China source for the small & medium enterprise

The embargo alike suitation of the logistic industry in China now

2008-07-17T10:58:00.000-07:00

If a goods is at the cooker size, then, it would be rejected to send by the post office even there is just the domestic shipment. It's because the Olympic security control.

The military park outside Beijing, post office reject to send the relatively larger stuffs, all visitors can only have the 30 days VISA, all of them are the temporarily security policy from China to make sure the smooth running of the Olympic.

Part of the cities where highly rely on the visitors to run the economy are quite bad in the economy, especially Shen Zhen, many empty hotel rooms, lesser foreigner to rent the local apartment, lesser logisitc traffics, even the resturants are slow in buisness.

Part of the eBayers are even posting their commend in the public forum saying their shipment on hold in the custom up to days and even do not know when can be declared. For the purpose of running the best Olympic, China government sacrafice the economic benefit for it! Probably, else of Beijing, none of any city really benefit from Olympic!

China KFC

2008-07-15T01:49:00.000-07:00

The China KFC plays not just a fast food resturant, it's also a party place for the child, also a indoor playground for the child. Since the chila infrastures in China are not good, so, KFC build a mini indoor playground for the local child in order to attract the traffic to their resturants.

Pay for Mcdonalds price and get a Starbucks coffee

2008-07-15T00:13:00.000-07:00

In Hong KOng Mcdonalds, there is a new service called McCafe, which is for providing the deluxe feel coffee and open with the Mcdonalds together.
When the people order the coffee there, they cook it for 5 minutes to make that fresh coffee. The taste is similar as Starbucks coffee, and the price is only USD2.50. Which is much cheaper than starbucks, and inside the Mcdonalds, there are also allowed 20 minutes free WiFi.

China is lacking of the online verification authority

2008-07-01T23:23:00.001-07:00

The only private authority for the trustablity is from a famous auction site tao bao, else of it, there is only alibaba and global source who provides the ebay alike feedback scores for their B2B advertiser. As compare from America and Europe, there are many, for example:
Verisign
http://www.verisign.com
Geotrust
http://www.geotrust.com
Thawte
http://www.thawte.com
Paypal
www.paypal.com

www.webtrust.org
www.truste.org

What China need:
A certification ensure security transaction likely the SSL to support the local online transaction. A certification approve the online store enterprise is a trustable enterprise, for example, approve that they paid tax and with normal bank activity. And there is also needed the security approve for the server to make sure their security level is enough to prevent from hacking. It also very demands for the China local credit card transaction mechanism.

2007, the official year of starting the online economy in china

2008-07-01T22:54:00.000-07:00

According to China Internet association, the turnover of online transaction was more than 59 billion RMB in China in 2007. There are slightly more than 50% come from the auction site tao bao. For the rest segment, it’s mainly come from Shanghai, Beijing and Groug Zhou. And the total population who ever buy online & paid are 9 million. Of course, it’s a very small scale as compare with any developed countries market.

However, it marks a milestone in China that local online marketing is started and any enterprise can have the break thru point of entering the market by starting from Beijing, shanghai and groug zhou.

The market will keep of fast growing afterward especially if there is any trustable online payment gateway. And the online auction under the personal name in China is tax free for 3 years.

China Mcdonalds

2008-06-17T07:19:00.000-07:00

China Mcdonalds, it keeps the same strategy as American Mcdonalds providing the fast, clean food. The price is also similar as Amercian one, for a BigMac meal, it costs arounf USD3.00 And people make it as a niche food, only the child love it a lot due to the taste is never possible to get from the mother.

China train station

2008-06-17T07:16:00.000-07:00

Shen Zhen is one of the big train station in the south side of China, and also one of the best facility train station where all covered areas are come with air condition.
See the touring of the Shen Zhen train station and the check-in from the passenger.

China long distance train

2008-06-17T07:09:00.000-07:00

China is one of the biggest train network in the world, train is one of the popular mass transportation option for the people moving from one province to another province. So, the design of the train are usually come with the bed which say as the economy class. There is also existed of the seat class, and usually which is for low revenuse labor to take. For a 8 hours long distance train, it costs around USD40.

Wal-mart use the China localized way to operate the mall business in China

2008-06-13T09:22:00.000-07:00

In America, Wal-mart is usually locate out of the down town. In China, Wal-mart must open in the urban area. Lets see a video about a mall from Wal-mart locate in the heart of Shen Zhen city in China:

See how Wal-mart sell the fruit in the mall, where the user can select their own fruit, since in China, there is easy to get the bad fruit or the damaged fruit, so, people like to select themseleves when buy it.

In China, Wal-mart also sell the cooked food, which is slightly cheaper than the fast food shop:

When Wal-mart sell the fish, they sell the fresh one, where people can select their fish from the water themselves, since in China, people like the fresh fish a lot, any freeze fish are not welcome for the housewife:

eBayer is hard to survive in China too

2008-06-02T23:47:00.000-07:00

In America, many eBay report that there are hard to survive, except of making some home make unique products. And usually, it needs to sell a lot of the product, then, it can have a acceptable profit. Because the products are in high similarity, same selling technique by making the same html advertising, same contents & even the photos can be the clone one with the minor modification.

In last year, if the eBayer come to China to sell the products, it could make the better profit due to the lower sourcing cost. And in 2008, it turns to be same as American market where the price drop a lot & hard to survive again.

Some of the China local eBayers are even going the village of China to source the old stuffs to sell now. Since the common products are no longer profitable.

A new business start to be popular in America but never start in China: Coaching

2008-06-02T22:00:00.000-07:00

Coaching, which was a job for the professional sport person to maximize their potential. And the commercial field are also started to involve the coaching where helps the top management to maximize their potential.

In China which is a very new topic, many people are even never heard of it. When people get the problem, they consult from the friend, ask from online forum, they never think that there are existed of the pay service of helping them. What we see about the coaching signal are from the salesman. The salesman like to talk with the people and try to get help to them for building up the trust and the personnel network. And of course, such service from the salesman are for free.

In overall China, almost all people are under learning the skill & update new knowledge. And hard to find the people who demands for advancing the psychological level. People start to get rich, and they will see internally themseleves what they want to upgrade themseleves which will graduately create the demand of the coaching in China.

The Elephant and the Flea: Realizing in China now

2008-06-02T10:47:00.000-07:00

In 2002, a famous forecast was announced by Charles Handy: The Elephant and the Flea. Most of the people still remember that he forecasted that the giant enterprise would cut the "fat" even the government needed to be "slim" by cutting the size. So, none of any people can secure from their job and anyone person would have the chance in the life forcing to create the own business. We see that there are 1.5 million full time eBayer in the world & a lot of the soho.

In China, such situation is even more prosperity especially in the first level cities. For example in ShenZhen, there are more than million of the soho businesses, and half million of the registered small & medium enterprises. When people see any chance of making more money, they quit the job & start their own business. When their business is ended, they look for the job from another city again. Then, set up another soho business to run for few years after learnt the latest skills.

And the there are more and more people left the big state-own-factory due to the "slim" program from the factory, and they are also forced to set up the own business. When we read the news from China, it often make the report that anyone old person successly set up a own small business after left the state-own-factory. As more and more giant size enterprise are publicly-listed, the investors would not like the government needing to concern the social problem, they care only the profit. So, every job cannot be as secure as 10 or 20 years ago.

Hong Kong newspaper industry

2008-06-02T02:04:00.000-07:00

There are many funny situations from Hong Kong newspaper field:

1. The first page of the newspaper are often for the advertising instead of the hot-news.
2. The highest traffic of the reading section are the sauna and massage from China & Macao.
3. The advertiser can have the right to advise the newspaper company to put the suitable news helping to their advertising.
4. Most of the movie star news are from rumor instead of real interview
5. Hacking into the privacy of any movie star are the most welcome topic
6. The reader do not trust the news from the newspaper, however, still read it
7. 80% of the newspaper advertising turnover are from the property developer, bank, loan company and super market.
8. Political news are almost never show in the first page.
9. The photo occupy more space than the text in a newspaper.
10. All newspaper are the color newspaper, no more black & white newspaper

Still think China is mainly export the low-tech? see a mobile phone vidoe may get the latest answer

2008-06-01T02:51:00.001-07:00

In the past 20 years, most of the people have the concept that the China made products are the mass-labor oriented products where involved very low technology value-added. And most of the China enterprise are focusing at OEM where cannot catch up the new development of the new technology demanding.

However, all are changed from the past few years. Most of the global hot demanding product are not just made in China, and the China local enterprise are also started to develop the own hi-tech product. For example, LED lighting, solar energy board, notebook computer and mobile phone.

Especially mobile phone, the latest technology is the multi-touch design when launched from iphone last year. From 2008, it's highly common everywhere in China as well as in the other emerging markets. And when we check from eBay, there are also selling a lot of such multi-touch multimedia mobile phone

The hot service products from China

2008-05-29T00:49:00.000-07:00

There are top 10 excellent service products from China where most of the place in the world do not offer, even so, it cannot be as competitive as China.
1. Foot massage
2. Thai or China traditional style massage
3. Sauna
4. Free MP3 music
5. Fast food chain store
6. Shabu Shabu
7. Mobile phone GPRS (RMB1.00 for 1 time online unlimted bandwidth & time)
8. Free mobile phone contents such as ringtone, logo, wallpaper etc.
9. Wide band internet (2M ADSL cost RMB50 monthly)
10. Local courier express, (RMB10 per 1kg parcel delivied within the same city)

Top 10 most expensive service products in the world:
1. Japense resturtant
2. French resturant
3. Bank service charge for sending TT & currency exchange
4. Property (as compare with the infrasturcture, materials & location)
5. Education (occupy around 1/3 of the family income)
6. Medical (a catching cold medical service can be up to RMB100, 10% or more of general labor's salary)
7. Long distance call (offically, even not allow the public to use the VoIP yet)
8. Paypal commission (5% commisson + hold up 10% of the transaction amount for 6 months)
9 Resort beach hotel
10. Local route airline, even more expensive than Amercia anmd only slightly lower than the international soute

China start to export the inflation after increasing the curreency rate

2008-05-29T00:38:00.000-07:00

In 2005 or 2006, when poeple come to China, they can still felt that everything are quite cheap in China expecially the toys or home appliances products. In the end of 2007, when people come to China again, they saw the price increased at all. It's not just the hardware products, but also the service products such as hotel, travelling, catering etc. And in Europe or America, part of the China made products are started to increase the price, such increasing of the price was never happened in the past 10 years, and it comes now.

In the past 10 years, China base on the scalable mass production & low currency rate to capture the export market and attracted many enteprises to set up their production in China where enhanced the export of China. And due to the too hard of the competition wihtout product differentiation, the price war was kept of happening in China. So, all the consumers from the world can benefit from the China made products especially, the DVD, MP3, MP4, mobile phone accessorires etc.

Sourcing cheap will not be the positioning of the China made products, it will graduately change to be sourcing worth. Since the price of the China made products will steadily increase annually.

China is going to be the world main sourcing origin of the laptop computer

2008-05-29T00:25:00.001-07:00

In 2007, China produced 77.2 million pieces of laptop, as compare with 2004, the total output increased for 180%. In 2001, it expects the annual output to be 156 million pieces & it will occupy the 80% market share of the world laptop supply. The laptop price keep of dropping in the past few years, and currently, the local make laptop is much cheaper than America. It's due to more Taiwanese laptop manufacturers come to China to set up their production line & sell their laptop locally. And owing to the increasing of the China GDP, laptop is no longer a deluxe product for the city people. In part of the famous cities like Beijing, Shanghai & Shenzhen, people even start to own their second laptop or even buy the laptop for their child to start to learn computer.

The famous brands from China laptop is Lenovo, Asus, HP, Dell, Acer, Sony, Samsung, Toshiba, Apple, Benq, Haier. And Lenovo occupy near 50% of the laptop market share in China. It;s because Lenovo know the way of marketing the product in China. Lenovo cut the market into different segments serving the village, first &second grade cities, third & forth grade cities. For the different segment of the market, Lenovo use the different products & selling strategy to promote their product.

In China, the laptop buyer do not care too much about the technical design of the laptop such as Intel Core2, forth edition Centrino etc. All of the success brands are from the focusing of the sales strategy especially Asus, who enter China for only few years, and now, their sales of the laptop rank # 2 in China.
The other brands like Sony, Samsung & Apple are only serving for the small niche market in China. For some of the Japanese brands such as NEC, Fujitsu are left China market already.

In the 2008, the price of the laptop is still under dropping. And the laptop is also one of the highest growth industries in China after the LCD TV, mobile phone.

LCD TV: going to drop the price a lot from 2008

2008-05-28T23:52:00.000-07:00

In 2007, China produced 29.8 million pieces of LCD TV. And 21 million of them are for export market especially to America. In 2008, the demand of the LCD TV start to boom in China, it expects to be 1.3 million pieces on 2008. In the village of China, the LCD TV is one of the farmer's next purchase target. And of course, the price war for the LCD TV is started too.

The international brand Sony & Phlips start to deduct the price of the LCD TV, then, all of the China local brands follow. A 32" inch LCD TV retail at RMB5,300, and a 37" inch LCD TV retail at RMB7,598. For the 40" or 42", it retail at more than 10 thousand RMB.

The new demand on LCD TV since 2008 are not just the slim TV, people expect the higher pixel from 1366 x 768 to be 1920 X 1080, 60Hz upgrade to be 120Hz, not just the HDMI, but also the USB. Since the compeitition is China is very hard now, part of the manufacturers start to set up the own retail chain store for promoting their products to the third or forth level cities. For the main cities, the manufacturers either pay expensive for the local home appliance mall or set up the own online shop for processing the order. The advantage is that, for the online order, the manufacturer delivery door to door & collect the money when the goods arrived buyer's home.

Want to source the digital camera from China? Stop & think again for this product

2008-05-26T09:13:00.000-07:00

The scale of the China digital market costs at RMB20 billion. In 2007, China market absorb 8.5 million pieces of the digital camera, in 2008, China market is going to absorb up to 11 million pieces. And the important is that 80% of the China digital camera market share are owned by 4 Japanese brands, Cannon, Sony, Nikon & Olympics. The other brands like Kodak, Benq, or the local brand like TCL, Legend are under preparing of leaving that market. Right now, only Samsung still want to enter that market. And there is only 1 China local brand remained in the China local market: Patroit.

The Japanese brand can monopoly the China market & even phase out the China local brand due to reduce the price fast & own the core technology of making the good photo. For example, shock prevention, capture face, zoom, capture simile, touch screen, CCD dust free, D/V, 10 million pixel, red eyes prevention etc. And the retail price is only at around RMB1950 for a digital camera with such functions.
For the price war, all Japanese digital camera reduce the price a lot as compare with 2006 & 2007. In 2006, the average retail price of a digital camera is at around RMB3,000. And in 2007, it was only RMB2000.

In 2008, the only opportunity for the China local brand & other foreign enterprise brand to cut into the market will be the DSRL (Digital Single Lens Reflex Camera), the existing market share of DSRL is around 15% in the market, i.e., consumer type digital camera occupy 85% of the market. Currently, the middle class start to demand for a better camera by starting to know more about DSRL. The cheapest price of a DSRL in China is around 4,000RMB - 5,000RMB, and the user prefer to buy a better one at the price level RMB8,000.

the single biggest buying stuffs from China visitor: gambling

2008-05-25T23:04:00.000-07:00

Macau, a special adminstrative region from China, where the population is less than half million, and the GDP is more than USD30,000 since 2007. It's the China Las Vagus where more than half of the conutry revenue are from gambling and the China visitor is the main customer for Macau.

The economic scale of China is only around 10% of America. And the gambling scale of Macau is even bigger than Las Vagus. Just think when China get more rich as well as the bigger economic scale, the casino business will increase too.

A famous casino company, Sands, where their founder had the fortune USD3 billion on 2003. After invested in Macau, his fortune increase to be USD20.3 billion in 2007. Besdies, Macau government can have 15 years absoultly free education for the local people, reduce company tax and personal income tax. Those favous are from the increasing of the gambling industry.

So, for most of the tourist company in the world, there is needed to add one more sight seeing program for the China visitor of visiting their local casion. Such activity are under operating well in the nearby countries from China even the poor country like North Korea, Cambodia, Russia are opening the casino particularly for serving the visitors from China.

The top manufactured product in China on 2007

2008-05-24T07:05:00.001-07:00

1. Mobile phone: 549 million pieces
2. PC: 121 million pieces
3. Digital camera: 74.93 million pieces
4. Integrated circuit: 412 million pieces
5. color TV incl LCD TV: 84.33 million pieces

The forecasting of the hot demanding products in 2008 from China market:
1. Mobile phone especially the mltimedia phone & 3G phone
2. LCD TV
3. TFT display
4. Integrated circuit
5. PC
6. Digital camera
7. STB

The first quarter economic performance of China after the snow disaster on Feburary 2008

2008-05-24T05:56:00.000-07:00

The big snow disaster damaged up to 21 provinces in February 2008, however, the it made just the small influence to the economy of China. the biggest damaged provinces are the agriculture provinces. The other provinces were just slow the traffic of the people activities. For the industrial part, the fatal part of China economy, there were almost no damaged, likely grang dong, jiang su, ji jiang & beijing zone.

The problem finally come out was the increasing of the food price, damaging of the villages and third level cities telecom infrastructures & make China Telecom decreased a lot of the revenue from mobile phone service during the Chinese new year holiday.

From April 2008, the commercial activities from the villages or the third level cities started again. And people spent the money not on the basic needs of the life, but the relative deluxe products, such as LCD TV, PDP TV, PC, multimedia mobile phone etc.

Marketing in China: Not possible of having a product can sell all over China

2008-05-22T09:43:00.000-07:00

There is almost not possible to have a product which can sell all over China. The regional difference is very big in China. Such difference are not just from the GDP, logistic, provincial government policy. It's also due to the ordinary commercial factors. For example, the taste from the customer, their value concept and their emotion about the buying.

Lets say the fasion, the south side of China prefer to the simple & colorful design. The north side of China prefer to classic. The west side of China need to see if the materials is durable first. The east side need it to look like deluxe. The middle side of China do not like the outstanding design, it needs something as ordinary as anyone would have.

For the money concept, the south side of China not so like to show off it, the rich people keep low profile. The east side of China like the show off a lot especially Shanghai, even no money people need to wear the expensive look cloth. The west side of China is still as poor as Africa. The north side of China need to let the people feel they are highly civilized & living at slightly above middle class grade.

China GDP meet USD5,000: The time started to welcome the foreign consumer goods

2008-05-22T09:16:00.000-07:00

As I remember when I was still a boy in the beginning of 80 century, the GDP of Hong Kong was still below USD5,000. Most of the people didn't want to spend money but saved in the bank, didn't buy the deluxe product but use the staffs as cheap as possible, didn't buy the imported stuffs but mainly the Hong Kong local made, it was even due to feel too high class of using the imported stuffs. For drinking the tea, the European black tea or blue mountain coffee was no market in Hong Kong, people prefer the traditional tea, just because cheap & acceptable. In the end of 80 century, the GDP from Hong Kong was over USD5,000, people start to use the branded products. I remember when I was in the secondary school, classmate felt cool of having a Nike shoes, people started to talk about travelling out of Hong Kong.

In fact, in the development orbit of Asian countries, almost all countries have that orbit of changing to buy the imported stuffs after the GDP met USD5,000.
When the GPS meet USD10,000, people even request the government to acclerate the opening of the market for more people & more products come to the market.

The same suitation is happening in China now. Part of the cities such as Shen Zhen, Shanghai, Beijing, Groug Zhou, Tian Jin where their GPD is over USD5,000. People start to buy the French & Italian deluxe fashion, start to drink Pierre, start to use European perfume, take more quality food, start to buy the strong racial fashion accessories. In those cities, the buying power is not just from the industrial demanding, but the consumer demanding.

So, the population from the cities where the GDP met USD5,000 is near 100 million, it means a big buying power for the quality imported consumer stuffs.

The toys wholesales supply for Hong Kong local eBayer

2008-05-22T09:05:00.000-07:00

In few years ago, the selling of the toys via ebay was hot, since the toys come from Hong Kong sell only 1/3 of the American local price, plus the air parcel parcel charge, there was still less than 50% than the American local shops. So, it attract many Hong Kong local eBayer to sell the toys online there.
For the sourcing of the toys, it was from a streent in Hong Kong Wanchai town called Tai Yuen street, which is a hawker centre alike street. There are totally 5 toys shop locating there for retail & wholesales the toys.
Of ocurse, the market is near ended, since most of the American toys shops or online shop or American eBayers reduce the price to be similiar as the Hong Kong eBayers.