Mark Tanner
Mark Tanner
22 November 2017 0 Comments

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

Consumers,  Chinese Consumers

Podcast: The Skinny on Marketing in China: China Skinny’s Mark Tanner joins Amcham on an 18 minute podcast about the importance of using city-specific marketing strategies, and how technology is shaping sales in China.

Chinese Consumers are ‘Easily’ Most Important to Global Economy — Here’s Why: While it had been “fashionable” to talk about India outpacing China as the fastest-growing major economy, it should not be forgotten that Beijing’s gross domestic product (GDP) remains five times larger than New Delhi. The role of the Chinese consumer is pivotal to its economic success story.

Online: Digital China

China E-Commerce: Resistance is Futile: Earlier this month the PRC National People’s Congress circulated their second discussion draft of their Ecommerce Law with some concerning plans further limiting foreign owned brands options for selling online in China.

Amazon Is Selling Its Cloud Services in China to a Local Partner: Amazon is selling off the hardware from its public cloud business in China, amid tightening regulation over online data in the market.

5 Things I Learned from Alibaba President Michael Evans: Jeff Towson’s take on Alibaba’s master plan: 1. Alibaba’s globalization is mostly about following Chinese consumers; 2. Alibaba plays to its advantages, not to proven models or approaches; 3. Online retail is a powerful way to expand into some physical retail, especially in unstructured markets; 4. “New retail” is still in the experimental phase; and 5. Hema and retail food are the biggest departure from Alibaba’s core business. But it’s really exciting.

Premium Food & Beverage

The Latest Trends from 2017 Food Hotel China: China Skinny was on the ground at last week’s FHC to note the latest trends and key takeaways in food and beverage and compare to previous years.

Consumer Confidence Grows in Domestic Formula Brands: Chinese consumers’ focus on Chinese baby milk powder has shifted from concerns about food safety to product quality and price. Although foreign brands still make up the top 3 sellers, domestic brands grew 27% for the past five years versus 16% for imported according to Euromonitor.

Wine Australia Bullish on Screwcaps in China: 61% of them prefer buying wines with natural cork, while 32% rejected screwcap, making it the most rejected closure of all kinds across all markets, even higher than synthetic corks according to Wine Intelligence. However with 56% growth in Australian wines to China, 94% of the value was bottled wines (most have screw tops), reflecting increased acceptance of the format in China.

Chinese Police Seize 14,000 Bottles of Counterfeit Penfolds Wine: 13 people have been arrested and 14,000 bottles seized that was selling on Taobao, karaoke bars and pubs for as little as ¥200 ($30) when normal retail ranges from ¥600-3000 ($90-452) a bottle. The arrests were the result of a complaint from Penfold’s parent company Treasury Wines.

Diageo Whisky Summit Returns to China: Last week Diageo hosted its second annual Whisky Summit in China bringing together whisky experts, fans and business partners to share their whisky knowledge and discuss industry trends in a series of panels, workshops and masterclasses. For the first time, Diageo showcased all of the whiskies from its 27 operational Scotch distilleries.

Overall Health & Beauty

Only 1% of Chinese Women Use Tampons. P&G Wants to Change That: Just 1% of Chinese women use these alternatives to menstrual pads, as compared to about 60% in the United States, according to Tampax, which invented them in 1933. The first domestic brand only launched last year.

Overseas Chinese Tourists

US Wilderness Becomes New Magnet for Chinese Tourists: In 2016 there were 2.97 million arrivals from China to America, of which 1.2 million – about 41% – visited national parks and/or monuments. The “America Wild: National Parks Adventure” film garnered 1 million views in October on Youku. Alaska has reputedly become a top choice for young Chinese tourists who have visited the United States more than once.

Designers and Fashion

All the Things that have Already Gone Wrong with the 2017 Victoria Secret Fashion Show: If you’re looking for reinforcement that organising big events in China sometimes isn’t straightforward, look to Victoria Secret who hosted their annual runway extravaganza in Shanghai on Monday – the first time in China to tap into the fast growing market. Drawcard model Gigi Hadid has pulled out after #GigiGetOutOfChina has been trending after she mocked a cookie she thought looked like a Buddha head, four models had major difficulties getting visas approved, Adriana Lima’s visa was held up due to an ongoing “diplomatic problem” and Katy Perry who was set to perform is banned indefinitely from China. Here are some shots from the show.

Schooling and Education

Chinese Grads Return Home With Degrees and Disillusionment: Between 1978 and 2009, 62% of students who completed degrees abroad returned home after graduation. But that figure rises to 82% when you look at the average between 1978 and 2016. Almost 45% of returnees earn a monthly income of less than ¥6,000 ($904) in their first jobs. “Unlike 10 years ago, employers now don’t care much whether a candidate has studied abroad,” says Fu Yin, a Shanghai-based senior headhunter. “Instead, they are more interested in those who have worked abroad or completed internships while studying abroad.”

China Still Top Nation Sending Students to US: A total of 350,755 Chinese students were enrolled at US institutions of higher education in the academic year, up 6.8%, with China being the top source of students to the US for 8 years.

That’s the Skinny for the week! See previous newsletters hereContact China Skinny for marketing strategy, research and digital advice and implementation.

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