Rich Chinese desperately roaming around in Europe and the Middle East – Mark Schaub

 

London-based China veteran Mark Schaub summarizes in his China Chit-chat newsletter the meetings his law firm had with 24 Ultra High Net Worth Individuals (HNWI) from China over the last three months of 2023. They were checking out opportunities in Europe and the Middle East, partly because their offspring was not really interested in joining their China business. They would look for lessons from their European counterparts but failed because of the differences between Chinese and Europeans, and because the concept of paying for professional legal advice did not yet take root among the Chinese visitors.

Mark Schaub:

All were consigned to or possibly happy to continue to live in China as their primary base. Europe and the Middle East are nice to visit but if you are in your 50s or 60s there is no place like home. Also most had the problem that they felt they had to continue to run the family business. Their children had studied around the world at elite institutions but seem unlikely that many would follow in their parent’s footsteps to run the whole shebang. One takeaway from the recent meeting was that Chinese private companies will need to recruit professional managers to run their family-owned businesses even more than is the case for European or USA counterparts – the kids seem to have little interest in running the family business. In some cases, one child was working in the business in China, but the others were living outside China.

Interestingly, almost everyone we met was highly motivated to do … something! But it seemed that they did not have a network in Europe or the Middle East or even know who to trust or how to go about things.

The greatest single motivation for almost everyone (at least stated) was their children’s future. All had educated their children in an Anglo-Saxon nation (either UK, Australia or USA). USA seemed to be less interesting due to both geo-political concerns but also the possibility of being shot.

It was interesting how multi-billionaires were desperate to get their offspring into an internship with an investment bank. One would think such people would have the network or connections to make this happen with a click of their fingers. You would think so, but you would be wrong.

Much more entertaining observations in the China Chit-chat newsletter.

Mark Schaub is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more experts on China’s outbound investments? Do check out this list.

Hurun most successful Chinese heritage brands 2023 – Rupert Hoogewerf

 

Rupert Hoogewerf

The Hurun Research Institute released the Hurun Most Successful Chinese Heritage Brands 2023, for the fourth year, ranking the 100 most successful brands from China with at least 60 years or more of history. “TCM, Baijiu and Foods make up half of the brands on the Hurun Most Successful Chinese Heritage Brands 2023, showing the sectors that have had the deepest impact over generations of Chinese consumers,” says Rupert Hoogewerf, the Hurun chief researcher at the Hurun website.

The three main pillars of this list were the age of the brand, representing 40% of the total index; the value of the brand, defined as market cap for listed companies and recent valuation for non-listed companies, representing 40% of the total; and cultural heritage, representing 20% of the total.

Rupert Hoogewerf, Hurun Chairman and Chief Researcher said: “This is the fourth year of the Hurun Most Successful Chinese Heritage Brands, and this year we added 14 new brands to the mix, including well-known brands, such as Jian Nan Chun Chiew, HengYuanXiang and Arctic Ocean Soda.”

“TCM, Baijiu and Foods make up half of the brands on the Hurun Most Successful Chinese Heritage Brands 2023, showing the sectors that have had the deepest impact over generations of Chinese consumers.”

“The average age of the brands on the list is 161 years old, among which the youngest is Jinhui, a 63-year-old baijiu brand, and the oldest is Yiyuanqing, a Shanxi vinegar brand, which is 646 years old.”

“Most of the brands on this list predate pinyin spelling, so for brands that had an historical link outside of China, they use the pre-pinyin English spelling of their brand. For example, ‘Kweichow Moutai’ in pinyin would be spelt ‘Guizhou Maotai’.”

“Nearly 70% of the brands on the list are in East China and North China, with 44 brands from East China, including 13 from Shanghai and 8 from Zhejiang and Anhui respectively. 25 brands are from North China, with Beijing contributing 18 of them.”

More at the Hurun website.

Rupert Hoogewerf is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more branding experts? Do check out this list.

What can brands learn from China – Ashley Dudarenok

 

Ashley Dudarenok (right)

Branding expert Ashley Dudarenok, author of Innovation Factory: China’s Digital Playbook For Global Brands (September 2023), discusses with Pascal Coppens what global brands can learn from China. Business models from the USA, Germany, and Japan have left their footprint in business education. Still, the innovations coming from China have been left out of this business learning process, says Dudarenok, especially regarding ways to reach consumers directly.

Ashley Dudarenok is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more branding experts at the China Speakers Bureau? Do check out this list.

Pleas

Cultural fluidity in business between cultures – Sharon Gai

Sharon Gai

Sharon Gai, a China-born Canadian who is an expert in e-commerce, digital transformation, and AI, and worked as head of Global Key Accounts at Alibaba. She explains what lessons she learned about cultural fluidity in business and society to IKNS Conversations That Matter, in places where different cultures meet, and how cultural intelligence can help.

Sharon Gai is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more stories from Sharon Gai? Do check out this list.

Ple 

China: key for McDonald’s expansion – Shaun Rein

 

Fast food giant McDonald’s is expanding its footprint in China with one-third of its planned 9,000 new restaurants. China is key for McDonald’s expansion, says Shanghai-based business analyst Shaun Rein in FDIntelligence. “McDonald’s actually has a lot of potential because it’s considered cheap, quick [and] convenient,” says Shaun Rein.

FDIntelligence:

McDonald’s expansion in China comes against a backdrop of a slowing domestic economy and rising geopolitical tensions.

“McDonald’s actually has a lot of potential because it’s considered cheap, quick [and] convenient,” says Shaun Rein, the managing director of China Market Research Group.

While foreign companies must be “cautious about entering China and getting caught up in the geopolitical fight”, Mr Rein adds this does not apply to brands like McDonald’s in “innocuous” sectors.

And yet, McDonald’s was a major symbol of the Western exodus from Russia after its invasion of Ukraine. This begs the question: does the fast food giant worry about the risk of China invading Taiwan?

Mr Rein says that many multinational corporations are reducing their investment into China out of fears over a war over Taiwan. “There would be political pressure to divest Chinese operations in the event of war, but my guess is there would be greater pushback from the business community than there was over Russia.”

More in FDIntelligence. 

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more strategic experts at the China Speakers Bureau? Do check out this list.

Falling pork prices: another red flag for China’s economy – Shaun Rein

 

Shaun Rein

Deflation is on the edge of slowing down China’s economy, and falling pork prices are yet another indication not all is well, says Shanghai-based business analyst Shaun Rein at CNBC. As for the less affluent, China Market Research Group’s Rein observed that they are saving money by ordering less pork, according to CNBC.

CNBC:

Deflation — associated with the decline in prices of goods and services and a sign of a weakening economy — is concerning because consumers may postpone investments or purchases in hopes of prices falling further.

“Aside from falling real estate prices and price cutting across consumer goods, the biggest reason for China being on the verge of deflation is falling pork prices,” China Market Research Group’s Managing Director Shaun Rein said.

China’s consumer price index fell 0.5% year-on-year in November, marking the sharpest slide in three years. …

Affluent Chinese are increasingly considering beef to be a healthier alternative to pork, with 28% of consumers surveyed saying they plan on reducing pork consumption, a study published in February by managing consulting firm McKinsey showed.

As for the less affluent, China Market Research Group’s Rein observed that they are saving money by ordering less pork.

More at CNBC.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more financial experts at the China Speakers Bureau? Do check out this list.

How Alibaba’s Taobao adjusted to tight-fisted consumers – Ashley Dudarenok

 

Ashley Dudarenok

China’s consumers are adjusting their purchasing habits and big players are adjusting their strategies to the search for cheaper products. Marketing expert Ashley Dudarenok looks at the changed strategy of Alibaba’s Taobao for the Double 12 festival, she says at marketing-interactive.

Marketing-interactive:

China has seen an abundance of huge shopping festivals over the years. However, the increasing dissatisfaction with complicated discount systems and the oversaturation of shopping events highlights a need for eCommerce platforms to innovate and align with evolving consumer preferences, said ChoZan’s Dudarenok…

The latest revamp also shows that Taobao is adapting to a change in consumer sentiment. Given the “general disinterest in shopping due to economic uncertainties” among Chinese consumers, shifting towards promoting value and affordability could serve as a strategy to re-engage customers and sustain sales, according to Ashley Dudarenok, founder of China digital consultancy ChoZan. 

“Chinese consumers are also tired of the complicated discount systems. Taobao usually offers discounts through the “满减优惠” method (e.g, 50 yuan off for every 300 yuan spent),” she added. 

By shifting its focus towards offering products of better quality at reasonable and affordable prices for consumers, Taobao’s move will benefit consumers as well as small to medium-sized brands.  

More at Marketing-interactive.

Ashley Dudarenok is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking at more marketing experts at the China Speakers Bureau? Do check out this list.

Why China and Japan need closer ties – Zhang Lijia

 

Zhang Lijia

Relations between China and Japan have been tense since the end of World War II, and the annual remembrance of the rape of Nanking,  this year 86 years ago, marks those tensions. Author Zhang Lijia argues that nowadays both countries need better relations, she argues in the South China Morning Post. “An amicable Sino-Japanese relationship is vital for regional stability and prosperity. If the two remain hostile, it will play into the US’ hands,” she writes.

The South China Morning Post:

Back in the 1990s, plenty of Japanese politicians would have liked to befriend China as they saw that their future was in Asia. Beijing’s hostility, however, pushed them to embrace America wholeheartedly.

It’s time for Beijing to walk out of the past and forge closer ties with Tokyo. Beyond the fact that China is Japan’s largest trading partner, it has many reasons to be on good terms with this neighbour. As an Asian country with a long history with China, Japan can potentially play a role in softening crises, such as over Taiwan.

Reduced tensions would lessen the overall threat perception and allow a relaxation of all actors’ security positions in the region. An amicable Sino-Japanese relationship is vital for regional stability and prosperity. If the two remain hostile, it will play into the US’ hands…

I am not suggesting that Chinese people should forget the pain we suffered at the hands of the imperial Japanese. I, for one, shall not forget. As a Nanjing native, I still remember the harrowing stories my grandma told me. Back in 1937, as she tried to flee the city, her infant daughter in her arms, a bomb fell nearby. A neighbour only metres away disappeared, blown to pieces by the blast.

Tokyo should apologise unequivocally and unreservedly for the atrocities committed in China and apologise specifically for the Rape of Nanking.

While it is understandable that so many Chinese feel resentful towards Japan, it is unwise to let this anti-Japan sentiment spiral out of control. National interests should come before personal feelings, and it is in China’s best interests to improve its relationship with Japan.

More in the South China Morning Post.

Zhang Lijia is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers’ request form.

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How China’s internet platforms differ from those in the West – Sharon Gai

 

Sharon Gai

China’s platforms like Shein, Temu, and TikTok can conquer Western markets, but Western retail apps fail to do the same in China. E-commerce expert Sharon Gai gives some reason for that difference in the Australian network ABC.

ABC:

Sharon Gai is an e-commerce author, keynote speaker, and former head of global key accounts at online retail giant Alibaba.

She says the way retail apps are designed in China is “fundamentally very different” from businesses in the West, which tend to focus more on search functionality.

“So their primary goal is to get you into an app very quickly, and then out of the app very quickly as well,” Gai said.

“In China, shopping apps are oriented around discoverability — how long can we keep you inside the app, how long can we entertain you, [and] how many new brands or products or trends or styles can you discover?”

Gai also said China’s huge domestic ecommerce market — which recorded almost $3 trillion in sales last year — enables platforms like TEMU and Shein to find the best formula for attracting new customers.

But while Chinese apps have been able to adapt their models to dominate US, UK and Australian markets, Western apps are struggling to achieve the same success bringing their business to China.

Last week, corporate social media giant LinkedIn announced it was shutting down its China service, InCareer, after pulling its main platform from China in 2021.

According to Gai, what sets Chinese and Western apps apart is how fast they are able to respond to the market’s needs

She said at Alibaba, the team motto “changing the motor of the aeroplane, when you’re flying in the air” means moving fast to address the market.

Gai says it’s this speed that has allowed Chinese companies to adapt to Western markets and become the preferred platforms for shoppers worldwide.

More in ABC.

Sharon Gai is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more e-commerce experts? Do check out this list.

Who are my ‘underground’ historians – Ian Johnson

 

Ian Johnson

China veteran and Pulitzer prize winner Ian Johnson discusses his newest book Sparks: China’s Underground Historians and their Battle for the Future with Bao Pu at City Lights Live. First question: who are the underground historians? And how do they survive in China’s system and challenge the state’s efforts to whitewash its history.

Ian Johnson is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more stories by Ian Johnson? Do check out this list.

Why investors need different options, including China – Jim Rogers

 

Jim Rogers

Investors need to keep their options open, in case things go wrong, to have an alternative, including China, says Singapore-based American investor Jim Rogers at the Nomad Capitalist. “You hope you do not need it, but you need to have the option,” he says.

Jim Rogers is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more experts to manage your China risks? Do check out this list.

What can Asian startups learn from China? – William Bao Bean

 

William Bao Bean

VC William Bao Bean, managing director of Orbit Startups explains how Asian companies can learn from the example from Chinese companies. Not by simply copying the China models, but by learning the lessons and applying them in a new situation, he tells the Future Investment Initiative Hong Kong.

William Bao Bean is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers’ request form.

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Why low-cost platforms are logical winners – Sharon Gai

 

Sharon Gai

Shein, Temu and TikTok have become winning platforms on the internet, and for a good reason, says e-commerce expert Sharon Gai at the Rest of the World. “Globally you have an economic slowdown, so a lot of consumers are also spending less per platform,”

The Rest of the World:

When Temu launched in September 2022, it also drew people in with low prices. In February, it broadcast an ad during the Super Bowl encouraging viewers to “shop like a billionaire” and fill their virtual carts without having to worry about the cost. That weekend, Temu racked 426,000 app downloads in the U.S., according to digital analytics company Sensor Tower.

“Globally you have an economic slowdown, so a lot of consumers are also spending less per platform,” Sharon Gai, the former head of global key accounts at Alibaba and author of Ecommerce Reimagined, told Rest of World. “When there’s a low-cost e-commerce platform that’s emerged out of nowhere, they are obviously going to like it.”

More at the Rest of the World.

Sharon Gai is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more e-commerce experts? Do check out this list.

Continued stress on China’s fiscal system – Arthur Kroeber

 

Rating agencies have been lowering China’s rating. Renowned economist Arthur Kroeber, author of China’s Economy: What Everyone Needs to Know®, does not see an acute financial problem for the country, but costs for financing its debts will constrain its economic growth, not only for the quarters to come but for the next few years, he tells CNBC.

Arthur Kroeber is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more financial experts at the China Speakers Bureau? Do check out this list.

Trading down is the name of the current game – Shaun Rein

 

Shaun Rein

China’s consumers are becoming more cost-sensitive, and that means a profound change in the country’s retail, says business analyst Shaun Rein at CNBC. “The name of the game for Chinese youth in 2024 is trading down. Instead of Starbucks, youth are buying Luckin coffee,” Rein says.

CNBC:

Chinese young people are increasingly shopping and dining at the basement units of malls, a trend the social media has labeled the “B1B2” economy.

The basement floors — B1, B2 — typically house low-cost gift and souvenir shops, apparel outlets, the supermarket, and other relatively affordable consumer product stores like Miniso and Luckin Coffee.

“Landlords try to put anchor tenants like LV, Apple or Starbucks on pricier real estate on the ground or first floor,” says Shaun Rein, managing director of China Market Research Group. Historically, higher-end shops have attracted more footfall, but China’s weak economy means the cheaper brands are now drawing the crowds, he adds.

The hashtag ”#Young people only go shopping at B1B2″ has been trending recently on Chinese social media platform Weibo.

The reply to a Weibo user’s post on how she and her peers usually go straight to the basement floors for shopping captures the mood of the Chinese youth: “Everything we can afford is underground!”

Anything not in the basement floors is considered to be “in heaven,” signaling it’s out of reach.

“The name of the game for Chinese youth in 2024 is trading down. Instead of Starbucks, youth are buying Luckin coffee,” Rein says.

More at CNBC.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more marketing experts at the China Speakers Bureau? Do check out this list.

The mixed legacy of ‘old friend’ Kissinger – Ian Johnson

 

Ian Johnson

The death of US diplomat Henry Kissinger has triggered different qualifications, varying from an old China friend to a war criminal. Kissenger does have a mixed legacy when it comes to China-US relations, says China veteran Ian Johnson at NBC.

NBC:

In more than 100 visits to China over more than 50 years, Kissinger met all of its modern leaders: Mao, Deng Xiaoping, Jiang Zemin, Hu Jintao and Xi. He recounted his experiences in his 2011 book “On China.”

“I would say he had a somewhat mixed legacy,” said Ian Johnson, a senior fellow for China studies at the Council on Foreign Relations.

“On the one hand, he represented a nowadays useful realpolitik way of looking at China, which is to not get caught up in ideology but to look at China as a potentially useful partner in solving global challenges facing the United States,” he told NBC News.

“On the other hand, at times he let himself be used as a prop for Chinese leaders to show their public that they had good relations with the United States, while at the same time earning handsomely for trips to China.”

More at NBC

Ian Johnson is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more geopolitical experts at the China Speakers Bureau? Do check out this list.