China is the second largest economy in the world, and every significant brand's future is impacted by its growth (or collapse!); but who's got the time?! A weekly potpourri of ten reads that will make you look like a keen China observer during any conversation about China.
As China's trade growth slows (see WSJ.com video report above), read on for Bain's mainland shopper intel, a "wine city" for China's nouveau wine connoisseurs and more:
Bain & Company 2012 China Shopper Report
"While over 60 percent of Chinese shoppers have said that brands were their top consideration when purchasing (in previous Bain research), in reality, they rarely act on that consideration at the moment of purchase. Instead, they are in a near-constant state of trial, without leading to eventual preference and loyalty."
Three Myths About Chinese Consumers
"...as we broke down home spending room by room, one of the key areas female consumers focused on—and where spending was growing fastest—was the bedroom. They particularly were interested in high-quality sheets and mattresses."
Coming Soon: China's First "Wine City"
"Changyu Pioneer Wine Co, one of China's leading wine markers, announced it would establish an international wine city, with an estimated investment of 6 billion yuan ($942.6 million) in Yantai."
...And to Tap China’s New Wine Lover, It’s All About The Label
“The key thing to understand about wine labeling in China is the importance of the initial visual impression. This is a culture that is closely tuned to visual symbols, and in any case the wording on the front label is often unintelligible to all but the most sophisticated wine consumer.”
Companion Read: Wine Intelligence China Label Design Report
IPR Violation Cases Drop
"He said Microsoft tested 104 PCs it bought from the resellers, and 94 percent of them had their Windows software infected by malware, which included fishing of websites and hijacking of Internet browser home pages to steal user information."
China overtakes Japan in Fortune 500 List of Biggest Companies
"While U.S. firms held the plurality of slots on the list, with 132, Chinese firms came in second with 73 followed by 68 from Japan."
Toilet Paper Abuse Prompts China Morality Debate
"How is it that the city has spent nearly $10,000 on toilet paper per location in less than a month? It’s not just about overuse, according to those responsible for maintaining supplies."
Navistar Makes a Run at $73 Billion China School Bus Market
"'You look at the China market and they have school buses and they’re cheap,' Dan Ustian, Navistar’s chief executive officer, said in an interview. 'Too cheap. They have scrimped on quality and safety standards, so this is our opportunity.'"
The DIY China Lawyer
"1. IPR Monitoring – While you should not, and actually cannot, handle things like intellectual property registrations and enforcement on your own, there is a lot you can do yourself. Keep track of your competitors, perform regular online searches of your name (in both Chinese and your native language), and keep your eyes open at trade fairs or other industry meetings or conferences."
China's Coming Economic Transformation
"With investment cooling, consumer spending will start playing a bigger role in China's economy. This is not a bad thing but will mean tough times for those companies—like makers of construction equipment—that have grown by supplying the investment boom."
Companion read: To The Media, The China Glass is Half Empty