Archive for ‘Affluence’

20/10/2013

Jaguar Land Rover to recruit 1,000 workers in China: report – NDTVProfit.com

Indian auto giant Tata Motors plans to recruit 1,000 workers in China for its 1-billion pound Jaguar Land Rover (JLR) joint venture in the country, which will include a new engine plant.

Jaguar Land Rover to recruit 1,000 workers in China: report

The West Midlands based carmaker has been training 50 of those workers at its Halewood plant in Merseyside, according to The Sunday Times.

The workers are due to return to China at the end of the month, where they will pass on their skills to others. JLR wants to cash in on the huge demand for its vehicles in China by launching its own giant manufacturing operation in Changshu near Shanghai.

Its best-selling Evoque \’Baby Range Rover\’ will be the first car to roll off the production line.

Sources told the newspaper that the factory, built under a joint venture with Chinese car manufacturer Chery, will produce up to 130,000 cars a year, rising to 200,000.

This would put it on a par with JLR\’s operations at Solihull, which builds Range Rover and Halewood.

via Jaguar Land Rover to recruit 1,000 workers in China: report – NDTVProfit.com.

24/09/2013

Chinese tourist boom ripples out to more destinations

SCMP: !Chinese tourists are seeking more exotic locales for their trips as the popularity of most of their top 20 destinations soars, TripAdvisor said on Tuesday, reflecting the boom by the world’s highest-spending group of travellers.

china_tourism.jpg

The travel website said its data on customer searches showed people from mainland China still love to go to nearby Hong Kong and Macau for getaways and shopping, but are increasingly adventurous, with holidays in Asia, Europe and North America.

This new generation of Chinese outbound travellers is making their own decisions LILY CHENG, TRIPADVISOR CHINAY

“This new generation of Chinese outbound travellers is making their own decisions about where to go, where to stay and what to do by doing their own research online, going beyond the old stereotype of big buses of group tourists,” Lily Cheng, managing director of TripAdvisor China, said in a statement.

Hong Kong was the most popular destination search in July to August, with interest from Chinese travellers rising 50 per cent from the same period of last year, TripAdvisor said.

Phuket, a beach resort in Thailand, was in second place, with 3.5 times as many searches than a year earlier. Taiwan was third (up 4.5 times), Bangkok was fourth (up 3.7 times) and Paris was fifth (up 4.6 times).

Other popular places in the Chinese top 20 included Dubai, Seoul, Singapore, the Indonesian island of Bali, Rome, New York and London.

Four destinations had booming growth, with searches up by more than six times: Jeju Island in South Korea, Kyoto in Japan, Kota Kinabalu in Malaysia and Vietnam’s capital, Hanoi.

While tourism spending is on the rise globally, Chinese travellers are the most avid consumers and a big target market for operators of hotels, shops and attractions.

Barclays analysts said in July that spending by Chinese tourists rose 22 per cent in the second quarter, compared with 20 per cent in the first three months of the year, as global tourism spending grew 14 per cent.

Last year, more than 83 million Chinese travelled abroad – a number expected to soar to 200 million by 2020. Chinese spending on overseas travel was the highest in the world last year at US$102 billion, according to the UN World Tourism Organisation.

via Chinese tourist boom ripples out to more destinations | South China Morning Post.

30/08/2013

Pricey dollar puts South Africa, Australia on Indian tourists’ maps

Reuters: “When Aparupa Ganguly visited South Africa in 2007, the country’s topography and wildlife made such an impression on the communications professional that she couldn’t wait to come back. Ganguly got her wish six years later – thanks to a stable rand.

Foreign-bound Indian travellers such as Ganguly are realizing that holidaying in countries such as South Africa and Australia offers value for money as their currencies have been largely stable in recent weeks and haven’t appreciated as much against the rupee, when compared to the dollar or the euro.

Data shows the South African rand and the Australian dollar have gained around 10 percent since May, compared to a near 30 percent surge in the U.S. dollar which hit a record high above 68 per rupee on Wednesday.

Ganguly, who accompanied her husband on a business trip to South Africa this month, bought the rand at about 6.2 per rupee and travelled across the Garden Route, a scenic tourist area on the country’s south-eastern coast.

“If the rand would have really gone up, I wouldn’t have accompanied him,” said the 35-year-old  who spent around 230,000 rupees ($3,380) on her trip this month.”

via India Insight.

See also: https://chindia-alert.org/economic-factors/consumerism-blossoms/

30/08/2013

Daimler’s Mercedes-Benz sees double-digit growth in China market

Reuters: “Daimler AG‘s Mercedes-Benz expects to see growth of up to 15 percent in China’s luxury car segment this year, a senior executive said, and is trying to grab a bigger share of that market by expanding into the inland-west and smaller cities.

People looks at Mercedes-Benz cars during the the 15th Shanghai International Automobile Industry Exhibition in Shanghai April 21, 2013. REUTERS/Carlos Barria

The company plans to open 75 new dealer outlets this year, nearly half in third- and fourth-tier cities, said China sales head Nicholas Speeks, as part of a broader turnaround plan to reverse its recent struggles in the world’s biggest auto market.

“We are a little bit lagging behind our principal competitors in terms of outlets opening,” Speeks told reporters at a news briefing to outline the German brand’s strategy at the Chengdu auto show on Friday.

“In the past we have been concentrating on Beijing, Shanghai (and other major markets along China’s coast). We recognize one of our shortcomings is the fact that we need to expand our dealer network.”

The network expansion is a key component of Daimler’s (DAIGn.DE) strategic plan to invest 2 billion euros ($2.67 billion) in China over the next two years.

It aims to boost sales of Mercedes-Benz cars by a third to more than 300,000 cars a year by 2015, from this year’s forecast sales of 230,000 cars.

If achieved, the target would make China Mercedes-Benz’s biggest market globally. Currently, China is the brand’s No. 3 market behind Germany and the United States.

Speeks said China’s economy remained “fairly healthy”, despite a slowdown in growth.

China’s overall car market was expected to grow about 10 percent, year-on-year, this year, he said. “I think the premium car market will exceed that. It will be solid double-digit growth this year.”

Asked to define that, he said: “13-15 percent growth – somewhere in that ball park.””

via Daimler’s Mercedes-Benz sees double-digit growth in China market | Reuters.

29/05/2013

A Premium Milk Brand for India’s Elite

WSJ: “India’s rich and elite like their premium services, from hopping on private jets to receiving Dior goods at their doorstep. But the simple things apply, too.

A premium milk labeled Pride of Cows counts among its consumers the cricketer Sachin Tendulkar, industrialist Mukesh Ambani’s family and Bollywood actor Hrithik Roshan, according to Parag Milk Foods Private Ltd.

Parag Milk Foods, the founder of Gowardhan dairies, launched the Pride of Cows milk in July 2011, initially marketing it as a “by invitation or reference only product” to select celebrities and industrialists.

According to a 2011 survey by the Food Safety and Standards Authority of India, 70% of the milk consumed in the country is adulterated.

Parag Milk Foods Chairman Devendra Shah says the Pride of Cows brand functions by the rule that “happy cows give better milk.” At its Bhagyalaxmi Dairy farm in Pune, around 3,500 Holstien Friesan cows are pampered with music, showers and specially designed nutritional meals, Mr. Shah says. “The result is milk full of love and high nutritional values.”

Parag Milk says it breeds its cows with imported bull semen from North America. Feed is tailor-made for cows of different ages, and the menu is changed regularly to include fresh seasonal crops and specials.

“This way we have complete control over the breed, feed and health of our cows, which in turn leads to complete control over the quality of milk,” said Mr. Shah.

“We have implemented ‘cow comfort’ technology, wherein our cows have soft rubber mats to lie on, streaming music, air-coolers to keep them cool, automated scrubbers to clean them and regular preventive healthcare checks,” added Edmund Piper, a U.K. national who was hired as the farm’s manager four years ago.

Parag Milk Foods signed up celebrities like writer Shobha De as Pride of Cows brand ambassadors, while it can count industrialist Raj Kundra, co-owner of the Rajasthan Royals cricket team, as a fan.

“Being a British-born Indian, I’ve always missed the milk from the UK. I can’t tell you how happy I was to sample this milk – it’s world class. I can finally start drinking milk and enjoying my cereal,” says an endorsement by Mr. Kundra on the Pride of Cows website.

Pride of Cows isn’t available in shops; it’s only delivered – in insulated boxes with ice bags — on subscription. It costs 75 rupees ($1.35) a liter, making it an expensive alternative to other milk, which generally costs around 35 rupees to 50 rupees in the markets. Nestlé milk is among the other brands available in India, costing 62 rupees a liter.”

via A Premium Milk Brand for India’s Elite – India Real Time – WSJ.

Tags: , , ,
27/05/2013

* As China’s middle class grows, so do its concerns

Taipei Times: “Beijing is facing increasing public pressure to deal with issues such as pollution, food safety and education driven by the 10 percent of its population who now count as middle class

W ith two cars, foreign holidays and a cook for their apartment, one Beijing family epitomizes the new middle class created by China’s decades of rapid economic growth — and its resulting worries.

Li Na, 42, is a caterer at the Beijing Zoo, and her husband, Chi Shubo, 48, works for a state-owned investment company. The couple have seen their fortunes transformed since Li arrived in Beijing 20 years ago from Shandong Province.

Then, she cycled for hours from a shared dormitory to visit her husband’s workplace. Now she commutes in a US-made car and the couple holiday with their 11-year-old daughter in Japan, South Korea and the US.

Tens of millions of other Chinese have made a similar transition. About 10 percent of China’s 1.35 billion people now count as middle class, according to the Organisation for Economic Co-operation and Development, a figure that is set to rise to 40 percent by 2020.

However, their concerns about air pollution, food safety and China’s education system show the challenges facing the country’s newly appointed leaders, who have promised a shift away from the model of growth at all costs.

Every year, Li and her husband set a goal to improve their lives.

“We always have a plan,” Li said. “For example, this year I might want a new camera and my husband will help make that come true.”

The family’s four-bedroom apartment in a Beijing suburb was the most important purchase of their lives.

“We struggled half our lives to buy it,” Li said over a breakfast of fried eggs and bacon.

In a picture of comfortable suburban living, their daughter, who goes by the name Nancy, sprawls on a vast sofa opposite a huge flat-screen Sony television, nuzzling the family’s fluffy brown dog.

Li says her top priority is Nancy’s education. It is not a school day, but Li’s iPhone alarm rings to signal that it is time for her daughter’s first lesson.

She steers her Chevrolet Epica sedan past forests of near-identical apartment blocks to the Haidian Youth Palace, a relic of Maoist-era China which now holds classes aimed at boosting children’s creativity.

At weekends, Nancy has lessons in traditional Chinese calligraphy and a badminton class “with a private coach,” Li said.

In the past year, the young girl swapped learning the piano for a new instrument, the ocarina, a pocket-sized flute.

Nancy has only three or four hours of free time a day on weekends, Li said, as she seeks to hold her position in China’s highly competitive education system.

A glut of graduates created by the expansion of China’s university system means that the graduate unemployment rate is higher than that of the general population, making winning a place at the very best colleges ever more crucial.

Getting into a top school is also not always about ability, Li said, with cash donations sometimes involved.

“Sometimes parents need to do extra work, give out red envelopes and even then, success can depend on your contacts,” she said.

This year has bought some more worrying lessons. When thick smog blanketed northern China, sending pollution levels soaring in the capital, Nancy learned about PM2.5, the name given to invisible pollutants which can damage children’s lungs.

She reached into the pocket of her mother’s car seat and pulled out a face mask.

“My mum made me wear this every day in January and February because the PM2.5 was very bad,” she said.”

via As China’s middle class grows, so do its concerns – Taipei Times.

27/05/2013

* Why British schools are a Chinese mecca

The Times: “China’s wealthiest parents want their kids to have a rounded education, in Britain. We go school hunting with them

A group of Chinese parents tour Kingswood School, Bath

On a leafy road high on a hill overlooking Bath, a coach pulls over and 34 Chinese people pile out. Spilling across the road, heedless of the traffic, they start taking photographs and pointing at the imposing crenellated roofs and stained-glass windows of the 19th-century buildings in front of them.

A minder tries to corral them, but he might as well be a herder of cats. “It’s a bit like trying to control children,” says an onlooker. The minder shakes his head. “Worse! Children do as they are told. These people don’t.”

“These people” are members of the wealthy Chinese elite and they are on a mission. Their arrival at Kingswood School is the latest stop on a week-long tour of our nation’s most prestigious public schools. They are here seeking the best education that money can buy.

The popularity of our private education among rich Russians has been well documented. But mainland Chinese are now the second-biggest group of overseas students at British schools, after those from Hong Kong.

There are almost 25,000 non-British students, with parents living overseas, at British schools, and nearly 4,000 are from mainland China. “It’s the biggest growth market,” says Ian Hunt, the managing director of Gabbitas, the education consultancy.

Gabbitas, founded in the 19th century in order to recruit teachers for public schools, numbers H.G. Wells, Evelyn Waugh, Sir Edward Elgar, Amy Johnson and Sir John Betjeman among its long list of hires. Today, it still places teachers, but its core business is in tutoring pupils for entrance to independent schools. It has offices in London, Russia, Japan, South Korea and two in China, in Shanghai and Guangzhou, with a third opening next month in Wenzhou.

Chinese connoisseurs are snapping up Western art and fine French wine, and now they are keen to buy what they regard as another of the world’s most exclusive products: a British education. This week’s tour has already taken them to prep schools, including the Dragon School in Oxford and Caldicott School, Berkshire, and senior schools, such as Abingdon School and Eton College.

For a glimpse as to where these schools might eventually lead, they were shown around Christ Church College, Oxford.”

via Why British schools are a Chinese mecca | The Times.

18/05/2013

* Mercedes Revamps the S-Class to Lure China’s Wealthy Buyers

BusinessWeek: “Daimler (DAI) Chief Executive Officer Dieter Zetsche was leaning back in the rear seat of a prototype Mercedes-Benz S-Class sedan in 2010 when he realized it didn’t recline far enough. With wealthy consumers accustomed to sumptuous airline seats, he figured Mercedes needed to approach that level of comfort in its flagship model. “Engineers traditionally focus on the driver seat position,” Zetsche says. But “S-Class owners often experience their car from ‘the second row,’ especially in China,” where luxury cars are frequently driven by chauffeurs.

Mercedes Revamps the S-Class to Lure China's Wealthy Buyers

So Zetsche had his designers create a back seat that reclines to a 43.5-degree angle, available as an option on extended-wheelbase versions of the revamped S-Class unveiled on May 15. For back-seat sleeping, the front passenger seat slides forward to add legroom and the backrest recedes into a recess illuminated by ambient lighting. A calf support swivels forward and a heel rest pulls out of the front seat. A hot-stone-massage function in the back part of the rear seat aids relaxation on long drives. There’s even a special air bag to prevent slumbering passengers from sliding under the seat belt during an accident.

Back-seat amenities are critical to reviving the Mercedes brand among well-heeled Chinese buyers, who account for more than half of all S-Class sales worldwide, and those sales are key for Daimler’s bottom line. In the first quarter, Mercedes’s operating profit margin was 3.3 percent vs. 11.1 percent at Audi (VOW) and 9.9 percent at BMW (BMW). Commerzbank estimates the profit margin on the S-Class at 25 percent (vs. 1 percent for the A-Class hatchback), so boosting its sales would have an outsize impact on Mercedes’s earnings.

McKinsey forecasts sales growth of upscale vehicles in China will average 12 percent a year through 2020, outpacing the 8 percent rate for the country’s overall car market. That increase would put sales of high-end autos there ahead of those in the U.S. by 2016 and on par with demand for all of Western Europe by the end of the decade, the consultant said in a March report. Mercedes lost its long-held rank as the No. 1 global luxury brand in 2005. “Mercedes can only become No. 1 [again] if they improve in the biggest market—China,” says Thomas Schiller, an automotive partner at consulting firm Deloitte in Munich. “The S-Class serves as a brand ambassador.”

Zetsche in 2011 announced a goal of overtaking BMW and Volkswagen’s Audi luxury brand in global sales and profit by the end of the decade. But 2013 Mercedes deliveries—441,500 vehicles through April—trail Audi by 61,500 and No. 1 BMW by 70,500.

The S-Class has been the clear leader in luxury sedans since it first hit the market in 1972. The halo effect from the car—which can cost as much as $486,000 in China, due to heavy import levies—also allows Mercedes to generally charge more than rivals for its other cars. “The S-Class stands for luxury, prestige, comfort, and safety,” says August Joas, head of the global automotive practice at consultant Oliver Wyman in Munich. “It’s the absolute flagship model, and a thorn in the flesh of the competition in terms of volume, pricing, and margin.”

That leadership position isn’t unassailable. Last year, Mercedes sold 80,300 S-Class vehicles globally vs. 59,200 for the BMW 7 Series and 38,600 for Audi’s A8. In 2008, S-Class sales were more than double those of the 7 Series and more than four times those of the A8.

One reason for the falloff was Mercedes’s decision in 2006 to maintain separate China sales organizations for locally made vehicles, such as the smaller C-Class sedan, and imported cars like the S-Class. That pitted Mercedes models against one another and led to price-cutting: S-Class discounts shot up to an unprecedented 25 percent in 2012. Daimler finished recombining its sales operations this year; in February, Nicholas Speeks, CEO of Mercedes-Benz China, lashed out at the brand’s Chinese dealers for missing already-lowered sales targets. “These sales figures can be reached by call-center employees,” Speeks wrote in a February letter to dealers that was obtained by Bloomberg. He accused the brand’s sales partners in China of “slack work and a neglect in the ambition to develop the Mercedes-Benz brand.””

via Mercedes Revamps the S-Class to Lure China’s Wealthy Buyers – Businessweek.

11/05/2013

* Photograph of Chairman Mao goes under the hammer for 391,000 yuan

SCMP: “An original photo of former Chinese leader Mao Zedong went under the hammer on Friday in Beijing, and sold for 391,000 yuan (HK$490,490 or £40,000).

mao_auction.jpg

The picture, taken by his wife Jiang Qing, shows Chairman Mao sitting in a chair in front of Lushan Mountain in 1961.

Originally black and white, the photograph later had colour added by hand.

Although Jiang Qing, Mao’s last wife, was an actress, she was also very politically active and played a major role in the Cultural Revolution (1966–76). She was also known for forming the radical political alliance known as the “Gang of Four“.”

via Photograph of Chairman Mao goes under the hammer for 391,000 yuan | South China Morning Post.

09/05/2013

* China’s Airport Building Boom

BusinessWeek: “The first rule of airline travel in China is: Don’t cut connections close. Assume your first flight will be late, and leave plenty of time than to scramble to your next gate. Fortunately, if you’re flying between major Chinese cities, you can bide your time in a gleaming new airport with plenty of shops selling tea, lattes, snacks, souvenirs, and even prestige apparel. (Only in Chinese airports have I seen stores selling “BMW Lifestyle” clothing).

Beijing Capital Airport

In China, travel is booming, giving rise to new airports and hotels to accommodate the inbound masses. The International Air Transport Association forecasts that by 2016, China will have 415 million fliers annually, second only to the U.S. in volume of domestic passengers. Volume at the Beijing Capital Airport has tripled in the last 10 years; the city’s second major airport will open by 2018. In all, the current Five Year Plan calls for 55 new civil airports by 2015, bringing China’s total to 230.

The build-out is good news for the obvious suspects, including travelers, hotels, and retailers that profit from travel. In a recent report, the Virginia-based Global Business Travel Association estimated that spending related to business travel in China will increase 14.7 percent in 2013, to $224 billion. (GBTA estimates comparable spending in the U.S. in 2013 will be $268.5 billion.)

For many of the Chinese cities caught up in the airport-construction boom, it’s been a mixed blessing. In 2011, China’s Civil Aviation Administration recorded that 75 percent of its civil airports were operating at a loss, according to the China Daily. High levels of debt assumed by local governments to finance airports and other large infrastructure projects are a growing worry for China. Last month Fitch downgraded China’s credit rating, expressing concerns especially about local debt. In its assessment, the credit rating agency noted: “Fitch believes total credit in the economy including various forms of ‘shadow banking‘ activity may have reached 198 percent of GDP at end-2012, up from 125 percent at end-2008.”

One component of the mismatch is that Chinese airline carriers have focused on connecting major hubs, with far fewer flights to secondary destinations. As a result, while small regional airports are often eerily quiet, industry analysts believe Beijing’s Capital Airport is on track to overtake Atlanta’s Hartsfield-Jackson International Airport as the world’s busiest.”

via China’s Airport Building Boom – Businessweek.

Law of Unintended Consequences

continuously updated blog about China & India

ChiaHou's Book Reviews

continuously updated blog about China & India

What's wrong with the world; and its economy

continuously updated blog about China & India