25 September 2013
How to be successful on China's Weibo
Western companies are still reluctant to use Weibo, China’s highly popular microblogging platform. They should know that Weibo is in fact an entrance for brands into the other side of the world, a ticket into social networking and connecting with the Chinese market.
On China Business Review, Courtney Herring offers three great examples of how to open this 'door to China'. Fendi, Coach and International Watch Co., also known as IWC, are three foreign brands that are embracing Weibo to engage loyal and potential customers.
Weibo is China’s popular social networking platform, a combination of Twitter and Facebook. Courtney Gerring works in digital PR at Fashionbi, the world leader in business intelligence for the fashion industry.
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China opens world's highest airport
Business in China can now reach new heights. To be precise: up to 4,411 metres altitude, in Tibet. The world's highest civilian airport has just opened on the Tibetan plateau in the southwestern Chinese province of Sichuan. The airport is 77 metres higher than the previous record holder, the 4,334-metre Bangda airport in Qamdo in China's Tibet Autonomous Region.
The Daocheng Yading airport in Ganzi prefecture's Daocheng county, or Dapba in Tibetan, launched its first commercial flights last week, shortening the travel time from the provincial capital of Chengdu from two days by road to about an hour by plane.
The new airport was constructed in two years time at a cost of 1.58 billion yuan (almost € 200 million). The airport is expected to boost the local economy. Daily flights will initially operate between Daocheng and Chengdu. The government plans to open routes to major Chinese cities such as Chongqing, Shanghai and Guangzhou.
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The Chinese consumer market of the (not so distant) future
China is on its way to become the world’s largest consumer market. The hidden potential of the 1.3 billion Chinese consumers, once unleashed, will make China a new top export destination for other major economies.
The Chinese consumer market will be the new source of growth for western economies, says Stephen Roach, former chairman of Morgan Stanley Asia and a current senior fellow at Yale University on People’s Daily Online.
"China's current export-led, investment-driven model of growth is no longer sustainable in the long run, and the nation is rebalancing its economy to more of a consumption-based growth model, which is clearly good news for the world, especially in a time of global recession when other major economies, such as the United States and euro zone are seeking new sources of growth”, says Roach, who believes the transformation will occur in the next fifteen years.
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18 September 2013
Richest Chinese - US$14 billion - made fortune in property and retailing
Wang Jianlin is now the richest Chinese. Jianlin, head of conglomerate Wanda Group, has an estimated wealth of US$14 billion. According to Forbes Magazine his fortune soared from US$8 billion last year, when he was in third place, putting him now US$3 billion ahead of beverage tycoon Zong Qinghou. The US$14 billion figure puts Wang in 63rd place in Forbes global billionaires list, just ahead of Facebook founder Mark Zuckerberg. Wanda Group is a private firm with interests ranging from property to retailing. Wanda recently bought US cinema chain AMC Entertainment and British yacht builder Sunseeker whose powerboats have featured in James Bond films.
Growth opportunities for SMEs in China: sausages
China's growth opportunities are not just for large enterprises, but most certainly for SMEs, states a British government report titled 'UK Exports to China: Now and in the future'. A UK family business that has become a very successful exporter to China is Devon food business Westaway Sausages. The company’s pork sausage range is flying off the shelves in China. Two years ago Baughan opened his first factory in Guangzhou, the country’s third-largest city in China. The country became the key export territory for this £3.5m family business. “When I consider how quickly the Chinese pork market is growing – about 19 per cent a year – I feel dizzy with excitement,” said managing director Charles Baughan. "As long as the product has a story to tell and a sweet taste, the Chinese will flock to buy it.”
If Apple is not cool in China – what is?
To Chinese consumers in their twenties, Apple is no longer the coolest product in the world. Apple can learn a lot from Starbucks, says Brand Consultant Shaun Rein. “In China, Starbucks is ‘luxury in a cup’. The cheaper iPhone that is expected to be launched, will, according to Rein, “hurt Apple’s business in China. Young Chinese used to buy the iPhone because it was cool. If it becomes too cheap, it will not be the item that everyone is aspiring for.” Immensely popular among Chinese young people are Adidas (with their sub brand NEO), which is hip and urban cool. “Nike’s growth is sputtering, because it is too much ‘sports apparel’. Local herbal tea softdrink JDB is outselling Coca Cola and Pepsi. Coke is not perceived as healthy.”
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10 September 2013
Beijing to ease traffic congestion
Beijing has announced measures to reduce traffic congestion and air pollution. In 2014 the city will reduce car registrations. Local transport authorities are working with several other government agencies on a new monthly limit on car registrations for the next few years. The total number of vehicles in the city will be restricted to around 6 million by the end of 2017.
Geely becomes China's top vehicle exporter
Zhejiang Geely Holding Group became China's largest vehicle exporter in July. Despite a year-on-year drop in exports in China’s car sector, Geely has reported an increase of car exports of 27 percent, to a record 12,420 vehicles in July. With export numbers rising fast, Geely has overtaken Chery Automobile Co, that has dominated the sector for over six years. The Hangzhou-based company, that acquired Swedish automaker Volvo Car Corp in 2010, also set an ambitious target to make exports account for 50 percent of its total sales by 2018.
Top 500 Chinese enterprises
For the ninth year in a row, oil giant Sinopec Group tops China’s Top 500 Chinese Enterprises list. According to the 2013 edition of the list, Sinopec is closely followed by China National Petroleum Corporation, the parent company of China's top oil and gas producer PetroChina. The top 500 companies had a combined revenue of 50.02 trillion yuan in 2012, up 11.41 percent from a year earlier. The growth rate of the top 500 companies was 12.22 percent lower than that of the previous year amid a faltering world economic recovery. Among the 500 companies, 216 saw declines in net profits in 2012, while 43 others suffered losses, up from 13 companies in the previous year.
26 August 2013
China's economy is showing clear signs of stabilization, helped by policy support and some improvement in global demand, and is on track to meet the government's 2013 growth target of 7.5 percent, the state statistics bureau said on Monday.
23 August 2013
China has changed course and announced an ambitious new plan to push sustainable energy. The initiative by Li Keqiang's government signals a turning point in the country's approach to the environment -- and could mean big business for Germany.