• South Korea 31.03.2010 Comments Off

    KyoChon New York

    A KyoChon chicken outlet in New York. The South Korean franchise has opened several stores in New York and California.

    By Jane Han, Korea Times Correspondent – NEW YORK ― Every time Tina Shin digs into a plate full of spicy, double-fried chicken wings from Kyochon, she craves some chilled Cass, a Korean beer. But she can’t readily order it off the menu.

    That’s because she’s not in Korea, but Kyochon’s newest U.S. outlet on 319 Fifth Avenue in the heart of midtown Manhattan.

    “I guess I can’t have everything, but it’s awesome to enjoy Kyochon just blocks away from where I live,” says Shin, a Korean-American who first tried the fried chicken during her visit to Seoul a few years ago.

    The popular Korean wing franchise, which opened its modern $2-million, two-story space, already has several restaurants in New York and California. But the latest addition is located right smack in the center of Manhattan, a positioning aimed at targeting more American customers.

    “We’re going after the mainstream market,” Kyochon CEO Kwon Won-kang said when the new shop was launched earlier last month. “We’re not going to limit our accessibility.”

    Just like the chicken joint, other Korean brands are starting to move away from the traditional “Koreatown marketing strategy” toward a wider U.S. consumer base.

    More and more established labels in a range of industries are taking a stab at introducing their businesses to everyday American shoppers.

    Most recently, Amore Pacific launched its premium skincare brand Sulwhasoo at Bergdorf Goodman, one of New York’s most luxurious retailers.

    The company is now selling 12 different cosmetics products under the herbal medicine line.

    For more casual consumers, Face Shop earlier began selling its mask sheets at Walgreen’s, a mega drugstore chain with more than 6,500 stores nationwide.

    Besides the cosmetics names, Hankook Chinaware recently opened its first showroom in Manhattan, while premium luxury brand MCM kicked off sales at New York City’s Saks Fifth Avenue.

    “Korean brands are clearly making inroads into the core U.S. market,” said Kim Joo-hwan, a marketing consultant at Liberty, a Manhattan-based agency. – read more at The Korea Times…

  • China 29.03.2010 Comments Off

    COMAC C919

    By Xin Dingding (China Daily) – Beijing – The chief designer of the country’s first C919 jumbo jet has urged authorities to establish a multi-billion-yuan State fund to help boost the sales of homegrown airplanes.

    More financial support from the government will bolster the domestic aviation industry, which is facing strong competition from foreign players such as Boeing and Airbus, said Wu Guanghui, vice-president of the Commercial Aircraft Corporation of China Ltd (COMAC).

    China is forecast to need about 4,000 planes in the next 20 years.

    State fund for homegrown jumbo jet urged

    Major domestic airlines such as Air China, China Eastern and China Southern, as well as Sichuan Airlines and Hainan Airlines, have expressed strong interest and support in buying his company’s jumbo jet, Wu said.

    The letter “C” in the title of the country’s first homegrown jumbo jet is said to stand for “China” as well as “COMAC”, while the first “9″ implies “forever” in Chinese culture and the “19″ stands for the jet’s maximum 190 seats.

    The single-aisle jetliner is designed for short- to medium-haul flights of up to 5,555 km.

    The draft design of the country’s first independently developed jumbo jet will be completed by this year and be put into production by next year, Wu had said earlier.

    The plane is slated to test fly in 2014 and be ready for deliveries after 2016. COMAC, which was founded in 2008 to take charge of the country’s jumbo jet project, expects to sell 2,000 C919 planes at home and abroad in the next two decades, Wu said.

    State fund for homegrown jumbo jet urged

    “But what could harm the sales of the domestically made planes is that very few aircraft-leasing companies buy domestic airplanes and rent them to airlines,” he said in an interview with China Daily.

    “Leasing is the major way for airlines to expand the fleet … and the situation will especially hinder small airlines, which are short of funds, from buying the cheaper homemade jets.”

    Wu suggested that the government establish a State fund of at least 30 billion yuan to help homegrown jet buyers with their financing. – read more at ChinaDaily.com…

  • China 28.03.2010 Comments Off

    Chinese Consumers

    “5 Myths About the Chinese Consumer”, a Seeking Alpha article by Yee Ong, CFA, discusses his experiences traveling in China, and how the country’s sprawling and complex economic landscape may not always offer fertile ground for Western companies, particularly if they are unprepared for differences in language, culture, and attitudes toward spending. Ong dismisses five popular misconceptions about the Chinese consumer:

    1. Chinese people are no longer impoverished
    2. The richest in China are predominantly old business people
    3. Chinese are big spenders
    4. Just sell to the Chinese, they are all the same
    5. Companies that can penetrate the Chinese market will prosper

    The advises investors to be cautious about the prospect of investing in China – though good returns are possible, it is by no means an easy place for foreign companies to do business. – read more at Seeking Alpha.com…

  • Japan 27.03.2010 Comments Off

    Taiko drum lesson

    Drumming up business: A geisha teaches a tourist how to beat a "taiko" drum in the hot-spring resort city of Arawa, Fukui Prefecture, on Jan. 30. KYODO PHOTO

    By KEIGO MATSUSHITA, Kyodo News – FUKUI — Thirty years ago, the hot-spring resort city of Awara in Fukui Prefecture, along the Sea of Japan coast, prided itself on having about 250 geisha entertainers.

    Now there are only 15. So the 130-year-old spa city is offering vacationers the chance at a hands-on geisha experience, to help keep alive the world of the traditional entertainers.

    In Kyoto’s popular Gion entertainment district, as well, geisha hold mock tea ceremonies for ¥500 per person, while those in other parts of the country have organized events to attract visitors hoping to receive a firsthand look at the geisha system, which some say dates back to the second half of the 1600s.

    Geisha have traditionally been regarded as entertainers skilled in singing, dancing, playing musical instruments and conversation, and patronized by wealthy people and politicians.

    But the number of geisha has been on the decline due to deterioration of the economy and reduced opportunities for them to demonstrate their talents. Traditional inns are also steadily disappearing.

    The geisha in Awara give guests a chance to meet them for ¥3,000 in a season-limited program. The meeting includes “janken” rock-paper-scissors play equivalent to tossing a coin to decide the winner in a game held in a dance training room of the “kemban,” or control office.

    Men take off their jackets behind a folding screen set up as a partition and step into the room to the accompaniment of a shamisen played by geisha. Geisha and guests then play the roles of a mother, a tiger or other characters as part of the program.

    The low fee compares with the going rate of ¥60,000 clients pay for service provided by a group of four geisha over a two-hour period.

    The visitors get a rare opportunity to look at the backstage of the kemban, which also sends geisha to teahouses and restaurants. Normally, the place is off-limits to visitors. – read more at The Japan Times Online…

  • South Korea 26.03.2010 1 Comment

    Korea Tourist Woes

    Japanese tourists in Myeongdong look at a Japanese-language guidebook on Korea.

    Song Woong-ki, The Korea Herald, 3/26/2010 – Two days ago, Motoko Watanabe and her husband arrived in Seoul from their hometown in Shizuoka prefecture, Japan. Since hearing of close friends’ pleasant experiences in Seoul, they figured the short trip to Korea would give them the most bang for their buck.

    But what was supposed to be an affordable three days of sightseeing and shopping around the popular shopping districts Myeong-dong and Namdaemun, turned into a budget buster the middle-class newlyweds did not anticipate.

    Did they go overboard gorging on sumptuous hanwoo while impulsively buying Yonsama socks and Louis Vuitton handbags?

    Hardly.

    According to Motoko, the couple spent a third of their travel budget on taxis. “We don’t know our way around so it feels as though we’ve been wasting money and spending more than necessary on taxis,” she said. “Sometimes it feels like we’re going in circles when we’re in cabs.”

    She’s not alone in her gripes about taxis.

    A recent survey conducted by the Korea Tourism Organisation shows that the number of calls made by disgruntled tourists in 2009 saw a 13.4 per cent increase from the previous year.

    Of the complaints, difficulties while shopping and disputing costs of taxi fares topped the list with 32.5 per cent and 17.5 per cent of the total 468 complaints filed.

    “Our experience was pleasant up until we walked out of the key attractions around the city,” Watanabe said. “It was when we hopped into a taxi and began getting around town that our trip became unpleasant. We really feel as though we spent twice the amount of our travel budget, and I hate it. In their defense, the drivers just say they don’t understand what we’re saying, but I find it personally inconvenient. It’s made me disdainful of the drivers here.”

    When asked about taxi scams, Baek Ki-chun, 62, a taxi driver, was quick to defend his profession.

    “That was only during the old days when you saw drivers hanging around the airport looking for people to rip off,” he said. “Nowadays, we don’t do stuff like that to tourists, because we care very much about giving the best impression possible of our country to foreign guests when they visit.”

    Baek, a 15-year veteran, conceded later that there might be some who take advantage of tourists. “Look, in countries like Japan, you don’t see drivers committing such shameful acts because their drivers get all the proper employee benefits and a respectable salary, regardless of how many passengers they get per day,” he said.

    “Here in Korea, they tried to implement something similar when DJ (former President Kim Dae-jung) was around, but it never happened because people started saying drivers would just slack off without making their rounds, so the government decided to scrap the whole idea.

    “The only thing we have to rely on is getting as many passengers in a day as possible in order to meet our quota. So I can understand when some drivers get desperate enough to commit disgraceful acts like that.” – read more at Asia News Network…

  • China 26.03.2010 Comments Off

    Yao Ming - UniStrong GPS

    A model holds a UniStrong GPS unit. UniStrong hopes to raise 1.11 billion yuan with an IPO on the SME board. (China Daily)

    By Wang Ying (China Daily) – SHANGHAI: As a thirty-year-old man, Yao Ming has gained a number of social roles beyond being a basketball player. He will become a father this autumn when his first child is born. He is an active supporter of charities for children and victims of poverty and natural disasters. And now he is a diversified businessman.

    During the past eight years with the NBA’s Houston Rockets, Yao succeeded in translating his popularity among fans and exciting on-court performance into some hefty paychecks.

    In Forbes’ 2009 list of Chinese celebrities, Yao ranked No 1 with an annual income of 357 million yuan.

    Managing that astronomical amount has been the task assigned to his financial team.

    His previous investments include co-founding Top100.cn, a Chinese music website, opening several Yao Restaurants in Houston and Shanghai, and snapping up the Shanghai basketball team he used to play for.

    These business decisions are all closely associated with his hobbies: pop music, food and basketball.

    His latest investment is no exception. As a fan of science and astronomy, Yao signed a five-year endorsement contract with Beijing UniStrong Science & Technology Co Ltd, a high-tech company specializing in Global Positioning System (GPS) technologies.

    According to the deal, Yao purchased 675,000 shares of the company for 375,000 yuan.

    Currently, UniStrong is hoping to raise 1.11 billion yuan through offering 30 million shares, with an IPO price of 37 yuan per share on the Small and Medium Enterprise board. As the company’s fourth largest shareholder, Yao holds 675,000 shares, accounting for 0.75 percent of the total.

    “The high offering price reflected high market recognition and confidence towards UniStrong,” said Jiang Zhou, an industry analyst with Xiangcai Securities. – read more at ChinaDaily.com…

  • China 24.03.2010 Comments Off

    Google Exits China

    By Wang Xing and Zhang Haizhou in Beijing, and Guo Jiaxue in Hong Kong (China Daily) – Google Inc took a major step in its row with the Chinese government on Tuesday by redirecting traffic from its Beijing-based search engine to its service in Hong Kong.

    The move effectively means the company no longer needs to filter its search results, as required by Chinese law.

    Although Google’s exit is good news for its rivals, chiefly Baidu, Sogou and up-and-comer Tencent, many experts said it is a “lose-lose situation” for both China and the US-based company.

    The initial reaction from the authorities came via an unnamed State Council information official who told Xinhua News Agency that Google had “violated its written promise it made when entering the Chinese market (in 2006) by stopping filtering its search service and blaming China, in insinuation, for alleged hacker attacks”.

    “This is totally wrong. We’re uncompromisingly opposed to the politicization of commercial issues, and express our discontent and indignation to Google for its unreasonable accusations and conduct,” the official said.

    However, just hours later, Foreign Ministry spokesman Qin Gang told a regular press briefing that the government would handle the case “according to law”, and that the move was an isolated act by a commercial company and should not affect China-US ties “unless politicized”.

    Philip Crowley, a US State Department spokesman, said on Monday it was “a decision for Google to make”. – read more at ChinaDaily.com…

  • China 18.03.2010 Comments Off

    Mercedes-Benz B Class

    The smaller Mercedes-Benz B Class is expected to be a big seller in China

    By Li Fangfang (China Daily) – BEIJING – Mercedes-Benz believes its strong market success in China comes from the German carmaker’s ability to assimilate the trends and demands of the local market.

    That strategy has been key to zipping ahead in China’s fiercely competitive and dynamic automobile market, according to Klaus Maier, president and CEO of Mercedes-Benz (China) Ltd.

    Just last month, his company posted record year-on-year growth of 160 percent in China, far outpacing Audi’s 62 percent growth and BMW’s 97 percent.

    Maier credits the company’s success in China to a comprehensive understanding of the market.

    By all accounts, the strategy has served the Stuttgart-based company well. In the first two months of 2010 alone, for instance, it enjoyed vehicle sales of more than 15,300 units.

    This translates, on average, to approximately 7,500 units per month thus far in 2010 – compared with the company’s typical delivery of 5,500 in 2009.

    Mercedes executives see this as a long-term trend on the mainland. “Our successful efforts in formulating such a localized strategy have provided us with increasing and validated confidence looking forward, as we expect to continue growing at a higher rate than our competitors, as well as the overall and luxury auto market in 2010,” said Maier.

    This is expected to have global implications for product sales. This year, added Maier, “we expect China to overtake the UK to become our third largest market worldwide”.

    Knowledge of the Chinese marketplace, in terms of economics and demographics, and adapting sales and marketing activities to the fast changing environment has made Mercedes the top brand among China’s growing numbers of wealthy people.

    Mercedes-Benz, for example, has long been straddled with a “Big Benz” reputation – an automaker dedicated to bigger, more traditional luxury cars.

    Following studies of the Chinese market, however, “we have made a point to diversify our product portfolio – even introducing China-specific models – to reflect market demand”, said Maier. “Supported by enhanced marketing activities the Mercedes brand has broadened its image, and is more identifiable to a much wider customer base.”

    Quick to realize the trend for entry-level models with smaller engine sizes, the German-luxury brand launched a wide range of products with 3.0 liter or less-sized engines last year, including its B-Class and smart car.

    “The reason for this, in part, lies in the recognition of our younger audience with an average age below 40-years-old, which has the majority of purchasing power in the country,” said Maier. – read more at ChinaDaily.com…

  • China 16.03.2010 Comments Off

    Hongqiao Airport

    Shanghai's Hongqiao Airport

    A new airport terminal in Shanghai started operation Tuesday ahead of the opening of the Shanghai World Expo amid the city’s efforts to build a “world-class” traffic hub.

    The 360,000 square meter terminal with a new runway has 45 plane parking bays and an annual transport capacity of 40 million people, said Shen Xiaosu, deputy director of Shanghai’s Urban, Rural Development and Traffic Committee.

    As of March 16, a total of 11 domestic carriers including Shanghai-based China Eastern Airlines, Air China and China Southern Airlines had moved their operations to the new terminal. The old terminal will be primarily used by some budget airlines and chartered flights to Japan and the Republic of Korea, according to the airport’s website.

    Together with the opening of the new terminal on Tuesday, the extension of Shanghai’s subway line 2 linking with the new terminal also started operation, the airport’s website said. – read more at People’s Daily Online…

  • China 16.03.2010 Comments Off

    Shanghai - WaiTanYuan

    An artist's rendering of Waitanyuan in Shanghai

    By Cao Qian – WAITANYUAN, or the headstream of the Bund, is expected to emerge as a landmark lifestyle, artistic and fashion zone in Shanghai in about two years as improved traffic and renovation of historic buildings in the Bund area will turn it into a new magnet for visitors and retailers from around the world.

    The area, sited along the northern stretch of the Bund and mainly surrounded by the Huangpu River to the east, Suzhou Creek to the north, Sichuan Road M. to the west and Dianchi Road to the south, will have up to 100,000 square meters of retail space in operation by the end of next year, compared with the existing 63,000 square meters in the Bund area, according to a research released yesterday by Jones Lang LaSalle Shanghai.

    “The Waitanyuan project, whose first phase mainly consists of Rock Bund, Park 33, Yi Feng Building, Bund 27 as well as the Peninsula Shanghai, will emerge as the sixth major retail clout in Shanghai by the end of 2011 following Nanjing Road E., Nanjing Road W., Xujiahui, Huaihai Road in Puxi and Lujiazui in Pudong,” said Joseph Tang, head of retail for central China operations at Jones Lang LaSalle.

    “With unique architectural and historic elements rooted in the Bund area, retailers from around the world have shown keen interest to expand in the future stylish zone,” Tang said.

    Giorgio Armani, Prada, Chanel, Piaget, Berluti, Chaumet, Ralph Lauren and Shanghai Tang are some of the retail brands in the Waitanyuan area. – read more at ShanghaiDaily.com…

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