Newsletter Week 15, 2008 |
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Dear Reader, Here is this week’s edition, covering:- China’s Rising Retail Market - China’s Supply Chain raises the bar - Part II - The impact of cultural difference when entering the Chinese market - Betting on the Dragon: Chinese investor behaviour We hope you will enjoy reading this edition. Have a nice weekend! All of us at China Success Stories PS If you are attending the Canton Fair next week, make sure to check out our new pages about Guangzhou hotspots and restaurants! More city information will be online soon. PPS Besides our China Business Group on LinkedIn, we also launched a China Golf group. If golf is your game, you are welcome to join us here: http://www.linkedin.com/e/gis/82470/3131820D1DF1 PPPS We launched a China Events Calendar on our website, you can find it here. If you know of other events that should get listed, drop us a line: info@chinasuccessstories.com. Chinese Expert Guest Blog China’s Rising Retail Market  The subprime debacle has rattled retail sales in the U.S., forcing many companies to downgrade sales estimates as consumers shy away from checkout counters. Luxury retailers and credit-card companies in the U.S. have recently reported bearish projections for the coming quarters.China, however, is a retail market on the rise. In 2007 China posted 17% growth in retail spending. Electronics retailers Guomei and Suning posted record numbers, and both paint positive pictures for the future as Chinese consumers continue to buy LCD TVs from LG Electronics and mobile phones from Nokia (NOK). Much of this continued growth is fueled by Chinese under the age of 32. My firm, the China Market Research Group (CMR), conducted in-depth interviews with 500 Chinese between the ages of 22 and 32 in 10 cities to gauge whether fears of a global slowdown would influence their shopping habits. Read the rest or post a comment >> Q & A Going to Beijing I will be leaving for Beijing next Monday to visit with my wife’s family. I will be there for 2 weeks and I am looking to network with local business people who are either in the real estate development field or the renewable/sustainable energy/development field. Answer this question >> Chinese Expert Guest Blog China’s Supply Chain raises the bar - Part II  Similar to the pharmaceutical supply chain, luxury goods have their own complexities.Until a few years ago, distribution of luxury goods in China were controlled by state owned companies with little knowledge about sophisticated marketing, distribution and supply chain management strategies. Under WTO commitments, companies like Alfred Dunhill were allowed to open their own stores in China in 2003 – the problem was they didn’t have an effective distribution and logistics solution for mainland China. They turned to their Hong Kong logistics service provider, Kerry EAS. Formed out of a merger between Kerry Logistics and EAS, an air freight business formerly owned by the national security bureau, Kerry acquired EAS to help them enter the mainland market.. Acquiring EAS allowed Kerry to access a wide distribution network in China. Read the rest or post a comment >> Facts & Figures Television Channels You never know when these statistics might prove to be of value to you. So without further ado, here's our weekly top 10. Top 10 countries with the most television channels
(Source: Central Intelligence Agency, ‘The World Factbook 2006’) Chinese Expert Guest Blog The impact of cultural difference when entering the Chinese market  Chinese market has been a highly preferred market for many organisations worldwide in the past twenty years. However, it is not an easy market to penetrate. Australian companies are among those Europeans and Americans who have been tackling the market with little positive results. One primary reason is that they do not appreciate the important role and impact of Chinese culture.Cultural differences Many business people argue that there are many similarities between Westerners and Chinese. After all we are all humans; we all understand if we are in business together we need to make profits. Read the rest or post a comment >> Chinese Expert Guest Blog Betting on the Dragon: Chinese investor behaviour  Most of the commentary on the Shanghai market depicts the average Chinese investor as unknowledgeable and following the herd. However, a recent study that we’ve (kapronasia) just completed with Amber shows that individual Shanghai A-share investors are actually much more market savvy than commonly thought.Although influences like lucky numbers and family advice still impact some decision making, the reality is that most investment decisions today are made on the basis of solid indicators like company fundamentals and straight-forward economics. However, even with this knowledge, Chinese investors still invest in a market that they clearly view as overvalued. Read the rest or post a comment >> Comments Nicholas Cameron in reply to What is the best way to find investors and financing for foreign restaurant ventures in China? You can advertise for free on our website as you will be much more likely to find an investor there. There are quite a few people out there looking for projects like yours and it is just … Peter Stromqusit in reply to Private Equity Yes, I would be interested in talking next week, at your leisure. Particularly interested in firms that will look @ “small money deals”. It may be the firms I am talking to you are … Mona in reply to Marketing-China and Getting it Right We should have no problem in creating arguments depends on what level we are looking at, micro or macro. In any case, western liberal education system is nothing but encouraging this … Terri in reply to Marketing-China and Getting it Right Muddling the point does help considerably to diffuse the core problem: that the original article was insulting. Perhaps you might have considered the point earlier? If you did not want … China and I in reply to Starting a New Business in China (Pt 1): Legal Entity Some people shall be very careful when they publish so called “experts”. The first guy or girl who comes to town -here actually in Shanghai- she/he knows how it works here. I can … Tina Chen in reply to Starting a New Business in China (Pt 1): Legal Entity I agree. I also do not think it is a safe entity for you, Toffler! Now I am working in a foreign company in the name of Chinese local in Dongguan as a Canadian boss’s assistant. The problem … Tina Chen in reply to What the f*&%? Chinese translations found in China Thanks for you showing. I am a Chinese, and I was a English major in the university. For the graduate paper, we have the paper discuss this field which make people disunderstandble, but … Maarten Roos in reply to Starting a New Business in China (Pt 1): Legal Entity Dear Toffler, I fully agree with the first remark. This again shows what foreigners who want to start a business - big or small - should not do: listen to a handful of foreigners with some … Matt LeVasseur in reply to Scientific study on Guanxi in Business “Scientific” may be a bit of a stretch, referring to a survey of opinions. Nonetheless, the concept of Guanxi is all about perception. If it seems, it is, when it comes to who you trust. I think … Ryan in reply to Position with an innovative startup in Beijing or Shanghai I am working with a coatings company that is looking to enter the China market. We are focusing on the mining, industrial, and Wastewater treatment markets for corrosion protection … Terri in reply to What the f*&%? Chinese translations found in China And that’s just the tip of the proverbial iceberg! Be sure to get a bottle of White Whine with dinner. And “I chocolate you.” Jimmy, your point about asking for help is totally valid, although … Terri in reply to Successful business in China (part II) Excellent insight! Terri in reply to Starting a New Business in China (Pt 1): Legal Entity Toffler, Congratulations on being careful and shrewd enough to ask the questions. You are well on your way to being successful. In any business, you have to be careful who you … Erik in reply to Private Equity Peter: It would be great to have a conversation. Please send me your contact info and a convenient time to connect to … Jimmy in reply to What the f*&%? Chinese translations found in China I visits plenty of trade fairs in Taiwan, Hk & Guangzhou as part of my job. Yes, I can speak “foreigner’s” 老外 chinese and understand them in reasonable conversation. However, as a … Jimmy in reply to What the f*&%? Chinese translations found in China Terri,hat does ““I chocolate you.” means then? BTW, the word 干 that was shown on the video, is informally the F-word or something similar. Perhaps the translation was too direct then. Graham Miller in reply to Starting a New Business in China (Pt 1): Legal Entity WFOE is almost certainly the best way forward for this kind of service business. Of course being wholly foreign owned will mean that you need to have an entity outside of China to be ... |
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