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BizChina

Three Dumb Things Foreign Companies Do In China

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By Shaun Rein
Shaun Rein
08 December 2009
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Chinese Business

A month ago, Apple sold only 5,000 iPhones in its China debut, as against 65,000 in much smaller Korea. It is too early to declare the iPhone a failure in the country, but the launch missed expectations by a mile. Apple follows a long roster of businesses like eBay that have made the dumb mistake of not taking into account local Chinese consumer preferences, as I wrote in "How Apple and IPhone Blew It In China."

Apple should have taken a cue from the German carmaker BMW. BMW localizes for Chinese consumers. The average Chinese buyer of luxury cars such as BMW, Mercedes and Bentley is 40 years old, much younger than in other markets. He has a chauffeur for weekdays but hits the freeways himself on weekends. BMW accommodated local habits by extending the backseat legroom in its Series 5 line by several inches. It also created its first social media site, MyBMWClub.cn, to appeal to younger owners. Using an understanding of local consumers in developing its strategies has worked for the company. In 2009 through October, BMW has sold 71,952 vehicles in China, up 36.7% from 52,622 a year before. The country is now the company's largest market for its flagship Series 7 line, and its fourth largest market overall.

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How Kraft Won In China

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By Forbes.com
Forbes.com
08 December 2009
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Kraft Chinese logo

France's Groupe Danone finally lost its foothold in China this fall after a two-year legal battle with local beverage maker Wahaha. Apple's iPhone logged a disappointing debut there in November. Figuring out the Chinese retail market -- which posted 5.9 trillion yuan ($867.6 billion) in total sales in the first half of this year -- is far from a piece of cake for some big international corporations.

But not for Kraft. The president of Kraft International, Sanjay Khosla, told Forbes how the world's second largest food company overhauled its recipe for success to align with the particular appetites of China's 1.3 billion people. It now boasts the biggest market share in China in two major categories: cookies and powdered beverages.

 

Kraft Foods seized 22.4% of China's $1.6-billion cookie market for the year ending in September 2009, AC Nielsen research shows. Kraft's major competitor, Taiwan's Tingyi, ranked No. 2 with 8.3% of the market, while local leader Dali grabbed a 5.7% share. Switzerland's Nestle squeezed into the top five with a 2.6% share.

Read more: How Kraft Won In China

Car sales and output pass the 12 million mark in China

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By BBC.co.uk
BBC.co.uk
08 December 2009
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Chinese car sales and production both exceeded 12 million between January and November, state media has said.

The China Association of Automobile Manufacturers expects car sales and output to top 13 million for the full year, the Xinhua News Agency reported.

China has never produced more than 10 million cars in one year before.

State incentives have boosted car sales, and the government has reiterated its plans to continue economic stimulus measures next year.

Despite the downturn and falling sales at most global carmakers, demand for cars in China is booming.

 

In November alone, sales reached 1.35 million units, according to the preliminary figures.

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Blackberry plans China sales push

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By BBC.co.uk
BBC.co.uk
08 December 2009
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Blackberry mobile phone services will soon be available to individual customers in China for the first time.

The handheld devices, made by Canadian company Research In Motion, have previously only been available in China to employees of a few major companies.

Workers at smaller firms will also now be able to access a Blackberry - long a mainstay of Western business users.

The Chinese market is expanding fast, and Blackberry's arch rival, the iPhone, is making inroads there.

The country already has 650 million mobile subscribers. Research In Motion will provide its Blackberry device in partnership with China Mobile, which dominates the market with 513 million subscribers.

Read more: Blackberry plans China sales push

China Mobile, RIM to boost BlackBerry use in China

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By David Cao
David Cao
08 December 2009
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Research In Motion and Chinese telecoms provider China Mobile will expand BlackBerry services to smaller companies and individual users, allowing RIM to boost use of the "smartphones" in the potentially huge market.

The greater cooperation announced by China Mobile and RIM on Tuesday in Beijing includes plans to support China's indigenous TD-SCDMA and TD-LTE technologies for BlackBerry devices used in China, the companies said in a statement.

China Mobile, the world's biggest phone carrier by subscribers, has provided BlackBerry services in China since 2006, but use of the devices was limited mainly to employees of a few major corporations. The companies intend to expand that to smaller companies and "professional consumers," it said.

Read more: China Mobile, RIM to boost BlackBerry use in China

More Articles …

  1. Chinese shopping online in 2009 increase 38.9%
  2. AMD: China to be its largest single market by 2012
  3. China issues regulation to encourage joint ventures
  4. China's online gaming sales in '09 will reachs $4B
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Page 87 of 126

Banking

  • China's Gold VAT trade reform aims to tax free for investment
  • China's digital RMB transactions top 14.2 trillion yuan
  • Renminbi asset appeal spurs dim sum bond market
  • UnionPay International Expands European Footprint with Strategic Partnerships and Enhanced Payment Network
  • China T-bond move seen safeguarding financial stability

Real Estate

  • 21 Chinese cities tighten Real Estate Policy
  • LANZHOU NEW AREA new ghost town in China
  • Chinese invest $110 billion in US real estate
  • China's listed real estate companies post $461b of inventories for 2015
  • Beijing eases restrictions on foreigners buying apartments

Society

  • China NIA: Average daily inbound and outbound passenger volume to increase 14.1% during Chinese New Year
  • China U23 team's historic breakthrough
  • China's New railway timetable enhanced connectivity nationwide
  • Yiwu's Factory flaw “sad horse" toys go viral on Chinese Internet
  • From plateau to hard drives: documentary tests NAS technology

Manufacturing

  • China-made C919 transports 5 million passengers in past 3 years
  • China's large drone FP-985 completes pioneering plateau logistics flight
  • China's NEV output tops 16 million units as exports double
  • World's first methanol dual-fuel VLCC "Kaituo" delivered in Dalian
  • China's superconducting quantum prototype 'Zuchongzhi 3.2' achieves key breakthrough

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