0

How to advertise in China

Entering China’s huge market is the Holy Grail for many foreign companies. Businesses are dreaming of getting involved with China and of reaching those new customers effectively. However in order to turn this opportunity into a success, advertising strategies and accurate choices must be undertaken since mistakes resulting from amisunderstood culture or habits aren’t forgiven in the Chinese fast changing environment. The rewards can be significantly amplified and risk is restrained if marketing campaigns are well conducted. The best way to ensure the advertising is well performed is to consider the help and professional support from a marketing company. Daxue Consulting offers a wide range of services that are systematically tailored on customer’s request and is fully competent to research on very focused target groups across China thanks to the support a large Chinese network.

This year, China is expected to become the second largest ad market in the world, by overtaking Japan.  Advertising in China is a real challenge for marketing, the country’s size, complexity and diversity forces businesses to adapt to many unique characteristics of the Chinese market.

Traditional Advertising domination

Traditional marketing though television, newspapers, radio and advertising boards have see a fast expansion in the last years and are dominating the ad market. The Chinese are very receptive to attractive photos ofbrands and triggers the desire of knowing more about the brand. Impressive images on bill board or newspapers and magazines attract many Chinese customers since 37,6% of the Chinese consumers will then increase their brand awareness though the official company website. The total ad spending is forecasted to reach a total of $71,2 billion and 56% will be spent in Traditional advertising. Currently, Luxury brands are spending large amounts to promote their image with Traditional advertising methods. But this advertising must be accompanied by a strong digital advertising strategy because the Internet is becoming amore and more important in the Chinese culture. Combined with photos, videos are also appreciated a lot by the Chinese and they are a qualitative vector to brands and businesses, as professional videos require expertise and important resources. Engaging in quality video provides confidence in the eye of the Chinese customer.TV advertisement are the dominant advertising medium in China as they create the need for the product but those are very expensive, regulated by the Chinese government and effective on very short-term. So choosing the right distribution amongst the vast array of platform options in digital media, events, and sponsorship is requiring expertise.

Rise of digital advertising

The Internet share on ad spending keeps climbing compared to last year, digital ad spending rose of 30% compared to only 16% in the USA. The shifting from traditional to digital advertising is happening faster in China than in the US since traditional advertising hasn’t existed for a very long time in China and unlike the US it isn’t part of the culture. Recently, the Chinese population seems to be increasingly influenced by digital advertising and e-reputation. Nowadays the new generation seems to be more receptive to online advertising.  There are 618 million Internet users in China, 90% of them use social networks this show how attractive online advertising is to businesses. Getting in interaction with customers on their social networks QQ and Weibo is very effective. Consumer reviews, ratings websites, discussion boards, blogs, and other social media sites all influence significantly purchases. In addition, 193 million Chinese regularly shop online and this number is going to reach 350 million this year advertising directly with e-commerce platforms such as Alibaba with T-mall.

Banners and pop-up ads are a widely used on Chinese websites. But those aren’t always efficient as applications blocking the ad are often used in China. Since 85% of the Chinese population uses Baidu to search on Internet, Baidu offers the largest amount of online ad, with similar advertising programs as Google Adwords and Adsense. But this year, Alibaba is forecasted to surpass Baidu in Mobile Internet Ad Revenues in China. Providing Advertisements though those new means may enable to build large influential communities and improve websites popularity and Chinese awareness.

Mobile Advertising

Amongst all the digital and online advertising, the Mobile Advertising market is up-and-coming at a tremendous pace. Indeed, there are 1.29 billion mobile users in China, this huge segment can be reached instantly with mobile ads. Compared to last year the Internet ad spending grew of 90% in China. It represents $40,6 billions in china compared to $57,5 billion in the US. This year those will account for 20% of global mobile Internet ad expenditure. Mobile advertising should be used to reach the younger generation and will be increasingly important in the future as by 2018, more than one third of Ad expenditures will be attributed to the mobile Internet ad spending with Alibaba or Wechat. This text message application accounts 300 million users and offers businesses to use it to create verified accounts, memberships for VIP offers and promotions. This app is used to give coupons too and even to share brand Images with groups. Other methods will still grow such as the SMS-based ads.

Rethink, Innovate & Anticipate

In order to capture the attention of viewers, the flow of content must be rethought and new ways must be identified. Those advertising may seem like large expenses however if they are used correctly they are source of meaningful revenues. To advertise in the China, Traditional and Digital methods must be coordinated and coherent. Each region must be taken into account since perceptions and habits may vary a lot on the vast country of China that can be considered as a fragmented market. Advertisement must provide innovating technics and new experiences to the people to reach their curiosity and must be delivered instantly. For example the QR code underneath advertisement can enable fast sharing and instant awareness to access to additional information. To all this, following the Chinese trend and large success of mobile smart phones, focusing on the exploding mobile advertising would be a bright move as this year Ad spending on mobile internet-based formats in China skyrocketed of 600.0%.

SOURCES

http://chineseculture.about.com/od/mediainchina/a/topchinesesites.htm

http://www.chinabusinessreview.com/advertising-in-a-new-age-of-media/

Advertisements
0

China retail market

China retail market

In answer to your first questions, it’s a relatively simple case of Chinese Resources Enterprises focusing on what can turn a profit and handing off responsibility for the increasingly difficult retail business to it’s parent. Profits from its beer division are roughly half the losses from retail, so hanging on to a business that might not start turning around for another three to five years would be a poor decision in the short-term. With Snow Beer’s high market share and international best-selling status, it’s a safe and lucrative bet that will allow CRE to focus on its strengths.

China’s retail market is doing fine; the slowdown, anti-corruption crackdowns and rise of online retail (with huge and consistent growth the last few years) have hurt sales at brick-and-mortar outlets, but it still reported healthy growth in 2014. Grocery retail, in particular, has been hit, but is still posting comfortable growth.

To answer your second question; yes, it’s easier to focus on narrower and niche markets. Chinese consumer tastes and purchasing decisions are beginning to favour businesses that offer higher value-for-money and better service. Having the lowest price and the widest availability is no longer the advantage it once was, especially in the highly fragmented retail space where most competitors can offer similar conditions. Even CRE’s venture with a major international player like Tesco didn’t take off quickly enough.

It’s not unlikely that we’ll see more sales like this, particularly in the large and multifaceted state-owned firms. As the slowdown continues, it’s in the interest of companies to focus and develop their strengths. The growth of the market is no longer fast enough to allow for unlimited expansion into new businesses, and with government seeking to balance its economy and encourage consumption, the focus is on developing the most competitive product for consumers.

0

Winter Olympics Games 2022 in China

Winter Olympics Games 2022 in China

The decision is not already made, but Beijing bid for the Winter Olympics Games in 2022. Another city wants to get these Winter Olympics Games : Almaty – Kazakhstan. It will be decided at the 128th IOC Session in Kuala Lumpur, Malaysia by the end of July 2015. Only 6 years after hosting the Summer Olympics Games in 2008, Beijing wants to do it again ! Another good way for China, which is now the world’s largest economy, to show its succes and to do business.

Three olympics villages are going to be built with one hospital in each of them. More than 65 000 hotels room will be available in the olympics area. With a budget of nearly 2 billions USD, Winter Olympics Games 2022 in Beijing should win. And a new international airport is going to be built by 2019… Beijing does not hesitate to invest a lot to get the Winter Olympics Games.

daxue consulting_China_sportswear market in ChinaEven if those amounts can be huge, it does not represent that much money from a national point of vue. As an example, Beijing 2008 cost about $42 billion. Including $2.5 billion for sports facilities, $10.5 billion to improve the environment to ensure a good weather for the opening ceremony, $26.5 billion for roads, highways and the airport… The renovation of Beijing required the use of 2 million Mingongs (Chinese domestic migrants). Those amounts  represented less than 0.03% of the total GDP which is about 17,630 billions USD in 2014.

Beijing wants to create a winter sports centre for China to encourage chinese to practice winter sports. Winter Olympics Games 2022 must be a good way for China to promote healthy sports in the countryside.

But, on average, only one meter of snow falls each year in the mountains north to Beijing. They will have to create an artificial snow-making system. The consumption of water should increase radically during the Winter Olympics Games 2022.

Pollution is still a problem in Beijing for this kind of event. That’s why, as usual, Beijing plan to implement an alternating odd-even rule, which means that based on your immatriculation plate number, cars will be allowed or not to drive. More than one thousand factories are going to be closed for a month. It has already been done for Beijing 2008 and in 2014 for the strategic and economic dialogue between the United-States and China.

What about sponsoring?

At least, $47 millions each. The target is for example to get 10 partners on the petroleum and transportation industry. That would give at least $470 millions cash to the organisation.

Then, 9 sponsors such as Real estate and telecom equipment for at least $16 millions each, this would represent $144 millions.

We can add several exclusive suppliers and suppliers for an amount of respectively $32 and $14 millions.

Several of the chinese largest company are already on the race. The famous Tencent Group which is definitely the best way to promote an event in China through WeChat. With more than 355 millions active accounts, WeChat is the best you can get to communicate about the Winter Olympics Games 2022. Beijing Bank which is owned by the city of Beijing should also give its sponsorship. Beijing Automotive Group another state-owned entreprise, Snow Beer which is one of the world leader on its market, Price Water House Coopers, the Multinational Professional Services Network based in London should be part of the team as well. Some others should be in such as Anta Sports, True Colour Stationary and Sandaogu Travel.

A ground total of $660 millions. Can we expect usual brands such as Addidas, Nike ? Some chinese brands are obviously thinking about it. World wide sponsors will probably give more room to several famous chinese brands.

Sources :

http://www.cnbc.com

http://www.olympics.org

http://www.beijing-2022.cn/fr/

https://global-exam.com/en/prepare-toefl-exam

http://www.insidethegames.biz

http://abcnews.go.com/Sports

http://www.sportspromedia.com/news/beijings_2022_olympic_bid_boosted_as_eight_sponsors_sign_up

http://www.aroundtherings.com/site/A__48165/Title__Sponsors-Sign-Up-for-Beijing-2022-Bid/292/Articles

0

Market Analysis on Small and Medium Enterprises loans in China

Market Analysis on Small and Medium Enterprises loans in China

Market Analysis on Small and Medium Enterprises (SMEs) loans in China.

Recently, with Chinese government’s intensified policy support for SMEs financing and the trend of interest rate liberalization, major banks in China, as the main financing platform for most SMEs, are rapidly increasing their loans to SMEs. The most recent data from CBRC reveals that, by the end of December 2013, the balance of the national SMEs loans has reached 17.76 trillion yuan, accounting for 23.17% of all loans and an increase of 12.7% compared with same period last year.

The SMEs loans business develops fast to meet huge demand.

According to industry estimates and market analysis, the scale of SMEs loans this year will be further expanded, especially when the central bank in June announced to reduce the deposit reserve ratio of qualified banks.

Based on the Boston matrix model, it is not hard to conclude that the micro-lending business has become the star and cash cow of many banks due to high market growth rate and high relative market share.

Therefore, facing the huge market demands, different kinds of banks are developing their SMEs loans business fast and competing intensively in order to seize this market area and create profits.

Main players competing in SMEs loans market

In this SMEs financing wind, joint-stock commercial banks, state-owned banks and internet lending platforms are the major competitors. In general, commercial banks are performing better than state-owned banks and internet banks; having started rather late, have great development potential.

According to the central bank statistics in 2013, with personal business loans under RMB 5 million as the statistical caliber of SME loans, China Merchants Bank increased 138.3 billion RMB, ranking first in the same industry,followed by China Minsheng Bank(86.3 billion RMB) and China Everbright Bank(36.2 billion RMB).

Compared to state-owned banks, commercial banks’ advantages lie in their strong ability to innovate, their ability to flexibly adjust employee motivation and risk management, and their application of the newest technology in developing their online business.

According to market analysis in China, under the same statistical caliber, the four great state-owned banks, Agricultural Bank of China, Bank of China, China Construction Bank, and Industrial and Commercial Bank of China had increased their SMEs loans by 83.4 billion RMB, 22.395 billion RMB, 14.966 billion RMB and 6.649 billion RMB respectively. These state-owned banks are characterized by their unique client and employee resources, prestigious reputation among citizens and extensive branch network throughout China.

When it comes to Internet Banks, the online lending platforms, these new comers seem like volcanoes about to erupt. It is estimated that the size of internet loans will reach 100 billion in 2014. Thanks to the popularity of Internet and the development of big data, these internet lending platforms like Ali loans (阿里贷), paipaidai(拍拍贷), and creditease(宜信) gradually mature. Their advantage lies in their accessibility to rate credits and asses risks through studying clients’ consumption habits or other information in social networks or e-commerce platforms, and their ability to transact online. These two aspects have increased the efficiency and reduced the cost significantly.

Recommendations for the development of SMEs loans in China

Undoubtedly, market competition in the near future will become more intense. Major competitors should attach great importance to the following aspects.

First, to strictly control SMEs loans risks through product innovation and risk control innovation. These innovations should also aim at meeting the large need of SMEs that cannot benefit from bank loans. For example, banks should fully understand SMEs and provide loans with them based on their market potential, market share,etc except for their assets.

Second, traditional banks and internet companies should cooperate with each other to reform their channels, or probably, the former could merger the potential latter. Thereafter, for one side, traditional banks can take advantage of the internet platforms’ big data to choose qualified SMEs from massive customers to provide tailor-made financing service; for the other side, internet companies can capitalize in traditional banks’ sufficient funds, offline network and so on.

Third, pay attention to frontline marketing and market research. “SME business is different from MNC business, but more close to the retail business.”said Liu Jianjun, director of finance in CMB. This trend raises higher requirements for the marketing skills and research abilities of frontline staff in order to understand the dynamic market and establish each bank’s comparative advantage.

By Matthieu DavidGlobal Exam

0

Broadcasting Right of Football Match in China

Broadcasting Right of Football Match in China

Accelerating the development of sports industry to promote sports consumption by state council says:Establishing resource trading platform in the sports industry, promote the right to host and broadcast the event. Establish sports broadcasting income division to promote the common development according to market principles. Relaxed event broadcasting rights restrictions in various domestic and international sports events except the Olympic Games, Asian Games and the World Cup, the television station can purchase or transfer directly. This legal termwas issued on 20 Oct 2014,

One of the main incomes of Europe League clubs is broadcasting right; while it is almost non-existent in Chinese football industry, some clubs even need to pay if they want to be broadcasted. When Cloud Media which holds the TV broadcasting right of CSL (China Football Association Super League) currently operates live broadcasting in Gansu TV station, it still needs to pay over tens of billions RMB to TV station.

The chairman of Cloud Media LI Lu thinks, compared to fixed TV broadcasting rights, under the positive stimulation of political policy, there will be more capital flow into the broadcasting right of CSL in new media. “Now the new media copyright of CSL is tens of billions RMB, the income from new media is more than from TV because of market competition. Under the positive stimulus of policy, capital will flow in; the chance that new media copyright income increased greatly will be a big probability in the next year, and the year after next year.”At present, the annual copyright income of CSL is about 50 million RMB, mainly contributed by the new media. Some important matches of CSL this year, the Click through rate is even more than the NBA Finals

It is reported that CCTV has bought out 2010 and 2014 World Cup broadcasting rights in China for 0.1 trillion USD. Then CCTV distributes the broadcasting rights to other video websites. Only last World Cup, CCTV has taken about 1 trillion RMB as revenue (income). According to the relevant institutions, it is predicted that CCTV gained the relevant income more than 1.5 trillion RMB.

Broadcasting rights of Premiership league owned by Ssports.com. The contract will last to 2019 by Ssports.com with 1 trillion RMB. However, most of Chinese audiences don’t want to pay for watching, the broadcasting rights can only be sold to TV stations and websites. Obviously the resold price of broadcasting rights is much higher than any previous seasons.Both letv.com and pptv.com paid tens of billions USD to get the broadcasting rights.

http://daxueconsulting.com/tag/sport-market-in-china-en/

http://www.footballeconomy.com/content/football-economy-china

http://www.football-in-china.com/

http://www.forbes.com/fdc/welcome_mjx.shtml

0

Daxue Research enters in the Top 5 Consulting Firm in China

Daxue Research has recently been recognised as one of the top five consulting firms in China. Daxue Research provides business consulting and market research services to companies wishing to enter the Chinese market. Daxue Research works with large multinationals, small and medium-sized businesses, public entities, as well as individuals, serving all kinds of industries, and provides top-quality expert services to meet their clients’ needs.

Daxue Research logo

Daxue Research has offices in Beijing, Shanghai and Hong Kong, and offers award-winning consulting services, whilst also operating on a low cost structure. This model makes Daxue Research unique to other consulting firms in China, and has been a significant factor in the company’s growth.

The industry of management consulting has been established in China for more than two decades, however the size of China’s management consulting industry is still comparatively small in scale in comparison to that of Western nations. The demand for good management consulting firms has been increasing rapidly since China became part of the World Trade Organisation (WTO).

To meet this demand, Daxue Research offers a leading team of project managers that have a great deal of experience within the consulting industry, and hold extensive knowledge about Chinese markets, making the firm one of the most popular consulting firms in China. Daxue Research employs highly educated professionals, as well as the top students for from some of the best universities around the world.

Daxue Research has been widely cited by various media outlets, including Yahoo! Finance, the Guardian, Le Monde, Financial Times, and Essec Business School with many others further adding to the company’s reputation of being amongst the top five consulting firms in China.

See more about Daxue Consulting – Market research China

Daxue Research

See also: http://www.china.org.cn/business/2014-02/19/content_31523299.htm

0

Legal Research on Chinese Conformity Assessment System

Legal Research on Chinese Conformity Assessment System

Questions:What are the actors in the Chinese conformity assessment system? Who is influencing the conformity? Who is making the decision of it?

Background:

A well-functioning quality infrastructure (QI) plays an essential role in facilitating bilateral trade by reducing technical barriers to trade. Comprising all aspects of standard setting and compliance, conformity assessment and accreditation, market surveillance and product safety as well as metrology, a coherent QI is designed to ensure the compliance of products with all relevant standards and the safe use of products by the consumers.

Analysis:

In China, the conformity assessment system is operated by China National Accreditation Service for Conformity Assessment(or CNAS, for short), whichis the national accreditation body approved to be established and authorized by Certification and Accreditation Administration (CNCA) subject to Certification and accreditation regulation of the People’s Republic of China, anduniformly responsible for accreditation of certification bodies, laboratories and inspection bodies and other relevant agencies.

CNAS consists of the Full Committee, the Executive Committee, Technical Committee of Certification Bodies, Technical Committee ofLaboratories, Technical Committee of Inspection Agencies, Appraisal Committee, the Complaints Commission, End User Council and the Secretariat.

Appraisal Committee(as specified in Schedule A) is, authorized by CNAS, responsible for conformity assessment, which includes, in accordance with Accreditation Rules and Accreditation Criterion[1] (as specifiedby CNAS),reviewing the conclusions of approved assessments and relevant information and giving opinions on whether to approve, maintain, update, expand, reduce, suspend and revoke accreditation.Accreditation of specific projects can be divided into the following three categories[2]:

  1. With respect to the preliminary assessment or expansion of project, etc., the Assessment Working Group (“Group”), appointed by Appraisal Committee, implements assessment work in accordance with the requirements of CNAS, gives relevant opinions and makes conclusions by vote(“Assessment Conclusion”, as specified in Schedule B). The Secretary or his authorized representative, on behalf of CNAS, subject to Assessment Conclusion, makes the decisions on whether to grant approval or expansion of accreditation.
  1. With respect to supervision or reassessment, etc., the personnel of required abilities, organized by the Secretariat, reviews Assessment Conclusion and relevant information, and gives opinions on whether to maintain or update accreditation. The Secretary or his authorized representative, on behalf of CNAS, makes the decisions on whether to maintain or update accreditation.
  1. With respect to the situation where the judgment or assessment of capability is not involved, as well as the management of the recognized capabilities, The Secretary or his authorized representative, on behalf of CNAS, directly makes the decisions on whether to maintain, reduce, suspend, revoke or cancel accreditation.

Since a well-functioning quality infrastructure (QI), in which conformity assessment and accreditation is included, plays an essential role in facilitating bilateral trade by reducing technical barriers to trade, CNAS has built international mutual recognition with some international organizations and regional organizations, including International Accreditation Forum (IAF), International Laboratory Accreditation Cooperation (ILAC), Pacific Accreditation Cooperation (PAC) and Asia Pacific Laboratory Accreditation Cooperation (APLAC).

Schedule B

Regulations on Assessment Conclusion

  1. Where the Group is constituted by three (3) members, the Assessment Conclusion shall be passed uponunanimous consent;
  1. Where the Group is constituted by more than three (3) members, the Assessment Conclusion shall be passed upon the favor by at least two thirds (2/3) members.
  1. Where there is no enough affirmative votes as required to the Assessment Conclusion, the Secretariat shall provide relevant evidence or necessary information, and the Director or Vice Director of CNAS shall reappoint Group, in order to make new Assessment Conclusion.

By Daxue Consulting

http://www.cnas.org.cn/rkgf/index.shtml

 http://www.dnj.com/story/opinion/readers/2014/12/06/letter-common-core-works-nationalize-education/20025051/

https://www.insidehighered.com/news/2014/12/01/increasing-international-enrollments-faculty-grapple-implications-classrooms

0

China wine Market Analysis

China wine Market Analysis

China market size

In the research of institute of Fortune Quality, the average wine consumption keeps increasing. As showed below, the average consumption in 2014 will be 1.5 liter per person. That is, the total consumption will be 2024 million liter. However, the world average consumption of wine is 6 liter, so the wine industry is still on the primary period and the potential market is huge.

wine market china

However, according to the National Bureau of Statistics of the People’s Republic of China, the wine volume of the past ten months in 2014 is about 937 million liter, increased by 3.51%. It is supposed to be 1830 million liter in 2014.

The gap attributes the macro effect and consumption trend. Firstly, in term of consumer structure, thegovernment spending only accounts for 10%, volume sales is 20%; Business spending and private consumption is the main consumer group.Wine is accepted by more Chinese consumer.

Secondly, in the past two years, the average price has fallen from 200-300 RMB per bottle to 80-150 RMB per bottle, which means price is on the reasonable level.

In conclusion, it can be supposed that the market size would be 2000 million liter.

Chinese wine customer behavior

The wine culture in china is comparatively week and most consumers get knowledge about wine through ads and network, so the deeper culture education is in shortage. As most of foreign products, Chinese consumers are accustomed to it. Here are some characters:

research for china

2.1 Consumers’ attitude of wine is not mature. Over half of the reach doesn’t have a whole knowledge of wine. So they can be easily misled by unreal wine knowledge which affects their consumption concept.

2.2When consumers choose wine, they will take brand as the first factor (44%); like other consumers, china consumer also take flavor (28%), price (16%), country of origin (8%), package (4%) into consideration. However, they have an outstanding feature that when their understanding of wine is limited, they believe in friends’ recommendation, so public praise is fundamental effect.

2.3In term of purchasing channel, stores are still consumers’ first choice (31%), and they prefer stores they are familiar with, in case of buying fake wine. Besides, they will not buy wine whose price is more than 10000rmb. As popular in china market, there are increasing wine agency, so it becomes the second choice (23%). Because of social activities, dealing between friends is also a channel (15%). In the end, many consumers (8%) like purchasing overseas directly.

2.4 China consumers are accustomed to wine. According to research, about 33% of consumers purchase wine for daily drink,festival (15%), party (41%).

In conclusion, the target consumers are 35-39 year-old males who focus on ads promotion and have salary above 100 thousand. Besides, they usually get information from TV and Newspaper. Apart from that, their consumption is in the restaurants whose average consumption is above 100rmb.

Chinese competitor comparison

3.1 external competitors

White spirit has far-reaching culture in china, so it is the main competitors in external environment. Many famous wine and breweries penetrating wine field through import, cooperation and joint venture (Mao Tai, Qin Dao etc.). However, their focuses are on white spirit, so the threat is far less than white spirit.

3.2 internal competitors

3.2.1 Competition situationof internal market

  • National wine accounts for over 80%, so national brands are the main competitors.
  • Zhang Yu and Chang Chen account for most part of the market
  • Other shares are divided by national brands, import brands has no leading brand
  • Castel aims at high-end import market using the network of Zhang Yu
  • Denis Poetryaccounts the low-end market of retail outlet
  • Fermentedby grapes, XO, VSOP cognac and other types of wine, using the powerfulmedia promotion, also occupy a certain share of the business wine

3.2.2 Import wine

  • volume and sales have no distinct increase

In the long term, percentage of import wine will be increased to about 1/3 which is as same as that in America. However, in short term, the percentage may keep stable. According to data of customs, since 2012, the volume percentage sways around 25%, volume sales 30%.

  • Benefit at reasonable level

Since 2005, tariff has declined to 14%: from 2005 to 2012, many New World countries cut down their tariff. However, there is no marginal benefit from tariff cutting. On the other hand, the gross profit is 30% and net margin 10%, far less than that in 2011 (80%, 30%). Besides, the price fell from 150-300rmb in 2011 to 80-150rmb in 2014.

In a word, apart from some special brands, the import wine has little crash and threat on china market.

3.2.3 National wine

  • Market concentration low

The market share of the top three brands (Zhang Yu, Chang Chen, Wei Long) is less than 10%, which is less than that of America. In America, the market share of first one is 9%; that of top three is 15%.

  • Average prices are below 100rmb

 

By Daxue Consulting

http://www.bjwinexpo.com/

http://www.sjgrand.cn/accounting-beijing-shanghai

http://www.topwinechina.com/pages/intro.asp

Chinese-and-wine.com

0

High-tech market in China

High-tech market in China

Support from Beijing to high-tech market

The government also had for objective to stimulate the construction of a national technological capacity in the industry. The national Conference on the technological innovation of 1997 encouraged the role of companies in the activities of R*D. Right after that, the Committee of State for the Economy and the Business selected Baoshan Iron and Steel, Mysimax, Changhong, Jiangnan Shipbuilding, Northern China Pharmaceutical all government corporations), Haier collective company), and Founder (stemming from a university) to work on the technological innovation.

Innovation and high-tech in China

During the national Conference on the technological innovation of 1999, the government asked that the high-tech companies dedicate at least 5 % of their annual sales to the R*D according to Daxue Consulting. The most recent political measures include the authorization to record the spending in R*D as costs, the implementation of a strategy centered on patents and technological standards in the efforts of innovation of companies, and preference given in the purchases of the administrations to the software ” made in Mocked”.

Daxue Consulting

Daxue Consulting team is dedicaced to help foreigh investor in China

In the sector of information technologies and communication (ICTS)(INFORMATION AND COMMUNICATION TECHNOLOGIES)), the accent was put on the development of the Chinese industry of semiconductors, told us JX Paulin. Companies were encouraged to develop central processing units (CPUs) used in certain electronic consumer goods and in mobile phones. The attention also concerned the conception of integrated circuits to specific application ( ASICs) used in ICTS(INFORMATION AND COMMUNICATION TECHNOLOGIES), a very sophisticated domain, in wide use and high value-added. The IT Chinese industry campaigned for the introduction and the use of the operating system in the open source Linux and software packages which are bound to it. Thanks to the government, operating systems based on Linux and office automation applications developed by the Chinese companies of software affected the domination of Microsoft on the market of the software; given the size of purchases and their strategic importance, this gives an idea not only of the sensibility, but also the viability of these companies. In these circumstances, aggressive Microsoft had to adopt a defensive attitude by agreeing to invest 6,2 billion yuans to help in the development of the Chinese industry of software and demolish the initiative of the Chinese cyber-government.

Mysimax

http://www.most.gov.cn/eng/

http://www.sipri.org/research/security/china/research/technology

http://techmoran.com/chinas-mysimax-launches-tablet-to-improve-education-in-africa/

http://daxueconsulting.com/market-research-china/

0

Sinonym enhances coverage of local dialects in naming in China

Sinonym enhances coverage of local dialects in naming in China

What do your brand names really mean in Chinese? What do your brands want to express? According to the consultants of Sinonym in Beijing, there is no question about it: the choice of a brand name in appropriate Chinese, usually called naming in China, has a critical role to play in the branding strategy in the middle Kingdom.

Naming in China: complex but crucial

However, most of the time, when it comes to decides a new Chinese name for western brands, phonetic resemblance with the original name is the main criteria, with specific attention paid to the meaning of the characters. Sometimes, the Chinese name is based on the semantics of Chinese characters and not on their pronunciation, as for example Microsoft (微软, Weiruan). 微means “microphone” and软means “Soft”.

Regarding the complexity of the linguistic landscape in China, to create or to transpose a brand into China is not an easy task, in particular for a marketing team consisting of Western members. It is thus important to surround itself with a team of Chinese collaborators who will know how to detect and find the suitable name in China, with all the linguistic and cultural sensibility conferred by their mother tongue. Sinonym is naming agency, with strong rigor and reliable methodologies, which shows interesting process.

naming in China

Sinonym provides a complete solution for naming in China

During the process of naming in China, there are several points to be verified:

  • A name “easy to pronounce” for the Chinese;
  • A name which does not look like, closely or remotely, to a name with a negative meaning in Chinese;
  • A name which does not lend itself to plays on words ;
  • An ideograms without any meaning (character used in Chinese for their phonetics) or with a meaning 100% positive 100;
  • All these criteria must be regarded according to all the local dialects; in particular the ones where the brands might be available.

Sinonym

Sinonym offers methods and solutions to find the most suitable name according to all these point. In particular, Sinonym is the very first agency to gives clients a native insight into dialects to ensure that their naming choices are appropriate and inspiring.

To achieve this goal, Sinonym partners with Phonemica, a website which gathers and archives stories in every one of thousands of dialects of Chinese thanks to a network of dialect speakers from nearly each village and each neighborhood in China. Thus, Sinonym surveys the large population of speakers who use Phonemica to make sure that your name is suitable with any dialect in China. 

See also:

http://marketingtochina.com/sinonym/

http://phonemica.net/blog/419/