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Subject: |
CHINA BUSINESS
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Period: |
June 1, 2013 to July 1, 2013
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Geographies: |
Worldwide
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Categories: |
Comment & Opinion or Companies, Organizations or Consumers or Controversies & Disputes or Deals, M&A, JVs, Licensing or Earnings Release or Finance, Economics, Tax or Innovation & New Ideas or Legal, Legislation, Regulation, Policy or Market News or Marketing & Advertising or Other or People & Personalities or Press Release or Products & Brands or Research, Studies, Advice or Supply Chain or Trends
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Contents
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Carrefour is looking at either partnering with another company or using an IPO to sell shares of its hypermarket business in Taiwan and China to raise cash. The company’s China business – with 220 stores and a 6.9 percent market share – makes it the fourth-largest player in the country, well behind market leader Sun Art Retail Group (13.6 percent). Carrefour is the market leader in Taiwan with 48.1 percent of the market. The dual strategy would establish a basis for an IPO if the company can’t find a partner. Either way – with a cash infusion or a partner – Carrefour would be able to strengthen its Asian business, analysts say.
"Carrefour Explores Sale of Taiwan, China Businesses", Wall Street Journal, June 24, 2013
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Companies, Organizations |
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French retailer Carrefour said it plans to expand its business presence in China by opening stores in 30 new cities in the next three years. While the retailer has been reducing or shutting down its operations in other markets, Carrefour has been aggressively expanding in China and Brazil. In 2012, Carrefour reported operating revenues in China grew 10.8 percent to €5.58 billion; however, at constant exchange rates, like-for-like sales, excluding fuel, dropped 5.1 percent. It is currently operating 220 hypermarkets across 65 cities in the country.
"CHINA: Carrefour eyes 30 new cities for China expansion", Just-food.com, June 20, 2013
PepsiCo’s CEO told a Bloomberg Television interviewer that the company sees “enormous potential” for growth in China for packaged food and beverages. Indra Nooyi said the recent economic slowdown hasn’t put the brakes on PepsiCo’s sales in China. Sales growth has increased from the high single-digit percentage rate to low double-digit rate, an indication that the company is gaining market share from leading competitor Coca-Cola. It won’t be long before China becomes the world’s beverage market, Nooyi said.
"PepsiCo’s Nooyi Bullish on China Even as Growth Slows", Businessweek, June 06, 2013
French dairy company Danone invested €325 million in two business agreements with China Mengniu Dairy Co. Ltd. as part of its efforts to increase its share of China's dairy market. Danone's previous attempts to expand its business in China's €2 billion yoghurt market, which the company expects to more than double in the next five years, have failed. Mengniu also expects to benefit from its deal with Danone, which it expect to help ease local consumers' concerns over quality following the 2008 scandal involving melamine-laced milk in China, which is Danone's fourth-largest market after Russia, France, and the United States. As part of the deal, the companies will form a joint venture between Danone and state-owned food company COFCO, Mengniu's biggest stakeholder.
"Danone hopes to crack China with new dairy deal", Reuters , May 20, 2013
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China Daily, June 26, 2013
Want China Times, June 10, 2013
Procter & Gamble, May 10, 2013
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Consumers |
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Hair-loss drugs from Western companies, including Merck's Propecia and Johnson & Johnson's Rogaine, are becoming popular in China, where luxuriant hair is a sign of health and virility. Sales of hair-loss treatments, most of which come with Rogaine's active ingredient, minoxidil, increased 90 percent to 100.7 million yuan in the five-year period ending in 2012, according to Euromonitor International. Results of a survey of 1,280 balding men in several cities by the China Association of Health Promotion and Education revealed 47 percent of respondents said they had used hair-growth shampoos, visited hair-loss centers, or even resorted to swallowing snake gallbladders. The top hair-loss treatment in China in terms of sales in 2012 was Da Fei Xin, a minoxidil solution from Shanxi Zhendong Pharmaceutical, which accounted for 23 percent of the market.
"Hair-Loss Drugs' Big Growth in China", Bloomberg, June 13, 2013
Johnson & Johnson plans to focus more on China, a market characterized by an expanding middle class and an aging population, according to company chairman and CEO Alex Gorsky. China's middle class could grow from the current 300 million people to as much as 800 million in the next several years, Gorsky added. China's population is also aging, with 9 percent of the population above 65 years. That number is forecast to reach 25 percent in the next 20 or 30 years, J&J's CEO said. China accounted for almost $2.5 billion of Johnson & Johnson's $67.2 billion sales in 2012.
"Johnson & Johnson to serve growing middle class", China Daily, June 07, 2013
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Market News |
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India and China are driving growth in the global men’s grooming market, according to market research firm Kline. Latest data revealed the world market for male grooming is valued at $13.4 billion, growing almost 4 percent, and is forecast to reach $15.5 billion at the manufacturers’ level by 2017. Although Western Europe remains the largest market for men’s grooming products in the world, growth is not as dynamic. In Asia, Japan and South Korea are the most developed markets; however, India and China hold the greatest growth potential, according to Kline.
"Men’s grooming in Asia boosted by developing trends in India and China", Cosmetics Design, June 27, 2013
Tesco China said it will start selling online in the country and will first launch the service in Shanghai. Tesco’s ecommerce strategy will include food, vegetables, fruits, and everyday use products. Planning to use its own logistics system, Tesco will aim to reduce costs by initially covering only the inner regions of the city. Tesco’s move is in response to online operations of other major retailers in the country, including Wal-Mart, Carrefour, and local company NGS Supermarket. Tesco also said its retail stores in the city will deliver products purchase by consumers online.
"Tesco China to start e-commerce in Shanghai", China Daily, June 27, 2013
Campbell Soup Co. said it has agreed to acquire Kelsen Group A/S from private equity firm Maj Invest and other investors. Based in Denmark, the company manufactures baked snacks sold in 85 countries worldwide, with Kjeldsens and Royal Dansk among its major brands. With established distribution networks in Asian, South American, Middle East, and African markets, Kelsen is a market leader in the assortment segment of the sweet biscuits market in Hong Kong and China, where it has been exporting high-end Danish butter cookies for more than 20 years. Campbell Soup plans to operate Kelsen as a standalone Denmark-based company.
"Campbell to Acquire Kelsen Group to Expand Its International Presence and Drive Baked Snacks Growth in China", Campbell Soup, June 17, 2013
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People's Daily , June 26, 2013
Global Times, June 17, 2013
Asia Food Journal, June 13, 2013
The Financialist, June 11, 2013
Wall Street Journal, June 01, 2013
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Marketing & Advertising |
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Neutrogena partnered with location-based social app company Jiepang to launch a marketing campaign featuring Sunshine, a smart photo filter application, in China. Applied to more than 70,000 pictures during its first three weeks in the market, the application adds solar effects to a photograph, according to the time of day it is used. Consumers who use the application can also unlock a virtual badge they can redeem for special discount on Neutrogena products in retail stores and online shops. Also, the photo filter provides information, such as location, temperature, and UV rating, while users share photos, one of the most popular social activities on mobile.
"Neutrogena branded photo filter is applied to more than 70K mobile photos", Mobile Marketer, June 26, 2013
Appconomy launched the Carrefour Smart Shopper mobile application in China. Appconomy expects the app, which combines an indoor location-sensing technology, a user-friendly social-shopping list, and an advertising system that lets retailers engage with customers, to change how consumers in China do their shopping and how retailers and brands interact with their customers. Currently used at selected Carrefour stores in Shanghai, the app's core functions are social shopping list, navigation guide, and promotional information. It will be rolled out across all of Carrefour's stores in the greater Shanghai area.
"Appconomy Launches Carrefour Smart Shopper App in China in a Major Milestone for the Retail Industry", PRWEB , June 20, 2013
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Global Times , June 25, 2013
China Daily, June 22, 2013
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