A perfect fit for China

Thanks to its unique resort concept that resonates with the Chinese audience and the current boom in consumption levels, Club Med looks well-positioned for success in the country

For Gino Andreetta, the recently appointed CEO of Club Med Greater China, his latest role is akin to a return to his home country of Italy.

"China is the Italy of Asia. It's the Mediterranean part of Asia," Andreetta told China Daily USA at his Shanghai office, the China headquarters of the French resort brand.

"There are many similarities in culture between Chinese and the Mediterranean where Club Med is from. They include placing importance on family, food, and the carpe diem attitude. We don't have to specially cater our offerings to China - you can say this concept was made for the Chinese," said Andreetta.

Founded in 1950 in France, Club Med is best known for its all-inclusive holiday packages. Branded as a place where guests can eat, drink and play to their heart's delight without ever having to leave the resort, Club Med has more than 80 resorts in over 30 countries. The resort operator has more than 12,000 GOs, which mean Gentils Organisateurs (Gracious or Nice Organizers), from 25 countries. Ten percent of the GOs are from China.

Unlike regular hotel staff, GOs eat and play with guests throughout the day and are an integral part of the holiday experience.

Since the first Club Med resort was opened in China in December 2010, the number of Chinese guests has been growing up to 30 percent year-on-year. The resort operator had in November 2016 opened its fifth resort in China's northeast Jilin province.

Located in Beidahu, a rather obscure ski destination known for its rime ice crystals, the resort has been an instant hit since the opening, with all of its 176 rooms being fully booked till the third week of February. The resort has also been ranked the No.1 hotel in Jilin province on travel website Tripadvisor.

"The ski resort concept is something very new in China. But the success we have achieved means there is huge demand here and proves that our unique resort concept is very welcomed," said Andreetta, who has worked at Club Med resorts across more than 20 countries over the past two decades.

The return rate at Club Med resorts in China are evidence of its popularity too. Andreetta said that 20 percent of its guests have stayed at the resort before.

Club Med is looking to open between 10 and 15 new resorts in China over the next four to five years. Globally, the average number of new openings of Club Med resorts is around three to five every year. Andreetta said that the brand's rapid growth in China has enabled it to embark on such an ambitious expansion.

"The velocity of the Chinese market is astonishing. It took 20 to 30 years for French people to understand and have the culture of holiday making. It started in the 1950s after the world war and only became sophisticated in the 70s. But in China, it may take less than five years," said Andreetta.

Statistics from China Union Pay, one of the biggest payment services providers in the country, showed that expenditure for domestic travel - including flights, transportation, accommodation and shopping - during the first six days of the Spring Festival this year soared by 52 percent compared with last year. China Union Pay also found that high-end travel was the key growth driver.

This, coupled with the fact that experiential travel has become increasingly popular in recent years, bodes well for the French resort brand.

"A few years ago, people here in China were looking for the cheapest travel options. Today, it's really about value for money. Club Med is all about the experience. It's not something special in the chandelier or carpet or bathtub that customers are paying for," said Andreetta.

Club Med China's main clientele is described as those aged between 25 and 40 years old. Many of them have at least one child in the family and prefer spending more time in the common areas of the resort trying out new things.

In 2015, Shanghai conglomerate Fosun International finalized a takeover deal of Club Med at the price of $1.07 billion. When asked about the implications of the deal, Andreetta reiterated what Fosun's Chairman Guo Guangchang once said: the deal was merely a "friendly take-over" that will not alter the essence of Club Med.

"If you buy something and become its owner, you may change it. But Fosun is investing in it. A sound investment is backed by the confidence that one product is good enough," said Andreetta.

The take-over has been classified as a "business of happiness", one of the three pillar sectors that Fosun aims to invest in for the long term. The other two pillars are health and wealth management.

"When Club Med was born in 1950 after World War II, the goal was to get people to rediscover the freedom and joy of doing things together. If I am to leave a legacy behind in China, I hope it has to do with gaining an understanding of not our products, but the importance of being happy," said Andreetta.

xujunqian@chinadaily.com.cn