Here are this week’s news and highlights for China:
New Balance Loses its Battle Over Trademark: New Balance has been fined ¥98 million ($16 million) and ordered to stop using “XīnBǎiLún” to promote its products as the trademark was already registered to a local businessman in 1996.
Will China’s Challengers Be the Next Global Leaders?: Interesting insights from BCG’s Global Challenger 100 list, which has seen the number of Chinese companies making an impact globally drop from 44 in 2006, to 36 in 2009, to 29 today. In 2009, there were nine consumer durable goods companies on the list. This year it is just Haier. No Chinese FMCG companies made the list.
China To Use Big Data To Rate Citizens In New ‘Social Credit System’: By 2020, Chinese citizens’ behaviour with be rated under a new social credit system, allocating scores based on financial standing, criminal record and social media behaviour.
Walmart is Betting Big on China: Walmart will expand its footprint in China by nearly a third, opening 115 new stores by 2017 in a renewed push to lure China’s grocery shoppers despite slowing growth.
Chinese Riders, Government Take Opposing Stance on Taxi Apps Like Uber: Kuaidi, Didi and Uber are attracting growing numbers of car owners looking to tap into the growing popularity of the car-hailing apps. An estimated 6,100 private cars are believed to have been registered on Didi just in Guangzhou. Uber is still running in Guangzhou after a recent police raid and police have visited the Uber office in Chengdu as well. Uber driver numbers are reportedly down in both cities.
JD.com Announces First Quarter 2015 Results : The value of goods sold on Jingdong increased 99% in the past 12-months to ¥87.8 billion (US$14.2 billion). Active shopper accounts now number 105.2 million, 90% more than a year ago. The online retailer’s loss for the quarter was $115 million.
6 Reasons Stopping Apple Watch from Ticking in China: A Tencent tech poll found 55% of Chinese wouldn’t buy an Apple Watch because (1) the high price tag; (2) short battery life; (3) dependence on iPhones; (4) lack of practical functions; (5) external design; and (6) relatively small screen. 18% said they’d buy one, 27% weren’t sure.
In China’s Red-Hot Startup Scene, Even Dancing Grannies Get VC Funding: An app designed for dancing grannies, with videos of 30 of the hottest dance tunes has had 50,000 downloads and received “millions” of RMB in funding.
China’s Online Wine Market: China Skinny infograph. Although wine accounts for just 5% of total alcohol sales in China, it makes up 34% of alcohol sold online. And unlike physical retail sales which are dominated by domestic wine, 84% of wines sold online are imported.
China’s Fight for Safe Food: China’s ongoing food safety issues can be attributed to the country’s food supply system and agricultural industry’s characteristics as a whole. One example is China’s 260 million rural households supplying food, each cultivating an average of 6,000 square meters – a huge number of scattered farmers who are difficult to supervise and educate.
Overseas Spending by Chinese Tourists Nears $500bn: Wealthy Chinese tourists’ spending on shopping reduced 34.4% over the past year, with cigarettes the only category to rise. Further reinforcing the shift to more varied holiday experiences, their spending on entertainment grew 31.1%, accommodation was up 6.7% and other services increased 78.6%. Spending trends for lower income travellers were quite different according to China Confidential.
China On Track to Become Our Largest Market, says TripAdvisor Chief: According to Tripadvisor data, a growing number of Chinese tourists are willing to visit the world’s top attractions for a second or third time, tending to look for the most authentic restaurants and hotels on return visits. Japan, Thailand, Australia, and South Korea are the most popular travel destinations among Chinese on Tripadvisor.
Health & Beauty
Li Na’s Healthy Partnership with Blackmores: Chinese tennis legend Li Na will be a brand ambassador for Blackmores health supplements as part of a three year partnership. Nicely timed with her pregnancy and planned breastfeeding.
Young Chinese Under Immense Pressure to Look Good and Succeed in Life: 41% of Chinese consumers feel under pressure to look good, with 78% believing that better looking people have better opportunities in life both personally and professionally, according to a Canadean survey.
China Becomes Top Source of US Immigrants: China was largest source of migrants to the U.S. in 2013. 147,000 Chinese came, versus 129,000 from India and 125,000 from Mexico. San Francisco appears to be the most popular search for Chinese real estate investors, followed by London, Tuscany, New York, and Paris according to PropGoLuxury.
Buffett’s Chinese Fans Make Omaha Pilgrimage to See the Sage: A 2,000-strong delegation of Chinese investors converged on Nebraska; many to eat Piccolo Pete’s steak, but mainly to hear Warren Buffet’s words of wisdom on his 50th anniversary at Berkshire Hathaway. Chinese have invested $330 billion abroad in the past 12-months according to HSBC and CLSA.