L'Oréal Survey Shows Most Women In China Believe Makeup Helps Improve Personal Charisma June 25, 2012: 11:47 PM EST About 93 percent of consumers in China said that makeup helps improve personal charisma, while 83 percent agreed that makeup boosts self-confidence, according to an online survey conducted by L'Oréal. Results of the survey also show that about 79 percent of male respondents believe makeup can increase attraction from the opposite sex. Other findings indicate that women are aware of the importance of makeup, with 80 percent of women respondents saying they use makeup on a daily basis, and 37 percent indicating they put on makeup 3–4 times a week. Li Fangfang , "L'Oreal gives makeup a makeover in China", China Daily, June 25, 2012, © China Daily Information Co (CDIC)

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Procter & Gamble's Social Advocacy Efforts Receive Recognition June 6, 2012: 03:33 AM EST Procter & Gamble received the Cause Marketing Golden Halo Award during the 2012 Cause Marketing Forum conference in Chicago, Illinois. The award recognizes the company's various corporate responsibility efforts, including the Children's Safe Drinking Water program, maternal vaccinations, and educational access. China's The Economic Observer newspaper included P&G on its list of the 30 Most Respected Enterprises in China for its "Socially Responsible Enterprises" efforts. "P&G Gains Recognition For Cause Marketing, Social Responsibility, Supplier Excellence", Procter & Gamble, June 06, 2012, © Procter & Gamble

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Unilever, Procter & Gamble Announce Sustainability Updates June 4, 2012: 10:20 PM EST Consumer goods companies Unilever and Procter & Gamble released updates on their respective sustainability programs. Unilever installed waste-water recycling facilities, which can process 1,300 tons of reclaimed water each day, and a biomass furnace designed to help reduce greenhouse gas emissions by 15,000 tons each year at its Hefei industrial park in Central China. For its part, Procter & Gamble announced it aims to achieve 30 percent renewable energy use, replace 25 percent of petroleum-derived raw materials with renewable or recycled materials, reduce packaging by 20 percent per consumer use, and to reduce disposed-of waste to less than 0.5 percent by the end of 2020. Li Woke in Hefei , "Unilever and P&G in drive to develop sustainable production", China Daily, June 04, 2012, © China Daily Information Co (CDIC)

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Chinese Baking Industry Offers Opportunities – And Novel Ideas – For Western Bakers June 1, 2012: 10:44 AM EST British Baker Magazine writer Georgi Gyton discusses insights gained during a recent tour of China’s bakeries, manufacturers and supermarkets, as well as a visit to the Bakery China trade show. It is clear, first of all, that the Chinese bakery market is "vibrant and growing" and offers many opportunities – and ideas – for Western companies. Some observations: Chinese baked goods use wheat flour, rice flour, and other cereals; products may be steamed, boiled, pan-fried, deep-fried, or baked; frozen cakes and desserts are gaining momentum; looks are extremely important: Chinese cakes are beautifully decorated, and breads have seeded toppings and often contain cranberry, cheese or spinach rolls. Georgi Gyton , "The 'face' of Chinese bakery", Bakery Info, June 01, 2012, © William Reed Business Media Ltd

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China's Fast Growing Beauty Market Offers Growth Opportunity For International Cosmetics Companies May 31, 2012: 10:42 PM EST International cosmetics companies, such as L'Oréal and Estee Lauder have expanded their operations in China's fast growing beauty market. Driven by steady economic growth, increasing disposable incomes, and rising demand from a growing middle class, China's beauty and personal care market grew significantly, with the prestige beauty segment growing 21 percent in 2011. Skincare expanded 23 percent, while the makeup market grew 17 percent. L'Oréal, for its part, grew its sales 17–18 percent to exceed €1 billion in sales in 2011. Trefis Team , "Beautifying China Is L'Oreal And Estee Lauder's Big Opportunity", Trefis, May 31, 2012, © Forbes.com LLC

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Euromonitor Reports Economic Slowdown Affecting Consumer Behavior, Companies' Marketing Strategies May 31, 2012: 02:29 AM EST Nestlé Philippines said 40 percent of its products are sold in sachets in more than 90 percent of retail stores in the country, a strategy followed by other fast moving consumer goods manufacturers and some financial companies, according to the Euromonitor International's global consumer tracker. Results of the study also revealed that 15 percent of Croatians frequently travel to a neighboring country to buy groceries; more Norwegians, an increase of 9 percent from 2010, bought their groceries in Sweden in 2011. In Chile, distributor Ditec sold 330 Porsche sports cars in 2011, as the country's economy continued showing impressive growth. The company expects to sell 370 units of Porsche cars in 2012. Daphne Kasriel-Alexander, Consumers Editor, "Recession: Shifting Consumer Responses – May 2012", Euromonitor International, May 31, 2012, © Euromonitor International

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Procter & Gamble Says It Will Focus on Core, Most Profitable Businesses May 23, 2012: 03:29 AM EST Procter & Gamble Co. said it will first ensure the stability of its most profitable product lines, which are mainly in North America and China and account for about 50 percent of the company's sales, before investing to expand its business operations in emerging markets. The move, which was announced by P&G chief financial officer Jon Moeller, who also admitted the company might have focused too much on expansion and gaining market share, seems to be in response to investors' call on management to focus more on core business lines.   Paul Ziobro, "P&G to focus on stabilizing core businesses", MarketWatch , May 23, 2012, © MarketWatch, Inc

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Increasingly Westernized Diets In China And Japan Create Demand For British Food Products May 20, 2012: 10:30 AM EST The traditional Chinese breakfast of fried rice is gradually being replaced by processed cereals, as the diets of middle class Asian families become increasingly Westernized. U.K. companies are also shipping baked beans, mushroom soup, tea, jam and biscuits. British food retailer Tesco has 100 stores in China, which is now the number one grocery shopping country in the world. Marks & Spencer reports strong demand in China for frozen salmon and cod fillets, ready-made frozen curries, chocolate-chip cookies and porridge oats. Waitrose reports sizeable demand for British specialties like tea, cereals, jam and biscuits in Japan. Sean Poulter, "China hungers for our food: Firms cash in as middle-class families demand British meals", Daily Mail, May 20, 2012, © Associated Newspapers Ltd

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Cosmetics Brands From US And France Dominate Asian Beauty Market May 18, 2012: 03:38 AM EST Brands from the United States and France are dominating the Asian cosmetics market, according to GDM Group USA CEO Judith Higgins and her partner Chris Han. The marketing specialists said that online sales and the use of celebrity endorsers are the most effective means of building up new brands in the market. Total sales of cosmetics in China are expected to reach RMB 220 billion, or $34.7 billion, by 2015. Higgins and Han said that in communicating with Asian consumers, cosmetics companies should make their target audience feel important. For example, L'Oréal used the slogan "Because You're Worth It." Katie Nichol , "Asian beauty market dominated by brands from France, says expert ", Cosmetics Design, May 18, 2012, © William Reed Business Media SAS

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Snack Makers Tweak Product Formulas To Satisfy World Tastes May 6, 2012: 09:59 AM EST With snack food sales essentially stagnant in the U.S. for the past two years, manufacturers are marketing their products -- some with slightly different formulas -- overseas. The timing is right, because busy people in developing countries like China and India are acquiring a taste for “on-the-go” American snacks. But there's a slight problem with the strategy: the flavors of snacks like Oreos and Lay’s potato chips have had to be tweaked to suit regional tastes. For example, Kraft fiddled with the Oreo recipe when it learned that the Chinese don't like treats as big or as sweet as Americans do. The result is an Oreo cookie that is a little smaller and a bit less sweet. "“Crab” Chips, Fruity Oreos? They’re Big Overseas", Time, May 06, 2012, via Associated Press, © The Associated Press

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Procter & Gamble Refutes Online Allegations Against Crest Toothpaste In China May 3, 2012: 12:23 AM EST Procter & Gamble refuted online allegations made by some Chinese consumers that its Crest toothpaste sold in China is made of industrial wastes and does not contain fluoride. A complaint posted by a Hong Kong resident became popular online and has been reposted more than 35,000 times, generating more than 5,000 comments. P&G posted a report by the quality testing center for toothpastes showing that Crest toothpastes had passed tests conducted in October 2011 and met national standards requiring fluoride toothpastes to contain 0.05–0.15 percent of fluoride. Hu Min, "No Crest for toothpaste amid unfavorable online allegations", People’s Daily Online, May 03, 2012, via Shanghai Daily, © Shanghai Daily Publishing House

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Unilever Poised To Grow China Business Fivefold By 2020 April 28, 2012: 02:56 AM EST Unilever North Asia president Alan Jope said his company will certainly grow fivefold its business in China by 2020 and that it will grow 50 percent faster than the industry average. Two years ago, Unilever said it targets to grow its annual sales in China to 50 billion yuan, or US$7.9 billion, by 2020. Unilever, which opened a US$29 million toothpaste factory at its industrial park in Anhui Province, said business growth will come mostly from current brands and products and that it will maintain cost-cutting measures across its China factories and work on products with higher margins. Ding Yining, "Unilever China confident of fivefold growth by 2020", Shanghai Daily, April 28, 2012, © Shanghai Daily Publishing House

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Senior Avon Executive Leaves Company Amid U.S. Probe Into Alleged Bribery In China April 26, 2012: 12:56 AM EST Avon Products Inc. group vice president Kerry Carr resigned her job in connection with the probe by the U.S. Department of Justice and the U.S. Securities and Exchange Commission into possible violations by the company of the Foreign Corrupt Practices Act, which prohibits American companies from bribing foreign government officials. U.S. prosecutors are focusing on a September 2005 internal audit report by the company, which found Avon employees may have been bribing Chinese officials. JOE PALAZZOLO And EMILY GLAZER, "Another Avon Executive Resigns Amid Bribery Probe", Wall Street Journal, April 26, 2012, © Dow Jones & Company, Inc

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Prestige Beauty Market In China Posts Robust Growth In 2011 April 26, 2012: 01:40 AM EST China's prestige beauty market grew 21 percent in 2011 from 2010 levels, according to a market research conducted by The NPD Group, Inc. Skincare grew 23 percent, with all segments posting steady growth, while the makeup market expanded 17 percent. Anti-aging products accounted for half of total sales in the skincare category, achieving almost 27 percent in growth during the period. "NPD Reports on Prestige Beauty Industry in China", NPD, April 26, 2012, © The NPD Group, Inc.

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Procter & Gamble Among China's Greenest Companies April 25, 2012: 01:45 AM EST Procter & Gamble is among companies included in China's Top 100 Green Companies, a list of enterprises honored for their sustainable business operations in the country. The list, prepared by the China Entrepreneur Club in partnership with Daonong Center for Enterprise and the Green Herald Magazine, considers how companies "blend  the right values into their business models;" remain true to business ethics and bottom line while "living in harmony with men, society, and nature; and face with resolve problems that impede sustainable development in their industries. "China's Top 100 Green Companies 2012 Unveiled", PR Newswire, April 25, 2012, © PR Newswire Association LLC

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Wal-Mart Criticized For Its Failure To Live Up To Its Sustainability Promises April 25, 2012: 01:36 AM EST Wal-Mart has failed to live up to its global sustainability objectives — 100 percent renewable energy, zero waste, and stocking only products that are sustainably manufactured and environment-friendly, according to some environmentalists and market analysts. Wal-Mart's lack of control over its suppliers in the Far East has prevented the retailer from improving sustainability of its supply chain. In China, for example, almost four-fifths of Wal-Mart's suppliers source more than 50 percent of their merchandise from shadow factories. Worse, some China suppliers are suspected of doing business with some of the forced labor camps in the country. Heide B. Malhotra, "Wal-Mart’s Environmental Sustainability Promise: Rhetoric or realistic?", The Epoch Times , April 25, 2012, © The Epoch Times

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Nestlé Buys Pfizer Nutrition; Deal Expands Presence In China, Other Emerging Markets April 23, 2012: 06:07 AM EST Switzerland's Nestlé agreed to buy Pfizer Nutrition, the baby food business of United States pharmaceutical company Pfizer, beating French rival Danone in the process. Nestlé will pay almost 20 times Pfizer Nutrition's earnings forecast for 2012, causing shares of the Swiss food group to fall 2.5 percent after the purchase deal was announced. The deal, however, gives Nestlé ownership of a business with high exposure in emerging markets, with China, for example, becoming the third largest market for Nestlé overall. Emma Thomasson and Martin de Sa'Pinto, "Nestle wins pricey battle for Pfizer baby food unit", Reuters, April 23, 2012, © Thomson Reuters

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Online Cosmetics Sales Exploding In China, Marketers Embracing Ecommerce April 23, 2012: 02:24 AM EST Online sales of beauty care products in China have been expanding 200 percent annually since 2006 and are estimated to have reached $8 billion in retail sales in 2011, according to the report "Beauty Retailing Through Direct Sales in Emerging Markets 2011: Channel Analysis and Opportunities," issued by market research firm Kline & Company. Speedy expansion of Internet use and emergence of online cosmetics stores are driving the growth of the online cosmetics retail, which in turn encouraged marketers to adopt ecommerce as part of their overall marketing strategy. "Online Beauty Sales Slated to Top $20 Billion in China by 2016, Reports Kline", Kline Group, April 23, 2012, © Kline & Company

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Vanity, Peer Pressure Driving Expansion In The Male Personal Care Market In China April 19, 2012: 10:05 PM EST Professional and peer pressure, desire to enhance one's stature, and vanity are some of the factors driving growth in the men's personal care and cosmetics market in China. The country's male skincare market, currently valued at around $1 billion, attracted the world's leading manufacturers of personal care products to introduce or increase their product lines for male consumers, who, data show, accounted for most luxury-goods purchases. "When Marketing To China’s Male Consumers, Don’t Discount Peer Pressure & Vanity", Jing Daily, April 19, 2012, © JINGDAILY

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Unilever's Lynx Body Spray Grabs Lead In Men's Deodorant Market In China April 19, 2012: 03:07 AM EST Unilever launched its Lynx brand of body spray and shower cream for men in China. A marketing campaign, which incorporated the Lynx Mating Bible highlighting what the company calls the effects of Lynx products in attracting girls, as well as TV and outdoor ads, has enabled the company to make its Lynx Body Spray the country's number 1 male deodorant brand and Lynx Shower Cream the number 2 male shower cream brand. "LYNX BRAND LAUNCH", Cream Global, April 19, 2012, © C Squared Holdings Ltd.

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Men's Growing Vanity Drives Market Growth For Men's Skincare in China April 16, 2012: 03:07 AM EST China's market for men's skincare products has seen explosive growth in the past five years, reaching almost $1 billion in retail sales value. Driven by growing vanity and desire for individuality among men, the growing market has encouraged manufacturers to introduce designed-for-men brands, such as Olay Men Solutions from Procter & Gamble, L'Oréal Men Expert, Nivea for Men, and Mentholatum. Marketers' key targets are male consumers who are mostly young, rich urbanites, career-focused, and searching for social success, according to Kantar Worldpanel. Normandy Madden , "P&G, Luxury Marketers Benefit From Male Vanity in China", Advertising Age, April 16, 2012, © Crain Communications

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As China’s Diet Changes, Grocery Sales Surge April 3, 2012: 02:24 AM EST Food industry analysts IGD report that the Chinese grocery sector is now the world leader at $970 billion, pushing the U.S. market ($913.5 billion) into the No. 2 spot for the first time. The grocery spending gap is likely to widen even more by 2015. The growth will occur despite a significant slowdown in China’s economy as the country’s diet moves beyond rice and pork to include dairy products, wheat, grains, and white and red meats. Increased demand for these products in China has led to price hikes around the globe. IGD also expects that Brazil, Russia, India, and China (the BRIC countries) will comprise four of the top five grocery markets in the world by 2015. Catherine Boyle, "China Becomes World’s Biggest Grocery Market", CNBC.com, April 03, 2012, © CNBC.com

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Procter & Gamble To Expand In China, Emerging Markets March 30, 2012: 03:24 AM EST Procter & Gamble announced expansion plans in China and emerging markets that could mean more problems for its largest rival Unilever. P&G began constructing a new factory in Guangzhou, China, and unveiled plans to cut costs by $10 billion by 2016. Also, the company plans to build 20 manufacturing facilities in Brazil, China, and Eastern Europe by 2015. "Procter & Gamble Has Big Plans For China And Emerging Markets Growth", Trefis, March 30, 2012, © Trefis

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Alliance Boots Announces Plan To Expand Presence In Asia March 30, 2012: 02:35 AM EST UK-based pharmacy and beauty retail chain Alliance Boots announced its expansion plans in Asia for the next five years. Prevented from acquiring more companies in UK and Europe by the European Union's anti-trust rules, the company has shifted its focus on the Asian market currently limited to Thailand, where the company recently opened its 200th store, and China, which recently revised its rule prohibiting foreign retailers from owning more than 30 stores to allow more foreign investment. "Boots on the ground in Asian beauty expansion scheme", Bangkok Post, March 30, 2012, © The Post Publishing PCL

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Procter & Gamble Cuts Costs, Shifts Focus To Emerging Markets March 21, 2012: 03:04 AM EST Procter & Gamble said it plans to invest all money to be saved from its recently announced $10 billion cost-cutting plan in emerging markets, such as China and India, to close the gap with long-time competitor Unilever in these countries. After cutting about 5,700 jobs elsewhere, P&G plans to increase hiring in India and China, build more factories, and expand its distribution networks in developing countries. Kala Vijayraghavan & Sagar Malviya, "Procter & Gamble directs cost savings from sluggish developed economies into markets like India", Economic Times, March 21, 2012, © Times Internet Limited

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Procter & Gamble Builds New Factory In China, One Of The Largest In Asia March 16, 2012: 02:29 AM EST Procter & Gamble began building its new factory in Guangzhou, China, one of the largest manufacturing plants in Asia. Part of the company's $1 billion investment in China for implementation by 2015, the plant will be built in three stages, with the first stage to be completed in the second half of 2013, and will manufacture baby care products, including Pampers diapers. Li Woke, "P&G expanding in China", China Daily, March 16, 2012, © China Daily Information Co (CDIC)

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China Cosmetics Company Seeks Overturn Of Lower Court's Copyright Infringement Ruling March 14, 2012: 02:31 AM EST Guangzhou Shiqi Cosmetics Co. Ltd. filed an appeal with the Beijing High People's Court to annul the Beijing Number 2 Intermediate People's Court's ruling that the cosmetics company's ZMShike trademark violates the copyright of Smith Kline & French Laboratories, a subsidiary of GlaxoSmithKline. Shiqi Cosmetics denies the allegation although the ZMShike trademark uses the same Chinese characters and is pronounced the same way as SK&F. Zhang Zhao , "Cosmetic company appeals toothpaste trademark ruling", China Daily, March 14, 2012, © China Daily Information Co (CDIC)

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Avon Disputes PETA's Animal-Testing Allegations March 13, 2012: 02:10 AM EST Following a lawsuit that alleges that Avon, Estee Lauder, and Mary Kay “purposely defrauded consumers by falsely claiming that their products were ‘cruelty free’ while undertaking animal testing in order to sell their products in China and reap hundreds of millions of dollars in Chinese sales”, Avon defended its position. The company claimed that for over twenty years it has been committed to not testing on animals ‘except where required by local law’ and that that some governments require the company to perform additional product safety tests. Michelle Yeomans , "Avon as transparent as a "black blanket,” says PETA VP in response to misleading China animal testing policy", Cosmetics Design, March 13, 2012, © William Reed Business Media SAS

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Women’s Attitudes Toward Beauty Products Are Changing Globally March 8, 2012: 04:11 AM EST A 15-country study of beauty trends by McCann WorldGroup finds that as beauty standards continue to rise, women are demanding more of their beauty products. For example, they want products that are multitasking, harder working and provide greater value – mascara, for example, that also curls lashes. In addition, women want manufacturers to offer a range of products that work together, rather than just standalones. And the study shows that attitudes toward beauty products among women in emerging markets – China, Brazil and India – are markedly different from those of women in mature markets, such as the U.K., U.S., Germany and France. MaryLou Costa, "Women want cosmetic brands to work harder", Marketing Week, March 08, 2012, © Centaur Media plc

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Foreign Brands Battle With Local Manufacturers In China's Luxury Market February 27, 2012: 01:53 AM EST International brands, such as L'Oreal and Gucci, have to compete with Shanghai Jahwa United Co. and other local manufacturers in the $33.7-billion luxury market in China. Previously associated with producing cheap counterfeits, China's consumer brands are shifting their attention to the high-end market, which is driven by increased consumer wealth, a growing middle class, and overall economic growth. "China Luxury Pits L’Oreal Against Chiang Kai-Shek Kin: Retail", Bloomberg , February 27, 2012, © Bloomberg L.P.

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Emerging Markets Will Be Major Source Of Revenue For Large Businesses February 20, 2012: 02:00 AM EST Unilever chief operating officer Harish Manwani said multi-national companies must be flexible enough to manage challenges posed by the need to balance inflation and growth in emerging markets, which are also affected by the global economic slowdown. He added that emerging markets will account for up to 70 percent of Unilever’s business and revenue. Sudeshna Sen, "70% of our business will come from developing markets: Harish Manwani, Unilever", Economic Times, February 20, 2012, © Times Internet Limited

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Germany, Italy Lead Europe In Purchases Of Fine Fabric Detergents February 15, 2012: 03:13 AM EST Euromonitor research has found that while fine fabric detergent sales in Germany and Italy slid by 2.5 percent  in 2011, spending in those two countries still remains above the Western European average. The main reasons seem to be the high disposable incomes and continued popularity of designer label clothing. Fine fabric detergents accounted for nine percent (Germany) and 11 percent (Italy) of total laundry value spend in 2011. The Western European average is only six percent. Looking to the future, Euromonitor said fine fabric detergent providers should be paying close attention to the market opportunities emerging in rapidly-growing economies like China and India. Lee Peart, "High Fashion Fuels Fine Fabric Detergent Demand in Germany and Italy", Euromonitor International, February 15, 2012, © Euromonitor International

Domains China Business Focus Areas Sectors Personal Care Marketing Geographies Worldwide EMEA Europe Germany Italy

International FMCG Retailers In A Tough Battle For Market Share With Locals February 15, 2012: 03:10 AM EST Chinese shoppers who are buying more premium products and expanding their overall consumption of fast moving consumer goods (FMCG) contributed to an 18 percent growth in FMCG value in China in 2011, though the primary driver was inflation, according top researcher Kantar Worldpanel. The big winner during the last quarter of 2011, in terms of market share, was Walmart, which now claims 7.8 percent of the Chinese FMCG market. Other top retailers, meanwhile, are struggling, either remaining level or losing share, as Carrefour did. It’s a tough battle for international retailers, who are enduring considerable competitive pressure from China’s local retailers, who are dominant outside of the four key cities: Shanghai, Beijing, Guangzhou and Chengdu. "China: International FMCG retailers in China reporting mixed performance in 2011 as local players fight back", Kantar Worldpanel, February 15, 2012, © Kantar

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Surging Spending By China’s Online Shoppers Presents A Huge Opportunity November 10, 2011: 03:27 AM EST Online spending by Chinese consumers will soar over the next five years, but marketers looking to take advantage of the trend will need an active, targeted online strategy that accounts for the unique behaviors, demands, and challenges, according to the Boston Consulting Group, which conducted a survey among 4,000 online shoppers. Two key drivers – rising personal incomes and comfort with online shopping – are fueling the projected spending increase. According to BCG, China’s 145 million e-shoppers aren’t just looking for bargains, they are searching for unique products and “an engaging online experience.” China’s e-commerce market could reach RMB 2 trillion ($315 billion) by 2015. Nearly half of China’s urban consumers – accounting for about 80 percent of the country’s GDP – will be shopping both on- and offline within the next five years. Jeff Walters et al., "Selling to China’s E-Shoppers", Report, Boston Consulting Group , November 10, 2011, © The Boston Consulting Group

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Unable To Control Product Sourcing In China, Walmart Pays A Heavy Price October 20, 2011: 02:38 AM EST Walmart has found itself embroiled in a controversy resulting from China’s efforts to improve food safety standards after several recent scandals. Walmart stores in southwest Chinese city Chongqing were caught selling ordinary pork mislabeled as organic. Thirteen stores were closed for two weeks and two store managers were arrested.The CEO of its Chinese unit and a top human resources executive resigned for “personal reasons.” The controversy comes at a bad time for Walmart, which is relying on the Chinese market to help make up for inadequate sales growth in mature markets. Part of the problem stems from the fact that Walmart has been unable to centralize source decisions because of a lack of relationships with local companies and the local government, according to the Financial Times. Rahul Jacob, Patti Waldmeir and Barney Jopson, "Walmart presents irresistible target in China", Financial Times, October 20, 2011, © The Financial Times Limited

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PepsiCo To Work With China On Developing Sustainable, Modernized Agriculture September 19, 2011: 08:57 AM EST PepsiCo has launched an initiative with the People’s Republic of China to promote sustainable agriculture projects and accelerate the development of the Chinese countryside. The company will work with China’s Ministry of Agriculture to build and operate demonstration farms that apply advanced irrigation, fertilization and crop management techniques. According to PepsiCo, they will also promote best practices in China's farming system to improve yields, increase income levels and raise living standards for farmers throughout the country. The partnership underscores the company's support for China's 12th Five-Year Plan, which establishes objectives for developing sustainable agriculture and speeding up agricultural modernization. "PepsiCo to Partner with China's Ministry of Agriculture to Promote Sustainable Farming", Press release, PepsiCo, September 19, 2011, © PepsiCo

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Chinese Company Expands Facilities To Ramp Up Organic Food Production September 19, 2011: 08:45 AM EST Chinese food and beverage company Nutrastar International said it plans to significantly expand its organic and specialty food consumer products business over the next year and a half. Production capacity expansion will total 890,000 square meters on the existing production grounds. The company said it will add hundreds of greenhouses with an annual projected organic production capacity of 6.5 million kg. The company’s current consumer product businesses include a specialty mushroom line and several beverage lines. The company is taking advantage of local government initiatives – sparked by China’s food safety problems – that provide financial support through subsidies to organic and green producers. "Company Plans to Increase Organic and Specialty Food Product Offerings by 2012", Press Release, Nutrastar International, September 19, 2011, © Nutrastar International Inc.

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China’s Interest In Nutricosmetics Sparks Strong Sales Growth September 1, 2011: 03:34 AM EST Though nutricosmetics haven’t caught on in other parts of the world, market data from Datamonitor show high per capita spending in Asia, particularly in Japan. Nutricosmetics sales are  growing especially strongly in China, which is  expected to overtake Japan by 2015, according to market researcher Frost & Sullivan. Driving the phenomenon in China are rising disposable incomes, increased concerns about beauty, and strong cultural acceptance of the beauty-from-within concept, thanks to centuries of use of herbs and plants to cure beauty-related problems. In this report, Happi.com outlines nutricosmetics market opportunities for both established companies and new entrants in the Asian region. "Nutricosmetics More Than a Niche in China", Happi.com, September 01, 2011, © Rodman Publishing / HAPPI

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Concern Over Pesticide Use, Water Pollution Supplants Worry Over Climate Issues – Nielsen August 31, 2011: 04:29 AM EST A Nielsen survey of more than 25,000 Internet respondents in 51 countries finds that environmental concerns have displaced global warming and climate change as the top concerns of consumers, perhaps due to a drop in media attention. Key issues that have online consumers on edge are air and water pollution, water shortages, packaging waste and use of pesticides. Sixty-nine percent of consumers still say they worry about climate change/global warming (down from 72 percent in 2007). But 75 percent rated air pollution and water pollution as top concerns, both increasing six percentage points compared to 2009, according to Nielsen. Concern is mounting fastest over the use of pesticides, packaging waste and water shortages, with reported concern increasing 16, 14 and 13 percentage points, respectively. "Sustainable Efforts & Environmental Concerns", Nielsenwire, August 31, 2011, © The Nielsen Company

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Carrefour Posts Half-Year Drop In Profit August 31, 2011: 03:09 AM EST French retail chain Carrefour reported a 2.3 percent increase in sales in the first half of 2011 to €39.6 billion ($56.3 billion), but a drop in profit of €927 million ($1.3 billion), compared to a profit of €14 million a year ago. The company attributed the drop in profit to “unsatisfactory performance” in France and a “tough environment” in Europe. Weak sales and unsatisfactory profit performance were the key problems in France, along with underperformance in Italy and Greece. Latin America, however, experienced solid growth in sales, and included an “encouraging turnaround” in Brazilian hypermarkets. The company also reported good growth in China and a confirmed recovery in Taiwan. "Carrefour H1 2011 Results", Press release, Carrefour, August 31, 2011, © Carrefour

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Walmart Expands Presence In China's Smaller Cities August 25, 2011: 04:25 AM EST After growing from 70 stores in 2007 to more than 300 stores in 2011 Walmart said it will focus its China business on smaller cities and online opportunities, both areas where the company sees faster growth opportunities.  Walmart’s plans include opening supermarkets and Sam's Club warehouse markets in the country. China currently accounts for less than 10 percent of Walmart's revenue outside the United States although the market is expected to quickly grow in sophistication and size; sales revenue in China's retail sector is forecast to grow 14.5 percent annually to reach $5 trillion in 2016, according to Bloomberg News. Li Woke , "Walmart China has big plans in small cities", China Daily, August 25, 2011, © China Daily Information Co (CDIC)

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Estee Lauder Expands Presence In China, Launches Online Outlets August 22, 2011: 10:59 PM EST Estee Lauder plans to open more retail outlets in China, adding five more cities to the 38 it currently has. It also indicated it will launch ecommerce channels in the country which is now the world's third-largest market for cosmetics and toiletries.  Estee Lauder's sales grew 13 percent in 2010, with China accounting for a large part of the jump in sales. Chinese consumers no longer look at cosmetics as luxury items are and increasingly are able to purchase a wide range of products in the country rather than overseas. The market is increasingly competitive and other cosmetics companies are expected to follow Estee Lauder's move.   "Estee Lauder expands China's cosmetics universe", Independent, August 22, 2011, © independent.co.uk

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BRIC Luxury Market Poised For Further Growth, Consumers Willing To Spend On Premium Products August 22, 2011: 04:42 AM EST A study by the Future Foundation shows that consumers in Brazil, Russia, India, and China (BRIC) are looking to spend their money on luxury brands. While on a small proportion of the population in these countries can afford luxury brands from Europe and the United States, demand remains strong. More than 50 percent of affluent consumers in India enjoy talking about the fashions they have purchased; 50 percent of urban Chinese said they will buy more designer clothes and accessories should their income increase and over half of Brazilian women said they would spend new income on luxury cosmetics brands.  James Murphy, "Luxury BRIC by BRIC: the most unstoppable market in the world?", Brand Republic, August 22, 2011, via Future Foundation, © Haymarket Business Media

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Coca-Cola And Partners Invest US$4 Billion More In China August 18, 2011: 07:21 PM EST Coca-Cola Company and bottling partners Swire Beverages Ltd. and COFCO Coca-Cola Beverage Co., Ltd. plan to invest US$4 billion in China over the next three years from 2012. The companies aim to enhance the sustainability of their operations in China and will have invested more than $3 billion in the country for the last three years, by the end of 2011, with total investments reaching $7 billion in 2009-2014. Coca-Cola's sales grew 6 percent worldwide, according to its second quarter 2011 financial results. China accounts for 7 percent of the global volume of Coca-Cola, which now operates more than 40 plants in the largest and fastest-growing consumer market. "Coca-Cola Invests US$4 Billion for Long-Term Sustainable Growth in China", Coca-Cola, August 18, 2011, © The Coca-Cola Company

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Nestlé Looking To Boost Share Of China’s Infant Nutrition Market Through Acquisitions August 9, 2011: 08:03 AM EST Bloomberg News reports that Nestlé SA may be looking to significantly increase its share of  China’s infant nutrition market by acquiring U.K. infant formula maker SMA Nutrition. Citing market analysts, Bloomberg says a purchase of SMA would boost the Swiss company to No. 3 from No. 6 in the market, and would result in cost savings of as much as 10 percent of the unit’s sales. Analysts say Nestlé may be preparing a bid for the baby food unit of Pfizer Inc., which last month said it was considering selling or spinning off its nutrition business. “China is the single most attractive baby food market and [Nestlé] has been losing share there,” a Euromonitor analyst said. “It’s a priority for them.” Dermot Doherty, "Nestlé May Aim to Rebuild in Chinese Baby Food With Pfizer Unit", Bloomberg News, August 09, 2011, © Bloomberg LP

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Inflation, Higher Labor Costs In China Won’t Have Much Effect On U.S. Prices – Study August 8, 2011: 01:53 AM EST Inflation and labor cost increases in China are not likely to have much impact on U.S. consumer prices, according to economists at the Federal Reserve Board (San Francisco), despite the record trade deficit the U.S. is running with that country. They found that goods and services from China accounted for only 2.7 percent of personal consumption spending by Americans in 2010. Less than half of that represented the actual costs of Chinese imports. The authors say that even when the imported content of goods made in the U.S. is taken into account, imports from China account for only a small part of total U.S. consumer spending. In fact, 55 cents of every dollar spent on an item labeled “Made in China” goes for services produced in the U.S. Galina Hale and Bart Hobijn, "The U.S. Content of “Made in China”", Federal Reserve Bank of San Francisco, August 08, 2011, © Federal Reserve Bank of San Francisco

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Herbalife To Build Production Plants, Manufacture Products In-House August 3, 2011: 08:32 PM EST Herbalife plans to increase its manufacturing operations in order to make more products in-house and also either boost margins or reduce prices. The company is looking at Brazil, India, and Eastern Europe have emerged as possible sites for the planned factories which forms part of its effort to produce 80% of its products in-house by the end of the decade. Herbalife is doing well direct-selling its supplements: revenue grew 27.7 percent to $879.65 million in the quarter ending June 30. and it aims to triple sales by 2020 by expanding its presence in emerging markets and enhancing distribution in mature markets. Sales dropped slightly in China as it transitioned to a daily consumption model, but surged 121 percent in India, while Mexico and Asia Pacific saw double-digit growth rates.  Elaine Watson, "Herbalife to expand manufacturing footprint", NutraIngredientsUSA, August 03, 2011, © William Reed Business Media SAS

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Consumer Research And Targeted Marketing Help Western Consumer Goods Companies Flourish In Russia August 3, 2011: 12:08 AM EST Western consumer packaged goods companies are investing in consumer research to adapt their marketing campaigns to local conditions in Russia. Reckitt Benckiser spends around 12 percent of its $440 million revenue from the former Soviet countries on consumer research and marketing, an investment that helped the company launch a successful advertising campaign for its Calgonit dishwasher tablets after research found that Russian women spend inordinate amounts of time on washing dishes because dishwashers are not common in Russian homes. The company also found success in marketing its Clearasil anti-acne treatment although Russian teenagers had been using soap and water until ten years ago. Unilever signed up Russian celebrity Vera Brezhneva to endorse its Rexona deodorant after research showed majority of Russian women viewed her as their ideal of a perfect woman. Khristina Narizhnaya, "Consumer Companies Teach Western Ways to Russians", The St. Petersburg Times, August 03, 2011, © The St. Petersburg Times

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GLG Launches Subsidiary To Exploit International Stevia Market Opportunities July 26, 2011: 12:07 AM EST Stevia developer GLG Life Tech Corporation has created a subsidiary to provide naturally sweetened zero and reduced calorie food and beverage formulations to customers outside mainland China. AN0C Stevia Solutions Company’s product lines will include natural sweeteners, natural flavors and natural colors in zero or low calorie beverage and food products. AN0C Stevia Solutions will focus on customer opportunities internationally; AN0C Anhui will focus on opportunities in China, Taiwan and Hong Kong. AN0C Stevia Solutions is also developing customer opportunities in the Middle East and India. "GLG Launches Subsidiary To Exploit International Stevia Market Opportunities", Press release, GLG Life Tech Corp, July 26, 2011, © GLG Life Tech Corp

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Average Prices Of Luxury Products In China Rose 7.7 Percent July 26, 2011: 03:00 AM EST Average prices of luxury consumer goods in China rose 7.7 percent in 2011, according to the Hurun Report magazine reflecting rising demand, import duties and foriegn exchange movements. Prices of yachts and of renting private aircraft increased the most, up 20 percent, while prices of accessories and cosmetic products rose 16 percent. Foriegn exchange movements has caused some companies to increase prices: since May the euro is up nearly 12 percent against the yuan while the Swiss franc is up nearly 29 percent. L'Oreal and Estee Lauder cited exchange rates and rising costs for their decision to raise prices of their high-end cosmetics by 8 to 20 percent. "Luxuries cost nearly 8% more", China.org.cn, July 26, 2011, © China.org.cn

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