撮要

This case is focused on the ongoing rejuvenation of Citibank’s cornerstone product in Hong Kong, Citigold, first launched in 1982. Citibank strived to be the market leader in priority banking products offered to high net worth individuals (HNWIs). For HNWIs, Citibank followed a segment-led strategy based on the customer’s account balance around which Citi Priority, Citigold and Citigold Private Client products were formulated. Out of the three, Citigold focused on the emerging-affluent segments and offered them exclusive services that were based on three tenets of the product: sophisticated financial planning products, dedicated relationship managers and unparalleled privilege that allowed a Citigold customer to enjoy elevated banking status with Citibank. As Citigold was one of the first products of its kind in the market, it contributed to the premium image of Citibank over other banks in Hong Kong. However, over the years competition had caught up and offered products very similar to Citigold, eroding their once unique value proposition. Combining the commoditization of their product and changing consumer preferences in Hong Kong, the market share of Citibank in Hong Kong was threatened. Citigold customers, which made up 30% of the entire Citibank consumer base, contributed to 80% of the bank’s revenue. In 2017, the bank looked to protect its position in the market and to craft a strategy that would address the current challenging environment in priority banking products.

学习目标

Upon analyzing the case, students will be able to:

1. Understand the business model of a premier global bank’s product positioning in the HNWI market segment in a developed market with intense competition, such as Hong Kong.

2. Describe a segment-led strategy in consumer banking with effective product features that are tailored to the various segments of the retail market.

3. Understand how banks need to defend their position in the market and anticipate product positioning when faced with changing consumer preferences and a dynamic competitive landscape