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.

Italy: the new Wuhan in the coronavirus crisis

China, with the exception of Hubei province, might be getting back to normal, the rest of the world is still bracing for a further outbreak of the coronavirus. Northern Italy shows remarkable similarities with the early weeks of the crisis in Wuhan: cramped medical facilities, expanding quarantine measure to stop the spread of the virus, and much uncertainty in countries and regions that still try to control the crisis. In China numbers of new patients are dropping, so - unless you might distrust those figures - its heavy-handed approach seems to be working at this list. But global stress on international economic relations seem far from over.

With all the justified criticism on the way China dealt the with coronavirus in the early weeks, the country did make some right choices later in the crisis as containment of the health issues was more important than keeping up the economy. More surprising it is that countries with a more developed health care system like Italy seem utterly unprepared for a major outbreak of the virus. Even a very solid country like Switzerland sees the number of coronavirus patients going up fast. Other European countries and the US seem to be bracing for the march of the coronavirus and still have to prove they can follow the lead of China, who was able to limit the major outbreak to one province. We did get some messages from some of our speakers who suggest their expertise in this field could generate some demand from clients outside China, but to be honest, those insights might be too late for countries and companies who have not yet been taking precautions for a major outbreak of the virus in their region or industry. And while the delayed containers from China have started their journey to the rest of the world, it is still unclear what situation they might meet at the receiving end of their ride. Airline companies seem to have no plan to resume cancelled flights, as demand is still very low.

For those we are preparing for a life after the crisis, we are happy to share our insights for your event, conference or company meeting.
.

Coca-Cola is on the wrong track selling a tin of water for US$9 - Tom Doctoroff

Tom Doctoroffr

Coca-Cola surprised many branding experts by launching a tin of sparkling water called 'Valser' to Chinese consumers for US$9. It is not impossible, says branding guru Tom Doctoroff to the South China Morning Post, but then they have to change their marketing dramatically. “Turn it into a social currency,” Doctoroff says.

The South China Morning Post:

“Turn it into a social currency.” 

That’s the advice being given by one China marketing expert to Coca-Cola, as the US drinks giant launches what it is being billed as an ultra-luxurious Swiss sparkling water brand, a bottle of which costs double what a Starbucks venti cappuccino might cost. 

Its “Valser” water first appeared in the US soft drinks giant’s store on Chinese online marketplace Tmall a few weeks ago, highlighting specifically that it is sourced from “Switzerland.” 

But what raised many eyebrows was its price tag: a 750ml Classic bottle costs 64 yuan (US$9.29)... 

“Theoretically, it is possible [to sell at that price], but you would have to make it not just about water, but also a social currency,” said Tom Doctoroff, senior partner with global marketing consultancy The Prophet, and author of book What Chinese Want: Culture and Communism... 

“Our water comes from The Alps, which was formed 200 million years ago,” the world’s largest beverage company said of Valser in its Chinese advertisement, adding that its source is fed from melted snow and rain that filters through glacial sand. 

But other than focusing on origin, Doctoroff insists Coke should be adopting a vastly different marketing approach from what the industry is simply accustomed to. 

So far Coca-Cola has opted for a group of heavyweight endorsers, among them Chinese heartthrob Lu Han, the Korean actor Park Bo-gum, even the billionaire investment tycoon Warren Buffett – but just how successful they could prove for an ultra-premium, ultra-pricey Swiss bottled water remains a mute point. 

“The Chinese who would buy Coca-Cola’s luxury bottled water are likely to be the same group of people who are connoisseurs of Louis Vuitton handbags,” he said. 

“So to help build its prestige, you need new partners, and right opinion leaders .”

More in the South China Morning Post.

Tom Doctoroff 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 at the China Speakers Bureau? Do check out this list.  

Switzerland, China cooperate on innovation - Andy Mok

Andy Mok

The  Sino Swiss Economic Forum convened this week in Beijing, and celebrated the cooperation between both countries on innovation. Innovation expert and entrepreneur Andy Mok attended the meeting and gives at LinkedIn an overview.

Andy Mok:

Panelists included Mr. Hongzhang Wang, Chairman of China Construction Bank Corporation; Mr. Peter Voser, Chairman of ABB; Mr. Meng Mei, Chairman of TusHoldings; and Mr. Christoph Mader, Head of Legal & Taxes, Syngenta International. Despite an uncertain overall economic outlook, the panelists expressed confidence in the opportunities for cooperation between China and Switzerland in the areas of financial services, infrastructure and technology under the overall rubric of One Belt One Road. In particular, Hongzhang Wang, noted the opportunities for China Construction Bank to further accelerate both process and product innovation in the financial services sector, especially through cooperation with its Swiss counterparts. He also noted that while technological advances such as robotics and AI (artificial intelligence) has reduced the number of call center staff required at his bank many of these employees have been redeployed to retail branches to provide a higher touch customer service experience. As such, these labor replacing technologies may not have as large an impact on employment as some observers fear. 

Overall, the synergies between China and Switzerland plus the clear-eyed diplomatic and economic development strategies pursued by Switzerland bode well for Sino-Swiss relations and present worthwhile economic opportunities for those businesses and other organizations able and willing to contribute to these initiatives.

More at LinkedIn.

Andy Mok 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 managing your China risk at the China Speakers Bureau? Do check out this list.

Andy Mok and the Swiss ambassador in Beijing, Jean-Jacques DE DARDEL

US, UK top destinations for study – Rupert Hoogewerf

Rupert Hoogewerf

Both the US and the UK retain their top positions as a destination for study, reveals the Hurun Chinese Luxury Consumer Survey. They are followed by Australia and Canada. Surprising newcomer is New Zealand at not five, Hurun founder Rupert Hoogewerf tells in the PieNews.

The PieNews:

The top five destinations for undergraduate and postgraduate study were the US, the UK, Australia, Canada and New Zealand, the survey by luxury publishing and events group Hurun Report shows. 

This is the first year New Zealand has entered the top five, overtaking Switzerland. “New Zealand breaking into the ‘Big 5’ shows how far it has come to building a global education programme, attracting many of China’s most successful families to send their children to study there,” commented Rupert Hoogewerf, the Hurun Report’s founder, chairman and chief researcher. 

“New Zealand’s all-round education system is able to compete at the very highest levels in the world.” 

Survey respondents also nominated their favourite study abroad education agencies, with BE Education voted the best high-end overseas study brand. 

Shinyway was voted China’s best education agency for consumers heading to the US, while Haiyi was dubbed the best education agency for Switzerland. 

Hoogewerf noted that 80% of wealthy families in China now intend to send their children overseas. The average age for millionaires to send their children abroad for study is 16, while the average for billionaires is 18. 

Now in its 11th year, the report is based on a survey of 376 Mainland Chinese ‘millionaires’, each worth RMB10m (US$1.6m) and with an average wealth of $6.8 million.

More in the PieNews.

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.

Finding a study destination is often a first step, followed by purchasing real estate and other investments, by wealthy Chinese. Are you interested in more experts on China´s outbound investments at the China Speakers Bureau? Do check our latest list.

Related articles

• Chinese Tourists Top Visitor In Toronto
• Apple replaces Hermes, Gucci as favorite of wealthy Chinese
• Women execs in China, UK and US beat inequality - Rupert Hoogewerf
• Energy boss overtakes IT mogul as China's richest: survey
• Why Paris is the best shopping city for Chinese - Rupert Hoogewerf

China´s wealthy go to exotic places - Rupert Hoogewerf

Rupert Hoogewerf

Classic tourists destinations like France are out for China´s rich, as they focus on more exotic destinations like the Arctic and Africa, reports the Wall Street Journal based on a new report by Rupert Hoogewerf´s Hurun Rich list. Only Switzerland survives in Europe.

The Wall Street Journal:

Hurun Report, a firm that tracks the trends of China’s wealthy, spoke with 203 Chinese “super-tourists”—dubbed such because they took an average of 18 vacation days abroad per year and spent at least $25,000 on one trip over the past three years—for one section of its sprawling annual survey.

When asked which destination was their “must-achieve travel in the next three years,” the top answer was South America – Bolivia — with the two arctic Poles coming in second. Africa was third, followed by a Mediterranean luxury cruise. The only European country among the top 10: Switzerland in ninth place.

A rising motivation for travel among these super-tourists is medical tourism. Two-thirds said they’d consider traveling abroad for a trip to a hospital and 27% chose Switzerland as their top medical destination, followed by the U.S., with 22%.

More at the Wall Street Journal.

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 interested in more speakers from the China Speakers Bureau on luxury goods? Here is a recent overview.  

At last: good Chinese food in Switzerland in "Le Mandarin"

One of the minor challenges in Switzerland: getting decent Chinese food. Of course, you cannot get anywhere Chinese food like in China, but now the Chinese are marching into Europe too, you would expect choice to go up. But finding good places proved to be tough, until today.
Today, we had an excellent lunch in Le Mandarin in Geneva.
The entrance looked a bit obscure, but when you enter the restaurant, you know you are at the right place.
The place was packed, both with Chinese and non-Chinese. And unlike some other Chinese restaurants the food was good, the place was clean, had a working airco and wifi. Staff is friendly and are able to answer you in any language, apart from Dutch. What more do you want?
They had a limited lunch card, which is only good, since we have to go back again for dinner. Of course, they were not perfect. The fried dumplings were not as good as those at Mr. Wang in Shanghai, and xiaolongbao was not offered. But otherwise, it was worth the trip from Lausanne to Geneva. Did I tell it was also affordable? That is, for Swiss standards.
Making a reservation in advance is needed. During the week they are off between 2pm and 7pm, but they are open from 12 till 11 in the weekend, which is a good idea as many Swiss restaurants are closed on Sunday´s.
In Lausanne we have basically given up on Chinese food, and reports from Basel till Lugano suggest that China´s cuisine is still in need of a decent upgrade. If you have tips on restaurants welcome.

Related articles

• 101 Best Hotel Restaurants
• c'est beau
• Le Mirador Kempinski Lake Geneva, Switzerland
• Referendum to keep foreigners out of Switzerland?
• Swiss voters back limit on immigration

Education: goldmine or black hole? - China Weekly Hangout

English: A group of students - International Education College of the Xinjiang Medical University (Photo credit: Wikipedia)

Good education has been high on the agenda for many Chinese parents, and often they looked at foreign institutions to send their children to, rather than the rather traditional Chinese schools. Initially, the focus was on universities, but increasingly Chinese kids have started to attend also foreign boarding schools, to prepare them for a prestigious university abroad.

The China Weekly Hangout will ask on February 7 if education for Chinese is a goldmine or black hole, and for who. What might be the best strategy for both potential students, their parents and aspiring educational institutions, trying to tap into the China market?

The playing field is diverse, as are the interests at stake. China has been an important recruiting ground for foreign universities since the country started to open up economically. Some US universities now have 40-50% Chinese students, while some Australian universities at times recorded more than 90% Chinese students.
That has an adverse effect on recruitment, because when Chinese opt for foreign education, they do not expect an all-Chinese university, even when it is based in Australia.
Reversely, many universities have set up campuses in China. Initially mainly business schools, but more are moving into China and - for example - the NYU is planning a huge expansion after opening a first campus in Shanghai. While those domestic solutions of international schools are more affordable for students who cannot afford an international study, they have been met with distrust, as many potential students did not believe the China campus of prestigious universities would have the same quality and international exposure as the original Alma Mater.
Switzerland, as we reported earlier this week, would focus rather on high quality and the offspring of China's millionaires, rather than setting up another mainstream mass production line for university talents.
And then there is the dilemma for the students themselves: employment opportunities abroad have diminished with the financial crisis, and returning back to China does not give them jobs allowing them to pay back loans for study abroad. Even getting a job in China is hard, as they have to compete with domestically educated graduates. Some international Chinese students had to write off their investment in their education. Many Chinese students in the US end up studying for a PhD in the US, the academic edition of cheap labor, without perspective on a real job.

During our previous China Weekly Hangout we discussed failing foreign firms in China, with Richard Brubaker, who is currently teaching at the China Europe International Business School (CEIBS) in Shanghai and Andrew Hupert, who used to teach at the NYU campus in Shanghai. Both will try to attend this upcoming hangout too, but we love to get more perspectives in. Are you a (potential) Chinese student, are you working for one of the educational institutions, are you a parent thinking of sending you kid abroad, and you want to have a say, register here at our event page.

The China Weekly Hangout on education for China and the Chinese will take place on February 7, 10pm Beijing Time, 3pm CET (Europe) and 9pm EST (US/Canada). We can host a maximum of nine guests, but others can send remarks and questions in the comments here and during the event at our event page.

Is it your first time on Google+ Hangout and you want to have a test to see if all your systems are working? Drop us a line. 

Here is the previous China Weekly Hangout, on Failing ForeignFirms in China.

Related articles

• How affects the pollution your life? - China Weekly Hangout
• Millionaires: getting their kid ready for boarding school - Rupert Hoogewerf
• A successful Leninist strategy for the internet - Jeremy Goldkorn
• The charm of Beijing, despite the smog - Zhang Lijia
• The illegal VPN's - China Weekly Hangout

Millionaires: getting their kid ready for boarding school - Rupert Hoogewerf

Rupert Hoogewerf

China's millionaires are getting ready to send their kid to boarding school abroad, Hurun Rich list founder Rupert Hoogewerf told an audience of Swiss business people and government official at the pre-launch of his school guide "The Best of Swiss Education" at the Beau Rivage Palace in Lausanne, Switzerland on Tuesday 29 January. 

Switzerland is getting now eight percent of Chinese students abroad, giving it a fourth place in attracting Chinese students behind education giants like the US and the UK. But the Swiss are striving to improve those numbers. Hurun Rich list founder Rupert Hoogewerf was retained by Swiss Learning, a collaboration of Swiss Schools from boarding schools to hotel schools to universities, and closed on Tuesday an international tour of workshops bringing him earlier to Shanghai, Beijing, Hong Kong, Macao, Singapore and London. 

China's millionaires, with assets of 100 million RMB or US$16 million, are ready to send their child abroad for education, Hoogewerf argued. "Their average age is 43, their wife is 41 and their child is 14 years old. That is the time to think about their education," said Hoogewerf. "We now have 63,500 Chinese in this group of millionaires, more than in the US, and their number is only going to grow in the coming years." 

Switzerland has been moving smart by using its image of high quality, not only for education, but also for its products. By becoming part of the European Schengen Treaty a few years ago, Chinese can get visas easier, now also for individual visits. In May Air China will start a four day per week service between Beijing and Geneva. Swiss ambassador in Beijing Blaise Godet presented the first figures on Swiss import and export to China over 2012, illustrating a profitable relationship between the two countries, despite a financial crisis.

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. 

 The China Weekly Hangout discussed in September 2012 the reasons Chinese have to leave their country, with lawyer Li Meixian, blogger Isaac Mao and business professor Richard Brubaker. Moderation by president of the China Speakers Bureau, Fons Tuinstra.

Related articles

• More money, less happiness for China's rich - Rupert Hoogewerf (chinaspeakersbureau.info)
• Chinese millionaires swamp Britain - Rupert Hoogewerf (chinaspeakersbureau.info)
• Get a European butler, the latest China trend - Rupert Hoogewerf (chinaspeakersbureau.info)
• German luxury cars: big for the next years - Rupert Hoogewerf (chinaspeakersbureau.info)
• Chinese emigration "a hot potato" - Rupert Hoogewerf (chinaspeakersbureau.info)
• Anti-corruption drive hits expensive gifts - Rupert Hoogewerf (chinaherald.net)

Fine chocolate: the ideal China gift - Shaun Rein

Chocolate warriors

The Europeans, especially the Belgians and the Swiss, bring China the ideal gift for the wealthy: chocolate. Shanghai's World Chocolate Wonderland showcases. Fine chocolate is high on the agenda of affluent shoppers, tells business analyst Shaun Rein in the Financial Times. 

The Financial Times:

China's increasingly affluent consumers are boosting spending on fine chocolates, says Shaun Rein, author of The End of Cheap China: Economic and Cultural Trends that will Disrupt the World. 

More than half of China's chocolate sales are for gifts. Christmas and next month's Lunar New Year are the peak seasons. 

Rein says costly confection fills a gap in traditional present buying. "When you don't want to buy someone a Mont Blanc pen but you want to buy something more expensive than mooncakes [a traditional gift for the mid-autumn festival] ... chocolate hits a good market position. There just aren't that many other prestige gift items in the $50-$200 range."

More in the Financial Times 

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 . 

Shaun Rein

More on Shaun Rein and his upcoming book "The End of Cheap China" at Storify.

Related articles

• China's rich get richer and more confident - Shaun Rein (chinaspeakersbureau.info)
• The End of Cheap China is near - Shaun Rein (chinaspeakersbureau.info)
• Europe split on how to deal with China - Shaun Rein (chinaspeakersbureau.info)
• Only Europe can save Europe, not China - Shaun Rein (chinaspeakersbureau.info)
• Luxury spending moves to smaller cities - Shaun Rein (chinaspeakersbureau.info)
• Ambassador Nicolas Platt endorses "The End of Cheap China" - Shaun Rein (chinaherald.net)

Lack of institutional trust hampers computer industry - Tricia Wang

Tricia Wang

People and institutions in China's computer industry do not trust each other, stalling innovation, argues sociologist Tricia Wang on her weblog. Without trust there will be no collaboration, and no innovation.

Tricia Wang:

But these collaborations are still far and few between and more importantly, they operate independently from each other. Industrial social structures matter in how industries form, as demonstrated by AnnaLee Saxenian's research on the emergence of Silicon Valley in California. Her analysis revealed that tech companies in Boston, Massachusetts Route 128 operated in a decentralized and independent fashion, while companies in California's Silicon Valley adopted a more decentralized but cooperative system. She argued that Silicon Valley was able to generate more innovation because its unique industrial structure encouraged collaboration between companies. 

Trust is an essential factor for collaboration. The missing ingredient in Route 128 wasn't investment or human capital, it was trust. Without the underlying social bond of trust, companies were largely isolated from each other, which prevented collaboration. Lack of collaboration hindered healthy levels of sharing and competition. 

The Chinese tech industry is set up more like Route 128 than Silicon Valley. There are pockets of innovation in China, but the innovators are not networked, nor are they collaborating. A common question that Chinese people ask is why China does not have a Steve Jobs. Whenever I hear this question, I ask myself, could Steve Jobs have created Apple in Route 128, instead of Silicon Valley? I'll leave that question for the experts to ponder.

More on Tricia Wang's Weblog.

An earlier installment on her latest publication, on the lack of common stories that bind China's computer industry, you can find here.

Tricia Wang is a speaker at the China Speakers Bureau. She will be in Europe for an academic conference in Switzerland and is available for speeches in the third week of February. Do you need her at your meeting or conference? Do get in touch, or fill in our speakers' request form.

More on Tricia Wang, exploring China's underbelly, on Storify.

Related articles

• Internet users want games and porn - Tricia Wang (chinaspeakersbureau.info)
• Looking for the bad guys, the shanzai story - Tricia Wang (chinaspeakersbureau.info)
• The new global consumer: Chinese - Tricia Wang (chinaspeakersbureau.info)
• Migrants' dreams and technology - Tricia Wang (chinaherald.net)
• Internet cafe: alternative childcare for migrant workers - Tricia Wang (chinaspeakersbureau.info)

China Speakers Bureau to visit Sweden, Switzerland

Kaiser Kuo by Fantake via Flickr

In September Fons Tuinstra, president of the China Speakers Bureau, will visit both Sweden and Switzerland and is available to discuss the availability of its speakers. Stockholm is on the agenda for the first week of September, Switzerland, especially the Lausanne area, for the third week of September.
Are you interested in one of our eminent speakers? Do get in touch.

Related articles by Zemanta

• No rhyme or reason to internet censorship - Kaiser Kuo (chinaherald.net)
• The rocket girl in Italy - Zhang Lijia (chinaherald.net)
• From famine to feast in two generations - Paul French (chinaherald.net)
• Travelling in a changing China - Marc van der Chijs (chinaherald.net)
• Military expert hits top-10 most-sought speakers in June (chinaherald.net)
• CSB expansion of publishing service (chinaherald.net)