OC&C’s 2019 Fundex Report reveals the nation’s most sought-after leisure brands

OC&C’s 2019 Fundex Report reveals the nation’s most sought-after leisure brands and how they won the hearts of Chinese consumers

• The secrets to success in leisure and hospitality: ace the basics; fun as a fundamental; appeal to the masses; build distinctive, shareable experiences; deliver consistency
• Millennials tend to have more fun compared to Baby Boomers despite the latter having more spending power
• The Chinese tend to seek higher quality and more convenient experiences, whereas the French try to seek the best deals and are bargain hunters
• Donglaishun and Wang Steak are the top-ranked restaurants among Chinese consumers, followed by Dadong and Hai Di Lao

Today we launch “The OC&C Fundex 2019”, a proprietary report aimed at helping major brands across the leisure ecosystem understand what makes for a winning guest experience and where to direct investment in order to deliver better results for customers.

Evidently, delivering a great experience to guests is not a straightforward task; a great experience means different things to different consumers. The OC&C Fundex gives us insights into topics such as how people define ‘fun’ and what ‘great service’ really means, while revealing the brand names which topped the ranks for each segment.

Ace the basics

“While there is no universal formula for success in Leisure, one factor is for sure. Failure to deliver on a brand’s core value proposition will see guests going out the door without turning back. As such, achieving the basics is key,” said Steven Kwok, Associate Partner. “This factor is one which cannot be compromised. Restaurants must serve good quality food, hotels must deliver a good night’s sleep and theme parks must be fun.”

Take Wang Steak in China as an example of one such company that has nailed the basics (Figure 1). Wang Steak is a champion in the Best Restaurant category because it is aware of what the “must win” battles are for the restaurant business. High quality food is the single most important factor for restaurant goers, especially for high end steakhouses. Wang Steak not only came top for quality but also for other key elements such as menu choice and cleanliness. These strong ratings are also supported by generous food portions as well as best value for money.

(Figure 1: Wang Steak Case Study)

Fun as a fundamental

No brand can survive without its customers coming back for more. Fun can be a powerful driver for repeat visits, as guests are more likely to give positive reviews and recommend the brand to their family and friends if they had fun. “Creating a fun experience is a good way for brands to drive loyalty in a world where promotional marketing is becoming less effective and younger generations are becoming more demanding,” explained Kwok.

Local hotpot establishment HaiDiLao is dialling up the fun factor to stand out from the crowd by offering free manicures and shoe shining services as customers wait their turn for a table. Fun can be one of the most important factors guests look for when deciding where to visit.

(Figure 4: Ranking of the most and least fun people to spend time with)

Survey results also reveal that the Millennials is the age group having the most fun, whereas Baby Boomers tend to have the least fun despite having more spending power and being more likely to visit more expensive brands. Insights also show that the Chinese have the most fun when hanging out with their spouses whereas the American prefer to spend their time in group settings with other young families (Figure 4).

Appeal to the masses

While it is important to deliver on your brand’s niche, survey results show that simply having a focus is not enough. True champions have not only anchored their core product or service, but also created a breadth of appeal. Norwegian Cruise Line topped the list for having The Best Value for Money as it regularly launches promotions such as specialty dining when booking over three nights or USD 200 on-board credit on last minute bookings. Guests are delighted by their wide selection of itineraries, comfortable cabins and choice of on-board entertainment. Essentially, there is something for everyone and we can see families, groups of friends and couples alike signing up for their cruises.

Build distinctive and shareable experiences

Survey results show that champion brands are distinctive – they really stand out from the crowd. There needs to be something about their value proposition which adds a little extra ‘magic dust’ to the experience – sights, sounds, smell, the overall atmosphere. The experience can be further enhanced if the experience can be shared. Brands do particularly well when they create content that can be shared (via social media for example) or provide platforms for engagement.

Based on the survey, Disneyland came up top in rankings for Best Theme Park, beating its local Chinese competitors and winning seven out of the eleven criteria by which theme parks were evaluated by guests (Figure 2). Disneyland has gone far beyond a simple amusement park. With its dream-like atmosphere, the well-trained friendly cast members and high-quality entertaining shows, it is no wonder that Disneyland is a real-world fairy tale for people of all ages.

Be a well-oiled machine

Delivering consistency requires the right tools and support crew. This means creating a platform that puts the guest experience at its heart, while making it easier for teams to deliver an exceptional experience consistently. This is essential for brands that want to make the final cut.

In this regard, Hilton has rightfully won The Best Accommodation Brand title (Figure 3). As a premium brand hotel, Hilton offers its guests with second-to-none experience and delivers on its core proposition with an extra touch. Think Hilton pillows, custom designed mattresses and exquisite room design. Besides the basics, Hilton also caters for guests with special demands, whether they are conducting business or spending quality time with family. This all adds up to the best-rated hotel brand.

“Knowing your customer’s sentiment and your place among competitors is a good way to start paving the path for future growth. For brands that are consistently rated below average and often have no clear centre of gravity, the priority should be re-inventing the brand’s core philosophy and delivering on the basics. A brand needs to be ruthlessly focused to survive,” said Jack Chuang, Partner.

“For polarising brands with high variation amongst how different groups feel about the brand, the organisation needs to re-engineer the experience to broaden the appeal without losing sight of its niche. Ensuring consistency of execution is therefore critical.” concluded Chuang.

Appendix – The OC&C Fundex champions

Best Restaurant – Donglaishun & Wang Steak

• Runners-up – Dadong, Hai Di Lao

Best Café & Coffee shop –Starbucks

• Runners-up – UBC café, Zoo Coffee

Best Fast Food & Food To Go – KFC

• Runners-up – CSC, Lihua Fast Food

Best Accommodation – Hilton

• Runners-up – Westin, Shangri-La

Best Cruise –Royal Caribbean

• Runners-up – Dream Cruises, Norwegian Cruise Line

Best Theme Park & Attraction –Disneyland

• Runners-up – Chimelong, OCT

Best Gym & Health Club – Super Monkey (also third globally)

• Runners-up – Hosa Fitness, Tera Wellness

Best Cinema – Wanda Cinema

• Runners-up – Shanghai Lianhe, China Film Stella Cinema

Most Fun – Disneyland

• Runners-up –Chimelong, OCT

Best Team – Norwegian Cruise Line

• Runners-up – MSC Cruises, Royal Caribbean

Best Value for Money – Norwegian Cruise Line

• Runners-up – Princess Cruises, MSC Cruises

For the full report please see here.