lundi 27 juin 2022

The Chinese Health Market give opportunities to new JV

The DSM group has just completed the creation of a joint venture with the Chinese Nenter. DSM paid €135 million to acquire 75% of the capital of the joint venture comprising all of the vitamin E production activities of Nenter, based in Jingzhou in Hubei, China, as well as a minority stake in its facilities in Shishou , in the same region, where an intermediate for vitamin E is produced. According to the Feed Info News Service site, the capacity of Nenter would be 20,000 t/year

As of September, production will be stopped at these facilities to allow them to be upgraded in order to meet DSM's pre-requisites in terms of quality, safety and the environment. This shutdown will be extended as needed, according to DSM.

The Chinese Health Market

The market for food supplements has grown all over Asia in recent years and especially in China.

The growth of the middle class and the purchasing power of the inhabitants explained a member of the CBC

Westernization trends (the United States is a country of fitness)

A health awareness of the benefits of fitness and nutrition (sometimes to compensate for air pollution)

The beginning of the aging of Asian populations requires special care to be given to the elderly

More and more gyms open in China, fitness apps are developed every day, and practitioners like to show off.

It was the big companies that entered the market first and most effectively, as always.

But even if there is stiff competition, you can make a lot of money using the right sales and marketing strategies.

Being able to take just a small slice of the pie should be enough to motivate you.

The procedure for exporting dietary supplements and vitamins to China

It is important that you understand the procedure well in advance. Any problems that may arise are very expensive.

Here is a brief summary of the procedure for exporting whey protein to China.

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jeudi 23 juin 2022

Chinese Investors Will Accept Technology As An Asset Class

Chinese investors are seeing a decline in interest in traditional asset classes like real estate and domestic stock. These asset classes have been exposed to many risks in recent years. A sharp decline in the price of these assets has resulted in a substantial decrease in household wealth. Because a large portion of household savings has been invested in traditional asset classes, this is why it's so difficult to change. There are many technological innovations that could change this.

 Blockchain technology, for example, has the potential to change the way people see real assets. It has the potential disrupt the real estate, transaction finance and banking industries. The country's property market will benefit from the growing interest of Chinese investors in technology. It will encourage new technology-based services and increase investment in real property. The growing use of mobile payments by Chinese consumers has also contributed to this rising interest in technology. Because it can reduce transaction fees for investors, this is why mobile payments are so popular. Chinese investors are likely to continue investing in the country's real-estate sector due to their growing interest in technology. It is the potential to transform this sector through the adoption of advanced technology.


jeudi 2 juin 2022

China Wine market for 2022

 China Wine market for 2022

trends 2022

The future of wine in China is exciting and wide-ranging. The country experienced tremendous growth in the early 2000s, and now is experiencing a strong market appetite for quality, affordable wine. With more than 20 million bottles sold annually, China is one of the world’s most extensive wine markets and an essential part of the global wine trade. In order to maintain its position as a leading wine market, it’s important for wine companies to stay on top of the latest developments in wine marketing. The future of wine in China is unpredictable, but with the right strategy, it can grow and become even more popular with consumers.

South African Wine are popular in China 

When the Chinese celebrate the Spring Festival, a time of family reunions and feasts, South Africa celebrates the birth of its wine industry. It's a serendipity because the South African wine industry can take advantage of the booming Chinese market, which grows all the more during the country's most important festival.

On February 2, South African winemakers toasted the 363rd anniversary of their industry, the only one in the world to have an official anniversary. The story of the first wine made in South Africa can be found in the diary of Johan Anthoniszoon van Riebeeck, an employee of the Dutch East India Company who arrived in 1652 to take up his post.

He is credited with establishing a black grape (red wine) vineyard in present-day Cape Town. He wrote in his diary on February 2, 1659: “Today, God be praised, wine was made for the first time from Cape grapes”.

France, on the other hand, began producing wine in the 5th century BC. It is therefore not surprising that French wine dominated the Chinese market in imported bottles until 2015, accounting for 42% of total volume and 46% of total value.

However, a rival that started producing wine much later – around the 19th century – has caught up: Australia.

In 2019, Australian wine brands captured more than 35% of the Chinese market, relegating French wine to second place with around 29%. Market watchers attributed this to the Sino-Australian free trade agreement that came into force in December 2015, reduced tariffs, the proximity of the two countries and the increase in the number of students and tourists. Chinese in Australia.

Yet this year, the market share of South African wine in China was less than 1%.

 Sino-Australian relations 

Things started to change drastically in 2020. Bilateral Sino-Australian relations deteriorated and China began imposing tariffs on a range of Australian products from barley to mining products. An anti-dumping investigation was also carried out on Australian wine following a complaint. Tariffs, from 107-212% on Australian wine set from March 26, 2021, have been increased to 116-218%, a measure that will remain in place for five years. While Australian wine companies lost almost 94% of the Chinese market compared to 2019, South African wine saw an increase of more than 100% in the same year. Even more dramatically, in 2020, the increase was almost 190%, according to data from Wines of South Africa (WoSA), a non-profit organization promoting the export of South African wine.

The opportunity created by the restrictions on Australian wine has been a lifesaver for the South African wine industry which has endured lockdowns and four periods of domestic sales bans during the pandemic, resulting in the loss of 21,000 jobs so far. October 2020, according to WoSA.

As South African winemakers pin their hopes on the Chinese market, Marcus Ford, Asia market manager at WoSA, remains optimistic about the future even if China and Australia decide to reconcile. “There is still huge potential for South African wine businesses to expand in China, regardless of any geopolitical issues,” he said. And to add, “Our strategy is to work with both producers in South Africa and importers here [in China] to push and promote the industry. We have tripled our market share over the past 18 months, which is obviously very encouraging.”

The WoSA runs several programs in China throughout the year to educate Chinese consumers about South African wine and introduce more winemakers. Despite the pandemic and travel restrictions, their annual tour continued last year, bringing 36 wine producers and over 350 types of wine to Beijing, Shanghai, Shenzhen, Chengdu and Xiamen in the fall. The WoSa has also participated in major exhibitions such as the China International Import Export (CIIE) in Shanghai.

For many brands, China represents a potential new market. They hope to expand their range of products and services there, and to expand their reach beyond the country’s traditional clothing and accessories industries. While many brands have already established sales operations in the country, there is an increasing number of brands aiming to establish a presence in the country’s growing fashion market.

lundi 23 mai 2022

China's home decor market

 China's home decor market offers many opportunities for producers and imports/exports. In the last decade, China's rising consumer consumption has transformed China's economy and society. China is a major producer of home decor and related consumer goods. China is far ahead of other countries in the world in terms of the growth of the market for goods and services. China's home decoration products are a large part.

Further reading

China's home decor market and its decor furniture market offer many marketing opportunities. Consider the home decor furniture market. Statistics show that there were approximately 440 million households across all Chinese provinces, autonomous regions, or municipalities. The rising purchasing power of Chinese people has led to a boom in home decor products and the furniture market in China. According to the industry report, total home decor furniture sales by wholesalers or retailers exceeding a certain size grew 13.9% to Rmb227.30 trillion in 2014.

DIY Decor is fashion in CHina

DIY home decor is becoming a popular trend due to its freedom to be created by the consumers. It can be used in the living, dining, and bedroom areas, as well as in the study. The market of more than 4 trillion yuan is often described as "a huge cake that cannot be ignored".

Digitalization and the Internet are key to marketing DIY home decoration. In 2016, more than 1000 Chinese consumers were surveyed. Over 60% of respondents said that they would use the internet to buy products and services for their home decor.

The Chinese DIY furniture market has grown at double-digit rate and is expected to continue growing until 2010. This growth has been mainly concentrated in Shanghai, Beijing, Guangzhou and Zhejiang. Tianjin is the most populous city, with residents spending approximately 5% of their incomes on decoration and housing.

This is partly due to the increasing demand for soft decoration. People who live in cities are more likely than others to move around and spend more money on soft decoration such as handcrafted items, high-quality furniture, collectibles, etc. Younger customers are increasingly moving out of their homes and choosing lightweight, multifunctional furniture that is affordable are more popular. Because these areas are the most personal, installing one's own bathroom and kitchen fittings is a priority explain this blogger

As their quality increases and DIY services are still relatively unknown, smaller contractors can pose a threat for DIY businesses. Small contractors currently dominate 80% of the home decor market. They offer more flexibility than DIY stores which have rigid working hours and set schedules. DIY stores must reach out to local customers and increase awareness about their services to counter this trend.

China's home-decorating market

China's home-decorating market refers to interior decoration of private houses.

[Data source: Market scale for home-decorating in China]

The continuous increase in real estate sales as well as the Chinese economy have provided the foundation for the home-decorating industry to continue growing. In 2018, the market size was Y=2.23 trillion rmb. It is expected to grow to Y=2.59 billion rmb by 2020. Source 


China's home-decoration market is driven by new homes. New home decoration contributes nearly 73% to the total revenue.

The biggest consumers in the home-decorating industry are the millennials. These are people who were born between the 80s and the 90s. They account for more than 60% of market revenue. The 70-year-olds are a significant consumer group with 16%. The remaining 22% are from other ages.

The growth of E-commerce home decorators

The Chinese E-commerce home decoration market has boomed in 2015. This has contributed to and intensified competition in the overall decoration market.


China's E-commerce home-decorating market reached Y=258.9 billion rmb in 2018, and experienced a 36% increase in its market size. It is still experiencing a bottleneck period, with a penetration rate of less than 5%. This is a relatively low rate compared to E-commerce markets like car-hailing platforms or online travel agencies, which have around 1/3 penetration rates.

vendredi 6 mai 2022

Zero Covid policy + Ukraine make China becoming less competitive

 The “zero Covid” policy in China and the war in Ukraine make the Chinese market less attractive for European companies. This is the conclusion of a study published this Thursday, May 5 by the EU Chamber of Commerce in China. Nearly a quarter of respondents would consider relocating part of their investments to other Asian countries.

-40% GDP in China

Nearly 40% of Chinese GDP affected by the confinement and semi-confinement of dozens of megacities in China. Inevitably, the “zero Covid” strategy also has an impact on foreign companies present on the Chinese market.

Of the more than 370 European companies questioned in this study, 60% expect a drop in income this year, 77% think that China is less attractive and, more seriously, 23% think of moving part of their investments, underway or planned, particularly in South and South-East Asia

Zero Covid and lack of prospects

A lack of confidence in the future which also has consequences on recruitment. Difficult to bring in talents accompanied by their families, when the borders are closed, not to mention the problem of schools.

Business is affected by covid Situation explain a business lawyer in China (jinwangassociates)

Education in China

turnover was 25% at the start of the 2021 academic year, 40% last year and, this year, it is believed that 50% of teachers in international schools will have to be replaced, with an average of six months of procedures for teacher visas. It's difficult, explained one of the speakers during the press conference this Thursday, May 5 in Beijing.

Changement in Shanghai

There is a “change of context”, underlines another: “Shanghai, which was once considered the best managed city in China, has been locked for a month and there is no end in sight (…) Even if it is a year from now, we need to know when China will reopen. “What kills business is uncertainty and the lack of prospects,” explain a distributor in China. (website)

Ukraine situation 

A lack of horizon reinforced by the war in Ukraine, which interrupted the silk rail trains between China and Europe and forced a bypass of Russian and Ukrainian airspace, which further disrupted logistics and made the freight cost.

The European Union Chamber of Commerce report stresses that China should focus more on vaccinating its people. An economic imperative in the face of “whatever it costs” of “zero Covid”. The Chinese strategy of absolute non-tolerance with the virus is today undermined by Omicron, but still defended by the communist leaders in the name of the health of the Chinese.

Property market in China

Real estate is also decreasing with crisis. source seoagencyChina

Beijing’s strict real estate policies and deleveraging campaign have had a significant impact on the property sector. For the Chamber of Commerce of the European Union, a return to the "beautiful days" is necessary, knowing that China represents 30% of world trade.

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dimanche 1 mai 2022

Cosmetics in China in 2022 : $35.7 billion Market

 With the easing of pandemic restrictions and the strong economic recovery, skin care sales are expected to re-emerge in China.

$35.7 billion market in 2021

Against this backdrop, the skincare market in China is expected to grow at a compound annual growth rate (CAGR) of 5.1%. from CNY230.1 billion ($35.7 billion) in 2021 to CNY295.5 billion ($46.3 billion) by 2026, according to GlobalData, a leading data and analytics company.

 Cosmetics Market in China 

GlobalData's report, "China Skincare Market Size by Categories, Distribution Channel, Market Share and Forecast, 2021-2026", reveals that market growth will be primarily driven by the hand care category, which is expected to register the highest CAGR. fast growth of 6.3% over 2021-2026, followed by the hair removal products category with a projected CAGR of 5.6%.

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Anush Shaw, consumer analyst at GlobalData, says:

As COVID restrictions on public outdoor mobility and on-site venues are eased, the resumption of social gatherings, mass public events and tourist activities are driving the demand for skincare. The resurgence of out-of-home social gatherings will encourage consumers to up their skincare routine and look their best. The facial care category in China is one of the largest in the world, and major brands are targeting high growth areas such as anti-aging and skin repair creams with natural ingredients.

"Online retailers" were the top distribution channel in China's skincare market in 2021, followed by health and beauty stores.


Per capita spending (PCE) on skincare by Chinese consumers increased from $6.6 in 2016 to $12.5 in 2021, exceeding the global average ($9.8) and the regional average ($9.2 dollars). China's skincare PCE will reach $16.2 by 2026.

read also 

Top Market agency in China 2022

samedi 30 avril 2022

Chinese economy in 2022 is not that good

 China indicated an easing in its crackdown against the once-freewheeling tech industry on Friday. President Xi Jinping wants to boost the economy in the face growth-sitting COVID-19 lockdowns. This sent shares in online heavyweights soaring.

China's powerful Politburo met with Xi to announce that it will increase policy support for the second-largest economy in the world, including its platform economy. This boosts investor hope that the worst is over after a multi-pronged crackdown that started in late 2020.

According to two sources familiar with the matter, optimism was also fueled by reports that China’s top leaders will host a symposium with a variety of internet companies in early January. The event is expected to be presided over by Xi. One source claimed that Meituan, a food delivery company (3690.HK), was one of those invited.

Due to confidentiality restrictions, the sources were not able to be identified.

South China Morning Post first reported that the meeting was being attended by tech giants Alibaba Group Holdings (9988.HK), Tencent Holdings (0700.HK), and TikTok owner ByteDance.

One source said that authorities are trying to reassure corporate executives about the regulatory environment, and encourage them to grow their businesses.

The Hang Seng Tech Index rose 10% to its highest level since Vice Premier Liu He made six weeks-long promises of policy support. Alibaba and (9618.HK), e-commerce giants, rose 16%, Meituan rose 11%, and Tencent rose 11%

source Reuters

On Friday afternoon, the depository receipts for and Alibaba trading in U.S. market were up 7.8% and 7.5% respectively.

The Chinese government policy

"The Chinese government has tried to catch up with the U.S. in regulating a tech sector that has grown at an unbelievable rate over the past ten years," stated Kevin Carter, the CIO of EMQQ Global. This fund, made up roughly 50% of China's equity tech securities, was created by EMQQ.P.

A member of the Chinese Business club in a event said, "This meeting might signal that the government believes they are caught up."

According to Jason Pride, Glenmede's chief investment officer for private wealth, the market's reaction indicated that Beijing was easing off on its excessive profits at China’s largest internet companies.

Anti-monopoly regulations in China

Beijing sought to control a variety of industries in an effort to crack down on anti-monopoly regulations, data privacy rules, and bridge a growing wealth gap that threatened to undermine the legitimacy of Communist Party rule.

However, the economic consequences of crackdowns on ecommerce, private education, and the property sector have been severe. China has since relaxed some of its measures to aid an economy that is still under strict COVID-19 lockdowns.

Sources said that U.S. and Chinese regulators discussed operational details of an audit agreement Beijing plans to sign this year. This latest attempt to prevent Chinese companies being removed from U.S. exchanges.

U.S. securities regulators have identified Chinese firms that could be delisted from New York because they do not meet auditing requirements. This has caused more fund managers to sell their holdings and dimmed prospects for new listings.

The Politburo, China's top decision-making body, pledged to complete the "special rectification" of the platform economy, without indicating a time frame or laying out support measures for its development.

Beijing has set a growth goal of 5.5% for this year. Private economists say it will be hard to achieve without substantial support. COVID-19 lockdowns, and other severe curbs to combat the pandemic, create havoc in supply chains and businesses. Continue reading

Gaming licenses

China lifted a nine month ban on gaming licenses earlier in the month to reduce the economic impact of the ban. Continue reading

China announced in January that it would reduce subsidies for electric cars and plug hybrids by 30% in 2022, and then scrap them completely at the end.

 lockdowns in China 

However, sales of cars fell in April due to lockdowns. China's state planner stated this week that it was meeting with the industry to discuss government support for these vehicles. This signaled a more supportive stance.

According to state-run Xinhua news agency, Politburo stated that it would support COVID-hit companies and small businesses, accelerate infrastructure construction and stabilize transport logistics and supply chains during Friday's meeting.

Gary Ng, senior economist for Natixis Hong Kong, stated that the Politburo meeting was "a positive sign" that the government wants to prioritise growth over a lot other goals like deleveraging or regulatory changes in the short-term.