Wandering China

An East/West pulse of China's fourth rise from down under.

China + Gold = 9 Million iPhones Sold [Bloomberg] #RisingChina #Apple #Gold

Apple taps into Chinese mind – mixing their perception of gold with cyclical obsolescence of the mobile phone.

Bringing together China and gold is a recipe for success. A recent decline in the price of the yellow metal has revealed immense pent-up demand for shiny trinkets in Asia. The volume of gold jewelry sold in Hong Kong was up 66 percent year-on-year in the second quarter of 2013, according to the World Gold Council. Mainland China saw 50 percent growth. Apple did not need to read boring market reports to figure out it needed a gold-colored model for Asia. It would have been enough to walk the streets of Hong Kong and see the crowds in the jewelry stores. Leonid Bershidsky, 2013

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China + Gold = 9 Million iPhones Sold
By Leonid Bershidsky
Source – Bloomberg, published Sep 25, 2013

The gold version of the iPhone 5S is displayed at an Apple store on September 20, 2013 in New York City. Photograph by Andrew Burton/Getty Images

The gold version of the iPhone 5S is displayed at an Apple store on September 20, 2013 in New York City. Photograph by Andrew Burton/Getty Images

I have two words for those who still think Apple’s marketing genius died with Steve Jobs: China and gold.

In preparing the debut of its two new iPhone models, the 5s and 5c, Apple made the crucial decision to include China in the product launch, and to offer a gold-colored high-end phone. Voila, a sales record: 9 million iPhones sold in the opening weekend, up from 5 million for the original iPhone 5.

Bringing together China and gold is a recipe for success. A recent decline in the price of the yellow metal has revealed immense pent-up demand for shiny trinkets in Asia. The volume of gold jewelry sold in Hong Kong was up 66 percent year-on-year in the second quarter of 2013, according to the World Gold Council. Mainland China saw 50 percent growth. Apple did not need to read boring market reports to figure out it needed a gold-colored model for Asia. It would have been enough to walk the streets of Hong Kong and see the crowds in the jewelry stores.

Gold is a well-used marketing tool in the world of mobile devices. “Dumb” phone manufacturers have used the hue, especially in Asian markets and Russia, ever since color handsets came into existence in the early 2000s. Nokia made fun of the gold iPhone 5s, tweeting from its UK corporate account, “Real gangsters don’t use gold phones.” The Finnish company itself, however, has produced a number of gold-colored models, including one that used genuine 18K gold plate.

Please click here to read the entire article at Bloomberg online.

Read the rest of this entry »

Filed under: Advertising, Apple, Beijing Consensus, China Dream, Chinese Model, Communications, Culture, Domestic Growth, Economics, Government & Policy, Great Firewall, History, Influence, Intellectual Property, Internet, Mapping Feelings, Modernisation, Peaceful Development, Public Diplomacy, Resources, Social, Soft Power, Strategy, Technology, The Chinese Identity, The construction of Chinese and Non-Chinese identities, Trade, U.S.

East Meets West: An Infographic Portrait by Yang Liu [bsix12.com] #RisingChina #Representation

Germany meets China from the eyes of one born in China and living in Germany since the age of 14.

Read an interview dated November 13, 2007 with Yang Liu here.

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East Meets West: An Infographic Portrait by Yang Liu
Submitted by Rainer Falle
Source – bsix12.com published – [not dated]

The artist and visual designer Yang Liu was born in China and lives in Germany since she was 14. By growing up in two very different places with very different traditions she was able to experience the differences between the two cultures first-hand.

Drawing from her own experience Yang Liu created minimalistic visualizations using simple symbols and shapes to convey just how different the two cultures are. The blue side represents Germany (or western culture) and the red side China (or eastern culture):

Lifestyle: Independent vs. dependent
Lifestyle: Independent vs. dependent

Attitude towards punctuality
Attitude towards punctuality

At a party
At a party

Please click here to read the rest of the article and inforgraphics at bsix12.com online.

Filed under: Advertising, Art, Beijing Consensus, Charm Offensive, Chinese Model, Collectivism, Culture, Education, Environment, Ethnicity, Germany, Ideology, Influence, International Relations, Mapping Feelings, Media, Population, Public Diplomacy, Resources, Social, Soft Power, The Chinese Identity, The construction of Chinese and Non-Chinese identities

China’s quest for world-beating brand held back by regime [Guardian] #RisingChina #Branding

Brand China: Hamstrung by regime or perception divide?

We get these endless things from the government saying there should be more innovation and brand building… But there isn’t anything behind it. The problem is that no one really wants to invest in innovative design. It’s very market-led. So if reports come to the stores that red shirts are selling, they’ll tell their in-house designers to design more red shirts. This means the designers don’t get a chance to do anything… They spent 60 years driving creativity out of the system. To reintroduce it in 10 minutes is a bit hopeful.” Paul French, chief China market strategist at market research firm Mintel.

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China’s quest for world-beating brand held back by regime
Selling Chinese-label goods at home is one thing: but to gain global recognition, the country must rediscover the arts of creativity and risk-taking
Jonathan Kaiman in Beijing
Source – The Observer, Guardian online, published Sunday 1 September 2013

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Robin Li, the founder and chief executive of leading Chinese search engine Baidu. Photograph: Jason Lee/Reuters

China is the world’s second-largest economy but it has yet to develop the breakthrough global brand that will consolidate its status as a true commercial superpower. The names of Chery, Xiaomi and Baidu are synonymous with cars, mobile phones and internet search in China but they do not resonate abroad in the way that Ford, Samsung and Google straddle the globe. Likewise, there is no Chinese equivalent of Sony, Boeing or Coca-Cola, despite the ambition of the political hierarchy to convert a nation of 1.3bn people into a consumption-driven juggernaut.

That lack of a worldwide champion means that Made in China lacks prestige as a label, despite the country’s importance as the world’s factory floor, making everything from iPads to Topshop garments. And that reputation as a global manufacturing hub is one of the problems, nurturing a perception that China is synonymous with cheap, low-quality goods. Newspaper headlines in the west declaim stories about China’s toxic baby milk, lead-contaminated toys and fake pharmaceuticals.

But this is changing, as China’s leaders force that economic shift from export-based growth to consumer spending. They are pumping money into research and development so that Chinese brands can compete with foreign rivals in a burgeoning domestic market. Furthermore, many of these companies have taken that baton and are running towards foreign markets, with the hope that global success will result. Much of the push comes in the form of state subsidies – according to the state-run China Daily newspaper, the country spent £105bn on research and development last year.

Please click here to read the entire article at the source.

Read the rest of this entry »

Filed under: Advertising, Beijing Consensus, Charm Offensive, Chinese Model, Culture, Domestic Growth, Economics, Government & Policy, Ideology, Influence, Media, Modernisation, Public Diplomacy, Resources, Social, Soft Power, Strategy, Tao, Tao Guang Yang Hui (韬光养晦), The Chinese Identity, The construction of Chinese and Non-Chinese identities, Trade

Market Research Trends in China [Thoughtful China] #RisingChina #MarketTrends

Social media agency Thoughtful Media on keeping ahead of China’s consumer boom.

A blurp from their Youtube presence here –

Collecting and evaluating market research is a critical step for every marketer in China, but the fast rate of change there also makes it a tremendous challenge. In this week’s episode of “Thoughtful China,” Kitty Bu speaks with experts at leading research companies to find out how they get information that’s accurate and up to date. They discuss topics like the role technology is playing to improve market research methodologies, the best indicators to measure consumer trends, and mistakes advertisers make in how they evaluate research.

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Market Research Trends in China | 中国市场调研的未来以及世界调研界的整体趋势
Source – Thoughtful China, published on Youtube, June 25, 2013

Filed under: Advertising, Beijing Consensus, China Dream, Chinese Model, Communications, Culture, Domestic Growth, Economics, Finance, Ideology, Influence, Intellectual Property, Mapping Feelings, Media, Social, The Chinese Identity

Chinese telco Huawei tries to shake off spy image after NBN ban [ABC News Australia] #RisingChina #Huawei #Telecommunicatioms

So it seems to wearing made in China is fine, or eating out of plates made there does not require too much afterthought. However, using their information infrastructure and equipment to send messages from A to B – requires an ideological leap of faith for some.

Well, it’s not quite time to chuck away the image of China simply being the world’s factory of cheap and good, where excellent margins to those willing to leverage the Chinese model are the key draw. Today, they’re moving up the food chain and it will be a mistake not to take notice.

The land down under is seeing an increasing number of rising China’s foreign vanguard of products tested with the Aussie market prior to going global. This even includes the Great Wall make of SUV and Utility Vehicles.

Rewind – a year back Huawei was barred from tendering for Australia’s National Broadband Network based on intelligence and cyber espionage concerns. See China hits back at NBN bid rejection (The Age, March 29, 2012)

Fast forward a year and check out how Huawei has responds in  the 7.5min video accompanying the article – with ABC’s China correspondent Stephen McDonell.

– Over in the UK – Huawei has become embedded into UK telecoms infrastructure [Financial Times] – June 6, 2013

– Can it look any more ominous than this  (see photo below)? Inside The Chinese Company America Can’t Trust [Time Magazine] – April 15, 2013

Source - DOMINIC NAHR / MAGNUM FOR TIME myth of photographic truth exploited to paint a sinister Huawei

Source – DOMINIC NAHR / MAGNUM FOR TIME
myth of photographic truth exploited to paint a sinister Huawei

That said, it is probably useful to get a clearer picture of what Huawei does:

To read a perspective of Huawei Its annual revenue is more than $35 billion. It is the world’s largest telecom equipment maker. Huawei components feature in networks serving one-third of the world’s population… Huawei is not really a manufacturing company. It makes some of its most sensitive equipment, but it contracts out most routine manufacturing. Just under half – 70,000 – of its staff are directly involved in research and development. It has sought 55,000 patents and been granted 30,000 of them. Thirty thousand of its employees worldwide are non-Chinese. It is really a giant R&D, design, marketing and brand company. A questionable risk to security – Huawei an extraordinary creation (The Australian, May 18, 2013)

See also from WC //

Huawei a victim of its success [China Daily] – May 26, 2013

Huawei calls US Congress report ‘China bashing’ [AFP/Sydney Morning Herald] – October 8, 2012

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Chinese telco Huawei tries to shake off spy image after NBN ban
By China correspondent Stephen McDonell
Source – ABC News Australia, published June 10, 2013

The Chinese company blocked from working on Australia’s National Broadband Network has set its sights on shaking off its image as a stalking horse for Chinese spies.

Telecommunications giant Huawei was banned from tendering for the network as Australia followed the lead of a similar government ban in the United States due to espionage fears.

The company, based in southern China’s Shenzhen province, has refuted claims by the US House Intelligence Committee that the company could potentially build so-called “backdoors” into the likes of the NBN to allow for Chinese eavesdropping.

Read the rest of this entry »

Filed under: ABC News, Advertising, Australia, Beijing Consensus, Charm Offensive, China Dream, Chinese Model, Communications, Cyberattack, Democracy, Domestic Growth, Economics, Finance, Government & Policy, Great Firewall, Greater China, History, Ideology, Influence, Infrastructure, Intellectual Property, International Relations, Internet, Mapping Feelings, Media, military, Modernisation, Peaceful Development, Politics, Population, Public Diplomacy, Reform, Resources, Social, Soft Power, Strategy, Tao Guang Yang Hui (韬光养晦), Technology, The Chinese Identity, The construction of Chinese and Non-Chinese identities, Trade, U.K., U.S.

8 things about independent Chinese travelers [Affinity China] #RisingChina #OutboundTourism

Affinity China offers a first-hand account that can also be seen as eight resets to update one’s view of the Chine outbound upper crust. As the author states, her time studying in the US was helpful in more than one way during her travels in Europe.

More about Affinity here.

Cue expiring 20th century sepia-toned postcard-themed notions of Chinese travelers?

Bottomline – despite its steady climb the yuan at today’s rates, is still 5-6 yuan to a greenback. It is not hard to quickly extrapolate where Chinese outbound tourists stand in the Chinese food chain. Especially so if they have the means to flaunt it with the Euro.

The luxury market in a way is at the tip of China’s spear to send feelers experimenting with the best the world has to offer. In a positive light, Where they travel, there is a more synergistic transfer of wealth to host country where common language grows to common cultural respect. Over time the good ones too will enculturate the rest of the Chinese demographic.

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8 things you should know about independent Chinese travelers
LIN XU
Source – China Luxury Network, published month n.d, 2013

Tell us how much we are saving when we shop in your store.
Everyone already knows by now that Chinese travelers love shopping for luxury goods when they travel overseas. Everyone also knows by now that this is because retail prices of luxury goods in mainland China are much higher than Europe and North America. Many of my friends from China travel overseas just to shop. They often complain about the complexity and the long wait at the airport to receive tax returns and all the research they have to do on prices in each different market on the globe before they go shop.

It would be a really effective sales tactic if the brand’s sales representatives saved them the trouble of researching and let them learn how smart a purchase they would have made on items in the store – how much lower the prices are, how the styles are exclusive in your store vs. the counterparts in China. Keep the fact sheet handy for the big spenders. I understand that from a global brand perspective this is probably not a standard sales training tactic on how to sell to Chinese travelers, but the fact is they are already going to great lengths to do this research themselves before they walk into your store. From a customer experience perspective, being greeted by friendly sales staff overseas who can share exactly how much the Chinese travelers would be saving by shopping in their store would help generate more short term sales and help create a long term affinity for the brand.

Do you offer a global warranty and customer service in China for products we buy overseas?
If you present yourself as a global brand in China, you need to ensure your customer service is global too. It really becomes an uncomfortable dilemma for the Chinese traveler when they have to choose between a better priced item that is 20% lower overseas but comes with no warranty once they bring it back home or buying the higher priced item in China with a 2-year standard warranty. Again, from a customer standpoint we don’t understand why there should be a difference. Your brand is a global brand to us and therefore the warranty and service you offer should be too. Read the rest of this entry »

Filed under: Advertising, Beijing Consensus, Chinese Model, Chinese overseas, Communications, Culture, Domestic Growth, Economics, Education, Entertainment, Europe, Finance, Food, Ideology, Influence, International Relations, Internet, Lifestyle, Mapping Feelings, Media, Modernisation, Nationalism, Overseas Chinese, Peaceful Development, Population, Public Diplomacy, Reform, Social, Soft Power, Tao Guang Yang Hui (韬光养晦), The Chinese Identity, U.S.

China Day at Cannes Lions 2013 #RisingChina #Advertising #ChineseMind

11,000 creatives from around the world converge at Cannes Lions in France mid-June this year. On the agenda in the seven-day program? A day devoted to understanding the $53b Chinese market of wish and need fulfillment.

For more, check out the China Day program.

CHINA DAY

20130531-092519.jpg

The advertising sector is one of the fastest growing industries in China; as evidenced in the last few years, which now sees advertising spend in China ranked at number two in the world at $53 billion.

In the last few years we have also seen China flex its muscles in terms of creativity, winning numerous Lions at Cannes including a Press Lions Grand Prix in 2011 and an Outdoor Lions Grand Prix in 2012.

The potential of the market is huge, and the need to understand the market is significant. Cannes Lions, in association with the China Advertising Association, is bringing China Day to the Festival in 2013, which will see some of China’s leading thinkers, thought leaders and experts in creativity, the internet, cultural understanding, and marketing together to present a series of forums on what is really happening in this vast country, with the objective of giving an understanding of how to be part of this exciting opportunity and how to better understand how to engage with the market.Cannes Lion website, 2013

Filed under: Advertising, Beijing Consensus, Charm Offensive, China Dream, Chinese Model, Communications, Culture, Domestic Growth, Economics, France, Government & Policy, History, Ideology, Influence, International Relations, Lifestyle, Mapping Feelings, Media, Modernisation, Peaceful Development, Public Diplomacy, Social, Soft Power, Strategy, Tao Guang Yang Hui (韬光养晦), The Chinese Identity, The construction of Chinese and Non-Chinese identities, Trade

Chinese travelers the world’s biggest spenders [CNN] #RisingChina

Winds of change five years ahead of schedule in UN forecast.

CNN reports China now matters most as top source of global tourism cash having spent US$100b on outbound tourism.

UNWTO says the volume of international trips by Chinese travelers grew from 10 million in 2000 to 83 million in 2012, making it the world’s fastest-growing market.

The Great Wall’s floodgates are open.

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Chinese travelers the world’s biggest spenders
By Karla Cripps, CNN
Source – CNN, published April 5, 2013

20130407-030839.jpg

By 2015, 100 million Chinese will travel abroad, a benchmark originally forecast for 2020, according to the UNWTO.

(CNN) — Chinese travelers are now the top source of tourism cash in the world, according to a new report by the United Nations World Tourism Organization (UNWTO).

Boosted by a rising Chinese currency, Chinese travelers spent a record US$102 billion on international tourism in 2012, a 40 percent rise from US$73 billion in 2011.

The results fall right in line with China’s outbound tourism growth over the last 10 years.

The UNWTO says the volume of international trips by Chinese travelers grew from 10 million in 2000 to 83 million in 2012, making it the world’s fastest-growing market.

Please click here to read the rest of the article at its source.

Read the rest of this entry »

Filed under: Advertising, Beijing Consensus, Charm Offensive, Chinese Model, CNN, Culture, Domestic Growth, Economics, Education, Government & Policy, Great Wall, Influence, International Relations, Mapping Feelings, Medicine, Modernisation, New Leadership, Peaceful Development, People, Population, Public Diplomacy, Resources, Soft Power, Strategy, The Chinese Identity, The construction of Chinese and Non-Chinese identities, Tourism, Trade, U.S.

People’s Daily criticizes Apple for double-standard warranties [Global Times] #China #Apple

Advertising misdirection under scrutiny? Misunderstanding? Or reverse-protectionism – new Chinese leadership style?

At the end of the day, the Chinese Apple users simply feel they are getting the short end of the deal. Above all, it can be hard to shake away the fact they are essentially buying a foreign-branded home-made product.

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People’s Daily criticizes Apple for double-standard warranties
Source – Global Times, published March 28, 2013

Editor’s Note
The world’s most popular cell phone producer, Apple Inc. has come to public attention again as the People’s Daily published consecutive opinion articles for four days since March 25, criticizing its double-standard warranties. China Central Television reported the company has adopted differential policies for guarantees and after-sale services in China on March 15, or the International Day for Protecting Consumers’ Rights.

Latest News
Apple shrugs off China policy bash
Apple Inc said on March 23 that while its after-sale services in China are somewhat different from those in other countries, they comply with Chinese laws, the company’s response to domestic media reports saying that Apple is treating Chinese consumers unfairly. Read the rest of this entry »

Filed under: Advertising, Apple, Beijing Consensus, Chinese Model, Communications, Domestic Growth, Finance, Government & Policy, Influence, International Relations, Mapping Feelings, Media, Modernisation, Nationalism, New Leadership, Peaceful Development, Politics, Public Diplomacy, Reform, Social, Soft Power, Strategy, Tao Guang Yang Hui (韬光养晦), Technology, The Chinese Identity, The construction of Chinese and Non-Chinese identities, Trade, U.S.

Agencies to probe cafe over name [Straits Times] #China #Singapore #Diaoyu #EastChinaSea

Wandering China covered this news story a little over a month ago – see Sophia Rd cafe cashes in on island dispute [AsiaOne]. Now it seems, three agencies in Singapore – the Advertising Standards Authority of Singapore (Asas), the Accounting and Corporate Regulatory Authority (Acra) and the Police are going to probe the cafe over its name.

Does this marketing gimmick have enough clout to affect international relations? It looks like Singapore is about to self-regulate in an act of top-down self censorship. One wonders if it is acting on a public complaint, at all.

Why further accentuating divide where convergence could be celebrated I wonder. I had the chance to visit the cafe just a few days ago and people of all races and creed could be seen sauntering in, both out of curiousity and others, to grab an affordable meal.

Some background into the probe –

‘Advertisements should not adopt or encourage a confrontational approach to resolving societal conflicts or differences. Advertisements should not exploit or fuel conflicts relating to national problems and controversial policies or issues.’

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Agencies to probe cafe over name
Diao Yu Dao moniker draws attention of police, Acra and ad authority
By Melissa Lin
Source – Straits Times, Published Dec 25, 2012

20121225-064544.jpg
The Sophia Road cafe has a signboard bearing the words Diao Yu Dao, China’s name for the group of islands in the East China Sea whose ownership is disputed by Tokyo and Beijing. — ST PHOTO: NURIA LING

BARELY two months after opening for business, a cafe at Peace Centre – called Diao Yu Dao – has come to the attention of at least three agencies for its name linked to islands whose ownership is disputed by Japan and China.

The agencies are the Advertising Standards Authority of Singapore (Asas), the Accounting and Corporate Regulatory Authority (Acra) and the police.

Diaoyu is China’s name for the group of islands in the East China Sea. Japan, which controls them, calls them the Senkaku islands.

Please click here to read rest of the article at the source (subscription required)

Read the rest of this entry »

Filed under: Advertising, ASEAN, Beijing Consensus, Censorship, Charm Offensive, Chinese Model, Chinese overseas, Communications, Culture, East China Sea, Government & Policy, Greater China, History, Influence, International Relations, japan, Mapping Feelings, Nationalism, Peaceful Development, Politics, Public Diplomacy, Soft Power, Straits Times, Strategy, Taiwan, Tao Guang Yang Hui (韬光养晦), Territorial Disputes, The Chinese Identity, The construction of Chinese and Non-Chinese identities

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