UK
possess highly disposable incomes and prefers to invest them on international brands, the
discounted cost of international brands like Gucci and Prada possess the potential to attract more
and more tourists from china. According to data obtained from Zhu, Xu and Jiang (2016),
Chinese shoppers are found to be responsible for 40 percent of the total profit made by the Value
Retail villages in Europe in the year 2019. As per the United Nations World Tourism
Organization (UNWTO) the expenses for the Chinese tourists in 2018 was of $277.3bn, in
difference with the $10bn spent in 2000. In the following years, the number is expected to be
more compared since the number of visitors from China to UK is increasing with time.
In order to ensure an effective relationship with the Chinese consumers, the management
of the Value Retail village, a major village of which is the Bicester Village, is found to made
frequent trip to china. The mentioned village not only promises authentic relationship along with
developing a highly strong partnership with various operators as well as platforms. Due to the
cost effective prices of international product as well as the effective maintenance of relationship
worth the consumers, Bicester has currently become a major part of itinerary for the Chinese
tourists who comes to visit UK (Bianchi, Pike and Lings 2014). Considering the fact that
majority of the tourist who visits the Bicester village is found to prefer international
brands like Prada, Gucci, Dior as well as Celine are popular with brand conscious
customers along with good value. According to researcher, the factory outlet approach
while dealing with the luxury along with high end products possess the potential to
create some challenges given the potential to treat the exclusive nature of the brands.
However, this can be considered to be an effective way to dispose the end of the stick

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for the retailers. Considering the fact that that apparel from a less well-known brand
of China will cost the same as getting one from a highly popular brand in the Bicester
Village.According to the nation, the Chinese middle class incomers are expected to
reach to 250 million by the year 2030. Considering the fact that only 7 percent of the
total number of people who belongs to the middle class financial section of china
possess passport, with the enhancement of visa approval, it is expected that the
number of Chinese consumers will grow to a huge amount in the coming years.
Understanding the factors that have made Bicester Village the second tourist spot is
highly crucial in order to ensure retaining as well as enhancing the number of tourist of the same.
An effective destination management is highly crucial for an organization to ensure efficient
development, management as well as promotion of the destination over a specific period of time.
Not only this, effective destination management also possess the potential to identify the rules
and responsibilities of different stakeholders, setting clear plans of action along with allocating
the resources (Hyett, Kenny and Dickson-Swift 2014). Considering the fact that the village is
mainly popular to the Chinese tourists as one of the most cost effective shopping destination in
UK, a satisfying shopping experience is highly crucial for the organization for maintaining the
position they possess and enhancing the same in the coming years. Therefore it is highly crucial
to conduct research for finding out the chief aspects that can ensure highly satisfied consumers,
their specific requirements in order to ensure further success. With the help of the destination
management tool possessing the required knowledge, expertise as well as resources becomes
highly crucial for the Bicester village for attracting consumers.

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Along with this, the fact that with the enhancement of technology, the number of
shopping multiplexes are getting enhanced in the mentioned nation, this factor possess the
potential to impose negative impact on the profit margin and revenue of the Bicester Village.
Given the fact that majority of the tourists who visits the Bicester village possess the intention to
buy high quality and internationally branded apparel at a price which is much lower than its
mentioned organizational costs, it can be clearly understood that if the number of outlets that can
preplace the mentioned tourist destination comes at the top, it will hard for the management of
the mentioned village in retain the consumers. Hence, this study is being conducted to have an
effective understanding of the reasons that encourages the Chinese consumers to visit Bicester
village.
The Bicester village provides a good number of facilities to the tourists. It possesses
masses of free parking. Not only are this, majority of the shops in the Bicester village designer
shops. However instead of being exclusive, the dress materials that are sold to the consumers
include a big discount. However the fact that the products sold in the mentioned tourist spot is
highly expensive cannot be ignored (Gioia, Corley and Hamilton 2013). Considering the fact that
majority of the middle class consumers of any nation are found to prefer apparels that are of high
quality and lower price high expanses of the products and services may result in lowering of the
interest of the consumers to buy the products in future. In order to prevent such consequences, it
is highly crucial for the management of the mentioned tourist spot to understand the factors that
are responsible for encouraging the Chinese consumers to select Bicester Village as the second
most popular destination of UK.
Considering the fact that a good number of researchers have been conducted on topics
like impact of destination management to enhance the number of tourists in UK, importance of