jeudi 17 septembre 2020

China's bottled water market is led by Nongfu Spring

 


What is Nongfu Spring?

Nongfu Spring (农夫山泉) is a Chinese bottled water and beverage company headquartered in Zhejiang province. It is owned and chaired by founder Zhong Shanshan.

Founded in 1996, Nongfu had the biggest market share in China’s packaged drinking water market from 2012 to 2019, according to its prospectus, citing research by consulting firm Frost & Sullivan. It also makes tea and juice beverages.

The company recorded revenue of 24 billion yuan (US$3.4 billion) in 2019, up from 20.47 billion yuan a year earlier. Nongfu Spring recorded profit of 4.95 billion yuan in 2019, a 20.6% increase on its 3.61 billion yuan profit the previous year.

Recently, Nongfu Spring made an initial public offering on the Hong Kong Stock Exchange. The company raised approximately US $ 1 billion by valuing its IPO at HKD 21.50 / share, at the top of its IPO range.


Nongfu Spring is China's leading bottled water brand

There are no fixed best-bottled water brands in China as they change from year to year based on consumer preferences. In China, mineral water represents 91% of the bottled water market, while sparkling water has a share of 7% and flavored waters 2%.

Although there are no fixed brands, the local Nongfu Spring appears to continue to lead China’s bottled water through product innovation and channel optimization.

Nongfu currently has access to China’s top 10 fresh water spots and supplies 29% of the market.




China’s bottled water market is growing rapidly

According to The Economist, China has seen average annual consumption of bottled water increase from 41 liters in 2014 to 59 liters in 2019. Revenue in the Bottled Water segment amounts to US$53,337m in 2020. Market insiders indicate that bottled drinking water businesses will continue to grow in China in the future.

The growing awareness of health problems and the prevention of waterborne diseases among Chinese consumers has led to the continued growth of the sale of bottled drinking water in China. As Chinese consumers are more sensitive to food and beverages, bottled water is now a common daily drink for seniors and young people in China.

More and more Chinese consumers are adopting a more active and healthier lifestyle. Nowadays, most Chinese consumers consider bottled water the best health drink among other alternatives.


Nongfu Spring has a stock market debut


Chinese bottled water giant Nongfu Spring Co. is looking to raise up to HK $ 8.35 billion ($ 1.1 billion) in what may be the world's second largest initial public offering by a food and beverage company this year.

The Hangzhou-based firm is offering 388.2 million shares of HK $ 19.5 to HK $ 21.5 each in its Hong Kong stock sale, according to a prospectus on the Hong Kong Stock Exchange website.

The offering has attracted five key investors who will purchase a total of $ 320 million for the offering, based on the high end of the range.

At $ 1.1 billion, the first sale of shares in Nongfu Spring is set to become the second largest F&B IPO in the world following the $ 2.8 billion offering from coffee giant JDE Peet's BV in Amsterdam to May, according to data compiled by Bloomberg.

On September, Nongfu Springs went public in Hong Kong and, after a strong IPO, its founder was momentarily China’s richest person.  Zhong Shanshan owns more than 80% of Nongfu Springs and was worth $52B (No. 2 in China, No. 21 in the world).

 

To know how can brands in the bottled water industry increase sales in China:

https://www.marketingtochina.com/the-bottled-water-market-in-china-is-super-profitable/


lundi 14 septembre 2020

B2B in China according to European Chamber of commerce

  European Union Chamber of Commerce in China called on China and the EU to finalize their bilateral investment treaty (BIT) by the end of this year. As the Sino-European relationship faces a growing list of obstacles, ranging from differences on, for example, Hong Kong and Xinjiang issues to growing US unilateralism, the two sides need more than ever to confront the parties. challenges facing the global economy.


According to Chinese scholars, both sides - and not just one - must make efforts and compromises to support cooperation, including negotiations on the BIT.

China's foreign trade has stabilized and gradually improved over the first eight months of this year, but it still faces a grim and complex backdrop, a trade official said on Thursday.


Since the beginning of this year, a series of policies and measures aimed at stabilizing foreign trade promulgated by the State Council have been constantly implemented, and China's foreign trade situation is better than expected, has Gao Feng, spokesperson for the Ministry of Commerce, said during a press briefing.


In addition, demand in the international market has partially recovered, as the purchasing managers index of some major global economies improved in August, he continued.


Nevertheless, China still faces a grim and complex context when it comes to foreign trade, Gao said, citing the COVID-19 pandemic, and the emergence of feelings of protectionism and unilateralism.


The ministry will continue to constantly apply foreign trade policies in order to benefit market entities as soon as possible, he said, adding that more measures will be taken to promote exports of basic goods, increase imports and encourage export enterprises to explore the domestic market.



In its annual white paper released last Thursday, the EU Chamber of Commerce extensively highlights the difficulties facing the China-EU relationship and sees the BIT as a necessity to be fulfilled before the end of the year. She said this is why it is imperative that the EU and China reach political agreement on the Comprehensive Investment Agreement by the end of 2020, a Chamber of Commerce policy document says.


Speaker Joerg Wuttke said in a statement on the occasion: “It really feels like it's now or never. "


The white paper focuses largely on the oft-repeated grievances about the problems and difficulties in the Chinese market, even going so far as to venture into the political realm of a "clash of China's charm offensive towards European companies and their "wolf warriors" in Europe ".


Doing business online with the Chinese may appear as a once in a lifetime opportunity. In ordinary cases, online business is smart, savvy, and simple

source : https://www.managementexchange.com/story/new-b2b-way-export-china

Even though it mentions a “deterioration” of European public opinion towards China, this document does not however address the problems within the EU itself, in particular the strengthening of restrictions on Chinese acquisitions of European companies and the ambivalent posture of certain European countries vis-à-vis the repression of Chinese technology companies like Huawei by the United States, note the Chinese experts.


The Chinese market & Obstacles

“The EU has raised some questions about the Chinese market, but there are also obstacles within the EU that need to be overcome,” says Bai Ming, deputy director of the affiliated International Market Research Institute. at the Chinese Academy of International Trade and Economic Cooperation (CAITEC).


According to him, the difficult situation created by the Covid-19 pandemic and growing global tensions require "political wisdom" on both sides to turn this situation into an opportunity for cooperation rather than conflict.


Despite the Covid-19 pandemic and their differences, Chinese and European policymakers have remained closely linked this year, with a series of high-level meetings where the two sides largely focused on cooperation, including the bilateral agreement to 'investment.


The Chinese Foreign Ministry announced on Wednesday that Chinese President Xi Jinping will organize a virtual summit next Monday with German Chancellor Angela Merkel, European Council President Charles Michel and European Commission President Ursula von der Leyen. The Sino-European BIT and the expansion of economic and trade cooperation will be the main issues discussed at this much-anticipated summit.


In addition, high-level negotiations will be held on cooperation between China and the EU for the acceleration of their respective digital economies and on the latest proposal by China to discuss a set of rules to govern “security”. global data, ”some sources indicate.

Sino-European relationship 

"While the Sino-European bilateral relationship faces many complications and some European countries as well as the EU Chamber of Commerce in China focus on the negative points, the overall relationship remains strong and on track. because the two parties need each other and support each other, ”notes Cui Hongjian, director of European studies at the Institute of International Studies of China.




samedi 12 septembre 2020

Top Article about Marketing in China Sept 2020

 Your china Market blog has selected 5 articles about Marketing and China 


Bytedance, The Game Changer In China


As Donald Trump took steps to boycott the U.S. activities of the hit application TikTok, Chinese parent ByteDance Ltd’s. decisions appeared to be restricted to selling the business for $20 billion to $30 billion or leaving with nothing.


Marketing to China: Top trends in 2020






While Instagram may be a force to be reckoned with for one brand, it’ll fail to help another – and keeping in mind that one business may have huge amounts of commitment on Facebook, another business will gain more foothold on LinkedIn.



WeChat introduce romantic feature for Chinese Valentine’s day




mercredi 9 septembre 2020

Asian sex toy brands are helping Chinese women connect with their sexuality

 


The Chinese sexual revolution: Sex is something not to be ashamed of

The era of "feeling uncomfortable when it comes to sex" is slowly fading away. A sexual revolution is taking place today, not on the streets, but in digital stores that sell vibrators and lubricants in the most harmless ways.

There are over 900 million sexually active people in China. Over 63% of sex toy sales came from young adults under the age of 35. This new generation is represented by people who no longer want women to "suffer in silence" when it comes to their sexual well-being.

Many brands are trying to educate the market not to feel awkward when it comes to sex toys, but they treat this as a normal concept not to be ashamed of.

For example, Hong Kong-based brand "We Are Fk" set up its online store earlier this year which aims to be as non-threatening and accessible as possible. The store curates a huge range of sexual wellness products on an essential site that barely hints at the nature of its merchandise.


Online stores are the best way to sell sex toys in China

Pleasure, sexuality are concepts far from Chinese culture. Growing up in a conservative culture, kids in the 90s weren't even taught the meaning of sexuality.

This "silence" has perpetuated the Chinese culture which has perceived female pleasure as "shameful" and something that should be "hidden". Years of distorted views and medical research on women, due to a world dominated by men, have stifled true equality and true research on female sexuality.

Since the conservative culture, in China, even though changes have been made, sex toy is still a relatively sensitive industry.  E-commerce and online stores can well protect consumer’s privacy and it is very convenient to use as it is an ideal way for sex toys selling for its convenience and secrecy.

For those reasons, “We Are Fk” runs an e-magazine that explores sex and all its extras, with articles ranging from newbie guides to vibrators to dealing with intimate body dysmorphia.




Educating Chinese women about their sexuality

By educating and empowering women about their sexuality, Asian brands want to create a healthier environment for women to understand themselves and their bodies.

Some studies report that the hormone, released during sex and while having an orgasm, “induces a general sense of well-being including calm”, and that its release is associated with secondary biochemical changes that “mediate long-term benefits”, such as reduced blood pressure. Other studies report that oxytocin can lessen anxiety and increase overall psychological stability.

 Having a healthy relationship with one’s sexuality is connected to our self-esteem and happiness, when people take control of their sexuality, they learn how to have the lives that they want and deserve.


Social media are the best place where educate Chinese consumers about their sexuality


There were around 700 million social media users in China in 2019 and it is expected to grow significantly. Despite Facebook, YouTube, and Twitter being blocked in the country, local social networking sites such as Tencent WeChat and Weibo have been attracting millions of users, making China the world’s biggest social media market.

In China social media as a channel wins more trust over the consumers. Consumers believe more on the message they directly communicate on social media, whether via WeChat, Weibo or Little Red Book posts.

People get a more solid connection to the brand via social media and at the same time brands can reach Chinese consumers and interact with them.

We Are co-founder Fk Greening cites the rise in public activism - such as the #MeToo movement - and social media for rapidly changing attitudes towards female sexuality.

"For years, oppression has stifled female pride and sexual expression," she says. "I think we're tired of it."


To know more about the huge potential of the China’s sex toys market: https://www.marketingtochina.com/the-sex-toys-market-in-china-has-enormous-potential/


mercredi 26 août 2020

BURBERRY INTERACTIVE SOCIAL STORE IN CHINA

 



The British fashion brand Burberry has collaborated with China's tech giant Tencent to create an interactive store in the southern Chinese city of Shenzhen. The aim of this partnership is to make shopping a social experience and create a loyalty community for the brand.

The collaboration between Burberry and Tencent could pave the way for more interactive stores in the future, and revolutionize the consumer shopping experience.

 

The choice of the city of Shenzhen is not accidental

Burberry decided to launch in Shenzhen because it was the home of Tencent and because the city is known as a global technology hub.

Shenzhen has a population of over 13 million, and the average age of the population is relatively young. For Burberry, who were looking to launch their high-tech store to a population that would likely get the most out of it, this means that the Chinese city is an ideal platform.

 


The development of the concept of social retail

The concept of Social Retail brings interactions and engagement from social media and places them in a physical space. To do this, Burberry encourages customers to experience the store both digitally and physically.

Josie Zhang, president of Burberry China said: "We started this idea of social retail because we discovered that Chinese consumers want to be inspired. The consumers want to feel part of the community and they want to have moments to share with their friends and families either online or in real life. So this is initially what sparked us to look at what a social retail concept would look like".

 

How does the collaboration between Burberry and Tencent work?



Shoppers can now use the Chinese most used messaging and social media app, WeChat, to engage with the store. The store, leveraging the power of social media interactions on Wechat, allows interaction with Burberry products and the brand both digitally and in person. Through the WeChat app, digital interactions are introduced into the physical retail environment where customers can unlock exclusive content and personalized experiences through the WeChat mini programs and share it with their communities.

 

The Burberry social retail store in Shenzhen

Upon entering the store, users create a profile and receive a digital avatar in the form of a cartoon fawn hatching from an egg.

Using a WeChat mini program, customers can book dressing rooms, pre-select clothes and play their own music as they try them on.

The new Burberry’s first luxury social retail store in Shenzhen also includes:

  • An interactive showcase representing a living sculpture, a digital experience which creates a unique moment that can be captured and shared with friends.
  • All products are tagged with QR codes that connect to digital screens, further enhancing the in-store experience


  • The Thomas’s café which is a space for the Burberry community to connect

 

The future of retail in China

These new types of stores are highly appreciated by consumers and are becoming increasingly important and functional for brands.

The social retail helps brands build deep emotional connections with consumers, and support the laying of strong foundations for the long-term growths of brands.

Josie Zhang, president of Burberry China said: "I think overall consumers are actively seeking out inspirations from brands, products stores, they are rewriting the industry rulebook. So the future of retail represents the way we market and operate a brand. So we need to be more digitized and more socially orientated, more analytical".

 

To know more:

https://www.marketingtochina.com/burberry-uses-virtual-reality-in-china/

mardi 23 juin 2020

Co-branding in China: Perfect Diary and Huawei collaboration with Art museums and artists



Co-branding strategy in China

In recent years, firms are actively experimenting with the strategy of Co-branding in China, and it seems the strategy is welcomed by Chinese consumers.

In fact, this type of strategy is highly appreciated by Chinese consumers who have the opportunity to purchase limited edition products resulting from often unexpected collaborations.

Chinese consumers see shopping not only as a necessity but also as an activity or entertainment. Consequently, they release collaborations and collections that are social, engaging, and always surprising.

The co-branding strategy begins with a collaboration between companies or brands belonging to completely different sectors. For example, in this article, we will analyze two cases of collaboration between Perfect Diary and Huawei with art museums and international artists.

In China, co-branding is highly appreciated as it offers numerous advantages for both parties:

  1. BRAND’s advantages - By collaborating with other brands, the opportunity to enter markets other than the specific one of the company itself arises. This collaboration increase brand awareness and maximize economic benefits.
  2. CONSUMER’s advantages - Chinese consumers, especially younger consumers, enjoy brands that build hype and awareness through exclusive lines and advertise collections or products through surprising or unexpected practices.

Companies from the cosmetics industry, tech brands, luxury houses are adopting this marketing strategy.

Huawei collaboration with artists


Huawei's Honor brand has recently made a bigger push in art, with the recent launch of the Honor Academy program in foreign markets to develop content-oriented partnerships with cultural institutions and educational institutions.

Huawei collaboration with the Spanish artist Salvador Dali

This collaboration has resulted in a total of 6 new themes that bring some of the most famous Dali sculptures to the smartphone screens of fans and art lovers around the world.

The works that are now accessible as themes include:
  • Lady Godiva with Butterflies
  • Alice in Wonderland
  • Nobility of Time

These works of art are housed in Dalí Paris, a permanent exhibition space in the heart of Montmartre, Paris.

Huawei collaboration with international artists

Huawei Honor has also collaborated on four artists on a series of limited edition watch straps for the Honor MagicWatch and sleeves for the MagicBook by:
  • Jacky Tsai
  • Giovanni Ozzola
  • Wang Dongling
  • Zhou Li

Each of the artist's contributions reflects their distinctive style, from Tsai's lush floral horse to Wang's experimental calligraphy, and can be paired with matching dials available through the Huawei Health app.


Perfect Diary collaboration with the British museum of Art


Perfect Diary released its “Fantastic” eye shadow kits, which were inspired by Italian Renaissance “maiolica” art, in collaboration with the British Museum of Art.

During Alibaba’s 11.11 shopping festival in 2018, the eyeshadow palette Perfect Diary produced in partnership with the British Museum sold one makeup set every 11.5 seconds.

Thanks to this collaboration Perfect Dairy became the top Chinese makeup brand by achieving a $141 million (1 billion RMB) turnover in 13 minutes.



mardi 16 juin 2020

JD and Kuaishou: e-commerce live streaming partnership





The launch of the first big promotion event on Kuaishou

JD.com and Kuaishou, the video and livestream sharing platform in China (the main rival of Douyin (TikTok) in China), have announced they will officially kick off the strategic partnership between the two sides to launch the first major promotional event on Kuaishou, today June 16th, when celebrities and KOL are promoting quality products via live streaming.

For the first promotion, JD will provide big discounts for products like:
  • 100,000 iPhone 11s,
  • 100,000 iPads,
  • 20,000 bottles of Moutai,
  • 20,000 Nintendo Switch,
  • 20,000 Estee Lauder essences,
  • 50,000 M.A.C. lipsticks

The promotion on June 16th marks the beginning of ongoing promotions through the partnership in the future. The two sides wish to develop a healthy, open and sustainable e-commerce ecosystem to meet the diversified consumer needs.


JD partnership with Kuaishou


As part of JD's 618 initiatives, on May JD and Kuaishou signed a strategic partnership focused on the supply chain. Kuaishou users will be able to purchase the products provided by JD without leaving the Kuaishou app and take advantage of the quick delivery and after-sales service provided by JD.

The collaboration is part of a rising trend in the Chinese digital market where short video apps and e-commerce platforms increasingly turn to each other for monetization synergies.

COVID-19 has certainly advanced live-streaming shopping through these short-video apps in a time when Chinese consumers were confined indoors.


The marriage between live streaming and e-commerce is reminiscent of what happened at the beginning of the social network boom, which saw the microblogging platform Weibo and Alibaba unite for similar reasons: to expand the revenue streams of content platforms beyond advertising turning content consumers into buyers.

The JD-Kuaishou alliance appears to have agreed on a friendly deal: the online retailer will allow Kuaishou users to purchase JD products directly within the video app.

The collaboration seems to be winning for both because:
  • On one hand, for Kuaishou, the addition of e-commerce features will bring new revenues not only to himself but also to his influencers, strengthening their loyalty to the video platform.
  • On the other hand, JD can rely on Kuaishou's popularity in small towns and rural villages to achieve his goal of penetrating lower tier cities.