trendwatching.com's MADE BETTER IN CHINA

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China still faces many potential obstacles in its attempts to foster a deep and lasting culture of innovation and creativity. However an avalanche of Chinese brands are already catering to an increasingly large and sophisticated internal market, and competing with and even beating established incumbents from all over the world at their own game. Just think what the future will hold when China is truly unleashed!

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<ul><li><p>MADE BETTER IN CHINABrands and innovations from China are going global. You aint seen nothing yet!</p><p>trendwatching.coms free Monthly Trend BriefingJune 2012</p><p>trendwatching.com/trends/madebetterinchina/</p></li><li><p>made better in chinaw w w. t r e n d w a t c h i n g . c o m 2</p><p>No wonder then that examples of top quality, innovative Chinese* products </p><p>and services brands are easier to find than ever. And if Chinese creativity ever </p><p>gets truly unleashed, well, then we aint seen nothing yet! Hyper competition </p><p>may need a new definition, as MADE IN CHINA is traded in for MADE BETTER </p><p>IN CHINA. </p><p>* In this Trend Briefing, Chinese means mainland Chinese. Weve filtered out </p><p>many excellent examples from Hong Kong and Taiwan, as well as American </p><p>Chinese entrepreneurs, powerful Western brands intensely partnering with Chi-</p><p>nese ventures, and so on.</p><p>DefinitionChina still faces many potential obstacles in its attempts to foster a deep and lasting culture of innovation and creativity (State economics! Politics! Demographics! The environment! Intellectual property!).</p><p>However an avalanche of Chinese brands are already catering to an increasingly large and sophisticated internal market, and competing with and even beating established incumbents from all over the world at their own game. Just think what the future will hold when China is truly unleashed.</p><p>DESIGNED BETTER IN CHINA /</p><p>MADE BETTER BY CHINA FOR ALL /</p><p>MADE GREENER IN CHINA /</p><p>MADE ONLINE IN CHINA /</p><p>MADE STRANGER IN CHINA /</p><p>MADE TOGETHER IN CHINA /</p><p>MADE BIGGER IN CHINA /</p><p>MADE EASIER IN CHINA /</p><p>MADE FASTER IN CHINA /</p><p>MADE MORE LUXURIOUS IN CHINA /</p><p>MADE BETTER IN CHINA FOR A WHILE NOW /</p><p>Watch out for the following sub-trends:</p></li><li><p>made better in chinaw w w. t r e n d w a t c h i n g . c o m 3</p><p>1.URBAN BOOM</p><p>DRIvERSThe lure of rapid riches is drawing Chinese to urban areas in droves. Just two recent stats to illustrate </p><p>the mind-blowing scale of Chinas urban consumption boom:</p><p> Urban household disposable income is expected todoublebetween 2010 and 2020(Source: McKinsey, March 2012).</p><p> In 2010, China had 18 million households with an annual income above USD 16,000. By 2020, this number will be 167 million households. Thats nearly400million people(Source: </p><p>McKinsey, March 2012).</p><p>The outcome?A massive, sophisticated urban Chinese class ofCITYSUMERS, with a massive </p><p>demand for high quality goods and services.</p><p>Here are just three forces driving the MADE BETTER IN CHINA phenomenon:</p><p>The demand for high quality goods and services has been met (more often than not) by Western </p><p>brands trading on the status that comes with their heritage. Indeed, Western brands have </p><p>scrambled to not only sell to Chinese consumers, but to pay homage to them. With special </p><p>ranges or products that are MADE FOR CHINA, or by rolling out theRED CARPET to Chinese </p><p>consumers around the world.</p><p>Both of which have set the expectations of Chinese consumers, andgiven Chinese brands and </p><p>entrepreneurs the inspiration and confidence to step forward, while still remaining mindful </p><p>of the need to match or exceed the standards of quality set by the very best of their Western </p><p>counterparts.</p><p>2. BEST OF THE WEST IN THE EAST</p><p>The impact of the Great Firewall of China is well-documented, but Chinaisconnected. With over </p><p>513 million Internet users (compared to 245 million Americans online)*, Chinese entrepreneurs and </p><p>consumers are part of the GLOBAL BRAIN:frantically feeding off (and adding to) global </p><p>consumer culture and creativity.* Source: www.worldinternetstats.com, December 2011</p><p>3. GLOBAL BRAIN</p></li><li><p>made better in chinaw w w. t r e n d w a t c h i n g . c o m 4</p><p>DESIGNED BETTER IN CHINA</p><p>You know youve truly arrived as an economy </p><p>when local art, architecture and design move </p><p>from functional to desirable:</p><p>Chinese architect Wang Shu was awarded </p><p>the2012 Pritzker Architecture Prize in May 2012 </p><p>in Beijing, the first Chinese architect to win the </p><p>prize for work on the Chinese mainland.</p><p>Wang Shu: Wins 2012 Pritzker Architecture Prize</p><p>The Brand New China Store, situated in Beijing, </p><p>is a fashion and lifestyle store that focuses </p><p>exclusively on Chinese designers. Selling clothes, </p><p>accessories, furniture, home dcor items and </p><p>paintings at a wide variety of prices. Its owned </p><p>by Hong Huang, a major celebrity (media figure, </p><p>blogger, television host and publisher) in China.</p><p>Brand New China Store: A design store for and by modern China</p></li><li><p>made better in chinaw w w. t r e n d w a t c h i n g . c o m 5</p><p>Due to be completed in 2013, the Sinosteel </p><p>International Plaza in Tianjin, China, was designed </p><p>by Chinese architect Ma Yansong, ofMAD </p><p>Architects. The Plazas steel faade ensures </p><p>that no internal columns are needed within the </p><p>structure, meaning more space can be used within </p><p>the building.</p><p>MAD Architects</p><p>DESIGNED BETTER IN CHINA</p><p>Hexagonal windows of various sizes create a </p><p>pattern across the surface of the Plaza, and </p><p>also improve energy efficiency. Their strategic </p><p>positioning will help to preserve heat during the </p><p>winter, and keep residents cool during the summer. </p><p>Above: a global selection of designs from Beijing-</p><p>based MAD Architects. These designs are all </p><p>under construction or completed.</p></li><li><p>made better in chinaw w w. t r e n d w a t c h i n g . c o m 6</p><p>MADE BETTER BY CHINA FOR ALL</p><p>Despite Chinas growing economic power, </p><p>there are still hundreds of millions of Chinese </p><p>with relatively modest incomes. And alongside </p><p>this huge domestic market, there are billions of </p><p>In December 2011,China Unicomannounced that </p><p>they would distribute Xiaomis MI-ONE, featuring </p><p>a 1.5GHz processor, a four inch display, and an 8 </p><p>megapixel camera. Designed to capitalize on the </p><p>growing domestic demand for reasonably priced </p><p>smartphones, the MI-ONE costs CNY 1,999, less </p><p>than half what comparable smartphones from </p><p>Apple or Samsung usually cost.</p><p>other emerging market consumers, making the </p><p>rewards for Chinese brands which bring high </p><p>quality, yet low cost products to market almost </p><p>endless.</p><p>China Unicom: Low cost smartphones</p><p>At the end of 2011, Chinas state ownedJAC </p><p>Motorsannounced an investment of USD 500 </p><p>million in Brazil, the worlds fourth largest car </p><p>market. The companys first overseas factory is </p><p>expected to produce 100,000 cars per year.</p><p>JAC Motors: First overseas factory in Brazil</p></li><li><p>made better in chinaw w w. t r e n d w a t c h i n g . c o m 7</p><p>MADE BETTER BY CHINA FOR ALL</p><p>Operating around 1,800 stores across mainland </p><p>China and catering to the countrys increasingly </p><p>fashion-conscious youth, retailerMeters/</p><p>bonwehas proved very popular. The brand </p><p>offers reasonable prices and an international feel; </p><p>indeed its often assumed not to be Chinese by </p><p>consumers.</p><p>Meters/bonwe: Chinese fashion with an international feel</p><p>The sneaker brandWarrior(Hui Li in Mandarin), </p><p>originally created for Chinese athletes, has </p><p>been a household name in the country since </p><p>the 1950s. The brand keeps its designs simple </p><p>and unpretentious, maintaining its status as the </p><p>everymans shoe. While the footwear retails for </p><p>EUR 50-120 overseas (and features in publications </p><p>such as GQ and Vogue), it is still affordable in the </p><p>domestic market.</p><p>Warrior Shoes: The everymans shoe everywhere</p></li><li><p>made better in chinaw w w. t r e n d w a t c h i n g . c o m 8</p><p>MADE GREENER IN CHINA</p><p>With the Chinese government pushing the green </p><p>agenda hard (for both reasons of economics </p><p>and national pride), and both urban and rural </p><p>populations mindful of increasingly visible </p><p>The city of Shenzhen boasts a fleet of electric taxis. </p><p>The fleet was supplied by Chinese automobile </p><p>manufacturerBYD, and the pilot project has seen </p><p>50 electric taxis take to the streets. There are plans </p><p>to add a further 250 vehicles to the fleet during </p><p>2012, as well as 200 electric buses.</p><p>BYD: Electric taxis take to the streets of Shenzhen</p><p>At the end of 2011,China ENFI Engineering </p><p>Corpcompleted work on the worlds largest </p><p>solar tracking station in Ningxia. The plants </p><p>solar tracking systems deliver a 25% increase in </p><p>capacity over traditional solar power stations.</p><p>ENFI: Worlds largest solar tracking station</p><p>environmental degradation, expect to see </p><p>a steady stream of Chinese planet-saving </p><p>innovations and initiatives:</p></li><li><p>made better in chinaw w w. t r e n d w a t c h i n g . c o m 9</p><p>MADE GREENER IN CHINA</p><p>TheTianjin Eco City, a joint initiative from the </p><p>Chinese and Singaporean governments, has </p><p>invited brands from around the world to help solve </p><p>pressing environmental issues. In the next 10 </p><p>years, 350,000 people are expected to move to the </p><p>city, trialing new systems and technologies. The </p><p>government hopes that many of these will have the </p><p>potential to solve the environmental issues facing </p><p>Chinas huge cities.</p><p>Tianjin: Eco-city experiments with practical solutions for greener living</p><p>ChineseSuntech Poweris the worlds largest </p><p>producer of solar panels, now totalling over 20 </p><p>million panels in over 80 countries. In early 2012, </p><p>the company was named one of the worlds 50 </p><p>most innovative companies by MIT, partly due to its </p><p>Pluto cell processing technology, which has since </p><p>achieved a world record 20.3% efficiency.</p><p>Suntech Power leads global solar panel market</p></li><li><p>made better in chinaw w w. t r e n d w a t c h i n g . c o m 10</p><p>MADE ONLINE IN CHINA</p><p>Driven by a massive online population and </p><p>the censorship of key Western online brands, </p><p>Chinese services are not simply imitating </p><p>the Googles, Facebooks and Twitters of the </p><p>O.cnis a stylized online mapping service that </p><p>covers 38 of Chinas largest cities. The 3D maps </p><p>interface with social networks, and users can click </p><p>on individual buildings and areas to access user-</p><p>created and curated content.</p><p>O.cn: Maps Chinas cities in illustrated 3D</p><p>In 2011, Sina, the Chinese web portal, launched </p><p>a check-in service called WeiLingDivia their </p><p>resident Twitter-like website Weibo. Users are able </p><p>to check-in at locations using WeiLingDi, earn </p><p>badges, write reviews about local businesses, and </p><p>connect with 60,000 verified Chinese celebrities.</p><p>WeiLingDi: Check-in and review local businesses</p><p>world. Instead they are often showing their </p><p>better-known counterparts the way forward by </p><p>integrating, if not adding to and enhancing, </p><p>popular online services.</p></li><li><p>made better in chinaw w w. t r e n d w a t c h i n g . c o m 11</p><p>In early 2012, Chinese social network Renren </p><p>launched a travel journal service, available online </p><p>or as an app. TheFengcheservice allows users </p><p>to create image-rich sets detailing their travels, </p><p>ready to share with friends and family.</p><p>Renren: Networking site launches social travel app</p><p>Chinese group buying siteYikuairis tapping </p><p>into the microblogging service Sina Weibo. </p><p>The service carefully curates daily deals, and </p><p>then lets Weibo users place a small deposit to </p><p>secure the offer. Deposits can even be made </p><p>using Weibos own virtual currency.</p><p>Yikuair: Daily deals site offers micro group buying</p><p>MADE ONLINE IN CHINA</p></li><li><p>made better in chinaw w w. t r e n d w a t c h i n g . c o m 12</p><p>IIn April 2012, the latest version of </p><p>TencentsWeixininstant messaging app </p><p>introduced users to its English-language name: </p><p>WeChat. The app offers login via the vast QQ </p><p>messaging network, which boasts over 700 </p><p>million users, and a range of additional features. </p><p>These include recent features familiar to </p><p>Facebook and Google+ users, such as Timeline </p><p>and Circles, as well as QR tags, location-based </p><p>services, voice messaging and a Game Center.</p><p>Pinterestinspired Buykeelaunched in China in </p><p>April 2012. The pinboard-style site differentiates </p><p>itself from its predecessor, by focusing </p><p>exclusively on luxury products and offering users </p><p>the ability to buy what they are seeing. </p><p>Tencent: Weixin app offers QQ instant messaging and more</p><p>Buykee: Pinboards and purchasing power</p><p>MADE ONLINE IN CHINA</p></li><li><p>made better in chinaw w w. t r e n d w a t c h i n g . c o m 13</p><p>MADE STRANGER IN CHINA</p><p>The rise of consumer culture in China </p><p>has inevitably led to the creation of some </p><p>remarkable products and services. However </p><p>unusual consumers tastes, they are being met </p><p>by Chinese brands.</p><p>In 2011, former Soviet aircraft carrier,the Kiev, </p><p>was converted into a luxury hotel by its new </p><p>Chinese owners. The ship has 137 standard hotel </p><p>rooms, three VIP guest rooms, two presidential </p><p>suites, and a luxury restaurant.</p><p>The Kiev: Former Soviet aircraft carrier transformed into luxury hotel</p><p>China Postoffers a service enabling individuals </p><p>to send letters from space, with a Space City 1 </p><p>postmark. Users send an email to Tiangong-1, a </p><p>Chinese spacecraft orbiting the earth, which is </p><p>then rerouted to a special China Space Post Office </p><p>branch in Beijing. The emails are printed, placed in </p><p>space-themed envelopes, stamped with a galactic </p><p>postmark, and sent in the mail.</p><p>China Post: Letters routed via spacecraft with galactic postmark</p></li><li><p>made better in chinaw w w. t r e n d w a t c h i n g . c o m 14</p><p>MADE STRANGER IN CHINA</p><p>Offering a memorable learning experience, the </p><p>conspicuously namedSexy Mandarinis an online </p><p>service that teaches users to speak Mandarin </p><p>via YouTube and YouKu (the formers Chinese </p><p>equivalent) videos, for free. The twist? All the </p><p>teachers are attractive, sexily dressed women.</p><p>Learn Mandarin the sexy way</p><p>Chinese online shopping platformTaobao </p><p>(commonly referred to as the Chinese eBay or </p><p>Amazon), is reportedly working on an unusual </p><p>initiative to spice up e-commerce Tao Girls. </p><p>Customers will be able to choose (at a slightly </p><p>higher cost) attractive women living in their city, to </p><p>deliver their web purchases to the door.</p><p>Tao Girls deliver</p></li><li><p>made better in chinaw w w. t r e n d w a t c h i n g . c o m 15</p><p>MADE TOGETHER IN CHINA</p><p>As the most populous country in the world, </p><p>and one with a strong collectivist culture, its no </p><p>surprise to see a wave of innovative Chinese </p><p>products and services that bring consumers </p><p>together.</p><p>Handsup.cnaims to hand power over to the </p><p>consumer by asking them to recommend products </p><p>and services they want to buy, as well as the price </p><p>tag. The more users that want a particular product, </p><p>the higher the chance of it being available, and the </p><p>lower the price.</p><p>Handsup.cn: Hands stock and pricing suggestions over to customers</p><p>In late 2011, Chinese P2P lending </p><p>siteCreditEasesecured a round of funding, </p><p>while founder Tang Ning was honored by the </p><p>Communist party. Both achievements signal the </p><p>dramatic impact of P2P lending in China, where </p><p>there are now over 100 sites offering services. </p><p>CreditEase has become one of the countrys </p><p>largest independent financial service providers, </p><p>with more than 5,000 workers.</p><p>CreditEase: P2P lending</p></li><li><p>made better in chinaw w w. t r e n d w a t c h i n g . c o m 16</p><p>MADE BIGGER IN CHINA</p><p>Whether its the size of the population, the </p><p>cities, or the economy, China means big, if </p><p>not biggest. Just three consumer-focused </p><p>examples to illustrate:</p><p>TheYoungman JNP6250Gis believed to be the </p><p>largest bus in the world, capable of transporting </p><p>up to 300 passengers. The first of the buses will </p><p>be deployed in Beijing and Hangzhou, using </p><p>dedicated highway lanes.</p><p>Beijing &amp; Hangzhou: Worlds largest bus</p><p>Construction ofBeijing Daxing International </p><p>Airp...</p></li></ul>