Mark Tanner
Mark Tanner
18 May 2016 0 Comments

Here are this week’s news and highlights for China:

Consumers,  Chinese Consumers

Xi Jinping’s Stance on China’s Economy Laid Bare as He Distances Hallmark Policy from Western-Style Supply-Side Economics: President Xi Jinping delivered a 20,000-character transcript in his most comprehensive thoughts on the future of the Chinese economy, with special emphasis on structural reform or ‘Supply-Side Reform’. He doesn’t see consumer demand as an issue, rather that the domestic supply wasn’t effective in matching it, citing examples of Chinese consumers shopping overseas for daily products such as electric rice cookers, toilet covers, milk powder and even baby bottles.

Consumption Contributes 84.7% of China’s Q1 Growth: If you were selling to Chinese consumers in the first 3-months of the year, you backed the right horse. 84.7% of China’s 6.7% GDP growth was driven by consumption – significantly more than the 66.4% consumption contributed last year.

Uber Inks Global Deal With China’s Alipay: Alipay is becoming increasingly more convenient for Chinese travellers, with its 450 million users now able to use the app to order and pay for rides in more than 400 cities in 68 countries. Uber’s competitor and China’s market leader Didi has announced a $1 billion strategic investment from Apple, negotiated in just 22 days after their first meeting.

China customs crackdown may hit Bellamy’s Organic, Blackmores: Australia’s significant Daigou trade looks to have taken a hit as some leading courier companies suspend delivery of Australian parcels to China.

Facebook Wins China Trademark Case: Facebook has won a Chinese trademark case against a Guangdong-based drinks factory that registered the brand name “face book.” An executive from the factory asked “if Facebook has such an influential brand globally, why can’t Chinese consumers access its website?”

Online: Digital China

Alibaba Kicked Out of Anti-Counterfeiting Coalition After Backlash: Alibaba’s recent membership to the prestigious International AntiCounterfeiting Coalition has been suspended following high profile boycotts, close ties between Alibaba and the coalition’s head, and threats of mass defection. Many members view Alibaba as the largest marketplace for fakes in the world.

Michael Evans: Partnership With Brands Is Key To Winning War On Counterfeits: Before being suspended, Alibaba announced its expansion of the IACC MarketSafe Program. This will now be available to any brand, at no cost. Participating brands will also have a streamlined process to work with Alibaba to take down suspect listings.

New Tariff Policy for Cross-Border Ecommerce Likely to be Postponed: China is not expected to implement its tough new cross border e-commerce laws for another year following a month of confusion and heavy lobbying by big ecommerce players. Following a recent survey, FT Confidential Research remains bullish about the future of cross border commerce even if the regulations are adopted.

Oppo Overtakes Xiaomi in China as Smartphone Shipments Fall 5% in Q1: A change of guard in China’s shrinking smartphone market has seen Huawei extend its lead in Q1 to 15.6% of shipments, from 10.2% in 2015. Oppo, Xiaomi, Vivo and Apple rounded out the top-5.

Premium Food & Beverage

Trends at SIAL China: Part 2: Part two of the latest interesting trends in China’s food and beverage industry.

From Nail Polish To Designer Bags, KFC Is Marketing Hard To Woo Chinese Millennials: KFC China is hoping an association with lifestyle and tech partners will help make the brand appear more hip amongst China’s lucrative Millennials. They included models emblazoned with ‘K’ carrying buckets of fake chicken and burgers on the runway at the Shanghai Fashion Show and Baidu-robots taking orders at the new concept store in Shanghai. KFC’s sales started to rise again in the first quarter of this year.

Nearly Two Thirds Of Consumers Look For Traceability Labels When Buying Seafood: 85% of Chinese consumers want their seafood trackable through the supply chain to a sustainable origin – the highest rate in a global survey by the Marine Stewardship Council.

Overseas Chinese Tourists

Globe Shopper Report: China Edition: May and October are set to be the busiest months for travel amongst ‘regular Chinese travellers’ according to Global Blue. 81% of those planning international travel in 2016 will shop during their trip.

Autos and Cars

Survival of the Hugest: Chinese Consumers Seek Safety in SUVs: SUV purchases in the world’s largest car market surged more than 50% in the first quarter of 2016 from a year earlier, while sedan sales fell 9.3%. People’s desire to feel safe on the roads is the main reason according to analysts. Here are 10 made-for-China-only foreign cars launched at the Beijing Auto Show.

Premium and Luxury

Burberry, Cartier Set Standard in Lagging Chinese Ecommerce Adaptation: Digital accounted for 5% of China’s luxury market in 2015, but is growing at triple the rate of overall luxury sales. Premium wine is starting to take off online, with Penfolds one of the top-selling wine brands on JD, leading to a formal partnership.

That’s the Skinny for the week! See previous newsletter here. Contact China Skinny for marketing, research and digital advice and implementation.


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