China slowdown concerns dim Ray-ban maker EssilorLuxottica's
EssilorLuxottica shares fell Friday due to a decline in China business that overshadowed the overall better-than-expected sales for the French-Italian-owned eyewear company.
The company, which produces sunglasses and spectacle frames in Versace and Prada, reported that its sales were "deteriorating" in mainland China due to coronavirus cases. It stated that about three quarters of its locations had been affected by COVID-related closures and subdued footfall.
China is on the rise with sunglasses that block blue light radiation
RayBan, the most popular prescription and sunwear brand, and the Peking University Eye Center have joined forces to promote Anti-UV Eye Protection in China. AMD (age-related Macular Degeneration) is on the rise in China and other countries. It is one of the most serious eye-related diseases in the world.
"It's a well-known truth that prolonged exposure to sunlight without UV-resistant sunglasses can cause permanent eye damage," stated Yvette Ye (China Country Manager for Luxottica Group), the parent company of Ray-Ban.
This research aims to improve UV protection in sunglasses through improved lens technology and educate consumers about the importance UV protection.
Beijing s race to halt the pandemic has clogged highways and logistics, stranded people and shut countless factories, causing HUGE disruption that is rippling through global supply chains explained a member of the CBC at the figaro
Weibo is losing its “cool” factor, like what’s going on with Facebook in the West.
In any case, marketing brands on Weibo, whenever done accurately, can be extremely proficient and practical. Owning to its huge client base and set up brand name in China, Sina Weibo, much the same as its Western comparable, Facebook, basically can’t be disregarded.
Advertising and brand promotion on Weibo is quite different from Facebook and Twitter in the following ways:
On Weibo there are no any focused on commercials which show up anyplace outside of the newsfeed stream. This implies Weibo is substantially more like Twitter – every one of the messages, including the promotions, appear in-stream. Basically, promoting along these lines turns out to be progressively about substance marketing. Then again, it is commonly increasingly hard to catch the intended interest group precisely enough.
Weibo’s in-stream publicizing item is classified “Fensi Tong” which has two valuing models: initial one is CPM (cost per thousand impressions) which is at present estimated at 5 Yuan for every CPM. The subsequent model depends on number of communications with the promotion: clicks, sending the advertisement, following the publicist and sparing the promotion. This model uses offering framework, which like Google AdWords with the base offer as of now set at 0.5 Yuan per cooperation.
The publicizing model that is one of a kind to Weibo is based around KOLs (Key Opinion Leaders). Those are people who have a large number of devotees and their posts, as a result, become the ads that pull in a great deal of impressions and retweets. There are a few degrees of KOLs on Weibo set apart with a capital “V” of various shading after their names for various client types. For instance, the orange “V” represents an individual client while the blue “V” is saved for bunch client, for example, an organization, an association or a news source. Contacting KOLs in your field and creating association with them is consistently, by a long shot, the most productive brand building system.
Mattel has signed a strategic alliance with e-commerce giant Alibaba to help the toy maker sell stronger brands like Fisher-Price and Barbie to intelligent Chinese parents with mobility.
Mattel in China
On Tuesday, the companies announced a pact that would combine Mattel's toy brands (MAT, -0.93%) with data from Alibaba (BABA, -1.67%) and Chinese consumer perceptions. The goal is for Mattel to face the $ 7 billion category of Chinese toys, which has registered strong growth, although average spending per child in toys is low compared to Japan and Western markets. The toy industry in the United States, for example, generates $ 20.4 billion in retail and that market is much smaller in terms of population.
Margo Georgiadis, who became CEO of Mattel last week, in a statement touted the combination of Mattel's "unmatched experience in learning and child development with Alibaba's immense reach and unique consumer ideas." He added that because the Chinese toy market is very fragmented, there is great potential for growth. "Working with Alibaba, we see a great opportunity to develop and lead the category," said Georgiadis.
Distribution is the Key in China
Under the partnership of online distribution , Mattel will market and sell brands such as Barbie, Hot Wheels and Fisher-Price through the Alibaba market, targeting an audience of about 443 million active buyers. Mattel will also work with Alibaba to develop new toy products that would be made specifically for the Chinese consumer. Mattel has made some first inroads into the market with the Fisher-Price brand, but says it can do more to make the company's brands relevant to Chinese children and their parents.
Mattel and Alibaba
A cultural barrier that Mattel and Alibaba will need to overcome is that when parents have extra money to spend on their children, they prefer to put it into educational activities. Mattel says he wants to develop educational content that can persuade parents in China that buying toys can also have a benefit.
"Toys and play are an important part of a child's early development, helping to conduct IQ and the development of emotional intelligence," said Patty Wu, Mattel vice president of China's growth, in a blog entry. Parents in other countries because they worried that the game would harm academic performance. That mentality explains why China's market for baby formula is three times higher than the US, but the toy industry is only 30 % of the size.
Mattel's Alibaba pact is the next phase in the company's push for China, which has been a continuing effort through deals with physical distributors and an online push, including Alibaba's Tmall.com shopping website From 2011.
China has one of the most exciting and challenging Social media markets in the world. Due to the size, complexity and diversity of the country can not find savvy marketers China as a single market, but as a collection of evolving, complex and fragmented markets.
Digital And advertising in China
Although the new media was not replaced traditional media, traditional media began to erode dominance. Advertisers confronted with a wide range of platform options, especially in digital media, events, sponsorship and other forms of branded content. Each of these platforms offer, to achieve new ways and with consumers.
China's media market is about to launch a hyper-fragmentation era, media agencies and advertisers have many choices when Media plans to develop. This may surprise foreign advertisers who are used to having less choice in China. The biggest challenge for advertisers in China is how to manage these decisions and to evaluate, while increasing the effectiveness of the media and to generate higher returns.
Generally performed China advertising market increased by 9.8 percent compared to last year in the year of 2009. In 2010, benefited the Chinese media market of the Shanghai World Expo and the Asian Games in Guangzhou, Guangdong, as well as accelerated economic growth. Advertising spending in China is likely to increase 12.8 percent in 2010, according to estimates by GroupM China. For many advertisers, China remains an important market with a promising future.
Media market influences
exceeded the average daily use of time on digital media, that time spent daily on digital media time per person exceeded on television for the first time in 2014. And 50% in the year, 2015.
Chinese spend about 50.4% of their daily time on new media, 43.6% on TV, 3.1% on the radio, and appreciated only 2.9% on printed products such as newspapers and magazines in 2015, by iResearch.
Four main elements have influenced the development of the market for Chinese media in 2010 and to do so in the year 2011th
Incomes for Brands ?
has been Although the final 2010 statistics from China has not been released, per capita income increased by 173 percent between 2000 and 2009 in urban areas, of ¥ 6,280 ($ 945) to ¥ 17.175 ($ 2.584). the volume of retail sales nearly tripled during this period. The Gross Domestic Product (GDP) of China rose by 9.1 percent in 2009 and the International Monetary Fund predicts that China will help lead the recovery of the global economy, expanded by 10.5 percent in 2010 and 9.6 percent in 2011 continued expansion in consumer spending is investment to be the basis for advertising in China's growth in various media platforms.
retail trade
The growing number of stores and other retail outlets makes brands more lower-tier cities. Advertisers need to invest to reach and attract new customers in the cities of second and third tier, which are growing faster than the developed cities such as Beijing, Guangzhou and Shanghai (see CBR November to December 2010, reaching the China Next 600 cities) ,
Price of the media in China : Huge inflation
The increase in communication costs will force advertising budgets to increase. TV remains the medium of advertising seller where large chains such as China Central Television (CCTV), Beijing TV and Shanghai Media Group to exercise enormous power and influence. This achievement is not only commercially: For example, CCTV remains vocals of the central government and the media is the social, political and cultural. The airtime demand far exceeds on major TV channels, subject to the strict limitations airtime. Local suppliers are able to price list (full price lists of the media owner rate published) to define, in accordance with and to maintain revenue growth. Advertisers should understand that the strategic marketing considerations are often a low priority for this TV channel. The dominance of television ensures that China's media market will continue to provide price inflation in the foreseeable future, and advertisers should maintain a positive relationship with large TV for the best prices.
Government policy
The Chinese government introduced in 2009, the Tri-play policy (including TV broadcasting, Internet and telecommunications) and a new rule of radio advertising. The Tri-political game designed to promote the development of digital media; the distribution usually limits the amount of advertising time on national television allowed. Today the media owners are on different platforms should work together all the advantages of the complex media environment and rich history in China and take notice.
TV in China
TV dominates the investment vehicles in 2009 with a share of 63 per cent of the total expenditure of China to set advertising, television and continue the direction of the advertising market. Toiletries, food and pharmaceuticals were the top advertising categories representing together approximately 40 percent of all investments in television advertising.
China TV coverage reached 97 percent in 2009. As a result, the TV still receives the largest audience and keep its advantage as the primary means in the short term. Television advertising in China probably rose 9 percent in 2010 and an increase of almost 10 percent in 2011, according to forecasts of GroupM. Four trends will influence future development of traditional television.
Prolonged TV viewing time in rural areas
see TV time longer in rural markets is a driving force in the development of the television industry, especially when combined with the further expansion of the advertisers in the cities of the second and third. In 2009, the average per capita TV listening time is increased by 10 minutes per day in rural markets, but the average fell by 1 minute per day in urban markets.
TV market in China several levels is more complicated than Western markets. CCTV, top broadcaster China alone has 18 channels. In addition, China has more than 270 provincial and 728 local television stations or city level. Most resorts can use advertisers TV to their pressure distribution and presence fit, either locally or nationally. As businesses expand distribution networks in small towns, they will also increase their TV advertising investment. Chains of national and provincial television, in particular will benefit from the increase in television advertising budgets.
Adoption of new media
Traditional TV is facing tough competition as new media for a greater share of competing time viewing. The competition is particularly acute among young audiences and higher income in urban upper class. In 2009, spent the average time Chinese youth (15-34 age) reduced television, while the 45 and older 5 minutes spent watching TV each day compared to 2008. traditional media companies to this change, the adoption of new and traditional platforms integrate. National television stations have their own websites, such as China Television Network, Jinying Hunan and Anhui station web constructed to increase the audience.
Rules stricter Laid
In September 2009, the PRC State Administration of Radio, Film and Television (SARFT) issued new rules on radio and television advertising. The rules limit the amount of advertising space at certain intervals and to prohibit certain advertising content. SARFT in the same month were also regulations that limit the platforms and the timeliness of the TV shopping advertising programs and home shopping.
In April 2010, Shanghai has Oriental Media Group, the Shanghai Oriental Shopping Channel, the first analog channel created dedicated 24 hours teleshopping. Shanghai Oriental has the first teleshopping license in China, to improve the access of Chinese consumers on teleshopping market. This movement shows the intention of the Government of the PRC to normalize the teleshopping market.
The rate hike
national inflation from China are channels debit card average of about 11.5 percent in 2010 from 17.0 percent in North China at 10.7 percent and 13.6 percent in the central and southern regions. Overall the TV card inflation probably reached 13.4 percent in the year of 2010.
Internet, and the age of Digital Marketing
The population of China Internet (Internet users) has reached 420 million by June 2010, an increase of 22 percent over the previous year, according to the Internet Network Information Center China (CNNIC). About 98 percent (364 million) of Internet users to the Internet via broadband. The number of Internet users in rural areas reached 115 million in June 2010, 27 percent of the total population of China Netizen. The growth of Internet users in rural areas in China slowed 2008-2009, however.
The total rapidly growing number of Internet users is supported by rising disposable income, trade policy positively to the electronics and information technology (IT) infrastructure development. The introduction of third generation network in China has more people makes the Internet with mobile phones to access. In June 2010, 66 percent of Chinese Internet users on the Internet with mobile devices. present The rise of mobile Internet users more options for advertisers in the mobile market.
In 2009, revenue from Internet advertising in China reached ¥ 20.7 billion ($ 3.1 billion), according to iResearch Consulting Group. Network services and applications, automotive and IT products are the main categories of online advertising that make for almost 50 percent of the market for Internet advertising together. The advertising revenue search engine in China reached nearly 7 billion ¥ ($ Euro 1 billion) in 2009, which provide an increase of 38 percent over the previous year and a strong reflection of the ability of the environment, a cost effective and targeted communication. Online display advertising, classified ads, social networking and online video sites have fueled the development of Internet advertising; Advertising revenues in each of these categories has increased dramatically in the year of 2009.
Ecommerce in China !
China's e-commerce market was growing the best performing sector in 2009 in accordance with the use of 68 percent over the previous year. Of all the e-commerce applications (including online shopping, online payment and booking travel online), online payment has experienced the fastest growth, with the use of 81 percent compared to 2008 due to the growing population of online shoppers stimulated.
The number of online shoppers in China reached 142 million in June 2010, representing nearly 34 percent of Internet users. According to iResearch, the advertising revenue from sites online has sold in China more than in 2009 by 2008 in a ¥ 263 billion ($ 39.4 billion) doubled.
Blogs and social networks
About 58 percent (221 million) of Internet users in China has blogged in 2009, according to CNNIC. Among them, the number of active bloggers (those who updated their blogs in the past six months) increased by 38 percent over the previous year to 145 million euros. The main factors for this increase were the increase in Internet penetration and popularity of micro-blogs, which allow users to send updates to small fragments. Micro-blogs are becoming increasingly popular in China, because they incorporate the features of the traditional blogs, instant messaging and mobile communications across platforms. more interactivity and ease of use have led to more regular updating of micro-blogs than traditional blogs in general. The growing popularity of microblogging in China requires advertisers and agencies to review their marketing strategy and communications. Advertisers need to create micro blogs to promote new products, deliver brand messages, and build relationships with consumers and maintain.
With the growth of Internet penetration and acceptance of online applications that extend the user their real relationship to the company online (see Social Media in China: the same but different). Hence arise many social networking sites. Nearly 50 percent (210 million) of Internet users in China visited social networking sites in June 2010. Advertisers should consider social networking sites as well as traditional online display ads, especially when communication with young target group. Advertising on these sites is likely to significantly increase in the next two years and require an interactive and responsive communication strategy.
Online games
Online gambling is the only form of entertainment in line with the increase in use in China, with 296 million online game players in June 2010 by almost 12 percent since the end of 2009. Although advertising in online games is still stuck in its infancy, have most customers indicated a willingness in this area, because to invest in that the platform offers the opportunity to strengthen the commitment and brand association. For example, Coca-Cola Co. and Nike Inc. have each entered into agreements to expand with online gaming companies in China, its presence on the Chinese market. Companies that advertise should be aware in online gaming that the industry still lacks a strong control over the content and the ability to monitor data, however.
future Clients via Social networks
With the acceleration of economic growth, major events such as the Shanghai Expo and the 2010 World Cup in South Africa, and the increasing popularity of online video and social networking sites, GroupM provides that revenue from advertising on the Internet annual China increased by 30 percent increase in 2011, a greater proportion of advertising expenditure in the near future coverage of the Internet increases, the Internet will attract advertisers and gain the content improves and understand advertisers as they make optimum use data collected online campaigns. The Internet will dominate the marketing strategy of advertisers who spend the largest growth areas advertising are likely to appear, sponsorship, joint promotion and original content otherwise in 2011 and 2012..
newspapers is failing down !
In 2009, the main sources of advertising revenues in newspapers and business services, real estate and construction, automotive, which together accounted for approximately 50 percent of advertising revenues in newspapers China were. Driven by the Shanghai Expo, domestic services and tourism can cause in newspapers to higher advertising spending. The advertising revenues of newspapers is likely to increase 13 percent in 2010 and an increase of 5 percent in 2011, according to forecasts of GroupM.
Despite rising advertising revenue, the newspaper industry is facing significant external and internal challenges. Intern unfair competition on prices, discounting and conflicts between the media groups developments in the sector have hindered. The external challenge comes from the emergence of new digital media. China's first digital newspaper, Zhejiang Daily, launched in February 2006 and 33 newspaper groups, more than 300 newspaper offices and more than 500 issues of the newspaper had gone digital by the end of 2008 How the pace of life increases in urban areas, citizens, no time or patience to sit a full story in the newspaper and read, prefer to access the latest news and entertainment information via the Internet or by mobile phone. In June 2010 230 million active users read the messages on mobile phones. If traditional newspapers adopt digital technology, for example by mobile newspapers, they are more market opportunities and challenges of the growing popularity of digital media. Thereby the efficiency of investment and the attractiveness of advertising in newspapers increased.
Online News in China
China has more than 9,500 journals, but they represent only 2.3 percent of national advertising investments. Toiletries, cars, and personal items accounted for more than half of total advertising revenue magazine of China in 2009. The advertising revenue of the magazine GroupM increased 12.8 percent compared to 2009 projects that income increased 18 percent in 2010 and to increase 5 percent in the year 2011th
The key factor for this growth is the increasing affluence of Chinese consumers. Rich consumers have a wider choice of lifestyle and leisure. Magazines who respond to wealthy consumers a small but loyal readership and offer value for brand advertising to strengthen. For example Bazaar Men, HisLife, Mr. Leon Modern and L'Officiel Hommes have all launched in China in the past two years to life have publishers the opportunity identified for magazines menswear in the Chinese market. China overtakes the US as the second largest luxury market in the world in 2009 and the future of his industry magazine advertising is bright.
facing Like other traditional media, but the magazines are a threat to the digital media. The publication of Amazon.com Inc. Kindle in 2007 marked the beginning of the tablet era. Other companies such as Axus Technology, LLC; BenQ Corp. Fujitsu Ltd. Google Inc. Hanvon Technology, Inc. and Sony Corp. also entered this market. In 2009, Chinese consumers bought 693,000 e-readers, up 121 percent over the previous year. This boom began in 2010 with more than 3 million sales of electronic readers.
Home Consumption in China
Although the performance of China outside the home (OOH), which remained stable from 2008 to 2009 promotes market for consumers in public places such as on billboards or traffic systems, the prospects for OOH advertising continues to be positive. GroupM projects Ooh advertising spending approximately 16 percent increase in 2010, mainly by the advances in digital OOH advertising.
Three important factors affect the OOH market development in 2010:
The Chinese government has made great efforts, the OOH market before and to regulate some traditional OOH panels during the Shanghai Expo and Guangzhou Asian Games, in particular by deleting. This left more space for the media to digital signage such as billboards mega-LED.
To adjust these important events, the Chinese government has increased investment in the traffic in the city, which the development of liquid crystal displays in buses, subways and taxis has progressed.
three-dimensional films have a mainstream cinema and cinema-advertising revenues were attracted increased accordingly.
In the longer term, due OOH shipping restrictions in some cities and government restrictions on OOH advertising formats for major events, there may be fewer opportunities as sign display for the traditional formats of OOH advertising. OOH will survive in the cities, if it is a part of life in the city, and to integrate them into the planning and urban infrastructure.
radio, old fashion style
Businesses and services, cars, finance and post and communication are some of the largest categories of radio advertising. However, the most dynamic categories are detergent, clothing and household electronics. In particular, the cleaning sector increased its annual spending on radio advertising by 208 percent in the year of 2009.
Consumers in shopping malls, supermarkets and fast food restaurants have great opportunities for radio advertising. Some radio stations have already begun to test in this new environment business. For example, broadcast Central Radio Voice popular programs in the city parks and shopping malls in Beijing for national holidays.
With the introduction of a better radio advertising monitoring system in 2009, advertisers are now more confident to invest in radio. Radio advertising revenue is likely to increase 22 percent in 2010 and by 10 percent in 2011. to increase in the long run, the radio must also incorporate new media. For example, Beijing Radio Listening Pub one of the most popular radio programs in Beijing. In the future, the radio can use the mobile Internet technology to enable online listening. Radio is no backup in the future planning of advertising if it is well equipped with more premium content, especially digital audio platforms.
Advertisers have more opportunities and more challenges !
Although television advertising media is currently dominant, the future of new media looks promising. A fast and complex advertising market in China will multiply the options, especially in digital media, events, sponsorship and other branded content. Each platform offers new ways to reach and engage with consumers. In addition, companies need to develop interactive and engaging communication strategies to reach consumers and maintain.
This week, China stops to celebrate the new year. And like every year, it is also the peak season for rental engaged by young single women.
For several years, the supply adapts to this growing sector. After thirty-five years of one-child policy, the demographic imbalance is however largely in favor of men (116 men for every 100 women, approximately 20 million men and more). But tough social prejudice further complicate the situation. Chinese tradition, the boys choose a woman less educated and less wealthy, and girls continue, he seems to prefer a higher socially husband. Find Shoe Fits is increasingly difficult for Chinese who have spent years studying and enjoy financial independence.
After 25 years, the "left-nots"
When these urban youth in general only daughters, visiting their families in the provinces, they are subjected to enormous pressure from parents who despair of singles, and call for grandchildren. Past 25 years, young Chinese are pinned the contemptuous term "shengnu" ( "left-nots"), in a country where the marriage was very recently a social contract, not a sentimental commitment. Some dry drudgery on the pretext of holidays abroad. Others, not to spoil the feast of ravioli, and avoid being present contenders, will pay for the event the services of an ideal son.
According to the Asian press, which is full of stories about it, Taobao shopping site, equivalent to our leboncoin.fr has seen in recent years, the number of ads explode. Hundreds of students or actors offer their services. It costs a few euros to walk in holding hands or hold a conversation on the Internet, and up to several thousand to take the role of happy fiance during a fake wedding ceremony. source
red envelope
On the forums, one wonders if the fake fiancés must accept the "Hongbao" red envelope filled with banknotes traditionally offered to the family and friends. Or have sex is acceptable or not in a country still very prudish. Anecdotes abound, such as the one about the man who, having found sleeping in his pseudo-laws, has its speaker "employeure" and refuses to pay child support.
But business is not limited to women, even though men are much less use, nor to China: in France also, it is possible to find an online "friend" paid out, going to church ... or visit family visit
The new tie-up with Alibaba UN major American wine maker coat is symbolic and represents boom UN IN e-commerce market for Imported Products WHILE What's new purchase plan D shares of NetEase Is unlikely to Provide Support For many sagging store. Premier CAS Alibaba e-commerce a chef launched a new online wine shop with the American giant Robert Mondavi, IN part of a movement, let more Chinese consumers buying imported goods online. The Movement giant online game players NetEase Seems a little more classic, with son announces the UN plan Vasant Redeem UP Ë $ 500 million of his shares. source http://www.youngchinabiz.com/en/internet-alibaba-seeks-share-boost-in-wine-netease-in-cash/
Alibaba and NetEase
Alibaba and NetEase are Certainly not only to watch the machine Their actions amid sell-off UN and large Chinese Listed Shares To US Over The Last 2 months. Alibaba Shares Have lost near The Half Their Value SINCE Their historical More Top Reached last November, and now trade Pour about 5 percent below their price of adoption there is not. NetEase shares not Have lost a quarter of their value SINCE the beginning of August, in a dip coinciding WITH Own Scholars tumbling markets of China.
Internet giant Alibaba Group Holding is betting that a country known for sipping black tea will develop a taste for Napa Valley red.
The e-commerce company will offer Robert Mondavi Cabernet Sauvignon, Pinot Noir and other varieties to its 367 million Chinese customers through its online store Tmall, announced a partnership Tuesday with owner Mondavi Constellation Brands.
Alibaba Chairman Jack Ma Yun fights slowing sales growth and a Chinese economy in difficulty in importing popular brands such as Converse trainers and Levi jeans.
Tmall Vineyard Direct
The agreement with Constellation Brands marks the beginning of "Tmall Vineyard Direct", scheduled to present cellars worldwide. Alibaba executives last week visited the Mondavi winery in Napa Valley, California, north of San Francisco and are looking for additional partners.
Alibaba and NetEase
The agreement gives one of the major brands of America's first wine investment plan in one of the most dynamic markets in the wine world, where American wines were overshadowed by exports from France, Australia and Chile. Demand among Chinese consumers is faster than domestic production, creating an unprecedented opportunity for international labels, according to a study by April Wine Economics Research Centre at the University of Adelaide in Australia .
Wine consumption in China reached 15.8 million hectoliters last year, an increase of 45 percent compared to 2000. The country has also more than doubled its planting of vines, as International Organisation of Vine and some wine.
The labels of the wines of France were No. 1 imported by China last year, accounting for 34 percent in volume, while the sixth US has less than 5 percent, according to Chinese customs data. The value of exports of US wines to China fell 7.7 percent last year to $ 71 million.
tmall
The Mondavi deal on Tmall, online the largest store in China, will send the wine labels, such as Twin Oaks and Woodbridge - at a price of US $ 15 to US $ 20 a bottle - to China that its consumers look middle-shelf options due to the economic slowdown.
Historically, the US has not had "a lot of wine exports," said Tyler Colman, author of the popular blog Dr. Vino wine. "It was mostly for the prestige of our wines are saying to this restaurant in London or Copenhagen or Tokyo." The Alibaba agreement opens a new frontier for Constellation Brands, based in New York, which generated 89 percent of its US $ 6 billion in sales of beer, wine and spirits in the United States in the year to February. source Zhongguowine
Chinese tourists everywhere !
Chinese tourists have become more important in the Napa Valley and now account for about one third of the 200,000 visitors to the Mondavi winery each year, said Philip Kingston, head of international sales Constellation. In 2013, the winery began offering tours in Mandarin and Cantonese, hoping tourists get a taste for wines from the Napa Valley.
Alibaba other investment
Robert Mondavi has become an iconic brand since its founder created the vineyards of Napa Valley nearly 60 years ago. On Tmall, it will compete with wines from France, Australia and Chili.
The largest manufacturer of electronic products under contract in the world, Foxconn, made a move into e-commerce in China.
Taiwan-based Foxconn, officially known as Hon Hai Precision Industry Co., has launched an official website for flnet.com an online marketplace to sell electronics, people familiar with the matter say, to go head-to -Head with the likes of Chinese e-commerce giant Alibaba Group Holding Ltd. and JD.com.
On flnet.com, Foxconn sells accessories he made, as well as consumer electronics from a variety of brands, from Apple Inc. iPhones to laptops Lenovo Group Ltd. Galaxy Tab Samsung Electronics Co. tablets.
The ambitious move comes as Foxconn, which assembles the majority of Apple iPhones and iPads, has struggled to find new sources of growth than income from contract manufacturing business slows down. Increased competition for Apple's orders and rising wages in China have continued to weigh on earnings growth Foxconn in recent years. Foxconn looks to electronic commerce after failing to make significant inroads into the retail with its own brick-and-mortar stores market in China, selling everything from televisions to handsets.
Foxconn invested in some local retailers and formed joint ventures with foreign electronic store operators, including the United States RadioShack Corp. and German retailer Metro AG to open electronics stores in China. But these attempts have failed to generate more revenue due to intense competition and that the leaders of Foxconn said the cultural differences between the company and its partners, the people said.
"We ran the retail trade as a manufacturing operation," said a Foxconn official, who declined to be named.
After closing all of its electronics stores in China in 2013, Foxconn has continued to recruit talent from e-commerce, including some former officials site online shopping Lenovo disaient- they.
The e-commerce operation based in Shanghai Foxconn is led by Iris Yu, a former executive at an online retailer based in California of computer, Newegg.com, the people said.
Partnership with JD.com
People said the ambition of Foxconn Terry Gou, chairman of the new online market the company to beat sales in the second e-commerce platform in China, JD.com in three years.
Foxconn would face many challenges, including the construction of its new platform e-commerce service and a reputation for authenticity, as well as the promotion of relations with suppliers to source the hottest items and to establish a efficient logistics network to provide fast delivery services, analysts say.
The company will also have to overcome disadvantages by the absence of a payment system. Alibaba uses its Alipay payment system to handle most of its operations. JD.com, which is supported by the Internet giant Tencent Holdings Ltd, uses Tencent payment system.
New e-commerce platform Foxconn also highlights a change in strategy. To develop its own market, the company closed its online store less than two years on Alibaba Tmall, a commercial website designed for large merchants, including Apple and flnet.com market Foxconn Nike Inc. sells a range of products wider than it used to Tmall.
Alibaba and Foxconn
Alibaba has been an important partner for the Foxconn adventure in electronic commerce. Foxconn links with Alibaba was in 2007 when the manufacturer has invested in buying Alibaba.com 271.6 million Hong Kong dollars (US $ 35 million) initial public offering of shares to the Chinese company on the Hong Kong Stock Exchange.
Fascinated by the success of Alibaba in China, Mr. Gou consulted Alibaba founder Jack Ma flight on e-commerce activity of the company, the people said.
In Taiwan Tuesday, Ma said Alibaba cooperated with Foxconn in many areas. "I think more will come," he said. "Foxconn is superb in the manufacturing sector, which will be a key factor in the future development of innovative sectors."
More information...
He did not provide further details.
To drive traffic to his site, Foxconn plans to introduce a gadget review section, the people said, using its quality inspection and audit process, it leads to installation. For example, a laboratory Foxconn generally checks the battery life of a device and the processing speed of a smartphone before products are shipped.
e-commerce platform
"Foxconn has provided a platform for e-commerce to our staff as part of our benefits program for employees for many years. We have plans to expand e-commerce services to external customers," said the company said in a statement to the Wall Street Journal, the decline to elaborate on the details.
This article will be treated the different aspects of Chinese e-commerce and the various reasons why we can say that it is certainly going through its golden age. Then we will see the top 5 best selling products online.
The golden age of e-commerce in China has arrived!
China this year the economic growth estimated at about 7.5%, supported by strong domestic demand, thanks to its large population, now estimated at 1.3 billion people. China's GDP growth rate remains the highest in the world for the past ten years. The online trade is undoubtedly part of these growth markets that are driving China's economy up. If e-commerce was going through its golden age in China?
On November 11, a symbol of the power of the Chinese e-commerce
China has somehow its "e-commerce Day": it takes place every November 11th! Date, originally intended to celebrate "Singles Day", has quickly become a commercial celebration, during which millions of marks break their prices and grant promotions to encourage consumption. The biggest online shopping sites such as Tmall (giant Alibaba), JD Suningvoient or their turnover exploded that day, and for good reason: Chinese consumers, eager for bargains, take the opportunity to rush to reduced rates for products and have only 24 hours to do so. Brands have everything to gain by being referenced on these major platforms of Chinese e-commerce. Market its products on Tmall International and JD Global is an opportunity to seize for brands worldwide, and the gain will be even more important during the holidays such as Chinese trade on 11 November.
E-commerce figures in China
Due to its impressive population, China recorded more than 632 million Internet users, including more than 145 million online consumers, with an annual increase of 30 million. Today, 90% of Chinese buyers start their search on the Internet. The country has already recorded the largest population of online shoppers worldwide, or 242 million e-shoppers. The penetration rate of Chinese e-commerce, estimated at just over 6%, is higher than that of the United States, which is 5%. China is well on its way to becoming the first market of the global e-commerce by 2015, overtaking the United States.
Some figures from the study by iResearch in 2014:
About 30% of online shoppers have made more than 40 online transactions during 2013.
60% of online shoppers spent more than 3,000 yuan in 2013.
E-customers with between 3 and 30 times purchases in 2013 accounted for over 50% of the total.
Over 30% of them have shopped online more than 40 times.
Top 5 online products consumed
What are the products that the Chinese are buying online?
1. The loan-to-wear
The Chinese are more likely to buy clothes on the Internet; the online fashion market is growing. Moonbasa has established itself as a market leader. This platform mixture of both e-commerce and distance selling with high-end products. She recorded 200 million visitors a day. The platforms of Alibaba and Taobao Tmall group are also widely used by Chinese consumers to buy items ready-to-wear and fashion.
2. Cosmetics ecommerce China
In China, the cosmetic is the most dynamic sector of the country's consumer goods. China has even become the first emerging market of cosmetics and the second largest market of the largest cosmetics Asia after Japan. Today, 25% of China's cosmetics market is on the Internet! Indeed, more and more Chinese buy cosmetic products online. You should know that the majority of online shoppers are women. They spend more money on the Internet and buy more frequently on e-commerce sites that hommes.Pourquoi they buy cosmetic products on the Internet? Mainly because they can find all brands, whether international or local. They use particularly large e-commerce platforms (Tmall, JD, kimiss) to find and order products.
Chinese e-commerce giant Alibaba is preparing to launch the largest IPO in history Thursday, which is expected to rise to $ 24 billion. However, the company is not familiar to those outside of China, where almost all of its business is registered. So what's Alibaba, and why is it worth so much money?
Alibaba was founded by Jack Ma, a former English teacher in 1999, Ma is now one of the richest men in China, with estimates of its value ranging from $ 12 to $ 21 billion .
The company founded Ma of China, and by some measures, the largest e-commerce company in the world. According to the Wall Street Journal, the company manages 80% of e-commerce in China, with transactions on its sites, totaling $ 248 billion last year.
Alibaba websites
The company operates several online markets in China, including Tmall, an online retailer Amazon style; Taobao, an auction site similar to eBay online; and Juhuasuan and a Chinese version of Groupon.
In addition, the company has Alipay.com, the Chinese equivalent of PayPal; and has large stakes in Sina Weibo, the Chinese version of Twitter; Youku Tudou and the closest Chinese equivalent of YouTube.
Alipay, however, is not part of the deal in Thursday's IPO. According to Forbes, in 2011 Alibaba chief Jack Ma took personal ownership of Alipay, Alibaba withdraw, reasoning that foreign investors can not be involved in a company providing third party payment services in China.
The structure is also important Alibaba. The company has an unusual partnership structure, consisting of a group of 27 managers dubbed the "partnership Alibaba," who have the power to appoint the majority of members of the Board of Directors. Alibaba said the arrangement will preserve its culture of innovation in a booming sector and reduce distractions of fluctuations in financial markets, according to a report by the Associated Press.
Jack Ma
This organizational structure allows "Jack Ma and his team realize the value of ... [their capital] in society, in the meantime they can keep control of the company, using the partnership structure," according to Professor Zhang Yan Anthea, the Jones Graduate School of Business at Rice University.
Part of the reason why Alibaba is listed on the NYSE, rather than Hong Kong, is that the regulations of the latter refused such a structure, then they are acceptable for a list of United States.
Despite the phenomenal growth of Alibaba, the company has very little penetration in international markets. Moreover, despite attracting the interest of American institutional investors (Yahoo already owns 22 percent of the company) retail investors have so far not been affected in similar numbers.
"Despite the hype about Alibaba, the average investor in the street does not know that Alibaba is or what they do," Lee S. Rawiszer, capital management Paradigm Financial Partners in Westport, Conn., Says the Wall Street Journal.
"Because [Alibaba] will be listed on the New York Stock Exchange, it must follow all the rules of the exchange. Needless to disclose more information on their financial statements and strategy. Such increased monitoring and more transparent financial reporting will allow Alibaba to build his credibility outside of China, and help it penetrate foreign markets, "said Professor Zhang Yan Anthea.
Ecommerce China: huge potential for Second hand Brands !
An arms race between the two most powerful Internet companies in China has increased again, with one of them, Tencent, announcing an investment that grows further into the e-commerce - territory long controlled by rival, Alibaba.
Tencent said Wednesday it would pay 1.5 billion Hong Kong dollars, or $ 193 million for a stake of nearly 10 percent in China South City Holdings, which operates warehouses and stores of commercial factory and offers a variety of other logistics services to retailers. The shares of both companies are listed in Hong Kong.
Alibaba VS tencent
Until recently, Alibaba and Tencent seemed largely content to develop their own areas of expertise, without moving too aggressively on grass on the other. Alibaba has e-commerce sites like Taobao and Tmall, while Tencent operates messaging services like QQ and WeChat.
But during the past year, with Alibaba position for an initial public offering and Tencent eyeing the lucrative gains from the booming online business in China, the gloves have come off.
"Tencent is absolutely trying to get more aggressive in the e-business space, Alibaba challenging, as most of their services are now overlapping," said Olivier from ecommercechinaagency.com.
In October, Jack Ma, chairman of Alibaba, announced it was closing its WeChat account and move to a new messaging service called Laiwang Alibaba. He urged his followers to do the same.
Last week, Alibaba said he intends to establish a platform mobile game from which it would offer developed by outside programmers applications, revenue sharing with them. Tencent generates more than half of its revenue from games. Most are free, but it relies on the broad scope of WeChat, who says he has over 270 million active users per month to fuel demand for purchases in the game determined by the following players to stay ahead of their friends.
Ecommerce market in China
The ecommerce market in China grew 38 percent last year to $ 13.8 billion, according to a government agency that oversees the industry. Mobile games have been the fastest growing segment, with revenue more than tripled to $ 1.8 billion.
E-commerce is a much larger company. Last year, sales in China, including online transactions between businesses, increased $ 335 billion from $ 221 billion in 2012, according to a research center of Alibaba.
On unofficial holiday for single people in November that turned into the equivalent of Cyber Monday in the United States, the Chinese online retailers face a huge amount of promotions. Alibaba reported $ 5.75 billion in transactions processed through the payment system online sales day this year.
But Alibaba is not resting on its laurels. In December, the company said it was investing about $ 360 million to Haier Group, one of the largest appliance manufacturers in China. Companies said they would establish a joint venture of logistics support delivery operations of Alibaba. Alibaba has also reached an agreement last year with Sina Weibo, the operator of the first platform of microblogging in China, which aims to counter the popularity of WeChat and drive more users to the sites of e-commerce Alibaba.
Continue reading the main story
Continue reading the main story
Advertising
Tencent responded with investments of its own, including the purchase of a stake in a search engine called Sogou. And the company has moved to develop its own e-commerce capabilities, which include sites like QQ and 51Buy Wanggou, adding a pay function WeChat.
Tencent said the agreement with China South City strengthen its e-commerce reach. The two companies will work together to help small and medium enterprises to develop their business retail online, they said.
"The cooperation with China South City allows us to jointly facilitate these companies online migration, using the physical locations of the South China City and logistical capabilities and platforms to use the Internet Tencent and technology capabilities, "Martin Lau, President of Tencent, said in a statement.
In addition to warehouses and other logistics facilities, China South City operates factory malls featuring brands such as Nike and Adidas. Tencent and China South City said they would "explore opportunities for cooperation services online sales for branded products."
Tencent has its headquarters in Shenzhen, China where South City also has its center
Last week the Chinese Ministry of Commerce issued a report on the turnover in online retail. It shows that last year the Chinese have spent more online than U.S. consumers.
Rapid growth of Ecommerce in China
According to the 'China E-commerce Development Report' 2013 China last year generated a total figure online business 1.85 trillion yuan ($ 217.9 billion). This is an increase of 41.2% over the previous year. And Chinese e-commerce grew three times faster than the rest of the retail and currently represents 7.8% of total retail sales in China.
With such growth China is better than the United States, which in 2013 displayed an online sales of 262.51 billion dollars (192.85 billion euros), an increase of 16.9%.
302 million e-shoppers in China
Last year China had 302 million e-customers, an increase of 24.7% compared to 2012 and it is expected that by 2015 30 million people will have a function related to electronic commerce. The report also indicates that in 2013 the total amount outstanding in e-commerce, including in particular transactions between companies has reached 10 billion yuan (1.2 billion euros).
"Driven by technology and innovative business models, e-commerce is one of the new engines of economic development in China and help Chinese enterprises to explore the international market," said Li Jinqi, e-commerce director within the Chinese Ministry of Commerce, during the presentation of the figures.
84% via Alibaba group taobao/tmall
These figures also possible to locate huge amounts realized by Alibaba. According to the latest estimates, in 2013 Alibaba achieved a turnover of $ 248 billion (€ 182 billion) in China through its online marketplaces Taobao and Tmall. This therefore équivait 84% of the total turnover of the Chinese e-commerce.
The staggering growth rates, all powerful groups, bulimic consumer ... China in 2013 became the world leader in e-commerce. A market for very closed time ...
E-commerce to a new bubble?
The information has not yet caused a stir in 2013, China has become the world's number one ... e-commerce. With a total turnover of $ 300 billion, the Chinese e-commerce is passed American and European. And this is just the beginning are Features. While in Western countries growth is slowing in the Middle Kingdom is euphoria. Between 2009 and 2012, the growth of online commerce there was an average of 70% when the United States it was only 13%.
And this is not only because the country has a huge domestic market of 1.3 billion people. The e-commerce revolution is cultural in China. Its penetration in the country is 6.3% according to the agency iClick Interactive, against 5% in the United States. This is easily explained.
It is now estimated that 475 million Chinese have a purchasing power equivalent to a Westerner (the number of Chinese consumers who can affect a third of their income on discretionary spending). However, this population, which is also very connected (there are 500 million Chinese Internet) does not have an equivalent in the United States and Europe commercial offer. Large groups global distribution remain largely American and European. This population is turning to the internet to satisfy his appetite (her bulimia?)
Taobao and Tmall are
leading the Chinese ecommerce
Taobao,
Tmall, DangDang, … They are known still relatively a little in Europe.
Nevertheless these platforms dominate the main market of on-line sale of the
world. According to a report of Bath and Company, with some more of 60 % of
growth over the last two years, China should soon overtake the United States as
first world e-commerce market. In spite of an economic and demographic
environment more than favorable, it would be an error to forget the role played
by the Chinese Internet superior powers, which knew how to democratize the
on-line sale by adapted and aggressive strategies. The Chinese e-commerce is an
example to be followed?
The figures
of the Chinese e-commerce have enough to make envious persons. Nevertheless, there
are only few foreign companies to know it the success. The Chinese companies
knew how to stand out within the
prosperous market of the e-commerce and stand out in front of world leaders, being sometimes
lacking humility on this market which is so particular (see the example of
EBay). On the contrary, in a country where the attachment in the symbols is
very strong, the Chinese commercial platforms knew how to surf on events as
" 15.8" (the holiday of the moon), the " Double 12” (December
12th, 2012 ), but especially the " Double 11 (November 11th ), the holiday
of the single women(men). These periods of promotion shaped the popularity of
the e-commerce in China.
Still some improving area
for ecommerce in China
In a
country where, according to the site PROVERB, still only 44 % of the population
is connected, Alibaba still has beautiful perspectives of development. Ways
were already opened with the growing improvement of the logistic systems, the
efficiency and the practicality of the systems of payment as Alipay, Tenpay
even Tecent WeChat but especially the exponential development of purchases on mobiles,
increasing by 107 % on the past year (according to a study EnfodeskChina
relieved by chinainternetwatch.com).
