Summary of Key Points
In the first half of this year, the number of foreign tourists entering China increased rapidly (a 20.4% year-on-year increase), with visa-free entry accounting for over 77.7%, which directly boosted the business of local service providers in areas such as travel photography and nail services. The customer base for these businesses has shifted significantly, with a substantial rise in the proportion of foreign customers (up to 95% in some travel photography shops). As a result, their business models have been optimized: average transaction values have increased, advertising costs have decreased, and services have become more tailored to the needs of foreign tourists, leading to stable revenue with higher quality. These businesses also plan to actively expand into overseas markets in the future.
Detailed Analysis
1. Surge in Inbound Tourism: Visa-Free Policies as a Key Driver
Data from the National Immigration Administration shows that 22.914 million foreigners entered China in the first half of this year, a 20.4% increase year-on-year, with visa-free entry accounting for 77.7% (17.815 million people), a 30.6% rise compared to the same period last year. This indicates that visa-free policies have made it much easier for foreigners to visit China—many countries' citizens can now stay for up to 15 days without the need to apply for a visa, which naturally encourages more travel. This reduction in barriers has significantly boosted inbound tourism and provided new customers for local businesses.
2. Travel Photography Shops: Foreign Customers Become the Main Source of Revenue
Taking the Shanghai-based travel photography shop Cheng Qiqi as an example:
- Shift in Customer Base: When it opened two years ago, 90% of its customers were domestic tourists; now, 95% of the customers at its Fuzhou Road store and 40% at its Bund store are foreign tourists.
- Stable Revenue Despite Decreased Orders: While the number of monthly orders has decreased from 300 to 200, the average transaction value has increased from 500-600 yuan to 900-1000 yuan (due to foreigners' willingness to purchase additional photos). Additionally, with lower labor costs (as fewer orders are processed), overall revenue has remained stable, and employees' incomes have increased.
- Customer Acquisition through Word of Mouth: The shop relies on word-of-mouth rather than overseas advertising. Traffic comes from foreign tourists sharing their photos on platforms like Instagram, and even Korean celebrities like Lee Mi-ju have sponsored shoots, leading to social media promotion.
- Clear Customer Preferences: Korean tourists prefer the modified cheongsams at the Bund store, while European and American tourists favor the fresh, traditional costumes at the Fuzhou Road store. They both dislike overly trendy or highly replicated styles.
- Service Improvement: Staff have improved their skills, learning English related to photography and basic Korean to facilitate communication with foreign customers.
3. Nail Shops: Foreign Customers Drive Growth, with High Cost-Effectiveness and Social Recommendations
Taking the Shanghai-based nail shop Sen Xiaolu as an example:
- Notable Growth: The Jing'an Temple store (near the Bund and airport) receives 5-8 foreign tourists per day during the summer season, a 30%-40% increase year-on-year. Korean tourists are a major source of this growth (with 1.714 million Korean visitors to China in the first half of the year, a 16% increase).
- Popularity Due to Social Recommendations: The shop has gained popularity through recommendations from overseas bloggers, who highlight its high-quality services and convenient location. For example, Korean tourists specifically visit the shop after seeing their posts.
- Cultural Differences: Foreign tourists (especially Koreans) prefer decorative nail designs with small cartoons and many accessories, so the shop stocks these materials accordingly.
- Service Process: The shop uses appointment systems and translation software to ensure clear communication about styles, duration, and costs, avoiding misunderstandings.
4. Business Model Transformation: From Domestic Focus to Overseas Expansion
These changes are not accidental but a result of actively adapting to new customer demographics:
- Reduced Customer Acquisition Costs: Instead of spending on domestic advertising, the shops rely on word-of-mouth and social media.
- Optimized Revenue Structure: The focus has shifted from increasing volume to improving quality, resulting in higher average transaction values and more stable profits.
- Tailored Services: Services are adjusted to meet the language and aesthetic preferences of foreign customers (by learning foreign languages and stocking special materials).
- Future Plans: Shops are moving from passive customer acquisition to proactive expansion, such as investing in overseas advertising to continue to grow in overseas markets while maintaining their high-average transaction value model.
Conclusion
The resurgence in inbound tourism has not only revitalized traditional tourist attractions but also provided new growth opportunities for small, local service businesses like travel photography and nail services. The success of these shops lies in tapping into the demand from foreign tourists for Chinese culture (such as cheongsams and traditional costumes) and high-quality services. By leveraging word-of-mouth and social media, they have successfully entered overseas markets. As more visa-free policies are implemented and businesses continue to expand, such "Chinese-style services" may become a new highlight of inbound tourism in China.