I saw the new movie Crazy Rich Asians last night. It was fun, escapist entertainment. However, the scenes in the shopping malls had me wonder, is this how the Crazy Rich Asians shop?

Singapore, Hong Kong, and Mainland China are well known for luxurious high-end malls filled with designer shops – which seem never to have anyone in them. Walk past these stores. You will see young, impeccably dressed, saleswomen milling around the store, straightening some item on display, or just looking through the front window. Where are the customers?

I have heard many reasons for this phenomenon. Some say that the malls themselves discount the rents to the name brands to make the mall more luxurious and attractive to potential stores. Others say that the stores are marketing activities to promote the store’s brand names to Chinese luxury consumers. A third theory is that the real shopping takes place by appointment in a private room behind the store or at the client’s hotel room. (The movie illustrated the third theory in a scene where Astrid was shopping for jewelry.)

40% of luxury purchases made by Chinese are made outside of China

The reality is that Crazy Rich Asians shop overseas and on the Internet. This is known as cross-border retail shopping.  A recent study shows that 40% of luxury purchases made by Chinese are made outside of China. Wealthy Mainland Chinese make an average of 5.9 international shopping trips per year. Hong Kong, South Korea, and Japan are the top destinations. Instead of selling to local customers, a recent survey by ContactLabs showed that 90% of all luxury goods sales in Hong Kong and Macau come from foreigners who engage in “touristic” shopping.

Internet shopping is also on the rise for the Chinese. Haito (海淘), buying imported products directly from cross-border vendors over the web, has grown at the breakneck rate of 74.8 percent annually since 2011 and exceeded $657 billion in 2014.

Why don’t Chinese purchase luxury products at home? Chinese consumers engage in cross-border shopping to get higher quality products (67%), to avoid counterfeits (45%), and to take advantage of lower prices (35%), according to Frost and Sullivan.

Fakes are so prevalent in southeast Asia that cross-border products have a higher chance of being the real thing.

Those of us who live in the West may worry that when we engage in cross-border shopping that we will get knock-offs. But, fakes are so prevalent in southeast Asia that imported products have a higher chance of being the real thing.

Hefty import tariffs and consumption taxes also raise prices for luxury goods in Mainland China. In 2016, the price for the Longchamps “Pliage” bag was France €76. In Beijing, it was 1100RMB (€150), double the price. (China is in the process of lowering tariffs for many products in 2018.)

Luxury brands are struggling to cater to the cross-border luxury customer. Her customer experience expectations are very high. McKinsey & Company states that the Chinese luxury customer expects:

  • “Being individually recognized by the store staff in every store of their favorite brands they walk in(to).”
  • “Experiencing a similar level of familiarity with sales staff as if they were in their preferred stores, like color preferences…”

Luxury brands focus on customer experience cross-border shopping

In response, luxury brands focus on customer experience cross-border shopping. For example, Burberry, which is well-known as an early adopter in customer experience, has reportedly hired 150 Mandarin speaking sales associates across popular travel destinations in Southeast Asia just for the Chinese traveler. (Chinese customers account for a third of the worldwide cross-border spending on luxury goods, and that percentage is growing rapidly. By 2025, McKinsey & Company forecasts that Chinese luxury consumers will account for 44% of the global market.)

However, placing Mandarin speakers in a store that does not solve the problem of recognizing your best customers in every store around the world. To do that, the sales associate needs to be able to retrieve all the relevant information about the shopper.

Data silos” are significant problems that impede the sharing of customer information between countries. They are databases that occurred naturally when a geographic division automated their operations before a global plan was created. These well-established and independently designed databases are difficult to link together.

The key for luxury retailers is to create a “system of reference”

The key for luxury retailers is to create a “system of reference” that enables all of the data silos to submit (and synchronize) information that can be used to get a complete 360 customer view from any store.

The problem of creating a system of reference is not just a technical or connectivity one. The issue is that customer data cannot be matched easily. For example, every customer record should contain the name of the customer. But, what happens if she has different names in different databases?

For example, in her home country, the name of a Chinese person is likely recorded in Chinese characters. However, outside of these markets, Chinese characters may not be supported at all. In those cases, a Romanized name is often used. However, Chinese names entered into Western systems are not always entered in the same way by data entry personnel.

Chinese surnames Wang, Huang, and Wong all refer to the same surname

For example, the Chinese surnames Wang, Huang, and Wong all refer to the same surname. In Singapore and Hong Kong, the Romanized name might be the surnames given in their dialects, as recorded by British officials at the time. Some Chinese even change their names to a Westernized name or initials to make it easy to transact business overseas. This means that a name in the database might not be at all related to the Chinese name at all.

At Global-Z International, my employer, we use a technique known as “cascading” to identify customers. Cascading uses information across multiple records to identify customers, even when data conflicts or is missing. (How to match records in data silos.)

Cascading helps us to identify those Crazy Rich Asians and assemble the information needed for a complete 360 view of each customer.

NOTE: My employer, Global-Z International has been a significant part of building the customer to brand relationship strategy for global luxury brands for over 25 years and in the People’s Republic of China since 2003.

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South_Korea_Flag

Changes in the South Korean addressing system can cause customer data quality problems for global retailers and others.  The original street addressing system, created in the early 1900s, is still used by many who send international mail from out of the country.  But, the new system, which involves street names and postal codes, should be used for all mailings and all customer database applications.

The following article, written by by Merry Law, President of WorldVu LLC, explains the changes in the system and its benefits:

What You Should Know About South Korea’s New Addressing & Post Code System

South Korea, in a project lasting for almost 20 years, has completely replaced its address system in the country.  The new address systems organization and logic changed from old addresses based on land parcels in reference to the locational hierarchical government units, to new addresses based on a building numbers and street names within a locality.

 

Learn More About the Challenges of East Asian Writing Systems 

The systematic nature of the addresses, plus the database of all address locations, provides significant advantages over the previous system.  According to the South Korean government, “The new address system will fundamentally make it easy to find a road, expedite the distribution and reduce the expenses.  This new system will also make it possible to effectively cope with disaster situations such as fire, first aid and urgent rescues. It also helps us create a more intelligent system when responding to crimes.  In addition, it will energize IT-related industries, such as mobile navigation, ITS, LBS, telemetrics and the like.”

The new database of addresses allows for quick identification of locations that will be made available at a low cost for businesses.  Ideally, will let private sector companies take advantage of the information in the database for address hygiene, delivery services, and any other permitted marketing uses.  All in all, the new system will help South Korea further advance its business opportunities and position in the global world economy.

History of South Korea’s Addressing System

South_Korea_Address3South Korea’s land-lot addresses were introduced under Japanese rule in the early 1900’s.  As expansion and urbanization occurred, the land-lot address system became more difficult to keep up-to-date.  The task of maintaining location information using the land-lot system had become increasingly costly and was not completely reliable, according to the South Korean government.  Korea Post plans to completely phase out these old addresses.  The old addresses are no longer used in governmental applications.  However, delivery of incoming international mail to the old-style addresses still continues at this time.

South_Korea_Address2Plans to change the outdated addressing system started in 1996. When authorizing legislation passed in 1997, the project has moved forward in a series of methodical stages.  With 230 self-governing bodies (various levels of governmental administrative units), the project required complex coordination between governmental authorities.  The road posts, doorplates, real estate registers, resident registrations, building registers, other official documents and signs needed to be changed to reflect the new addresses.  The final stage of establishing the new addresses was completed in 2015 with the introduction of new postal codes.

illustration

Addresses Prior to the New System

The previous land-lot addressing system, similar to that used in Japan, designated each parcel of land by reference to the hierarchical governmental units where it was located.  Addresses had two or more of these administrative units in addition to the local delivery information, such as street and building information.  A province (-do), city (-si) or municipality (-gun) was further subdivided in –gu, -dong, -myeon, -ri and –ga.  (In transliterated names, the suffix following the hyphen indicated the unit type.)  

The specific units required depended on the location, with differences in the units used in major cities, smaller towns and rural areas.  An address might include the following designations, all of which were used in the South Korean land-lot system, in addition to more specific information identifying the recipient and the premises.

  • Oechi-ri Worya-myeon Hampyeong-gun Jeollanam-do
  • Worya-myeon Hampyeong-gun Jeollanam-do
  • Juseong-dong Sangdang-gu, Cheongju-si Chungcheongbuk-do
  • Daerang-dong Jecheon-si Chungcheongbuk-do
  • Doma-dong Seo-gu Daejeon
  • Gangyeong-ri Okpo-myeon Dalseong-gun Daegu

 

An example of a typical land-lot address in Seoul, South Korea might be:

South Korea Address Seoul

Map of Seoul, South Korea. Detail from the World Map.

Map of Seoul, South Korea. Detail from the World Map.

The New System of Addresses

Today, the new addressing system takes a more practical and logical approach. Existing roads have been given names that reflect the local history and character, in consultation with local residents and Office of Street Administration.  Building numbers were assigned sequentially with odd numbers on one side of each street and even numbers on the other.  As local governments pave new roadways, they will be responsible for assigning street names and building numbers.  They will also be responsible for updating, “in real time”, the database of addresses maintained by the Ministry of Public Administrator & Safety.

The new street addresses eliminate some of the administrative units that were used in the land-lot addresses, simplifying the address structure.  The addresses are composed of the building number, street name, district, city or province, and postal code.

The following examples from Korea Post show the correct format for addresses written in the western alphabet.

South Korea Address Western Element

The format differs in Korean-language addresses, shown below.  Underlining in these examples is to indicate elements and is not used in addresses.

South Korea_Native Language

New Postal Code Numbering Formats
The 5 digit postal code breaks down like this:

  • The first 2 digits correspond to the largest administrative units: either the province or the metropolitan city.
  • The 3rd digit corresponds with the smaller sized city in the province, or the district-level area within the large city.
  • The last 2 digits are a serial number that corresponds to a specific area within the local district.

Here are two examples of the new codes:

  • 03139 corresponds to: Seoul Metropolitan City, Jongro District, Supyo 22nd Road, #17
  • 26412 corresponds to: Gangwon Province, Wonju City, Namsan Road, #203

The new addressing system also includes new “intel.” Numbers in the system indicate the distance between buildings. This can be calculated by taking the difference in address numbers between two buildings, multiplied by 10 meters, equals the distance between the two buildings. For example:

(Building 1 – Building 11) X 10 Meters = 110 meters from each other.

 

City aerial view of Busan, South Korea

City aerial view of Busan, South Korea

Adoption of the New Addresses by Residents

The South Korean people have little resistance to the new addressing system. Residents are adapting quickly and they are providing and receiving new addresses as the system expands.  The extensive planning, consultation with local governments and residents, and the time between initiation and final implementation all contributed to success of the new system.

Some observers in South Korea have noted minor objections to the elimination of the dong or other neighborhood identifier, which is no longer used in the new system.  Since there is considerable connection to the neighborhoods, the new addresses may still be given with the neighborhood indicator.  This is not a fatal problem and will disappear as residents become more familiar with and confident with the system.

Conclusion 

South Korea’s new addressing system opens doors for much better governance, communications and business related opportunities. Do you do business in South Korea? Have you considered what opportunities are in the market? If you have any questions about how and why this will impact global business, please reach out to us. Global-Z can help.

You are aware of the risks caused by data breaches, and you have done your job by tightening up your security protocols.  How can you be assured that your vendors and partners take data security as seriously as you do? Look behind the words.

Today, Global-Z announces that we have achieved the gold standard in privacy certifications, ISO/IEC 27001:2013. The British Standards Institute, which wrote the global draft standard, performed an in-depth assessment of our practices and verified our compliance with the standard. BSI issued the ISO/IEC 27001:2013 certificate last week and registered it with the International Standards Organization.

With this certification, you can be confident that we have implemented best-in-class security practices and that we are doing everything we can to keep your data safe. These practices include the following:

  • Implemented an information security management system for service development, operations and support.
  • Put controls that in place to protect Personal Data.
  • Implemented an in-depth information security risk management program.

Global-Z always had a strong culture of privacy and security over its 30-year history.  But, the systems to implement it were informal and often implemented as needed.  ISO/IEC 27001 provided the framework that enabled the company to make a fundamental change to a modern managed infrastructure that was implemented from the ground up.  It was a quantum leap forward for the organization and will continue to evolve over time.

The ISO/IEC 27001:2013 certification is an integral part of our ongoing commitment to implement world-class confidentiality and data security practices. In addition to certifying to the ISO/IEC standard, we are compliant with the EU’s General Data Protection Regulation (GDPR), EU-U.S. Privacy Shield, and Swiss-U.S. Privacy Shield.

Global-Z Extends its Focus on Data Privacy and Data Security
with ISO/IEC 27001, GDPR, EU-U.S. Privacy Shield, and Swiss-U.S. Privacy Shield Compliance

BENNINGTON, VT and HERNDON, VA, July 10, 2018  –  Global-Z International, a leader in global customer master data management solutions, has achieved certification for its Information Security Management System (ISMS) under the ISO/IEC 27001:2013 standard.  Compliance and certification to the standard were verified through an in-depth assessment by BSI, an independent third-party certification body.  The certification validates that Global-Z has successfully implemented comprehensive information security practices that protect its customers and their sensitive information in accordance with internationally-recognized standards.

“Protecting our clients’ sensitive information is of paramount importance, as our customers are well aware of the increasing consumer demand for data protection and privacy,” explained Dimitri Garder founder and CEO of Global-Z.  “By independently certifying our Information Security Management System, we demonstrate assurance in the marketplace that we have implemented best-in-class security practices and that we are doing everything we can to keep our clients’ data safe.”

To achieve the certification, Global-Z had to prove that it has a systematic and ongoing approach to managing sensitive company and customer information.  This comprehensive approach encompasses the people, processes and IT systems by applying a risk management process.  ISO/IEC 27001:2013 is the most widely recognized global standard for management of information security.

Because Global-Z works with customer data in countries representing 98.9% of the world’s population, the company chose BSI as its partner for the assessment and certification.  BSI is world-renown for its expertise with global standards, and has clients in 193 countries.

“Global-Z International is to be congratulated on their certification,” stated Carlos Pitanga, Chief Operating Officer of BSI Group America Inc. “Implementing and complying to ISO/IEC 27001 requires an enterprise-wide commitment to protecting customer information and with the standard’s requirement for continual improvement, Global-Z International will be strengthening the resilience of the organization.”

The ISO/IEC 27001:2013 certification is an integral part of Global-Z’s ongoing effort to implement world-class confidentiality and data security practices.  In addition to certifying to the ISO standard, Global-Z is compliant with the EU’s General Data Protection Regulation (GDPR), and self-certifies with the EU-U.S. Privacy Shield and Swiss-U.S. Privacy Shield frameworks.

About Global-Z  International  

Global-Z International is a leader in global customer master data management solutions.  The company works with many of the world’s largest and most successful brands, delivering international data quality solutions for their marketing, customer relationship management and master data management needs. Global-Z was founded in 1989 and is headquartered in Bennington, Vermont with offices and operations in the US, Canada, EU, and Japan.

About BSI

BSI (British Standards Institution) equips businesses with the necessary solutions to turn standards of best practice into habits of excellence. From assessment, certification and training to software solutions, advisory services, and supply chain intelligence, BSI provides the full solution to facilitate business improvement and help clients drive performance, manage risk and grow sustainably. Through the passion and expertise of our people, BSI embeds excellence in organizations across the globe to improve business performance and resilience. BSI’s influence spans across multiple sectors with particular focus on Aerospace, Automotive, Built Environment, Food, Retail, Healthcare, and IT.

 

As it prepares for its next phase of expansion, data quality vendor Global-Z International announces the appointment of Roger Matus to the newly created position of Vice President, Global Marketing.  In this role, Matus will be tasked with growing the awareness of Global-Z world-wide and will oversee all aspects of brand communications, product marketing, new product strategy, and demand generation.

“As we enter the next phase to grow in the multi-billion dollar data quality marketplace, Global-Z continues to attract the top talent in the industry”, said Dimitri Garder founder and CEO.

Matus joined Global-Z from artificial intelligence company Neurala, where as Vice President of Products and Markets, he led the roll-out of the company’s products to Fortune 50 companies and a global audience. He was also Executive Vice President of Nellymoser, an innovator in print-to-mobile technology for the publishing industry, and Vice President of Marketing for Dragon Systems, the leader in speech recognition software.  He has an MBA from the University of Chicago, an MS in Engineering from Boston University, and a BA from Syracuse University.

“We are extremely excited to have such a seasoned executive as Roger Matus joining our team,” said Ted Haas, Chief Marketing Officer of Global-Z.  “Roger brings to Global-Z not only strong global marketing expertise but also a strong track record in expanding markets for technology companies.”

“As large companies increasingly rely upon their in-house databases to make predictions, and for enterprise customer communications, I believe that the market for Global-Z’s data quality services will expand dramatically.  Global-Z’s ability to customize data hygiene services at scale for complex environments will make the company a critical partner in the customer’s growth.  I am thrilled to be a part of it,” Matus said.

During his free time, Matus likes to take advantage of everything the Berkshires has to offer, including yoga, hiking, concerts, and theater.

ABOUT GLOBAL-Z INTERNATIONAL

Global-Z International is focused on improving customer data quality and intelligence in global markets. Today Global-Z serves some of the largest global enterprises with customized international data quality solutions for their marketing, CRM migration and master data management needs. Global-Z International, Inc., was founded in 1989 and is headquartered in Bennington, Vermont with offices and operations in the US, Canada and Japan.

#  #  #

Privacy-Shield-Framework

Global-Z International Inc., a leader in global data quality, is pleased to announce they have achieved approval for the Swiss   Privacy Shield. This certification replaces Swiss-Safe Harbor. The certification details can be viewed on the Privacy Shield website here. This certification is in addition to the EU_US Privacy Shield certification granted in 2016.

The European Commission (EC) adopted the new EU-U.S. Privacy Shield on July 2016. Now the Privacy Shield framework protects the fundamental rights of anyone in the EU including Switzerland whose personal data is transferred to the United States, as well as bringing legal clarity for businesses relying on transatlantic data transfers.

For detailed information on the Privacy Shield regulations you can refer to our post here. We also include a post covering Privacy Shield’s most frequently asked questions.

Eircode Global-Z

~by Paul Harris, Marketing Manager

Global-Z International Inc. is proud to announce that it is one of the top global data quality vendors to be approved as a Eircode Provider.

Eircode is Ireland’s newly adopted postcode system. Eircode enables people and businesses to find every address in Ireland, helping to improve all our address hygiene and data quality solutions for Ireland contact data.

According the Eircode website, “Over 35% of addresses in Ireland share their address with at least one other property, making it difficult for those delivering goods and services to accurately identify the location of an address. Eircode has been designed specifically to overcome this problem. Unlike other countries where postcodes define a cluster or group of addresses, a unique Eircode is assigned to each residential and business address. Having an Eircode address, removes the hassle and mistakes out of finding addresses in Ireland.”

“Global-Z International is committed to improving our address solutions suite in Ireland and all around the world,” said Dimitri Garder, CEO of Global-Z International. “As the new Eircode system in Ireland begins to be adopted more widely our address verification results will see better overall accuracy for our clients.”

If you would like to discuss Eircode or our solutions for Ireland data in greater detail please feel free to contact us any time.

 

Privacy ShieldToday, we are proud to announce that Global-Z is one of the top global data quality vendors to certify with the new EU-US Privacy Shield by the U.S. Department of Commerce. Our self-certification was declared official and finalized during the 2016 holiday break on 12/27/2016.

The EU-U.S. Privacy Shield Framework was designed by the U.S. Department of Commerce and European Commission to provide companies on both sides of the Atlantic with a mechanism to comply with EU data protection requirements when transferring personal data from the European Union to the United States in support of transatlantic commerce.

“Global-Z International is committed to the privacy and security of our clients’ information globally,” said Dimitri Garder, CEO of Global-Z International. “In the new and rapidly changing age of personal data and information protection, Global-Z is committed to meet the challenges to protect all customer and client data.”
For detailed information on the Privacy Shield regulations you can refer to our post here. We also include a post covering Privacy Shield’s most frequently asked questions.

 

Merry_Law~by Merry Law, President of WorldVu LLC

Another year has passed and it’s time to dust off my crystal ball to make my global mailer predictions for 2017. It’s been quite a year for direct marketers and the marketing landscape is changing rapidly in the age of big data.  You can view my previous predictions for 2016 here, if you’d like to see how those turned out.  Now, lets get down to business for the new year!

Here’s what I see coming in 2017

  1. Postal reform legislation will be delayed again in the U.S.  It won’t pass Congress before the new Congress takes office in January, requiring a new beginning for the process.  Postal reform won’t be high on the priority list for either the new administration or the new Congress.
  2. The future President will carry out his campaign promise to end or renegotiate various trade deals, causing uncertainty in trade relations with other countries.   This will slow trade between the U.S. and the rest of the world.
  3. The international economy will remain uneven, with little or no further improvement in most sectors and regions.
  4. In the international postal world, costs for mailers will continue to rise.  USPS has not raised international postage but international fees are increasing.  Other postal operators and delivery services will raise their rates, too.
  5. Mail volumes will continue the trend of 2015 and 2016, with a leveling off in letter volumes and an increase in the volume of packages and parcels.  International package and parcel volumes will not increase tremendously, and may level off
  6. The Universal Postal Union’s Integrated Product Plan (IPP), passed at their Congress in 2016, will be difficult for international mailers and their service vendors when postal operators announce how they will implement the new requirements.  (Mail will be classified by contents—documents or goods—rather than by weight.  Small packages, under 2 kilograms or 4.4 pounds, will be in their own new class of mail.)
  7. Undeliverable international mail and its return, or non-return, will become a greater issue for mailers, as more packages and the marketing and transactional documents that accompany them are sent.
  8. Addresses based on discrete global grids (What3Words, GO Code, etc.) will be a subject of much discussion and publicity, but will not be implemented as part of any national addressing plan.  Some changes will, as always, occur to national addressing plans but will be based on current postal addressing models.
  9. Drones will be used for transport to remote areas but not as “last mile” solutions.  Successful trials of drone delivery for pharmaceutical and emergency supplies have taken place in southern Africa and trials elsewhere are also occurring.  These deliveries will become more common, although the “last mile” delivery will continue to be by current methods.
  10. Concerns about hacking and privacy will not slow the move toward more mobile, Internet and cloud-based services and data storage.  Consumers will continue to be concerned but accept the risk, with companies making apologies and providing credit monitoring when large attacks happen.  Privacy legislation in the U.S. will remain minimal.

We’ll see this time next year whether my crystal ball was too cloudy to see clearly.  Have a wonderful holiday season and a happy New Year!

 

Canada_flagGlobal-Z would like to remind our clients and contacts who use Canada Post’s National Change of Address (CNCOA) Mover Data services that your annual NCOA Terms of Use agreement may be up for renewal. This can be renewed by contacting Canada Post directly and requesting your ID renewal.

An ID is valid for 12 months and you must re-accept Terms of Use before its expiry to avoid service interruptions. Please continue to ensure that all recipients of CNCOA Mover Data in your organization are aware of and understand the Terms of Use.

For more information on the changes made to Canada Post’s CNOCA services you can read our past blog post here. You can also visit the Canada Post website here.

If you have any questions or concerns about you CNCOA status, please don’t hesitate to Contact Us.