Emerging markets will dominate the world's top 5 largest economies in 2020, according to Euromonitor International. In terms of purchasing power parity, the three biggest economies in 2020 will account for about 30 percent of global GDP compared with 23.5 percent in 2012, with the most significant shift in global power expected in 2017 when China will overtake the U.S. to become the largest economy. While growth in emerging markets will mean better standards of living and decline in poverty, the trend will also have significant impact on the global consumer market. Euromonitor expects Brazil to join China as the only emerging markets on the world's list of top 5 consumer markets in 2020.
"Forecast: World’s Largest Economies in 2020", Euromonitor International, May 16, 2013
GLG Life Tech Corp. entered into a strategic collaboration deal with China National Cereals, Oils, and Foodstuff Corp. for the Chinese market. A number of months in the making, the collaboration will focus on developing products that will help promote health food and beverage products and improving the health and welfare of consumers in China. Also, the partners announced that their collaborative efforts will focus on healthier food and beverage products, technology, and investments. GLG said it expects the official letter of intent to be signed the coming weeks, detailing the areas of partnership. China is one of the countries with the largest populations of people with diabetes, with about 90 million diagnosed with the disease and approximately 200 million classified as obese.
"GLG Life Tech Corporation Announces Planned Collaboration With China National Cereals, Oils, and Foodstuff Corporation ("COFCO")", GLOBE NEWSWIRE , May 15, 2013
Wal-Mart said it is still working to optimize its business model in China where the U.S. retailer has about 8 percent share of the retail market. China operations accounted for $10.6 billion of Wal-Mart's $469 billion revenue in 2012, an increase of 15 percent from the previous year, according to IBIS World Inc. Wal-Mart International president Doug McMillon said his company is seeking to gain better locations and layouts compatible with a supercenter format. Although Wal-Mart closed four stores in 2012 and plans to close three more in 2013, it has no plans of leaving the market like what its rivals Best Buy and Home Depot did. Instead, the retailer said it is investing $80 million to remodel 50 stores and build 30 new stores more. Also, Wal-Mart said it will invest $16.3 million to improve food safety measures in China.
"Wal-Mart still working to meet the China challenge", The City Wire Staff , May 14, 2013
Yum! Brands Inc., owner of the KFC fastfood chain, reported that same-store sales in China dropped 29 percent in April 2013. Concerns about the safety of KFC's chicken and the spread of bird flu in China prompted customers to stay away from KFC restaurants. KFC's efforts to offer localized dishes is working against KFC's brand, which is driven by the taste of its friend chicken and which is what made Chinese consumers fell in love with the restaurant chain in the first place. Also, KFC is feeling the pressure from U.S.-based competitors McDonald's Corp. and Burger King Worldwide Inc., which are expanding their China operations. Reports about high levels of antibiotics contained by locally sourced chicken also harmed KFC's sales and profit, which Yum forecast to decline by mid-single digit rate in 2013. In contrast, net income increased 21 percent to $1.6 billion in 2012.
"Yum’s 29% Sales Collapse in China Goes Beyond Avian Flu", Bloomberg News, May 13, 2013
In China, 30 percent of women are occupying senior management positions within companies, according to a survey by Starcom MediaVest Group. Many women, however, are not fairly compensated for their contribution, with their salaries about two-thirds of the salaries of their male counterparts. Results of the survey also found that although many respondents view men as equals, almost 88 percent of women said marriage and having babies make them less equal and limit their career opportunities in the corporate world. Modernization has transformed marriage and motherhood from a vocation into an obligation that limits women's chances for personal fulfillment, according to Starcom MediaVest national research and insights director for Greater China Jeffrey Tan. This perhaps led more than 90 percent of women to agree that marrying the right man, defined as a man with large enough bank balance, is important.
"Career mistresses, and the truth about women holding up half the sky in China", Campaign Asia, April 30, 2013
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South China Morning Post, May 22, 2013
Chr. Hansen , April 18, 2013
China Daily, April 01, 2013
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