mardi 24 septembre 2013

Apartment Market in China 2013

Apartment Market in China 2013

The real estate market in China underwent a strong evolution during the past two years, and 2013 is basically the continuation of this trend. The important news is that the governement seems capable of controlling the price increase and that the 20% or 30% rates of annual growth both for rents and property prices belong to the past. These growth rates alarmed the world for fear of a property price bubble – the largest ever – in China and the authorities have taken strong measuares to control the real estate market.

The market has therefore eveolved a lot in a short time span, from price increase frenzy to moderate growth. This evolution reflects the general situation of China's economy. The definitive figures for 2013 are of course unavailable, but some reliable prospective can be established.


A contrasted situation

The price growth in Chinese large cities is quite different.

Residential rents growth in Continental China's cities :

Beijing 2012 : 21,1%
Beijing 2013 : 12,3%

Shanghai 2012 : 1%
Shanghai 2013 : 1%

Guangzhou 2012 : 10%
Guangzhou 2013 : 8%

Capital values growth of real estate properties :

Beijing 2012 : 26,1%
Beijing 2013 : 16,7%

Shanghai 2012 : 3%
Shanghai 2013 : 3%

Guangzhou 2012 : 3%
Guangzhou 2013 : 5%

 Apartment and authorithies

This illustrates the success of authorities action in some Chinese large cities, especially in Shanghai. The rents are clearly under control and it seems that this new policy can be understood within a larger scheme of developing Shanghai's neighboring countries such as Suzhou and Hangzhou, which are now among the fastest growing cities of China. Regarding Guangzhou and the Pearl River Delta, the prices are under control there as well.

Regarding Beijing, the figures are bad from the authorities point of view, it seems that the market has escaped any kind of cobtrol and the price are still rising too quickly. This has consequances in the city's development with more and more suburbs beiing urbanized since the new Chinese middle class is now unable to rent a flat close to the main central landmarks. This might be a sign as well of the health of the city's economy that still attracts a crownd from all over China of people willing to settle themselves there.

Overall in China, the trend will still be the curbing down of the speculative market to favor owner-occupancy. This is supposed to help the Chinese middle class to develop by havng apartments downtown and have a new nice way of life of consumerism to develop Chinese economy with interior demand.


 written by Jennifer

samedi 14 septembre 2013

Market Of Chinese outbound Tourism

 Market Of Chinese outbound Tourism 

Top 25 destinations for Chinese in 2012 Destination - (000 trips) - Growth 2012%
1 Hong Kong -
2 Macau - 
3 South Korea -
4 Thailand -
5 Taiwan -
6 Singapore -
7 United States -
8 Japan
9 Vietnam -
10 Malaysia -
11 France -
12 Russia -
13 Germany - 
14 Switzerland -
15- Australia -
16 Indonesia -
17 Austria -
18 Cambodia - 
19 UAE -
20 Philippines -
21- Italy -
22 Canada
23 New Zealand 
24 UK-
25 Mongolia

more information about Chinese tourist
  2. China tourism 
  3.  Marketingtochina Chinese tourism
  4. China tourism wikipedia
  6. Google plus
  7. Facebook

or several millennia , ordinary people in China were discouraged from venturing beyond the Middle Kingdom , but before the holidays, the recent New Year Year of the Rabbit began on February 3rd local newspapers were dense with announcements of international travel. It was as if everyone was getting away , and I decided to join them.

Travel industry! 

When the Chinese travel industry polls the public on its dream destinations , no place ranks higher than Europe. Travel agents in China to compete by carving visits comply within Western notions of a great ride for the likes and dislikes of their customers. I scanned offers online : "Big Plazas, Big Windmills , Big Gorges" was a bus tour of four days emphasized photogenic countryside in the Netherlands and Luxembourg , " Visit the new and aspiring to the past Eastern Europe " had a cold spell of the war, but I was not sure that I had in February.

European Classic Tour! 

I chose the " European Classic" , a popular bus tour through five countries in ten days. Payment was due at the front. Flights , hotels , meals, insurance and assorted fresh came to the yuan equivalent of about twenty- two hundred dollars. In addition, each member of the Chinese tour had to pay a deposit in the amount of 70 to $ 600 , more than two years' salary for the average worker to prevent anyone from disappearing before the flight home. I was a member of the thirty- eighth and final group . We would leave the next morning at dawn.

I was told to proceed to the door of No. 25 terminal 2 of Shanghai Pudong International Airport, where I found a forty-three , thin man in a gray tweed overcoat and rectangular glasses . He had floppy, parted hair, and introduced himself as Li Xingshun our guide. To identify ourselves in the crowd , each of us has received a lapel badge bearing a yellow canary cartoon dragon with clouds of smoke from his nostrils , striding in hiking boots above our motto: " The dragon goes for Ten Thousand Li " ( Li A is approximately one third of a mile ).

Chinese Package Leaving in Group

We settled in China coach on a non -stop flight to Frankfurt Air , and I opened a Chinese package " Tips leaving group, " which we were invited to read carefully. The specificity of the instructions offered a history of surprises : " Do not travel with imitations of European goods , because customs inspectors will seize and penalize you . " There was an intense focus on staying safe in Europe. "You will see Gypsies begging beside the road, but do not give them money. If they crowd around and ask to see your purse , yell for the guide. " Conversing with strangers was discouraged " If someone asks you to help him take a picture of him attention . . This is an excellent opportunity for thieves "I had been in and out of Europe over the years , but the instructions set in a new light , and I was strangely reassured traveling with three dozen others and a guide. Notes made ​​with a piece of Confucius style advice that framed our journey as a test of character : "He who can endure hardship should continue ."

We landed in Frankfurt in thick fog and gathered in the terminal for the first time as a complete group. We were six years old Lü Keyi his seventy years , grandfather , Liu Gongsheng , a mining engineer retired, escorting his wife , Huang Xueqing , in her wheelchair . Almost everyone owned sector of Chinese society numbering between one hundred fifty million and two hundred million people , who qualifies as middle class in the country : a science teacher in high school, an interior decorator , a leader of property , a designer for a television station , a gaggle of students. There was nothing of the campaign of my companions rare glimpse of a horse grazing in a french pasture the next day sent everyone scrambling for the cameras, even though they have only begun to be comfortable in the world. With few exceptions , it was the first trip of everyone outside Asia .

He introduced me , the lone non- Chinese member of the group, and everyone offered a warm welcome. Ten years Liu Yifeng , who had a bowl cut and wore a black sweatshirt covered in white stars , smiled and asked: "Is it all foreigners have noses that big ?" 

We rode in a car of gold , which shuddered to life. I took a window seat and was joined by one of eighteen , robust in a black puffy jacket and glasses wire. He had long black fringe and a suggestion of whiskers on his upper lip. He introduced himself as Xu Nuo , Chinese, whose name means "promise" , he liked to use as an English name . Promise was a freshman at Shanghai Normal University , where he studied economics and shared two sets of bunk beds with three roommates. His parents were sitting in the driveway. I asked him why his family chose instead to travel to visit relatives during the holidays. " It's tradition , but the Chinese get richer, " he said. "Besides, we're too busy to travel to the rest of the year. " We spoke in Chinese , but he was surprised when he said: " Oh , my Lady Gaga! " An English expression he had picked up at school.

the Guide

In the front row of the bus , Li faced the group with a microphone in hand , a position he would retain most of our waking hours in the days to come. In the life of a Chinese tourist , guides play a particularly prominent role translator , storyteller, and marshal - and Li provides a calm and experienced air. He often spoke of himself in the third person -Guide Li and he prided himself on efficiency.
"Everyone , our watches to be synchronized , " he said. "It is now 7:16 p.m. " He begged us five minutes earlier for each departure. " We flew all the way here," he said . "Let us make the best of it .

dimanche 1 septembre 2013

BCG Matrix

BCG matrix, developed in the early 1970’s by Boston Consulting Group, is known as growth-share matrix/ It is a strategic management method to recognize the internal strategic structure in a company so as to optimize its business portfolio. The method’ core is concentrated on how to adapt companies’ products and business portfolio to market’s demand. Only in this way can an enterprise’s production makes sense and brings profits.  More important, how to distribute a companies’ limited resources to each SBU( Strategic Business Unit)? This is the key point for a company to succeed in the competition. To be aware of what is going on in each SBU of a company, the BCG makes it visible through a four-cell matrix of two dimensions(growth-share) as seen below.

According to the BCG matrix, the four quadrants represent each a group of products or units that are in a similar development condition. As for the company, each SBU is situated in a grid which indicates whether it produces a potential profit ot not. And it is through analysis of market growth rate and relative market share that we come to define the following four categories of business units(star, cash cow, problem child, cash cow, dog). Star( higher growth rate in a higher market share)

1. SBUs situated in this quadrant have a higher rate with a larger market share. But it’s not certain whether they produce positive cash flow or not. Since the market is still in development, the company should continue its investment in this unit so that it can catch up with the changing market and beat back competitors. Star, seen as a leader in a developed market, evolves from problem child in which the company invest. And it is also probable to become a cash cow(higher market-share with a lower growth rate). Without stars in a company, there’s little hope. But too many stars will also confuse the eyes of management who may struggle in his decision-making.

2. cash cow(lower growth rate with a higher market-share)
Products in this quadrant produce a large quantity of cash but its growth perspectives are limited. They are leaders in the mature market with a great contribution to companies’ profits. Since the market is already in its maturity, the enterprises don’t need to increase investment to enlarge the economic scale. As leaders in the market, these units enjoy scale economy and a high marginal profit, as a result, they produce a large cash flow to companies.Generally, the other three units are supported bay cash caws in investment by a company. For cash cows, companies should better adopt steady strategies to remain their high market-share.

3. problem childhigher growth rate with a lower market-share)
Products in this quadrant is probably speculative with a big risk to companies.Despite a high profit rate, its market-share is so small. This kind of units are often companies’ new business. Attempting to develop problem units, companies should build factories, add equipments and employees, which means a great deal of investment. Problem describes exactly companies’ attitudes towards the business(to continue or to give up). If the business unit conforms to companies’ long-term strategic objective and contributes to companies’ competitive force, then it is worth investing. So we use the increasing strategy to deal with this business. For those who don’t manifest further perspectives, we adopt the reducing strategy. To make a sound decision, the below chart may help. Those which requires less and returns more are worthy of our investment and support.

4. Dog( both lower in growth rate and market-share)
This kind of units exists by reason of personal affection, for they don’t produce much profits and don’t need much investment either with sometimes a deficit. Dogs engender expenses of resources and management. So we treat them by means of the reducing strategy in order to sell or liquidate them.

China’s telecommunication has ever made use of BCG to evaluate its strategic business portfolio. As the BCG matrix shows, Fixed-line voice, PHS are the guaranties of the companies’ cash flow, for they are in a mature phase of development(cash cow). VoIP, mobile business , broadband have a good perspective leading the future trend. They belong to star business. IPTV, system integration and ICP are the so-called problem children. Companies should perform a deeper studying to work out how to reply. It's a market study method. With technique development and market’s changes, the business units will change their places into others’. Therefore, operators should grasp the developing law of the industry and make their new plannings.Through transformations among different units,  companies come to realize the optimization of the business structure.

BCG matrix combines strategic planning and budget planning, through which we can assess the complex companies’ actions. The matrix helps many enterprises to decide on where to put their investment and other resources so as to optimize the whole business structure. However, BCG is also limited to some extent. Firstly, it only considers internal financing, with external financing ignored. Secondly, in course of BCG analysis, the business units are treated in a separated way, however, these units are without surprise related and interactive. For instance, if stars and dogs are relatively complemented, then the abandonment of dogs will certainly affect stars. Moreover, sometimes selling dogs is not that easy, when the dogs’ industry bears a total deficit. Besides, growth-share’s relation is not constant.