Category Archives: Blog

The Chinese and their decoration

The world of decoration is unique and interesting. Imagination can be expressed as for fashion. The Chinese also on their own characteristic when it comes to decorating. Their home is a huge source of inspiration for designers. Each piece can be useful.

Chinese decoration

Chinese furniture, Chinese balls, the art of table… The list is long with respect to the art of decoration in China and it is unnecessary to travel 8000 km to appreciate Chinese decorations. To put the House at the time of China, we will forward you some amazing ideas. To do this, get inspired by Vera May art galleries. You can buy coins as Blackburn it for example. It reminds the US, inevitably, China. But also must use the colour red. Well Yes, that’s probably the favourite of the Chinese colour. We find this colour everywhere. You can you inspire Chinese trade by creating a lounge floor home with only carpets, cushions and a low table. The use of the curtains blackout (from the french Rideaux occultants) is even topical and timeless in China.

Chinese decoration and curtains

The curtains are integral parts of the Chinese decoration. There is no doubt, the curtains give a lot of aspect to the curtains. The colours, shape, material and location are all factors that make the parts back to life or change of look. In China more than elsewhere, the curtains are essential; some of their pieces are separated just with blackout curtains. You can adopt this method to make your interior a facelift or to change their style completely.
Choose curtains in the image of China

To create a warm and decorative atmosphere with the curtains, know well make his choice. In order to preserve his privacy protected from prying eyes, obscuring curtains are ideal. The class time and goes anywhere they can also help you to control the brightness of your room. Curtains obscuring like other curtains can be chosen in different colours. But for an image of China effect, you can opt for a Burgundy or even red curtain. This colour can give some peps a room especially a bedroom or the living room. So go ahead and decorate your room in the image of China.

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THE E-COMMERCE SECTOR

The e -commerce market is an attractive and dynamic sector since a few years. E-commerce has evolved thanks to mobile applications, which open various perspectives. Overall, the number of sites increases exponentially according to the evolution of technology and consumer expectations. Purchasing patterns are changing regularly causing an upheaval in logistics and data processing. With the emergence of mobile applications, the range of possibilities is unlimited. Users visit more E- commerce sites via mobile, to search for information related to products and services. More and more applications with geolocation develop whether to find they future boyfriend, girlfriend, to find their ways, or even to receive advertisements .

As supply will exceed demand, there will be opportunities for all those who dare to challenge. With the internet, businesses can reach customers all over the planet, it is, for example, the case installed off the curtain market in China. If the average age of employed and self is between 28 and 30 years, it is certainly because the industry is young, dynamic, not fixed in a structure and attractive at various levels. Employment in the e-commerce sector is changing significantly every year.

SEO work allows establishing the continuity of traffic and sales over time, the use of advertising levers enables e-merchants to generate 20 to 60% of their turnover. Each company sets its SEO method according to its financial capabilities.

E-commerce B2C market is characterized by a mass market, hyper-competitive and general. B2C online retailers will need to define a simple and competitive pricing strategy (price alignment), retain customers and serve them by developing close customer relations and quality of service. Conversely, the B2B e-commerce market is a niche market and expertise.

You should know that the country that is the best in the e-commerce sector is China with the boom in online sales, sales explode, due to the rise of the middle – class , technology , globalization. Amazon largest worldwide leader in e- commerce in the world is struggling to be in the top 3 in China, behind Tmall.com. This is why more and more e- commerce companies want to settle in China. To facilitate the implementation in that country, there use consulting agencies.

The development of E -commerce on mobile and tablets is the consequence of the increasing mobility of consumers and ease permitted by this new mode of purchase. It is a constantly changing market, we must quickly adapt to customer needs.

Communicate in Chinese

When traveling abroad ,we often realize that the language barrier is a real obstacle. So,we all learned a universal language with the hands, which is more or less well understood in the different countries. However, in China they set up a system with only one hand in order to explain numbers (see picture below) which greatly facilitates communication with foreigners and also the negotiation between Chinese people and foreigners(now sports favorites for foreigners coming to China )

Speaking in Chinese

Speaking Chinese is not always easy because the language barrier is very high. French and Chine are really different in term of language.The use a lot more signs to express themselves called “han zi ” that are everywhere in the streets of Chinese cities compared to us. To learn these “han zi” it takes many years for foreigners because they are hundred of them to learn. Also be aware that most Chinese do not speak English, which increases the difficulty to exchange with them; general merchants know a few words, but that’s all.

But nowadays, many instant translation have developed. This is for example the case of  Microsoft, which just unveiled the experimental version of its new oral translation service in real time, called Skype Translator. This new translation method will allow an English speaker to chat with a German colleague with a sufficiently good translation quality for leisure conversations.

On the field

This is for example the case of Anaïs who arrived in China for an internship to study in a business e-commerce. She studies Chinese for 3 years before coming to China but she still have difficulties to express herself. This is also the case of some French business leaders who decided to create their company in Asia but who said they had difficulties to communicate.

Consultant for China - Communication in Chinese.PNG

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Investing in China

China’s economy still be strong and this is the result of a progressive sustainable achievement.

Actually, the government has put in place many reforms in order to constitute a foreign investments policy  and also for domestic ones.  Recently, Beijing gives US firms 250 million yuan quota to invest in China. Now, China has an influence in the international markets globally. China benefits also of the high taxes in the USA or in EU simply because investors would be more susceptible to invest where the regulation is not so much implemented. In fact, low taxes and economy performance are linked. These are the different reasons why investing in China could be an opportunity.

Politic environment

The Chinese government tries to streamline FDI with some principals measures. Excessive regulations tend to hinder entrepreneurial and commercial activities. For this reason, the authorities try as best to build and enabling environment with for instance the Shanghai free-trade zone, also by increasing the purchasing power and building  36 millions of social housing.

Chinese government develops the foreign equity joint ventures. Those companies are shared by domestic investments and foreign ones. Actually, they are established in Chinese territory.  Foreigners and Chinese investors shared also the profits and the losses. All the foreigners investments have to be less than 25% of all the investments of the entire company in order to let the foreigners investors, invest more in the Chinese territory.

 Consultant for China - Investment in China

Business climate

The size of the Chinese population is the main aspect of the Chinese market. In fact, a lot of opportunities comes with the growth that results from the domestic market.. This is  another reason why FDI keeps increasing in the local market simply because they are more and more confident. It enables to provide a sustainable growth

Resources

China is an attractive destination for investors because of its different resources that are for most of the times more competitiveness than western countries, especially because of the costs. In addition, the work skills and the productivity also enable foreigners’ investors to develop more commercial activities in the country. China’s infrastructure meaning roads, highways, bridges etc are necessary to provide an environment sufficiently enable for a sustainable growth. For few years, new markets are taking part of the Chinese market such as the house decorating designs, mobile,textile

 

In 2015, Lenovo targets European markets

“Lenovo has a ‘strong’ expansion potential in European market and we hope to become leader of the market in the next eighteen months, which is probably achieved in 2015.”

——Gianfranco Lanci, Lenovo Corporate President

A successful Chinese company

Lenovo, the company of successful Chinese entrepreneur Liu Chuanzhi, has grown not only into the world’s top seller of personal computers, but also has moved strongly into smartphones and such computer products as laptops and tablets. Here is an article from a Chinese consulting firm about how Lenovo started click here.

The Chinese company has now 54,000 employees in more than 60 countries and is ranked first in the global PC market share, exceeding Dell and HP since 2013.

Lenovo has been making great efforts on attaining a global reputation: In 2004, Lenovo became the International Olympic Committee (IOC) global partners, which is the first Chinese enterprise in cooperation with IOC.  For the Turin Winter Olympics in 2006 and 2008 Beijing Olympic Games, Lenovo was the exclusive provider for desktop computers, notebooks, printers and other computing devices as well as financial and technical support.

Lenovo-Pics

Lenovo strategy is going global

According to 2014 Lenovo Report, China accounted for 38% of the group overall income. The rest 62% comes from America, Asia Pacific and EMEA (Europe, Middle East and Africa), which contributed 21%, 16% and 25% accordingly. The importance of global market for Lenovo is no need for verbosity. However, it is hard to imagine how this Chinese company has achieved such a brilliant record for its overseas market. Chen Xudong, Lenovo China President, sums up six driving factors for the success of Lenovo’s internationalization:

  • Plan ahead: Lenovo group has clear long-term goals and we are determined to perform according to the planned steps
  • Clear and effective strategy: Our overall strategy is “Protect and attack”, which represents fighting on new frontiers while keeping the obtained market. Also, we would like everyone to have a clear mind of the whole strategy and their department strategy
  • Diversity of our team: Our employees come from the world and there is no ceiling for foreigners in this company
  • Culture of Lenovo: We PLAN before we pledge. We PERFORM as we promise. We PRIORITIZE company first. We PRACTICE improving every day. We PIONEER new ideas
  • Persistence and commitment to innovation: Three major R&D (research and development) in China, Japan and America focus respectively on different aspects of innovation
  • Merger and integration: In 2005, Lenovo made a significant international move by acquiring IBM’s personal computer business in for $1.25 billion, plus shouldering $500 million of debt. On 1st June 2011, Lenovo announced plans to acquire Medion, one of the most famous computer digital brands in Germany. Since August 2011 they hold the majority stake in Medion. Last year, in a bid to continue diversifying its business beyond PCs, Lenovo said it had completed a $2.91 billion buyout of Motorola Mobility from Google Inc. The company hopes that Motorola Mobility will help its smartphones unlock developed markets in Western Europe and North America, as well as allowing it to go after the high-end market in China

In Europe, after dominating PC market, Lenovo goes for smartphone

“Lenovo has a ‘strong’ expansion potential in European market and we hope to become leader of the market in the next eighteen months, which is probably achieved in 2015.”Gianfranco Lanci said.

Indeed, this strong ambition of one of the most recognized Chinese Tech Company in Europe is producing outstanding results. Its higher business growths are in UK, Germany and Spain. In Spain, Lenovo won 16.1% PC market share in the first year and in 2014 the sale volume of Lenovo product in El Corte Ingles, the biggest department store in Spain, reached 70 million euros with an increasing rate of 133% compared to last year.

With the good performance in PC, Lenovo planned to approach European smartphone market. In order to successfully develop the smartphone market, Lenovo has cooperated with local telecom operators and retailers to reach more consumers’ attention. Predictably, in the next six months, Lenovo’s market share in Europe can break through 5% and Lenovo expects that a year later, the market share will double, which reaches 10% or more.

By Alexis, Consultant for China

How to implement a brand in China?

Brands are becoming increasingly important nowadays. Implementing a brand determines significantly the sales outcomes for a given products. The additional value transmitted through brands represents major competitive advantages triggering sales. Companies searching to enter or build presence in China must ensure a deep understanding of the Chinese market in order to make the right decisions and to focus on specific to the Chinese market characteristics. Undertaking the process of implementing a brand in China is essential to reach the Chinese consumers correctly, especially since the consumers tend to be very brand conscious and value foreign brands very much. Brand Awareness in China has become a real phenomenon where clever and sophisticated advertising is charming the Chinese consumer. Although brand awareness is rise fast, brand loyalty seems to have more difficulty to persist in the Chinese dynamic market. Here is some advice to successfully implement a brand in China.

The first step to implement a brand in China before even entering the Chinese market is to establish the legal rights and prevent others from using the brand in China by registering trademarks in English and in Chinese with the Chinese authorities. Please note that the chosen Chinese name is a key element of the brand implementation. This requires subtitle research. Even Coca-Cola had to chose a Chinese name of “

Ensure Brand Uniqueness

By developing intensely fast, the Chinese market is constantly bombarded by new products. Piercing out of the mass is a real challenge for brands meaning since customers are enforced to make fast choices with poor brand interaction. As a result trying innovating products out has become a habit, as the variety of choices is larger than ever. To get noticed in this very competitive market, brands should focus on delivering unique concepts and different solutions. This uniqueness can be reached by suggesting a personal touch to a product differentiating it from others. But responding accurately to the customers needs must be the priority. The Chinese will remember the brand only if it is different and brand awareness will be enhanced. Also, using ready installed images of a product origin can have a very positive effect over the customer’s willingness to purchase. For example, “Savoir vivre” products from France are very successful in China. Internationally well-known brands are very successful in general.

Establish brand loyalty with transparency

As seen previously, the Chinese population doesn’t attach much importance to brand loyalty. But this doesn’t mean that it shouldn’t be developed. Working on brand loyalty ensures long-term revenues and comformable sales. This should be developed though long term investments as much in time as in money. A brand promoting the image of sustaining the Chinese environment at the same time as entering the Chinese market will be welcomed very well and not as an other brand wanting to take money from the Chinese. This engages the need to undertake long run investments.

The world trend for transparency in business and brands also applies to the Chinese market. Companies saying the truth are valued, but trust only comes with long-term relationships. Transparency and engagement is the best way to engage loyally of Chinese customers.  Refusing transparency would be a mistake since the government, population and investors are setting high standards every year. The transparency should answer to what the Chinese are concerned about. Economic development and safety are priorities for the Chinese; recently the environment should also be taken into consideration.

Adapt to differences

A brand can’t be implemented correctly if it doesn’t respond to a real specific need. An existing need in the home country doesn’t necessarily engage its existence in China. Cultural differences a must be understood before setting a marketing strategy implementing the brand so that every decision is tailored to the Chinese market. Daxue Consulting supports brands in developing in China by offers a wide range of market research supported by a nationwide reach thanks to a network of contacts in universities.

China is a very large country covering many disparities between regions, income, culture and preferences. A brand must be ready to adapt their products or strategies to those regional characteristics. The Adaptation must be made as much towards product characteristics as over the marketing strategies, the Chinese tent to be very receptive to attractive photos of brands. An effective way to enter the Chinese market and to establish a brand at the same time is to find local partners; those are used to the Chinese environment and enable to avoid making mistakes. Chinese customers tend to highly respect their own brands, nationalism must be analysed before branding a foreign product.

Manage crisis with care

Once a brand implemented, complaints from consumers may be dangerous for the brand reputation. Despite complying with the Chinese rules brand reputation may be destroyed overnight if local regulation appears not to be respected.Apologies and commitment to address problems is the best way to overcome crisis, the legally responsible party isn’t the key issue. Sincerity and respect to the Chinese Government agencies ensures solid working relationships. In addition the online medias favour the instantaneity of brand reputation.

Go online

Impressive images displayed through traditional advertising are very effective to reach customers and implement a brand. But this must be supported by a strong online marketing strategy to get noticed and remembered. Studies show that 37,6% of the Chinese consumers increase they brand awareness through the official company website, by their own initiative. They often research on their mobile phones so adapted mobile websites are ideal to impress and offer an ideal opportunity to deliver clear messages and positioning. This can be associated with online advertising that is expected to increase drastically in the upcoming years and there are currently 1.29 billion mobile users in China.

Proactivity from brands increases customer participation that may result in sharing which will support the brand implementation. Ideally brands should build a large network on the most commonly used networks and applications. QQ, Weibo and Wechat aren’t avoidable by brands establishing in China.

After having registered the brand name in home language but also the chosen Chinese, companies desiring to implement their brand in China must be unique, loyal, transparent, trustful, adaptable, and caring. A brand can consider itself really successful when those aren’t monitoring an image anymore but when they master the art of engagement, letting others to participate andmutually build the brand’s strength and implementation.

Adrian, Daxue Consulting 

SOURCES

http://www.ccfa.org.cn

www.forbes.com/sites/ceibs/2014/11/20/transparency-key-to-doing-business-in-china

https://globalconnections.hsbc.com/global/en/articles/how-build-your-brand-china

The strategies of Chinese brands in Europe

The strategies of Chinese brands in Europe

Going global is the new-era winning strategy for both Chinese enterprises and for the county to ‘win over’ the world. However in the process of global expansion, Chinese companies face a harsh reality, that is, big name domestic brand is unknown to overseas market.

There are multiple strategies that some Chinese conglomerates are applying to overcome the challenge. Of course, the price is high, usually comes along with hundred billion-yuanbills to pay. In the book of Messrs. Kumar and Steenkamp, eight routes of Chinese companies going global strategies have beendescribed.

The Asian Tortoise Route: Migrating to higher quality and brand premium (Haier, Pearl River Piano)

While electronics maker Haier and Pearl River Piano have some early success traveling this route with China’s low-cost advantage.

By opening its first flagship store outside the mainland on London West End’s tony South Molton Street, Chinese clothing maker Bosideng positioned itself as a premium menswear brand targeted to Europeans.

The Business-to-Consumer Route: Leveraging B2B strength in B2C markets (Galanz, Huawei)

The Diaspora Route: Following emigrants into the world (Mandarin Oriental)

The Brand Acquisition Route: Buying global brands from Western multinationals

Recently, Chinese giants gone on a global shopping spree: Shanghai-based Fosun Group launched a takeover bid for France’s Club Med in May, while pork producer Shuanghui’s has proposed a $7 billion takeover for Smithfield Foods that has potential to become China’s biggest outbound deal. Chinese property and shopping mall builder Dalian Wanda Group forked out $1.6 billion to buy a British yacht maker.

Even with billion dollars in the pocket, managing a brand still is particular challenging for Chinese companies who have little experiences with brand building and brand managing at home. Another concern can be that acquired brands can lose their glamour once they bear Chinese name. Chinese low-cost car makerGeely is a good example of that. Geely tried to distance itself from the Volvo brand it acquired. There’s little mention of the Swedish brand on its website.

The Positive Campaign Route: Overcoming negative country of origin associates (Shanghai Vive)

Shanghai Jahwa, which owns the brand, launched Shanghai Vive, a high-end beauty brand, pitched to compete with European giants such as Chanel.

Shanghai VIVE is trying to capture a larger percentage of that spend for China, with its high price tag, elegant art deco packaging and its boutique in the newly renovated Peace Hotel, a symbol of style and decadence in old Shanghai.

The Cultural Resources Route: Positioning on positive cultural myths (Herborist, Shanghai Tang, Shang Xia)

The Chinese Premium beauty brandHerboristbegan an aggressive expansion strategy, working with a French design & packaging agency (centdegrés) to transform the graphic identity of the brand.The principles of this brand are the Chinese traditional medicine, and the organic cosmetic in Europe.

The Natural Resources Route: Branding commodities in four steps (none from China)

The National Champion Route: Leveraging strong support from the state (China Mobile).

There are a few other approaches to achieve global recognition. One is to invest in advertising. The best example in my view is Emirates Airline, which improves its image by sponsoring large European football clubs.

http://www.ft.com/cms/s/0/e5bbd724-436a-11e0-8f0d-00144feabdc0.html#axzz3WJDUlBtu

http://www.shanghaidaily.com/Opinion/shanghai-daily-columnists/How-Chinese-brands-overcome-obstacles-and-become-global/shdaily.shtml

http://blogs.wsj.com/chinarealtime/2013/06/21/hare-vs-tortoise-how-chinese-brands-are-trying-to-go-global/