mardi 16 décembre 2014

Market study: Convenience Stores Market in China

Market Potential

According to 2013 China Urban Convenience Stores Index which is released by China Chain Store & Franchise Association, the average saturation level of convenient stores on the Chinese mainland is one convenience store for around every 5000 people, which is relatively low compared with Japan and Taiwan for every 2000 people. The industry data has revealed a great potential in the Chinese convenience store market.

Growth Shown in Industry Data

In 2013, under the pressure of the impact of the slowdown of the economy, the government’s anti-corruption policies and emergence of e-commerce, the convenient stores are continued to enjoy double-digit growth and become fastest-growing retail sector with a growth rate of 19.5 percent on average in 2013, higher than the slower growth of department stores and hypermarkets.

Competition of Traditional Brands

Market growth led to fierce competition, despite the rapid expansion of convenience stores, profits and the scale of business, convenience store brands are relatively low. The reports show that among 176 brands in the 26 cities, more than 10 brands compete in large cities.
High rents have become the biggest hurdle for convenience stores in major cities such as Beijing and Tianjin in the quest to open new stores for Seven-Eleven (Beijing) Co Ltd. 
Having focused its Chinese business on closing money-losing locations, Japanese convenience store chain Lawson plans to open 180 stores, five times the 2013 level. In 2012 and 2013, Lawson kept openings to around 40 stores a year while it shut down more locations to improve profitability amid rising rents. Lawson will have 550 locations in five Chinese cities by year-end. It fell behind rivals Seven-Eleven Japan and FamilyMart, which have around 2,000 and 1,100 locations in China, respectively.

New Entry of Hypermarkets

American company Walmart, the French company Carefour, etc.. are shifting their previous strategy in China from Hypermarkets to convenience stores.
Last month, France’s Carrefour confirmed that it is expanding in China with its Easy Carrefour convenience chain store brand. German’s Metro opened its first convenience store in Shanghai. One of China’s biggest local brand, RT-mart, has also announce its opening of its convenience stores. .


mardi 2 décembre 2014

Timber Industry in China

Timber Industry in China

Market Size

According to the Deeply Research and Development Analysis Report for the Chinese Anticorrosive Timber Industry in 2014 – 2018, supposed by CIRN, the consumption in China has already been up to 500 million cubic meters, with almost 40% imported. By 2020, the demand of timber in China will amount to 800 million cubic meters, and the external dependence will increase to 50% more or less.

Consumer Behavior

In the modern market economic condition, in order to establish and develop long-term exchange relationship with customers, the enterprises must pay attention to the consumer behavior, therefore, not only to have knowledge about how consumers access to products and services, but also need to understand how consumers consume and deal with the products.

The main body of Chinese consumers

Under the influence of globalization and consumerism culture, a new consumer culture is formed in China. The middle class, whose income between 60,000 Yuan and 500,000 Yuan annually, become the main body in the development and guidance of the new consumer culture. And by 2013, the population of the middle class has reached to 1.197 million, almost 60% of which are between 30 years old and 50 years old.

The globalization and localization of global consumption trend of Chinese consumer behavior

Ø   Global consumption trend
1.      Pursue consumption convenience: one-stop shopping, fine decoration property
2.      Pay more attention to the value-oriented rational consumption: both quality and value count
3.      Pay more attention to themselves, seeking both physical and mental health and satisfaction: environmentally friendly consumption
Ø   Chinese characteristic consumer behavior
1.      Relative to amount of consumers with large target market
2.      Not sensitive to the price as restriction of the income is low
3.      Separation of buyers and users, pay more attention to the package than the practical usage
4.      Holiday consumption
5.      The consumption trend of follow suit due to the doctrine of the mean

Electronic business in the timber industry

In the timber industry, the consumers access to products and services mostly by the electronic business, especially the public websites, such as the Otherwise, the enterprise also should be aware of consumers purchase decisions, to know well about the roles of each participantplays in the decision-making processes.
Ø   The initiator: first thought or proposal to buy a product or service
Ø   The influencer: whose views or opinions have directly or indirectly impact on the final decision.
Ø   The decision maker: to be able to buy the product or service, and partly or finally decide what to buy, how much to buy, when to buy and where to buy.
Ø   The buyer: The actual purchase.
Ø   The user: Direct consumption; use the purchased products or services.

Competitor Analysis - SWOT Analysis


1.      Along with the increasing regional tariff, the customs clearance costs have risen sharply.
Part of the timber cannot be exported in the form of logs,the wood needs more processing in the exported countries, which will increase the operation costs, relative to the domestic producers. Otherwise, along with the increasing labor costs, the wood developers will have to pay more in the procurement costs, which will influence the price of timber and make the domestic producers have the advantage of price.
2.      The foreign governments continue to increase the control on the production and material policy.
In the foreign countries, more and more governments start to strengthen their timber management policies, including a ban on work-in-process timber being exported. Moreover, the future policies of timber exportation will be more rigorous and frequent, directly affect China’s import volume, and contribute to the development of domestic producers.


1.      The effective supply of China’s forests is limited.
2.      Limited by the geographical position. E.g. Most of the tropical hardwood lumbers and the needle logs can only rely on imports in order to meet the domestic demands.
3.      The negative impact on Chinese market from the international market.
4.      The appreciation of the RMB, make the export situation difficult.


1.      The development of the real estate industry, which makes the demand of timber in China continue to rise.
2.      China’s urbanization speeds up, which promotes the demand of timber in China and contributes to the development of timber industry.
3.      As a result of the 18th National Congress of the Communist Party of China, the state will continue to implement the macro-control policies, which is followed by stabling growth, adjusting structure, and increasing efficiency.


1.      Continuing market regulation policies for the real estate industry.E.g. The Notice about Continuing to Do a Good Job in the Real Estate Market Regulation, which has been put forward when the Five was still in its high time, clearly stipulates the time schedule for the control of target house price, the scope of implementation for the restrictions and the second-hand housing taxes and fees. It also highlighted that 20% income tax would be required when selling personal ownership of his/her own house.
2.      In 2014, as the demands in American market trend to cold, better return can be gained in the Chinese market, thus the foreign timber flooded into China recently. During the first quarter, the import of logs and lumber has been increased by 31.67% and 18.46% respectively. However, the fact was that the Chinese real estate projects have been postponed, thus the demands in Chinese domestic market didn’t catch up with the volume imported, which resulted in the huge inventory of logs, more than doubled. As the demands of lumber in American market was still weak, the inventory of lumber in Chinese market continued rising up to now.
3.      The slowing demand for hardwood in Europe is going to have a negative impact on Chinese demands for hardwood, as the exportation reduced.
4.      The world economic crisis is still working.

vendredi 15 août 2014

University in China

University in China

The network of the Universities of Technology (UT) counts since February 14th, 2005 four establishments. Aiming to be to be an innovative model in the training of executives and the student mobility, the UTseuS (University of Sino-European Technology of Shanghai), arisen from the will of three presidents of the network of the universities of technology UTBM ( Belfort-Montbéliard ) - UTC ( Compiègne) - UTT ( Troyes), proposes in four Chinese promotions, trainings in IT engineering, mechanical engineering, biological engineering today and science of materials.
Daxue Consulting
Student from UT work in some of the best firms in China

In spring, 2010 was signed an agreement between the School of superior Technology (ETS) of Montreal and the network of the UT concerning the student mobility and the participation of the ETS in the development of Master's degrees in the UTSEUS. From the year 2010-2011, students in engineer's training in the ETS will so be offered the possibility of coming to follow a half-year of court in Shanghai followed by an internship, whereas the students stemming from the UTSEUS will have the possibility of making a pursuit of studies in the ETS at the end of their stay in UT.
The University of Shanghai, created in 1994, is the result of a fusion of four universities, with a total staff of 30 000 students, any confused cycles. It is financed by the municipality of Shanghai and is classified among 45 better Chinese universities on more than 1 600 establishments.
This multidisciplinary establishment (more than 200 faculties and different institutes) was selected by the network of the UT(C) for its geographical situation, its closeness of the French and European industrial fabric and its development process.

THE UTSeuS is an establishment created in 2005 on the initiative of three partners of the network of the UT (Compiègne, Troyes and Belfort-Montbéliard) and a Chinese partner who is the University of Shanghai. This university site is located in Shanghai, which is zone economically speaking very important because 400 of 600 bigger companies of the world are implanted there, not only to work in China but more globally in Asia, including in Japan, in Korea or still in South-East Asia. All in all, it is approximately 750 Chinese students who study in the UTSeuS for three years.
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mercredi 25 juin 2014

Market study : convenience store in China

Market study : convenience store in China

We know Tesco as a practicer of the «test and learn "... And after some hesitations Tesco Chine takes the offensive by opting for the convenience store in Shanghai according to market research in China. A targeting plan urban has directed «weekly purchases ". The network of convenience stores Tesco China being mainly based in and around Shanghai.

Convenience store to rise again in China?

convenience store China

Implanted since 2004 in China (but having opened its first convenience store to its own brand only in 2007) Tesco in since undergoes some inconveniences and necessary regulations of adaptation in particular in 2012. Tesco is not the only one - Wallmart, Carrefour also was suffering - but at the moment only Tesco decide to abandon this strategic market.
What is rather logical considering the cultural difference and considering the business in China. The import of products was very difficult and, for example, the stores have difficulty in differentiating them assortments, and in implanting their own brands sign. And for Tesco it is rather important 40 % of the assortment in UK is store brand, compared with 10 % only in China. The impacts are financiers, the value creation being difficult on the local products, and of differentiation vs the local networks.

E-commerce or convenience store in China?

market study in China

By this e-commerce evolution of closeness Tesco (N°3 of the world distributors) thus wishes to offer to the Chinese households the possibility of being delivered fresh products, fruits vegetables food and products of uses everyday life.
It is well thus about «on-line races". What is interesting it is that to begin, Tesco wants to depend on nobody by assuming herself its own logistics, for the control of processes and costs.
In test version in learn, the customer catchment area will be limited to Shanghai «internal districts ". In particular screw the mythical convenience store Tesco of Shanghai street very similar to one trade traditional Chinese.

jeudi 22 mai 2014

China wants to develop technology in Africa

China invests a lot in technology in Africa

" China will continue to put first and foremost the investments, especially in the development of technology in its cooperation with the African continent ", indicated Li Keqiang to delegations in the second day of the world economic Forum on Africa which has just taken place from 7 till 9 May to Abuja, the capital of Nigeria.
China and other powers will continue to strengthen the relations with Africa because of the important place which it occupies in the program of the world business. China chose to increase its investments as well as its economic relations with the African continent. The African continent is an important cradle for the world civilization.

Africa is looking to technological revolution

According to Chinese study, " Africa is consequently, also, a pole of major growth. With more than 1 500 ethnic groups and more than 2 000 different languages, Africa is rich in its cultural heritage. Such a cultural diversity completely exposed on the continent makes of Africa a pole colored in the human civilization. «Africa is ready for technological revolution.
For China study, " the progress of Africa as new pole will engender a more democratic, stable, dynamic and colored world, and will facilitate the peace, the development and the progress in the world. « He indicated that China already worked with Africa to make level to spend a technological course to favor the development of educational, medical applications in Africa. Some start-up, as Mysimax and JX Paulin, started to develop such programs to contribute to African rise.
«China is ready to supply supports with financing, with staffs and with technologies for the development of infrastructures in Africa. China will intensify its investments and its financial cooperation with Africa by giving additional 10 billion dollar credits in its credit line promised on a 30 billion dollar total and by adding another one 2 billion dollar adds to make of the Collection of Sino-African development a 5 billion dollar total.

vendredi 2 mai 2014

Market study in China's automotive industry

A total of 21,98 million vehicles (VP and VUL) were sold in China last year, a record level, according to a market study from the Chinese Association of car manufacturers ( CAAM). Among them, the only passenger cars saw their sales swelling of 15,7 % over one year in 17,93 million units according to market survey. Over only December, 2,13 million cars were sold in China - a 17,9 % leap over one year and a clear progress with regard to the 2,04 million units sold in November.

Market of cars in China

The Chinese market in the impertinent development seems more and more crucial to the big world manufacturers when these see their sales affecting appreciably in Europe - in particular in France where market studies showed that they fell last year in lower one for 15 years. The automobile sales in China had progressed only of 4,3 % in 2012, a strong deceleration caused by the limitations been imperative by certain cities to try to dyke the traffic jams and the pollution, but also by the geopolitical tensions between Beijing and Tokyo which had hindered the Japanese automobile brands.

Study on the market of cars in China

But year 2013 was marked by a deep renewal of vigor of the sector: in spite of the clear slowing down of the Chinese economy in the first half of the year, the sales of cars did not stop accelerating all year round; as it has been shown by market study in China. In spite of the obstinacy of the Sino-Japanese territorial dispute, the sales of passenger cars of Japanese brands took advantage of the movement, reaching 2,93 million vehicles over the year, according to the CAAM.
«Even if the economic situation was not brilliant in 2013, the car industry was doped by numerous favorable factors ", observed Cui Dongshu, assistant general secretary of the Association quibbles passenger cars, another professional federation. So, " there was a high demand to replace old models by new. There was also a clear bounce of sales for the Japanese brands after their lapels of 2012, their quality is very appreciated by the Chinese consumers ", he indicated through market study in China.

jeudi 6 février 2014

Lenovo, the Chinese Dragon

Lenovo, the Chinese Dragon 

The 2005 acquisition of IBM PC , Lenovo Group was illustrated with dramatic slope of the computer industry in the United States to China: in smartphones today the acquisition of Motorola, the Chinese giant confirms its global ambitions .

For industry observers certainly try to repeat with Lenovo Motorola in smartphones niche breakthrough recorded in the IBM PC .

About the group

The Chinese group in fact has become the leading manufacturer of the world? Personal computers , after a rapid internationalization that saw conquer new markets, especially in emerging countries. "Lenovo strives to be an e-business " global " in geographical terms but also in terms of products ," says Jean -François Dufour , director of China -DCA analysis .

Less than two years after seeing bought Motorola, Google announced Wednesday the sale of smartphones of the brand Lenovo for $ 2.91 billion in cash and stock . The U.S. Internet giant said to maintain " the vast majority" of the patent portfolio of Motorola Mobility. Lenovo , from a small company founded in 1984 in Beijing by a handful of engineers, making the brand and its already launched or in the pipeline Motorola products. A commitment to the Chinese group , as evidenced by the collapse of its share price , once the transaction is met .
sources :

samedi 4 janvier 2014

Survey on Services in China !

Survey on Services in China ! 

China's growing service sector is back in December to its lowest level in four months due to a deterioration in business prospects , a government survey showed Friday , a new element suggesting a slowdown in the second largest economy in late 2013 .
The official PMI index returned 54.6 against 56.0 in November , said the National Bureau of Statistics .
Ting Lu , an economist at Bank of America -Merrill Lynch, among others , this reflects the dissipation of the effects of "mini" stimulus plan launched in mid-year.
In the services sector , the sub- expectations index fell to 58.7 against 61.3 , driven lower by between other sectors of real estate and water, in which the companies expect a contraction in activity.
The new orders component remained stable at 51.
Another survey of purchasing managers in services conducted by Markit Economics and HSBC , to be published Monday.

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