Chinese Luxury Shoppers Outspend Japanese 2-To-1 At South Korean Malls: Wealthy Chinese Travelers In Korea Favor Cosmetics, Children’s Supplies, Ginseng And Healthcare Products, Luxury Watches – This week, more news about free-spending mainland Chinese tourists came out of South Korea. As more Chinese tourists have headed outward, most of them staying relatively close to home, the Korean media has consistently framed news about tourist behavior as a sort of rivalry between China and Japan — a phenomenon Jing Daily discussed last fall. (’Tourist Profile: Japanese vs. Chinese‘) According to Tencent (via Yonhap), after a year in which the number (and profligacy) of Chinese tourists increased at Korean luxury malls, shoppers from mainland China now account for twice as many sales per capita as Japanese tourists.
Hummer price soars in Shanghai: Although Tengzhong failed in buying Hummer, the Hummer dealers are overjoyed, taking the opportunity to raise the price. On February 25, the reporter learned from Hummer dealers in Shanghai that after hearing the acquisition of Hummer failed, dealers immediately raised the price of Hummer, among which Hummer H3X produced in 2009 rose by 20,000 yuan, and Hummer H2 is planning to rise by 100,000 yuan. (Via Business – People’s Daily Online.)
Calvin Klein To Focus On Chinese Market In 2010: American fashion brand Calvin Klein has announced plans to open 60 new chain stores in Asia in 2010, mainly targeting its expansion in the Chinese market.
According to reports from Singapore’s Channel News Asia, Calvin Klein’s current revenues from the Asian areas account for 15% of its income worldwide. (Via ChinaRetailNews.com.)
Toyota chief’s testimony closely watched in Japan: Japan appeared largely relieved Thursday that much-anticipated testimony by Toyota’s chief executive before U.S. lawmakers was finally over, though analysts said the company’s recall woes are no closer to being solved. Toyota Motor Corp. President Akio Toyoda’s appearance before the House Oversight and Government Reform Committee, was closely watched in Japan, where the company his grandfather founded is a national icon. It was the top item on local morning news programs. At least one channel briefly broadcast his testimony live, where it took place Wednesday in Washington. (AP) (Via News On Japan.)
Singapore Witnesses Record Number of Travelers in January: January of 2010 managed to see the highest ever recorded number of travels to Singapore for the month. Figures shared by the Singapore Tourism Board have revealed that as many as 908,000 travelers visited Singapore over the past month, which is a hike of nearly 17.5% compared to January of 2009. The top 5 markets for the month which generated visitors for Singapore were Indonesia with 173,000 visitors, China with 99,000 travelers, Australia with 90,000 travelers, 68,000 came in from Malaysia and 57,000 travelers were from India. (Via TopNews Singapore.)
50% of sneak preview tickets for Singapore’s Resorts World Sentosa casino & theme park snapped up: SINGAPORE: Fifty per cent of the sneak preview tickets to check out Singapore’s first casino and theme park were snapped up when they went on sale on Friday, despite the fact that none of the 20 rides and shows at Universal Studios will be ready. (Via Channel NewsAsia Singapore News.)
McDonald’s To Open Hamburger University In Shanghai: As a celebration of the 20th anniversary of McDonald’s entry into the Chinese market, the international fast food giant has announced plans to launch a new hamburger university in Shanghai, the company’s seventh worldwide, making the city a new human resources training base for McDonald’s in Asia Pacific.(Via ChinaRetailNews.com.)
Shanghai Watch Looks To Join Ranks Of Elite Brands: Although most of the world’s top watchmakers remain cozily ensconced within the borders of Switzerland, as with most luxury industries ‘the Chinese are coming’…in this case, to reinvent a brand better known for gracing the wrists of Mao Zedong and Zhou En’lai than Donald Trump or Warren Buffett. (Though the latter might be more open to it than we might assume.) This brand, Shanghai Watch (上海手表厂), started producing watches in the mid-1950s, amid a flurry of activity in the Shanghai wristwatch industry, and quickly established itself as the country’s top watchmaker. (Via Jing Daily :.)
Toyota president to testify before U.S. congressional panels: Toyota Motor Corp. President Akio Toyoda would testify before U.S. congressional committees on massive recalls of Toyota vehicles if he is formally asked to do so, Toyota officials said Friday. The automaker is hoping that if Toyoda appears in person at congressional hearings, it would help to revive trust in Toyota’s vehicles amid growing criticism of the automaker in the United States, they said. (Via Kyodo News (Business).)
Chinese snapping up real estate in Japan: Japan’s real estate market may be in a slump, but that is not deterring the Chinese from scooping up properties. Chinese money – that is, from ethnic Chinese living in Japan – is making its presence felt in a big way. A growing number of Chinese residents are turning to real estate investments in major cities as well as rural areas. (AsiaOne) (Via News On Japan.)
Godiva, Others Hope For More Chinese Chocolate Consumption: Perhaps looking to cash in on the propensity of more cosmopolitan, urban Chinese to give expensive or boutique chocolate as gifts (and, increasingly, to eat for themselves), Belgian chocolate giant Godiva has aggressively sought expansion in the Chinese market. Having entered Hong Kong in 1998, Godiva decided to test the waters in the mainland last September, opening a store in Shanghai’s Grand Gateway Mall. Apparently satisfied with that store’s popularity, the company has announced that it plans to open two new flagship stores in Shanghai’s swish Xintiandi area and at the Shanghai International Financial Center (IFC). (Via Jing Daily.)
Singaporean Tycoon Ng Teng Fong dies: SINGAPORE—Ng Teng Fong, one of Asia’s richest tycoons and the founder and chairman of Singapore’s largest unlisted property group, Far East Organization, died Tuesday aged 82, the developer said. Far East said in a statement that Mr. Ng had suffered a cerebral hemorrhage on Jan. 23. Forbes Asia magazine in 2009 listed Mr. Ng as the richest person in Singapore, with a net worth of more than US$8 billion. (Via WSJ.com: What’s News Asia.)
Singapore opens world’s first A380 MRO hangar: Singapore’s SIA Engineering on Wednesday opens the first Maintenance, Repair and Overhaul (MRO) hangar in the world to offer commercial maintenance services for the Airbus A380 aircraft here. At the opening of the A380 hangar, Singapore’s Minister in Prime Minister’s Office, Second Minister for Finance and Transport, Lim Hwee Hua said that as a gateway to Asia, Singapore is well- positioned to ride the wave of aviation expansion. (Via Business – People’s Daily Online.)
Wal-Mart Sells World Expo Products In Shanghai: As the cooperative partner of USA Pavilion at the 2010 Shanghai World Expo, Wal-Mart has started to sell World Expo related licensed products in its Nanpu Bridge store in Shanghai. To promote the Shanghai World Expo and to meet consumers’ demands for World Expo licensed products, the American retail giant Wal-Mart was formally selected as the franchised retailer of World Expo licensed products in January 2010. (Via ChinaRetailNews.com.)
Japanese men miss out on Valentine’s chocolate as women treat themselves: Japan’s unique Valentine’s Day tradition of women giving chocolate to men is melting away as more women show a preference for pampering each other instead of their boyfriends and spouses. The practice of giving tomo choco (friendship chocolate) has been highlighted as a new trend in a recent survey that found 74 percent of women plan to give a Valentine’s gift to a female friend but only 32 percent intended to buy something for a boyfriend. The popularity of tomo choco has been attributed to the way that the custom offers women an excuse to have a girls’ night out – something pertinent at a time when so much social interaction is going digital. (Japan Times) (Via News On Japan.)
Nathan Road, Hong Kong (photo: Randal Rayborn)
HK retail sales value grows 16%: The city’s total retail sales value for December has been provisionally estimated to be 29.4 billion HK dollars, up 16 percent on the same month last year, the Census and Statistics Department of Hong Kong said Monday. After netting out the effect of price changes over the same period, the volume of total retail sales grew 11.3 percent. The sales volume of jewelry, watches and clocks, and valuable gifts increased the most, by 30.4 percent, followed by motor vehicles and parts at 29.8 percent. (Via Business – People’s Daily Online.)
Kodak Enhances Its Manufacturing Facilities In China: Kodak is opening a second production line for its Xiamen printing plate manufacturing facility to enhance the company’s manufacturing capacity for offset products. The manufacturing line in the southern Chinese city will produce CTP plates for sale in Asia and support the development of current and new products. (Via China Sourcing News.)
HSBC Report: Men Key To Luxury Spending In China Today; Women Tomorrow: In the new book ‘Luxury China: Market Opportunities and Potential’ (Jing Daily review), Chevalier and Lu note that the Chinese luxury business is still very much dominated by middle-aged men, most of whom splash out on high-priced luxury goods with the intention of giving them as gifts. However, as the authors point out, over time we can expect to see a gradual shift in power from male to female consumers. (Via Jing Daily.)
Parcel south of Bund sets realty records: A 57,000-square-meter plot sitting south of the historic stretch of the Bund finally fetched 9.22 billion yuan (US$1.35 billion) yesterday and became the most expensive parcel in Shanghai by both total and average price. Privately owned Shanghai Zendai Property Ltd emerged as the winner of the plot after beating three domestic rivals. The plot, with a starting price of 9 billion yuan, was sold for an average price of 34,148 yuan per square meter, also the highest on the Chinese mainland so far. An entity consisting of China Enterprise, China Pacific Life Insurance and Taikang Life Insurance; Shanghai New Huangpu (Group) Co Ltd; and another entity led by Shanghai Forte Land and Shanghai Fosun were the three other participants in yesterday’s competition. The site is in an area of the Bund that the city wants to turn into a center dominated by financial institutions – part of a city master plan to turn Shanghai into a global financial center by 2020.(Via Shanghai Daily: Business.)
Asia-Pacific biggest air travel market: The Asia-Pacific region has overtaken North America as the world’s largest air travel market. The International Air Transport Association said 647 million passengers flew in the region last year, compared with 638 million in North America. Within Asia, China has eclipsed Japan over the past decade as the largest domestic market. And IATA says the Asia-Pacific market will continue to grow rapidly. (Via RTHK On Internet – Finance News.)
Coach To Open First Mainland Flagship Store In Shanghai: The American luxury accessories designer and maker Coach has announced plans to open its first Chinese mainland flagship store in Shanghai in April 2010. Located at the junction of Shanghai’s Huaihaizhong road and Songshan road, this new flagship store covers an area of 650 square meters and was designed by Coach’s construction and design team. (Via ChinaRetailNews.com.)
7 For All Mankind To Open Four New Locations In China: 7FAM will open four new stores in China this year, in Beijing, Shanghai and two other as yet undetermined cities. Denim is big business in China, and has been since the early 1980s when the first waves of post-Mao fashions swept through Chinese cities. In more recent times, premium denim makers from around the world have seen demand soar in top- (and now second-) tier cities, and brands like Miss Sixty (Italy), ONLY (Denmark), Diesel (Italy) and G-Star (Holland) have opened retail outlets and in-store boutiques throughout the country. In 2007, American premium denim maker 7 For All Mankind entered the mainland market, and since then has established locations in Beijing, Shanghai, Wuhan, Dalian, Hangzhou and Chengdu. This week, in an interview with China Daily, Vice President of VF Asia (the Asian office of American apparel monolith VF Corp, which owns 7 For All Mankind) Raffaele Germano said the company plans to open four new retail locations in China over the course of 2010, with one store each slated for Beijing and Shanghai, with the other two locations to be determined. (Via Jing Daily.)
Sony to shadow Apple store strategy in Japan: Sony this week outlined a plan to fight back against Apple by opening its own flagship retail stores. Starting with Sony Store Nagoya, the stores will imitate the multi-floor design of Apple flagships like Ginza and use large, spacious display areas divided by category. The first floor of the Nagoya store will focus on portable devices like Cyber-shot and Handycam cameras, the PSP, Sony-Ericsson phones, Walkman players and VAIO PCs; a second floor will focus on home theater equipment such as Blu-ray players and TVs. (electronista.com) (Via News On Japan.)
Toyota to suspends sales, production of 8 models with accelerator issues: In what was described as the largest such move ever by an automaker in the United States, Toyota said Tuesday that it had halted sales of eight models of its cars and trucks that account for more than half its U.S. sales until it could find a fix for sticking accelerator pedals under a safety recall. The move, which will cut production starting Monday for at least a week at seven Toyota plants in North America, comes six days after the Japanese automaker announced the recall of 2.3 million vehicles due to the accelerator problem that it first encountered in 2007. (mercurynews.com) (Via News On Japan.)
Proposal to ban dog, cat eating sparks debate over China’s culture: Researchers of a Chinese government think-tank have defended their proposals to ban the eating of dogs and cats in the face of criticism that it would destroy local traditions. A proposed anti-animal abuse regulation suggests a prohibition on cooking dogs and cats with the risk of a 5,000-yuan (732 U.S. dollars) fine or even imprisonment. (Via China – People’s Daily Online.)
Office Buildings near the Singapore River (photo: Randal Rayborn)
Singapore gains advantage from surplus office demand in Hong Kong: A 20 to 25 per cent fall in Grade A office rents in Singapore this year will emerge as a reason for widening the gap between rents in Singapore and in Hong Kong, and will give Singapore a competitive advantage with firms looking to expand in Asia, property firm Savills said yesterday. Rents are speculated to fall to $5 per square foot (psf) per month in 2011, accounting to a massive new supply comes on-stream, the firm’s research shows. Grade A office rents stood at $8.80 psf per month at the end of 2009, reported Savills. (Via TopNews Singapore.)
Hainan to halt land development approval on speculation concerns: China’s southern island province of Hainan will suspend land leasing and development approval in a move to curb property speculation, the province’s Party chief has said. Following a tourism promotion policy document issued by the central government earlier this month, real estate developers have flocked into the island, causing new property bubble concerns, Wei Liucheng, secretary of the Communist Party of China Hainan provincial committee, said at a meeting in Haikou Friday. (Via Business – People’s Daily Online.)
Taipei direct flights to Shanghai may begin: (ChinaPost.com.tw) – Direct flights between the Taipei Songshan Airport and the Shanghai Hongqiao Airport are likely to be launched before World Expo 2010 Shanghai opens on May 1, as Deputy Shanghai Mayor Tang Dengjie said Friday that both sides have completed various technical preparations and are working hard to kick off direct flights as early as possible. (Via Taiwan Headlines – Business.)
Tensions bubble over gas project: Japan warned China on Sunday that it would take action if Beijing starts gas production in a disputed field in the East China Sea, Japan’s Kyodo news agency reported. Although the two countries reached a broad agreement in 2008 on principles intended to solve the dispute by jointly developing gas fields, progress has been slow and Japan has accused China of drilling for gas in violation of the agreement. (Via RTHK On Internet – Finance News.)
Mazda eyes dissolving joint car production with Ford in China: Mazda Motor Corp. is considering dissolving its partnership with Ford Motor Co. for the joint production of cars in China to increase its flexibility in meeting growing demand for Mazda-brand cars in the country, company sources said Sunday. Mazda plans to withdraw from Changan Ford Mazda Automobile Co. in Chongqing, a joint venture of Mazda, Ford and a Chinese automaker, after production of Mazda cars at the plant is transferred to another joint venture of the three automakers in Nanjing in May, the sources said. (Via Kyodo News (Business).)
The trading floor of the Shanghai Stock Exchange
“Financial institutions in Shanghai are just beginning to develop and build their capacities,” said a Shanghai municipal representative, who did not want to be named, during an interview with China Business Weekly.
“There is a lack of sufficient human resources at the senior levels,” the source said.
A Dec 5 job fair held in New Jersey and organized by the Shanghai Financial Development Services Office listed 117 jobs and attracted more than 700 candidates.
A similar job fair held last year at the height of the financial crisis attracted so many candidates that organizers were concerned about fire safety.
Ultimately, last year’s fair yielded 66 hires, according to officials. This year, the fair was held in a larger space at the Westin Hotel in New Jersey.
Hopeful candidates waited in long lines that stretched around the room for a chance to speak with representatives from companies that included Bank of Communications, China UnionPay and the Shanghai Futures Exchange.
In addition to the attractive salaries being offered, a 1 million yuan ($146,500) cash bonus will go to those recognized by the government’s 1,000 People Plan, a project announced earlier this year to facilitate the recruitment of overseas Chinese talent in various fields
Of last year’s 66 hires, six were recognized under the 1,000 People Plan.
Some reports suggested that the new employees will also receive tax breaks, but officials deny this.
In the past, major corporations have often recruited foreigners to fill senior management positions in China. However, experts have noted a major trend toward overseas Chinese returning home to work in higher-level positions.
Of the applicant pool, less than 10 were foreigners, said John T. Wu, the president of Triway International Group, which helped organize and market the event.
The Washington DC-based Triway targeted overseas Chinese and Chinese American talent, working closely with Asian-American interest groups and universities to reach potential candidates. The candidates were required to speak fluent Mandarin.
But government officials said that relevant experience would ultimately matter most.
“There is not a particular concern about the nationality of a person,” the representative said.
“So long as they are qualified for the positions, they would all be considered,” he said. – read more at ChinaDaily.com…
By Zhou Yan (China Daily) – China’s financial hub – Shanghai – will overtake London as the world’s second-largest financial center after New York in 10 years, according to a recent survey conducted by law firm Eversheds. The survey, which interviewed 600 senior business decision-makers in the cities of London, Mumbai, New York, Shanghai and the United Arab Emirates, revealed that London was facing a challenge from Shanghai in terms of its financial role on the global stage, based on a surge in confidence among corporate bosses in the Chinese city.
Most respondents said New York would continue to hold the top position as the most important global economic center.
According to London-based Eversheds, 91 percent of senior businesspeople in Shanghai are confident of their economic outlook over the next 12 months, mainly based on signs of growth and a pick-up in business. That compares with London where only 22 percent are confident, the lowest figure among the five cities.
“Confidence in the economy is a clear advantage for Shanghai – our research shows there is a clear divide between the more established centers of the West and the emerging economies of the East,” said Stephen Mok, a partner at Eversheds.
The report showed that 87 percent of business leaders across the globe said the recession has significantly changed the structure of the world economy, and the established financial centers face a growing challenge from the emerging economies of the East.
“The high level of confidence in Shanghai is set against a backdrop of significant government stimulus to boost the domestic economy,” it said.
China, ahead of the US and Europe, has heralded signs of a recovery from the global financial crisis on the back of the central government’s 4 trillion yuan ($586 billion) stimulus package. – read more at ChinaDaily.com…
Shanghai Automotive Industry Corp yesterday launched the hatchback in China to compete with Honda's Civic, Toyota's Corolla and Volkswagen's Sagitar in the competitive mid-class car segment in the country.
The MG 6 mid-class hatchback, equipped with a 1.8-liter turbo engine, will be produced by SAIC Motor Passenger Vehicle Co in a plant in the city’s Lingang.
“There will be market potential for the MG 6 if SAIC prices the car competitively,” said Ye Sheng, an auto analyst at automotive consulting firm, B. Thinking Management, in Shanghai.
The nation’s biggest car maker will also start production of the MG 6 in a plant in the United Kingdom next year as it tries to revive the 85-year history of the British icon globally. It said the MG 6, which debuted at the Shanghai auto show in April, is specifically designed for Asian and European markets.
SAIC has operated the sporty MG brand as its own since the car maker acquired smaller domestic rival Nanjing Auto at the end of 2007. SAIC now produces the MG 7, MG 3SW and MG TF sports car in China as well as the Roewe series that came from the Rover Group of the UK. – read more at ShanghaiDaily.com…
Workers assembling vehicles at the SAIC-GM-Wuling Automobile Co production line in Liuzhou, Guangxi. GM and SAIC together operate eight joint ventures in the country. (Agencies)
As part of this, the new venture would bring under its umbrella all the Indian operations of GM including the two vehicle manufacturing facilities, a power train unit and the nationwide distribution network.
GM would also produce and sell small cars and mini-commercial vehicles developed by Shanghai GM and SAIC-GM-Wuling Automobile Co in India under the new joint venture.
“Over the past decade, SAIC and GM have created one of the world’s most successful automotive industry partnerships,” said Nick Reilly, executive vice-president and president of international operations, GM.
“Both companies felt this was the proper time to deepen cooperation beyond China’s borders in order to enhance partnership as part of long-term growth strategies,” he said.
“Changes in the worldwide economy have created new opportunities in emerging markets,” said Hu Maoyuan, chairman of SAIC.
“By leveraging our individual assets and those of our China joint ventures, SAIC and GM are in a strong position to introduce competitive products outside China that will satisfy the needs of consumers in India and other high-potential global markets,” he said. – read more at ChinaDaily.com…
