Alibaba & Baidu under stock's market pressure

The shares of Alibaba could be set for a modest rebound in the rest of the year after a round of heavy institutional selling, while Baidu's shares could see more downward pressure on concerns about its at stagnation benefits.

Alibaba in China

 Alibaba shares set for rebound Big news at the end of last week saw billionaire investor George Soros said he recently sold most of its shares in the two main US-listed China Internet companies, Alibaba  and Baidu  as he decided to lock in profits on concerns stocks were overvalued. Its real assets in the two stocks were not large, but its huge influence almost certainly prompted other large fund managers to follow suit. This may explain the large downward pressure on both stocks estimated in 2015

of course small investors like myself and anyone reading this post are usually the last to find out about this kind of trading by influential buyers, meaning it’s already already too late to trade on this news. But the more interesting prospect is whether or not shares of one or either companies have reached a bottom and could be set for a rebound.
I’ve been bearish on both Baidu and Alibaba for quite a while now, mostly because their shares are usually quite expensive in terms of valuations compared to their profitability. But following a recent sell-off that has seen its shares rapidly approach their IPO level, Alibaba stock suddenly doesn’t seem that rich anymore. The same isn’t true for Baidu or Tencent (HKEx: 700), China’s other big Internet company, whose shares still look pricey to me despite their own recent sell-offs.

source : http://www.youngchinabiz.com/en/internet-time-to-enter-alibaba-baidu-after-soros-departure/ 

Find a chinese company name

France’s image is very present in China. France, dream destination for Chinese tourists, is also today a source of inspiration for Chinese companies that do not fail to use French names for their brands and even their names.

The value of a french brand name in the eyes of the consumer, is already very high.

Indeed, French brands enjoy a high reputation in the Chinese market; it is important to build on this significant advantage, and achieve to maintain and renew it.

The French and international companies wishing to develop their brand in the Chinese market must consider three major aspects:

• the creation of the brand in China
• the evaluation of brand strength relative to the industry as well as in relation to competing companies
• the value of the brand asset that is fundamental during mergers and acquisition or joint-venture type partnerships.

Choosing a brand name in Chinese, managing and monitoring of the "brand equity" and the valuation of the brand assets represent the three main stages of the life cycle of a brand.

Which chinese name for a french brand/company ?

Brand name choice is important because it will be one of the key factors of the product's market access. Some French companies have made excellent choices for their Chinese names like Carrefour (家乐福, jiā lè fú) which refers to the happy and prosperous home. However, many companies have encountered problems adapting their Chinese brand name, with multiple names matching, deformations or puns drawn from Chinese culture, have seen their image wilt. A chinese brand name is composed of one or more Chinese characters, each referring to an universe of meaning and sound. This semantic wealth, which offers various possible combinations of Chinese characters, is an excellent support for corporate values ​​and missions.

Through a name, the consumer must be able to foresee the benefits that will derive from the product’s use. In addition, choosing a name adapted to the Chinese market, will undoubtedly enable the company to create stronger relationships with its customers, with special culture, history and the profound aspirations of Chinese people.

So 家乐福 (Carrefour), 福, means "prosperity", "happiness", this is an idea very strongly rooted in the Chinese imagination; character appears particularly on decorative items, invitations, greeting cards and sometimes even Building entrance doors at the time of Chinese New Year. The presence of this character in the Chinese name of the group gives it a very strong position in the Chinese market. Chinese consumers perceive Carrefour as a Chinese group and not as a French group, they carry a quasi-patriotic look at leading hypermarkets.

The best way to find a chinese name and a brand identity which fits your company's philosophy is to ask some help from a branding agency in china.

China counts 211 Taobao villages !

A report last year from Alibaba said there are now 211 villages Taobao, against only 20 the previous year.

They are  about 70,000 merchants on Taobao 

and Alibaba is actively investing in the growth of these figures. Alibaba, which estimates that the rural market will be worth 460 billion yuan (74 billion dollars) in 2016, is one of many companies trying to cash in. JD.com, another major e-commerce player in China, sent a team on a six -month tour of the country, showing how people buy products on its site. Rural population of China is so large that increasing the number of e-commerce on a global scale as it comes online. According to a new report by the research firm eMarketer, the country already has more mainstream buyers of digital world: 407 600 000 inhabitants, followed by the USA with 171.8 million. In 2019, it is expected to add another 139 million, primarily less urbanized areas as internet access expands.
"In rural areas, where the income starts to catch up, it is they who are going online to buy everything, because they have no access," Haixia Wang, forecasting vice president for the firm Research eMarketer says Quartz. "There are no shopping malls, and if you want access to brands online could be the first choice."

All three are known as "Taobao villages," rural communities where at least 10% of the population makes a living by selling products online, mainly on Taobao.com, Alibaba market consumer to consumer opportunity. They part of a radical change happens in the Asia-Pacific region, driven by China in particular, where millions of new buyers and sellers in rural communities not linked in advance are brought online, which helps fuel a surge in e-commerce.
Wal-Mart, the largest retailer in the world, said the acquisition of the participation would help accelerate its e-commerce business in China and to stimulate coordination between physical stores and online. He did not disclose the price paid for the game, which was purchased from former executives Ping An and financial services group.
Asia head of Wal-Mart Scott Price told Reuters earlier this year that the online retail was important to help exploit the younger generations of China and that the firm would increasingly turn to weave his presence online and offline in the market.

Walmart enter into Chinese ecommerce Market 

Wal-Mart, Carrefour SA of France and Tesco PLC of Britain have all seen sales growth slip in the last five years in China, losing market share to local rivals, according to the firm consumption analysis Kantar Worldpanel.
The US retailer also announced Thursday that company insider Wang Lu will take the reins of Yihaodian. CEO and president of the company e-commerce had ceased earlier this month "to pursue their next adventure."

Although they do not have the same level of wealth as their urban counterparts, buyers in the less developed areas of China spend almost as much on online purchases, and also spend a larger share of their disposable income, according to a 2013 report by the McKinsey research firm. Their main categories for online purchases include apparel, tea, cosmetics, and food, according to Wang, and online shopping is particularly popular when local products have no quality standards or highest security, as is often the case for makeup and baby products.




E-commerce in rural China still faces some major challenges, namely the infrastructure. In less developed areas, roads and bad conditions, it can be difficult for retailers to distribute and deliver packets, for example. And while rural Chinese are willing to spend online, they are still relatively poor, which limits their purchasing power and the resources they can invest to create businesses.

Although e-commerce itself can be part of the solution. Alibaba believes e-commerce has created 280,000 job opportunities in rural China in 2014, and last July, the government took 55 poor counties for 20 million yuan each. The money was to help them develop their e-commerce industries in order to reduce poverty.
source 


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