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Branding, FMCG, Trends
May 2, 2013 | 0 Comments

Nobody’s Hero: Foreign Formula Runs Afoul

Secret recipe?
Nobody’s Hero: Foreign Formula Runs Afoul

LVMH is China’s favorite luxury brand, but its most coveted luxury good is safe dairy. Chinese shoppers and the pursuit of dairy has led to empty shelves in Australian groceries, British rationing and border clampdowns in HK. International supplies to sate domestic demand is a recurring theme in China, accelerated after 2008 melamine-formula crisis and ever-sensitive in the wake recurring food safety scandal and outbreaks of contagion. Compared with other food and beverage sub-sectors like fast food and cola, foreign dairy maintains a healthy public image. That image, however, has taken a beating in recent weeks. The culprits? Switzerland’s Hero Group and China’s Xile Lier. ...Read More

e-Commerce, Electronics
April 24, 2013 | 0 Comments

Back to the Future: Xiaomi’s ROM Machine

Waiting for mobile revolution?
Back to the Future: Xiaomi’s ROM Machine

Smartphones are changing China: used by nearly 50% of China’s 1.3 billion, 70% of mobiles sold are smart. China’s smartphone market, however, might be changing even faster. In the past 12 months, Samsung is ascendant and Huawei is rising fast. European heavyweights are marginalized, while early innovators like Apple have big margins along with market share and PR challenges. Xiaomi, China’s most intriguing local manufacturer, has been relatively quiet for the past year. 2013 promises big change for the Beijing-based tech firm, according a report from the current issue of Caixin. ...Read More

FMCG, Hospitality, Lifestyle
March 15, 2013 | 0 Comments

Withdrawal symptoms: China’s rice wine market

Moutai and a friend.
Withdrawal symptoms: China’s rice wine market

Alcohol consumption, even over-consumption, carries a certain air of respectability in China. Important businessmen and great poets alike are expected to hold their liquor. But in recent months, boozing has gotten a bad name. As government officials run up the bar tab, the public has wondered “who can change China’s banquet culture?" The answer has been a year-long crackdown on liquid consumption as part of a long-running anti-corruption campaign. When will the hangover end for China’s baijiu industry?  ...Read More

Branding, Electronics
February 2, 2013 | 0 Comments

Huawei or the highway: China’s telco trials

Huawei Tablet. Cosying up.
Huawei or the highway: China’s telco trials

Huawei, China's telecommunicaitons giant, had a great 2012, surpassing Ericsson in H1 revenue and achieving 250% sales growth in mobile handsets. At the same time, the company was plagued by scandals that put its legitimacy in question. Congress warned American companies to choose vendors other than Huawei, this after previous M&A efforts in 2008 and 2011 were shot down due to security concerns. 2013 is already off to a rocky start: the company's CFO was recently tied to a firm that tried to bypass the military embargo on Iran. Baggage like this undermines Huawei's efforts to become a leading consumer brand like Samsung or even HTC. ...Read More

Branding, e-Commerce, Electronics, Trends
January 22, 2013 | 0 Comments

Decent Exposure: Suning’s new O2O gambit

Ad for Suning. O2O-M-G.
Decent Exposure: Suning’s new O2O gambit

Suning was once known as China's largest offline electronics retailer. These days, the company is one of the country's largest online purveyors of apparel, food, and white goods. Suning's online sales are made on its Yigou platform or through integration with other e-tailers, and are delivered using the retailer's own courier company. But while China's online commerce is booming, it is also the scene of recurring price wars. Meanwhile, Suning still has plenty of storefront offline, where rising rents and payroll costs bite into margins. The company is now looking at ways to use offline assets to promote online sales. Here's a glimpse of what's in store.  ...Read More

e-Commerce, Electronics
December 19, 2012 | 0 Comments

Strategic map: Baidu’s path to mobile relevance

Lenovo's new Bai-Phone.
Strategic map: Baidu’s path to mobile relevance

China's leading online search giant is in trouble. While Tencent dominates social media, Alibaba controls retail and online payments, and Qihoo makes headway in mobile search, Baidu looks inert. For half a decade, the search giant was the gateway to China's online world. These days, traffic behind the great firewall is increasingly determined by mobile, social, and vertical search. Baidu hopes that a mobile hardware offering would enable it to regain lost ground. But  the company's real challenge—and opportunity—lies elsewhere on the map.  ...Read More