Here are this week’s news and highlights for China:
How China’s Best Performing Brands Localise For The Market: The little and big things that most brands could be doing better to make their brands more relevant for the Chinese market.
Infographic: The Remarkable Disparities Between House Prices in China: The space required for a fridge in Beijing is 900% more expensive than in Xi’an.
Chongqing Leads China in Economic Growth for 10th Straight Quarter: Chongqing has continued to lead China’s economic growth, with a 10.5% expansion in the first half of the year. Guizhou’s economy grew 10.4% thanks to its fast development in big data, brewery and tourism. The rust-belt province of Liaoning continued to see the slowest growth at 2.1%. IMF last week raised its forecasts for China growth in 2017 and 2018.
Construction in China’s ‘Skyscraper Capital’ Shows Little Sign of Slowing: Of the 128 buildings over 200 meters tall that were completed in the world last year, 70% were in China. Shenzhen was responsible for 11 of them – more than the entire United States, and almost twice as many as any other city. In addition to a current crop of 49 buildings taller than 200 metres, a further 48 are under construction.
50 Reasons Why Shanghai is the World’s Greatest City: A big call, but there’s lots to love about Shanghai.
China Skinny’s City-Nator Tool: How many cities in China have more people than your hometown? Find out here.
China Trademarks and The Real Life Meaning of First to File: Your global brand could take some serious damage if you overlook trademarking in China – even if you have no intention of selling in China.
Four Decades of Chinese Capitalism Show How Trade and Investments Benefit Everybody: Over the past 35 years, China’s GDP has grown 28-fold. Last year, China made over 24 million cars and 3.7 million commercial vehicles – about one third of total world production, and around six times the size of the US industry. Mike Enright calculates that by 2013 foreign industrial enterprises accounted for 33% of China’s GDP ($3 trillion), and 27% of employment (210 million jobs), with significantly more when the cascading benefits are factored in.
Urban Chinese Turn Cautious on Spending: 36% of consumers reported spending more in 2017 compared to 43% in 2016 according to an online survey by Mintel. The top goals for 2017 were achieving a healthy lifestyle, with 80% of consumers saying they will “have a healthier diet” and 75% “exercising more.” “Travelling to new places” was the third most popular goal, up from ninth place in 2014.
“Let’s Go, Mantis Shrimp”: The Most Trending Chinese Internet Slang of 2017 – Summer Edition: A diet of video games and old movies have influenced the most popular online trends. Want to talk like a Chinese teenager? Here’s the list.
China Online Retail Sees Rapid Growth in the First Half of 2017: China’s consumer spending for the month of June grew 11.0% year-on-year to ¥3.9 trillion ($440 billion) – around the same value as the Greek’s Bailout over the past 5 years. In the first 6-months of 2017, overall sales of consumer goods grew 10.4%, with online purchases of physical products growing 28.6% – 13.8% of all goods. Factoring in online services too, online accounted for more than 18% of retail sales.
Chinese Not so Keen, or Unable, to Make Mobile Payments Overseas: 21% of Chinese travellers have never used WeChat Pay or Alipay in a foreign country. 61% said they didn’t know they could, or mobile payments were not offered by merchant according to Kapronasia. WeChat pay is now available in 15 countries and regions for payments in 12 currencies, while Alipay is accepted in more than 100,000 stores in 26 countries across Europe, North America, East Asia, Southeast Asia and Australasia.
Starbucks Doubles Down On China, Targets 5,000 Stores By 2021: Starbucks is buying out the 50% share of its Chinese partners JV for $1.3 billion, and aims to grow from the 2,800 current stores to more than 5,000 stores by 2021 – that’s around 10 every week. Starbucks already controls more than 60% of the cafe market in China. In 2016, China accounted for less than 2% of the world’s coffee sales, but coffee consumption in China almost tripled in the five years prior.
Five Key Market Trends Shaping the China Supplement Landscape for Exporters: Key trends in China’s health supplement market: 1. Regulations are getting tighter; 2. Increased potential for products based on TCM principles; 3. Don’t discount the potential of raw materials; 4. Online channels will continue to dominate; and 5. More diversified products will secure success according to Austrade.
Ford is Trying to Get Rid of “New Car Smell” to Attract Chinese Consumers: Ford has recruited a team of 18 smell testers, or ‘Golden Noses,’ charged with making sure new cars don’t smell bad. Chinese consumers rank unpleasant smells ahead of engine performance or safety as their top reason for not buying a new car, according to a 2016 report from J.D. Power. The sniffers test the odour of every item in the car, from floor carpets to the steering wheel, rejecting any that may offend a Chinese buyer.