Lola BAC

Deadline: Oct 13 at 8:30am Principles of Consumer Behavior

CASE STUDY 1:
Subject: K11 MUSEUM-RETAIL CONCEPT: TARGETING MILLENNIALS
China is the world's largest art market with a 41% share, followed by the United States (27%) according
to Artprice.com.
K11 mission is to promote art and culture for millenniums (born between 1981 to 1996) and create a
“Museum-retail store” *. Over the years the company has adapt its strategies to the context and the
customers. We will first try to understand the mindset of the leaders and workers and go through the
different phases they faced.

Rebecca Woo is Operating Director of K11andf has for core value Innovation which is why she even
named the marketing department “Innovative”. One of the strong qualities is to trust her employee
and so push them to be participative and make decisions. This management leads to a lot of
brainstorming that includes a higher productivity and so a better understanding of the potential
customers.

Another great turn for the K11 is the context: The government of China has released the pressure over
Hong-Kong (which is where the company is based). Thanks to the political environment a great number
of tourists came, and Rebecca proposed the assumption that they are particularly interested in fast
shopping. She also points out the local customer’s needs: for them it was more about the experience.
Once she separated her different customer, she chose solution for each category which helped the
company to not suffer for the recession for tourism in 2016.

After this realization, they try to keep updated of the mindset of the millennium. To do that is necessary
that the promotion is made for millenniums by millenniums. K11 has also established a product
committee composed of employees from different departments. Their task was to provide input on
the types of product and service offerings K11 should implement or incorporate. The panel members
were all millennials. To stay awake regarding their customers target they are conducting study market
and two huge surveys in shopping center every year. This technique helps to capture the consumer
behavior and their psychology and then try to find solution that correspond perfectly with the needs.

Those survey shows two important facts about the millenniums. First, they are the people with the
highest purchased spending power in 2020 but we also know they related on the experience better
than the just the purchase. The seconded important fact is that millennium is media-savvy. This factor
is key for K11, they know how to best reach to the customers: through social media.
As they understood the power on media for this generation, they used influencer and invest a lot in
digital marketing. This analysis of the customers was mandatory to keep the company growing.

The last point that we should focus on is how they create an experience as a brand according to their
values: art, people, and nature. To create an amazing journey in the mall they use tricks for the mind
to feel good about it for instance they broadcast a special sent so the clients feel good and has an
enjoyable experience. This same air is used in every K11 mall to condition the client.
They also design the mall with logic, so the client knows where to go and get a deep experience. Also,
as for value nature they decided to install a huge plant wall.

To conclude, I would say that the strength of K11 is not the product/service offered but it is the way
they are trying to understand their consumer behavior deeper every single time so that they adjust
their strategies according to their needs and how they create and experience but not a selling place.