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US$1.8 Trillion : the Chinese Consumption by 2021 US$1.8 Trillion : the Chinese Consumption by 2021Comments Off

Luxurious manufacturers in China have had to deal with down a slowing financial system for many time, but a brand new report by Boston Consulting Group (BCG) and Alibaba Group’s study section, AliResearch sheds a more constructive light-weight on China’s purchaser economic system. By 2021, Chinese people are envisioned to add US$1.8 trillion in new consumption at a charge speedier than that of any other place, in accordance with the review.

BCG and AliResearch attribute this extra paying out mainly to China’s higher center course andrich customers and the spending routines of , several of whom expend an incredible deal getting upgraded versions of goods they presently own. About 54 % from the progress in advance of 2021 is predicted for being pushed by tier-1 and tier-2 cities, even though 46 p.c is going to be attributed to customers in reduce tier cities.

US$2.6 trillion by 2021.

Millennials are crucial with the buyer financial state, because they are anticipated to spend US$2.6 trillion by 2021. What this means is a compound once-a-year progress charge of eleven percent, and an all round advancement contribution from millennial usage of sixty nine %.
In regards to the categories of purchases that should push consumption, activities and companies are predicted to add 51 p.c, even though bodily items are expected to generate up forty nine per cent. The evolving from suppliers are expected to play a huge section in fueling use, with 56 percent of buys expected to come from offline sources, along with the remaining proportion coming from on line suppliers. is a big influence in e-commerce, with eighty five p.c of on the net buys envisioned to return from cell platforms.
On the extra micro amount, BCG and AliResearch determined 5 types of people in China’s new era of growing digital accessibility, climbing incomes, in addition to a developing middle class. These consist of the “savvy shopper,” that are a lot more “brand-aware” and “discerning” with regards to products from throughout the globe; the one consumer who the eco-conscious client; the “passionate trend seeker”; plus the related shopper.
“To set it bluntly, when you have not recognized extra segments in China than you pinpointed a yr or so back, you are nearly definitely behind,” the report authors compose, adding that models might need to reevaluate their client profiles every one to 2 several years to actually optimize engagement in China’s speedily evolving consumer economic climate.

Wechat Marketing tips Wechat Marketing tipsComments Off

Maximize your impact by putting your marketing effort on the right APPs is key to your success.

The potential of Chinese market is not to be demonstrated anymore and adapting your tactics to the Chinese culture is worth…

 

As of December 2015, WeChat reached over 650 million active users (more than 88% of those users are chinese).

Its direct competitors, Skype, Whatsapp, Viber and Line reach just over 300 million, 800 million, 100 million and 560 million.

 

Worldwide, WeChat ranks in the top 2 most popular social networking-messaging applications, based solely on active users.

 

From a China perspective, WeChat is by far the single most popular application.

-       Unlike WhatsApp, Wechat is not just a mobile phone messaging application, it also out-competes RenRen (the equivalent of Facebook in China) by having more active users.

-       Unlike WhatsApp, WeChat is also China’s default messaging service on PCs and Tablets. Knowing that CTRs are higher on PCs and Tablets, this aspect brings greater visibility and higher CTRs for advertisers.

-       It is also the default video chat app in the way that Skype is to users within the United States.

WeChat is truly the dominant social media in China.

 

Considering non-Chinese users only, WeChat’s total active users will not be representative of its popularity in English speaking markets such as USA, Canada, Australia etc.

 

Like Whatsapp, if the user were to lose their phone or change their number, they would be able to transfer all their contacts and messages onto a new phone. WeChat shares all the important features of Whatsapp such as Group Chat, Text Chat, Voice Chat, Web Chat, sending photos and videos and sharing location.

 

Thus, it combines the advantages of social networking offered by Facebook, the mobile phone usability of WhatsApp and video messaging popularity of Skype all in one single platform.

 

If you consider to engage the Chinese market from a long-term business standpoint, wechat is a MUST.

 

WeChat offers greater usability and several features which outdo its current competition.

 

WeChat Users, what you need to know

Looking at the demographics of Wechat users in China, we realize WeChat looks like Facebook in United States in the mid-2000s, meaning

it’s primarily used by youth and trendy segments in major cities of China.

 

Age: Only 15% of WeChat users are aged over 35, and of these, Chinese natives constitute an even lesser percentage. Therefore, if your product/service targets elder or middle aged native Chinese population, RenRen is probably a better solution.

Gender: female users represent under 35% of wechat users.

 

Cultural differences in China

In order to be successful in China and compared to western countries, here are the general culture differences you should consider:

  1. Chinese people are very community-oriented:  Don’t explain the benefit of the product to 1 consumer directly (i.e. “our product will enable you to….” OR “you will no longer have to….”). Advertising in China emphasis on “we” and “us” (not “you” and “I”). Chinese consumers are using these apps to feel part of a community and to interact with or make friends.

 

  1. Status is very important in China : Treated your customers like a VIP and show them they are important (for both Chinese men and women). The westerners’ successful brands in China are high-end clothing brands. Chinese love to buy brands (Hugo Boss, Versace, etc.) and will not compromise by buying a cheap duplicate.

 

  1. Business environment

a)      TV or radio media, heavy regulation impedes foreign parties from entering China’s online content arena.

b)      Scale and differentiation: Although the Chinese advertising market is busy, only few brands are fighting for the Share of voice. If your product offers some kind of differentiation it will capture customers attention especially on Wechat.

 

Guidelines for organizing a WeChat Marketing Strategy

Even if most of the tactics we use with Chinese APPs do not differ greatly we do on WhatsApp or other platforms, there are some key differences to keep in mind when you organize a WeChat Marketing Strategy:

-       Use QR codes: QR codes are very popular in China and WeChat offers in-built functionality to quickly read or create a QR code, then Users can easily you and integrate your community.

• Knowing Chinese people love to be part of a community, having a large online community (followers) the greater impact you will have in convincing your potential buyers. The social reach offered by having a lot of followers is very important in China.

• Don’t forget WeChat is not just a messaging APP (like Skype or Whatsapp), it’s also a social media platform similar to Facebook. Ensure that your marketing campaign is warm and welcoming.

Engagement comes first (before sales): Chinese people are frugal. You will win them them by offering something different make them feel different, you need to turn them into your brand evangelists instead of just offering them more value for their money. For instance, you can offer free content such as webinars, ebooks etc or you could hold contests and special events.

Status and exclusivity are important in addressing Chinese consumers. They look for luxury products/services, trends, exclusive offers, LTOs, etc… Chinese people like to feel special.

“viral” marketing is even a stronger phenomenon with Wechat because it allows users to find and message strangers. If your campaign should have a viral element such as encouraging people to develop a network and spread your message.

Don’t spam your followers: WeChat allows you to mass message followers. Although this is very useful to advertise updates, offers and new products, it is bad practice to spam your own followers. Use the broadcast message functionality of WeChat sparingly. source Wechat Marketing Agency 

 

Summary

If you want to target the Chinese market and engage the 18-35 age group, Wechat must be a a key element of your marketing campaign.

 

WeChat is the single most popular social media application in China, has great functionalities and is growing at a fast pace.

 

In order to be successful using Wechat in China, you do need to consider cultural differences. Chinese people greater consider communities, privileges, exclusivity and luxury. Your value proposition doesn’t need to focus on price and value but more on exclusivity and differentiation.

 

Engage your potential buyers before trying to sell selling to them.

How Chinese tech firms are changing global markets How Chinese tech firms are changing global marketsComments Off

 

As China’s domestic market proceeds to create, quite a few on the country’s web giants are starting to look in other places for future expansion prospective buyers. As advancement slows as well as industry gets to be saturated, businesses together with Tencent, Alibaba, and lots of other people are eyeing not just Southeast Asia, but additionally Israel, the US, plus the EU.
To find out more, we talked with Hagai Tal, CEO of Tel Aviv-based cell marketing enterprise Taptica. He has invested, led and produced corporations for development, continued expense, and IPO/disposal, which include Kontera, Amadesa, Payoneer, BlueSnap (formerly Plimus), and Spark Networks (NYSE: LOV). He’s a Fellow of your 3rd class on the Middle East Management Initiative of your Aspen Institute plus a member from the Aspen Global Leadership Network.


How active do you think you’re in China?


We have now an place of work in Beijing with all around 10 folks already. We’ve been serving customers like Cheetah Cellular, Tencent and various big guys, like Alibaba. We assist them to start with to discover a channel for us to sort a romantic relationship with clients outside the house of China. So our largest asset price will likely be helping these providers to determine what to do in regards to firms from the West. At times we get entangled while in the information in addition.
Though the the greater part of our enable would be to help them to determine which current market may be the right market for them. The Chinese market is definitely an fascination for us because we see the cellular proliferation in China. We see businesses in China which have lots of potential to expand.

In recent times, many of them are attempting to increase exterior of China, either by just distributing their information or getting businesses exterior of China. So we’re observing a whole lot of action coming from the Chinese current market. And that i should mention that during the the latest years, also there is some type of matureness while in the Chinese current market, the place in the past it was a lot more a jungle, you already know, absolutely everyone was striving to perform distinct issues. Now it is turning out to be substantially extra structured and you can find much more specifications.
And there is a lot far more interaction involving China and Western nations, so also how of performing company and conversation in between the two sides are getting to be better and superior. Payment phrases are greater, authorized stuff has become a lot easier to operate.
What does one imagine is driving this change?


Many of the companies we’re addressing are general public. So I believe the public current market currently gave them a superior valuation and they are all trying to search out strategies to go on to raise the expansion or even the maintain the growth they may have. They all fully grasp that it is most likely outdoors of China which will be the most effective way for them to accomplish it.

 


They all manage to retain the services of persons who may have the language, buy businesses who can give them the bridge to acquire those nations around the world invested in dollars to be able to try to marketplace their goods and in good shape their products to different marketplace. Once we visit the contracts, we see a good deal of men and women knocking to the door and asking issues regarding how to have to buyers outside the house of China.


How will be the Chinese center on revenue development impacting the global markets?


You will discover different ways of different inventory markets close to the planet. You already know, there is NASDAQ every person is looking at. We’re a community business on London stock exchange. There’s also Chinese providers going general public in China. Now, there is form of an arbitrage amongst the valuation the corporation gets in various markets and unique markets have various ways to evaluate a corporation. In London, should you possess the EBITDA, then you can get the valuation while in China should you have the internet earnings, you may get the valuation. So there is a large give attention to the web profit.

 

Digital in China ! 


Now, concurrently, the online revenue of many companies, specially those people inside the gaming sector, in China is rather high. It is significantly better than other places. So there is certainly an arbitrage among the different markets. It means that over the digital mobile shopper, China is rather large to providers in my area, that if we get approached by organizations from China, we need to adapt or we’d like to check out the exact same way which the Chinese are searching in to the providers. And so they do have a look at the web financial gain and since of that, we’d like to consider how you can current the business while in the web earnings also.
The Chinese, as a consequence of what we described in advance of, they should retain the expansion which they have. They need to invest in organizations. They have to have, if a Western company would like to be acquired via the Chinese, they should understand how the Chinese are searching into it. They can not just compare with the EBITDA where by they are doing it in London Inventory Exchange, they’ve got to take a look at the web revenue.
It is not so poor since the Chinese are on the lookout at hard cash. “Seriously just how much revenue you’re creating, in which the rest of the players are wanting in the tales all-around it plus the long run prospective.” explain the CEO of TailorMadeChina


How do you feel this can have an effect on organizations which are attracting Chinese-led financial investment?


They’re not just searching for businesses to purchase, they’re also in search of administration or people who will manage for them.
They are not necessarily coming in the firm and expressing, “We understand how to do it improved than you, you have got to complete regardless of what we let you know.” They see it a unique way, they are saying, “We do not comprehend all this. We wish you to keep on managing the business enterprise.”
They want the administration to stick about, they build the contracts all over the composition on the administration if they stick all over. They may have little interest in finding included from the day by day operating in the organization.


How about innovation? Will Chinese possession impact the innovation of such firms?


I really don’t think that assertion is pertinent anymore for the potential. I think the Chinese are becoming innovators. You understand, I observed these new bike-rental organizations. I believe this is often fantastic. This is innovation. I believe the Chinese maybe are already copying while in the earlier few several years, but I feel while in the the latest 12 months or two, the Chinese have grown to be more innovative.
You understand, for us, we simply cannot be revolutionary just for the men and women who stay in Israel as the industry is simply too smaller. But for your Chinese, they really do not ought to go up to now. They have to take a look at their regional background they have. After which should you check out the cell gadgets in China, it is revolutionary presently. You are aware of, I have gone to your conferences, I do believe there’s been design in China now happening.
The culture hole in between China as well as the west is getting lesser and smaller and we’ll see substantially much more revolutionary men and women. I see Chinese beginning to mature mainly inside the US. They arrive back now to China. They will be described as a fantastic team of folks which can direct innovation in China.

Read also :

 

Chinese Online Property Market Appears Set For Lengthy Downturn Chinese Online Property Market Appears Set For Lengthy DownturnComments Off

China’s online property market industry appears set for a prolonged downturn that will last far into 2017 and potentially beyond, according to analysts who say government policies intended to steady the housing sector have depressed sales and have had the expected effect of reducing demand for the online property services.

The projection of an extended downturn in the online property sector follows years of both growth and contraction, and the volatility in the market is one of the reasons that the government is imposing strict rules to avoid a housing market crash. If China were to experience a housing market bubble that burst, it would create significantly greater economic problems affecting more sectors than a narrower decline affecting just the property market.



The declining Chinese property market “is entering a long winter for at least six months.

According to a report released this week by economic analysts Alvin Jiang and Alan Hellawell from Deutsche Bank, the declining Chinese property market “is entering a long winter for at least six months.”

The South China Morning Post notes that the analysts believe that this downturn will last through to end of 2017, which could mean it lasts even longer — potentially into 2018. The analysts say that the decrease in the market can be directly connected to government policies that aim to avoid a housing market crash by imposing strict requirements on several important factors such as managing property prices and limiting transactions. [1]

In their report, the analysts said, “Both the online property transaction business and the related listing business are suffering from the cold property market. Continuing strict policies have frozen transactions and hurt the desire of property agents to spend,” which has led to major drops in property transactions. For example, the report says that the volume of property transactions in China’s top 10 cities dropped 25 percent in October.

 

The Chinese Online Property portals

Given the downturn, the analysts decided to downgrade their rating of the online property portal sales SouFun to “sell,” citing “continuing weakness” in the sector as well as the company’s apparent “scaling down” of operations. The analysts also downgrade 58.com — another online property sales portal — to “hold” rather than “buy” for similar reasons, because it “reflect[s] our concern on the continuing weakness in the property segment.”

However, a blog post on Barron’s Asia notes that the analysts’ report appears to be late in coming, because the property market was already experiencing a freeze before the release of the findings. [2]

“Isn’t Deutsche a bit too late to the game?” asked the blog post, which noted that SouFun had already dropped 60 percent in value and 58.com had experienced a similar 50 percent decrease this year.

The conclusions on the downturn in the market are in contrast to news reports earlier this year which said that SouFun was among several online property companies enjoying a rebound of growth.

For example, Bloomberg Technology reported as recently as March this year that due to a combination of government stimulus funding and a growth in the property market SouFun recovered 25 percent on the Bloomberg China-U.S. Equity Index compared to February this year. [3]

The Deutsche Bank analysis underscores the unpredictability and volatility of the housing market, and suggests that online property companies might need to rethink their strategies for 2017.

 

[1] http://www.scmp.com/business/companies/article/2056007/chinas-online-property-agencies-face-prolonged-downturn-analysts

[2] http://blogs.barrons.com/asiastocks/2016/12/14/chinas-property-market-is-freezing-up-sell-this-stock-now/

[3] https://www.bloomberg.com/news/articles/2016-03-27/online-property-companies-soar-on-china-s-real-estate-recovery

 

4 http://marketingtochina.com/generate-clients-requests-real-estate-field/

New trends of Chinese social media: Mini-apps, KOL e-commerce, and live streaming New trends of Chinese social media: Mini-apps, KOL e-commerce, and live streamingComments Off

The Chinese social media landscape is unique, fragmented, and the most dynamic of the world. It requires a lot of attention to keep informed of the latest innovations that pop up.With the rise of Tencent’s WeChat that gathers Facebook and Whatsapp functions and Weibo, the Chinese equivalent of Twitter, social media in China is booming. At the same time, mobile internet is growing. According to the China Internet Network Information Center (CNNIC), the number of mobile internet users hit 656 million in June 2016, making up 92.5% of the 709.58 million internet users. Among all mobile internet users, 91.7% of them have 3G and 4G networks. This high mobile Internet penetration adds a new dimension to the developmentof social media. Here are three new trends of Chinese social media that brands and companies should take into account for their digital strategy to reach the Chinese consumers.

WeChat Mini-apps: the accelerating decline of mobile apps

The most popular instant messaging app in China, Tencent’s WeChat, is booming at 806 million monthly active users (MAU). According to Kantar’s China Social Media Impact Report (2016 April), WeChat is the most widely used instant messaging or chat app in China, with 75.9% reach among internet users at the end of 2015 (compared to 68.6% in July 2015).     In September 2016, WeChat launched a new function called Mini-apps.Mini-apps allow users to use apps directly in WeChat without installing anything. Users simply have to scan a QR code or to search the name to open an app. Apps will be everywhere, ready to use at any time without occupying too much storage memory. This new function is still in private beta, and a large number of WeChat users are looking forward to trying it.   Currently, WeChat users open the app 14.5 times and spend 48 minutes per day on average. It is foreseeable that Mini-apps will attract users to use WeChat more frequently and to spend even more time using it. This new function may accelerate the disappearance of mobile apps with a small user group, and contributes towards consolidating social media apps market. According to Gartner, 20% of brands will abandon their mobile APPs by 2019 because APPs are not paying off.

SinaWeibo KOL economy: a new e-commerce real-m

SinaWeibo is the biggest Chinese microblogging website, with 282 million monthly active users. Microblogs allow users to follow famous celebrities and enable the emergence of key opinion leaders (KOLs), who mainly earn money from advertising and cooperation with third parties. However, some fashion KOLs on Weibo successfully created a new e-commerce modelthat quickly pays for itself. These KOLs usually own their fashion shops on Taobao, the biggest e-commerce platform in China. They accumulate a large number of followers on SinaWeibo and bring the traffic to their Taobao stores by a simple link. For instance, the most famous fashion KOL Zhang Dayi has 450 million followers on SinaWeibo. Baidureported that Zhang Dayi’sTaobao shop achieved 300 million RMB sales (44.53 million USD) in 2015.   The cost of KOL e-commerce model is much lower than traditional fashion companies. These KOLs are known for their good tastes in clothing, and they succeed in getting a lot of followers with similar fashion style. KOLs post pictures wearing new clothes on SinaWeibo and can receive instant feedback from followers. They can then produce these clothes within seven days and bring new arrival on Taobao shops. Precise targeting and immediate feedback bring high conversion rate for Taobao shops. SinaWeibo platform also helps KOLs to save marketing spending, and just-in-time production limits storage costs.

Live streaming flourishes in China

The live streaming market is booming in China. The current market value of this industry is estimated at 9 billion RMB (1.33 billion USD). Chinese main internet media Sina reported that in 2016, China has at least 200 live streaming platforms on which are connected 325 million active users. More than the half of them are millennials. The huge number of mobile usersbase and high popularity of 3G and 4G mobile networks facilitate the development of the live streaming industry, which grows increasingly attractive. Therefore, even internet giants want a piece of the action: Tencent introduced its live streaming platform in 2010 that focuses on game live. SinaWeibo and Taobao also have developed live streaming functions in their apps to enhance traffic.   Live streaming succeeded in grabbing the netizens’ attention. They spend much of their idle time watching live streams, on average 387 thousand hours on SinaWeibo live streaming platform every day. However, SinaWeibo does not offer the fastest live streaming service. Inke was established in May 2015 and became the biggest live streaming app within one year. Users who watch live streams can buy virtual gifts with real money and send these gifts to their favorite hosts. Regarding hosts, beyond advertisement income from third parties, live stream platforms typically share income with hosts. For instance, Inke usually collects 70% and leave 30% of revenues to hosts. Furthermore, Chinese users are also developing payment habits for these platforms. For instance, for the second largest live streaming App YY, the number of monthly paid users has grown 63.7% in three years.   Live streaming is now perceived as one of most potential industries in e-commerce. Once these hosts have accumulated a large number of followers on live platforms, it is possible for them to monetize traffic through different ways. They could even think about setting up business models similar to KOL e-commerce ones.

China’s new phoenomen: get Smartphones at all costs China’s new phoenomen: get Smartphones at all costsComments Off

4 facts that show that Chinese will do everything to get a smartphone

  1. Sell your Kid

In Tong’an, a young couple was condemned to 3 years of jail after selling their baby on internet. Being in a bad financial situation, with the money of the exchange they wanted to buy a motorcycle and an IPhone. Indeed, a man did buy the new born for 23 000 yuan, to offer it to his sister.

  1. Sell your organs or sperm

Since a few years, more and more Chinese sell their organs because of their financial difficulties, in order to buy Apple products such as IPad or IPhone. In 2011, a Chinese man, Zheng, decided to sell one of his kidney to be able to buy an IPad 2. He found an announce on internet offering 2 700 euros for one kidney. The truth is that the hospital where he get his surgery actually rented surgery blocks to a private company which sells organs on the black market.

Following the same idea, a Chinese sperm bank published an announce on Wechat: “Get a free IPhone 6S in exchange for your sperm!”. Indeed, the price offer for a sperm donation equals the price of the IPhone 6S, between 5 000 and 6 000 yuan. This announce actually bring more than 500 000 visitors to that sperm bank.

 

  1. A pedestrian way for smartphone addicts

In a few Chinese cities, special pedestrian ways were created especially for smartphones users, like it is the case in Chongqing. Those pedestrian ways are supposed to avoid accident involving people with literary their heads in their screens.

An investigation was carried by National Geographic concerning those pedestrian ways for connected people, it actually revealed ironically, that most individuals didn’t even noticed this new concept.

  1. IPhone for life and Death

China has a strong tradition regarding ancestors and the dead people, with a strong cult of the dead and important funeral ceremonies. The new trend is now to offer IPad and IPhone to be burned during a funeral, to honour the dead.

 

Other

  1. semseoservices
  2. http://www.chinainternetwatch.com/17513/smartphone-q1-2016/
  3. hina-market-research.blogspot.com/
  4. Seotick.net/
  5. Chinahush
  6. http://www.business-internet-china.com/
  7. Maximize social Business
When Google will come back to China ? When Google will come back to China ?Comments Off

Google available in China for over an hour ! 

Google had its own Easter miracle. For a very short time, Google’s services were available in China for the first time in over three years. South China Morning Post reported that mainland Chinese IP addresses were able to access Google websites from 11:30 PM Sunday, March 27 to 1:15AM the next day. Google has managed to slip through Chinese censorship by introducing a series of new servers in some Asian areas, which took the Chinese authorities quite some time to identify and block.

Read also: Beijing seeks to tighten reins on websites in China

This was the first time that Google search engine was available in China since it got blocked unexpectedly four years ago, in 2012. This action took place six months after Google announced in a blog post that its search engine was “inconsistent and unreliable” in mainland China. 

 

Google winning it against China?

These hundred and five minutes of Google search engine available in China were the first glimmer of hope of a victory for the Internet search giant in its ongoing battle with China. Google closed its China search engine in 2010 after refusing to censor search results and threatened to leave the whole country a few months before that. The following year, Google said China had hacked its Gmail to stop social revolution of the anti-government group Jasmine Revolution.

In December 2014, the Google Mail service had been totally blocked after users were able to access Gmail messages through third party applications, such as Microsoft Outlook. YouTube, owned by Google, has also been blocked since 2009.

 

The “Great Firewall” still makes victims !  

The overall censorship from Google is part of the “Golden Shield” Project of China, operating for 18 years now and aiming to help the Ministry of Public Security (MPS) to control what Chinese citizens can see online. The blocking of Internet services is known as “the Great Firewall” and claimed many victims other than Google. Indeed, Twitter, Facebook, Instagram and Snapchat are some of the major social networks to not be available in China.

There was no press communication from Google or Chinese officials to the fact that the search engine had been available in China. Having said that, with Google Play Store’s arrival in China which will occur this year, a quick availability could have been a glance at the upcoming future …

It is important to know how to get past this ” Great Firewall”. If you want to launch your website in China, please contact our specialized agents, they will for sure meet your expectations!

Further readings :

 

 

 

 

 

Chinese trendy expressions in 2016 Chinese trendy expressions in 2016Comments Off

Discover the top 10 of best Chinese expressions in 2016!

Each year, new expressions are coming up in France and it is the same in China. Here are the top 10 new Chinese expressions to closely follow up!

Here you can find an article about 10 common Chinese phrases.

1. The feeling of acquisition (huo gan)

A new phrase launched by Xi Jinping President, during the times of the launch of this new reform where the future changes will supposed to be a huge success for the Chinese people and let them with this “feeling of acquisition”, by providing satisfaction. A word indicating the feeling of satisfaction after any gain, reused and immediately popularized through Chinese social networks.

2. Appearance Value (yan zhi)

Have a high value of appearance or not, that is the main question. Using the term Yan Zhi (“face value”) for judging the beauty of a person in a quantitative manner. We already knew the data notes, 8/10 for the truly beautiful people, and the 5/10 for the average middling ones… The term Yan Zhi works as a gauge, especially to describe the beauty of celebrities.

Chinese is full of meaning value and signification, you can understand the Chinese culture by learning chinese.

 

3. Internet + (hu lian wang)

“Before there was the Internet, today there is Internet +: This is a development model merging the Internet and other economic and social productive elements, aiming to combine, restructure and recreate traditional sectors»

This term and this definition has been taken up by Medias after the Chinese Prime Minister Li Keqiang has mentioned it in the government report in 2015.

4. Maker (chuang ke)

Another term launched by the government in the same report: “Chuang Ke” is the Maker. This is designating the people who are able to create the product from a basic idea as a key for innovation in the Chinese economy. It seems that learning Chinese is the next challenge for CEO. CEO and managers have to get this “Chuang Ke”

 

5. Baby ( bao bao)

Bao Bao is the shortening of the term in vogue the “baby” meaning oneself.

Typically, it is the girls on social networks who will use this term to refer to themselves as the third person. An even more girly and “kawaii” manner to describe a situation.

6. Have the great open mind (nao dong da kai)

Be creative on the edge and in an unusual way is designating in China by “Nao dong da kai”: Having the largest open mind, or more precisely “to have the largest open hole in the brain” from another phrase “nao bu ”  meaning ” supplement the brain (with imagination) ”, very common in Japanese manga. You can see that Chinese language is full of imagery.

7. Being capricious (ren xing)

Children make whims and even adults, if you see this Chinese expression. Make a whim or rather be capricious, is the term that is used to designate as rich people who can spend lavishly. These kind of situations where people allow themselves to do what they want regardless of others.

8. The clan of severed hands (Duan shou zu)

For those who spend too much, you are probably parts of the clan of severed hands and you probably don’t know that: it is an expression used by women who want to “cut the hand” for having spent too much, particularly in terms of Internet purchases.

9. Celebrities on Internet ( wang hong)

Internet has a color and regarding celebrities, it is red (“famous”):

“Wang hong” («red internet”) is the term that enhanced the new consumer behavior, evaluating the reputation of an actor or a singer by the number of reviews on Internet.

10. It is the charisma that counts  (zhu zhi yao kan qi)

During the uproar caused by the promotion of the new album of Cindy Wang, the Taiwanese singer consuming Junk Food (burger), a netizen commented on the event by “It’s the charisma that counts,” ending the debate. The term has become widespread to describe the positive energy in the midst of negative reviews on social networks.

Top 10 rules for Doing Business In China Top 10 rules for Doing Business In ChinaComments Off

Doing business in China for Western firms is still hard in 2015.

 

Difference of Education

This is a primary function of Western business education in China today as much as, or even more, strictly business. I wonder if Western management in China really think one of his main tasks is education. If it does not, it should – because for a Western organization, doing business in China requires that he spend a lot of time educating and developing local talent to work in sophisticated Western business processes – and it requires that Western managers and workers allow themselves to be educated in the flexibility of the Chinese market

A general impression now is that Western governments – for example, the US and European governments – focus on short-term issues: basically ‘fight against fires and of lurching from crisis to crisis with little or no clearly discernible and coherent long-term strategy for how to do, much less resolve, the various crises. Examples include the unrest in the Middle East and North Africa, the tide of refugees arriving in Europe, and the threat of global climate change.

Beware of Chinese companies dynamics

A common cause of losses in China is that foreign companies are so focused on market growth rates that they neglect the basics of competitive analysis. In the beer industry, for example, more than 20 foreign brewers recorded in the mid-1990s, each plan to capture an average of 15 percent of their market segment. In a market lacking clear differentiation, they also found themselves competing with nearly 600 local brewers, many of them subsidized by local governments. Some of these issues should disappear over time, but almost twenty years later, the fundamental situation has changed little. Many industries in China resemble the wine industry, overcapacity, high levels of fragmentation, subsidized local competition, and foreigners are willing to absorb the losses of their “strategic” investments. Learn Chinese is a very good way to understand the way Chinese Things and react explain the founder of Taylor Made School a Chinese training center based in Beijing and Shanghai.

 

Time has different value in China

Many companies want to get on the ground quickly. In one case, the Director General told his head of strategy for operations in China will within six months. Time pressure like this can create problems later. It tends to result in sloppy planning and analysis. It shifts attention to finding the right partner to find any partner, regardless of adjustment partner. It also weakens your hand in the negotiations. Your Chinese counterpart will be how to use your time constraints against you, and you walk away with a worse deal.

The Chinese government, on the other hand, left the impression that he has a vision very long term, for example, by creating the infrastructure of the Asian Investment Bank (AIIb), take action to calm Volatile stock markets, which begin to fight against pollution, health and food security, and so on. While the asymmetry between Chinese and Western governments – short-term and long-western Chinese term - is obvious, directions of activity seem to be the opposite.

In a series of interviews I conducted, Western leaders indicated that while their companies are looking to make long term investment decisions in China, their experience of their Chinese counterparts are executives and employees looking to make a ” making quick death” source Forbes

Chinese executives also identified the following strengths of the Western business: management, technology, clarity and stability of its processes, a history of technical innovation, standardization systems, R & D, global reach, and strong brands. They also highlighted the following weaknesses: lack of flexibility, high costs, slow decision making, slow responsiveness, rigidity, low business efficiency (as opposed to, it would seem, effective production process) shows a lack of flexible ways and innovative operating

However, Chinese leaders have also identified the following strengths of the Chinese company: flexibility, market knowledge, large market, low costs, aggression, large (and flexible) market Labour (practical and tactical) the business innovation (though not necessarily product innovation), fast, increasingly, a human touch, efficiency, and a general attitude of being willing to learn . The weaknesses of Chinese companies, as Chinese managers see them, include mismanagement, poor technology, short-term vision, poor governance, ineffective systems, a lack of professionalism, poor R&D, a lack of standardization , low brand recognition, and poor quality.

 

Interpersonal relationship called guanxi !

A common safeguard against opportunism is to build trust with the people who matter to your business. Unlike the West, the creation of personal friendship is a prerequisite to do business. Friendship building takes time, which is another reason to avoid rushing into things. Besides numerous invitations to sporting and other events, a key element of trust is long dinners during which all but business is discussed. In these, alcohol plays an important role. Learn to drink intelligently. Experienced negotiators have alcohol in their glasses of water or wet towels in most good restaurants make available.

 

Chinese negotiatons are long !

Chinese negotiators sometimes grow beyond what their Western counterparts consider appropriate limits. For example, representatives of a large Western company negotiated the distribution rights for one of their products. Their Chinese counterparts have closed their initial height by threatening to use their political connections to prevent the distribution of their products if they do not get the rights. In another case, China has drunk their Western customers to prevent them from being effective in negotiating the next morning (which the Chinese side, involved a completely different set of people).

Be alert and prepare appropriate measures against. For example, the negotiating teams must learn to drink without getting drunk, include women (because they are not supposed to get drunk), and know that excessive drinking can be delegated to a member of the team.

 

Understand Chinese society (hierarchical)

The decisions of the Company are generally achieved so top-down, with only the top of the pyramid involved in decision making. Distrust puts limits on the delegation, and at each level surveillance monitoring is high. Middle managers generally have little power to make decisions accordingly, and their main role is to transmit orders from the top and ensuring compliance.

Long term Business

The overall results give a picture of a Western long-term and short-term orientation Chinese to do business in China, with the strengths and weaknesses of Western and Chinese organizations somehow complementary. Even when the two Chinese companies from the West and are considered a force in “innovation”, the nature of this “innovation” is different – Innovation West is considered and technical innovation China is thought to be about adapting flexibly to commercial and conditions.That market is an important consideration which may be underestimated. Everyone believes that their main task is to do business and earn money, but the nature of what they actually do is somewhat different. It seems to me that if the Chinese education system inculcates the qualities basic obedience and discipline in his students and when students enter the work force, practical necessities requires significant ‘on the job training “to adapt the most sophisticated technical processes and management procedures needed in today’s economy. So Western organizations have come to serve as a kind of “graduate school” to develop the knowledge and skills of managers and Chinese workers

 

Be Flexible and Agressive

While most Western organizations familiar to those who responded to the survey were multinationals of some sort (hence the perception of sophisticated large companies oriented technology ) Chinese organizations come in all sizes and shapes. They ranged from large state enterprises, heaviness, to smaller, high-technology start-ups more agile (hence the perception of poor governance and management, but also flexibility, aggressiveness, and low cost-).

 

Western Companies need to invest on their Brand

One has the impression that the image of our Chinese leaders of Western companies is something of an aircraft carrier – a large vessel sophisticated technologically innovative, flexible operating processes and systems and extensive global reach – all led by experienced management with a long-term vision. This is a “strategic” image of Western business. Perhaps unsurprisingly, the weaknesses are inversely proportional to the forces – a large aircraft carrier is difficult to maneuver in tactical situations and not to change rapidly adapt and respond to other types of tasks. So things are moving too slowly – decision making, response time, and the pace of tactical innovation – and are too rigid. So with a technical platform very sophisticated, we are stuck with a rigid structure that seems to take some time to adapt. source

 

 

Electronic devices market in China Electronic devices market in ChinaComments Off

The market for traditional products of consumer electronics in China is maturing, more than in the whole world. With the rapid development of information communication technology, China has become the largest manufacturing centre in the world for electronics, including televisions, computers, telephones and DVD players.

Here’s electronic devices market in China.

Market development in China

China became in 2013 the first market for electronic devices ahead of the United States. The spending in Asia reached $ 282 billion, and the world 1,068 billion dollars. The bulk of the expenditure was made by console video games, and televisions. In 2014, it is 1024 billion dollars that were spent in electronic devices around the world, including a three dollar spent in China. Shenzhen is the Chinese city that produces the more electronic devices in the world. In 2014, the city had a gross domestic product of 171 billion, largely due to its electronic production. Giants like Apple, Dell and HP make assemble and build their electronic components in this city.

The different categories

Equipment suppliers

Filcontrol is the technology leader in equipment products for textile machine industries. It is present in the Chinese market since 2005.

Phone

Huawei was founded in 1988 in Shenzhen in China. It is a company that provides services in the information technology sector and communication including phones. Its services are present in 140 countries, representing one third of the population. It achieved a turnover of 28 billion euros in 2014.

ZTE was founded in 1985 and also offers telephone services.

Xiaomi is the start-up that had the best start in the world. It was founded in 2010 and was valued at $ 45 billion in 2014. It sold up to 61 million units last year.


Computers

Lenovo is a Chinese company founded in 1984 by Liu Chuanzhi. Lenovo mainly manufactures computers, telephones, workstations, computer servers and connected TVs. However, the bulk of sales of Lenovo is done through computers, especially since he bought the PC division of IBM. However, it wants to focus on phones especially abroad, where it is still not very present. He recently bought Motorola Mobility. In 2014, its sales in the last quarter business was 10.8 billion.

Televisions

Skyworth or Hong Kong Skyworth Digital Holdings Company was founded in 1988 (From Bloomberg). It designs, manufactures and sells televisions and audio-visual products.

Maxpac is an electronics company including LCD TVs.

Mobile operator

In the area of ??mobile operators we can find China Mobile, China Unicom and China Telecom.

China Mobile is the largest mobile operator in China. It was founded in China in 1997. It has over 720 million subscribers. This is the largest mobile operator in terms of subscribers which is normal given that China is the most populous country in the world, however it remains only used in China.

China Unicom is the second on the China market. It was founded in 1994 in Beijing. It serves over 80 million subscribers.

China Telecom is the third. It was created in 2002 and has a network of over 70 million people.

Appliances

Haier was founded in 1984 by Zhang Ruimin in Qingdao. This is a home appliance company but it also manufactures TVs. It makes refrigerators, air conditioning machines and washing machines. Haier’s goal is to position itself as a premium brand but is in many countries a low-end brand. However, the company operates in several countries in Europe and also in the United States.

Hisense is a company of electrical equipment. It was created in 1969 in Qingdao. It is the result of the consolidation of brands Combines, Kelon and Ronshen. It is present in the whole world. Its turnover has exceeded $ 16 billion in 2014.

Development in the future

This will undoubtedly increase in the coming years due to the growing middle class: in fact, nearly 220 million households will be part of this class of 2022 according to estimates. China’s new middle class that have a lot of requirements and applications in the high-tech world: some products that they could not buy are now within their reach and they fully intend to enjoy it. So they try to have the latest electronic devices. New categories appear as 4K televisions that everyone is trying to produce and sell in bulk. The Chinese are particularly equipped to sell as much as possible: Chinese companies dominate the market for 4K TVs. Chinese company for Seiki example sells 39-inch 4K TVs for $ 499, which is low compared to what can be found in the market. Leading brands like Hisense, Skyworth and TCL are all trying to build televisions 4K high standard, always keeping the lowest possible prices. Connected objects are also on the agenda, and China hopes to equip its electronic products.

The electronic market is exploding in China since it is very tighly linked to online activities, something Chinese have come to see as part of their lifestyle. These past few years, numerous local companies have started challenging foreign companies on their own turf: High Quality reliable goods. However, the edge is still in favour of first. Why? Two reasons :

Simply put : trust. Too many scandals have gone between Chinese consumers and local companies in all kinds of industry and the electronic market is not an exception. Besides, it is also a matter of prestige. Foreign companies are often seen as giving more face, the typical Chinese social rule of showing how successful you are to be respected. In this matter for now, in the mind of a large part of Chinese mobile users, there is no possible comparison between Apple, Blackberry, Samsung and say Lenovo or Xiaomi. Ask a Chinese to exchange his iphone for a local brand, something still true even though you can find good phones sold by Chinese brands. Oneplus or the latest Xiaomi have received much praise for their features. Alas, the cliché is still present, much to the benefit of the Foreign brands.

Finally, promoting products via e-marketing and the latest inbound marketing strategies has
never been the Chinese companies’ forte. They are brilliant at doing business and getting the best deals but yet again, foreign companies have more experience in marketing. So, to be successful, a foreign newcomer in the Chinese market must use the services of a foreign inbound marketing agency that knows the Chinese market very well in order to get that big edge it would need (here for a list of good marketing agencies in China)

More about phone manufacturers on Business Internet in China here

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