Daxlr, the sales acceleration program of daxue is getting its first clients

Thanks to the large demand of operational marketing, distribution and sales, daxue consulting has partnered with companies to create daxlr. Daxlr supports companies in e-commerce, online, brick-and-mortar, click-and-mortar distribution, branding, marketing, advertisement creation and running advertisement campaigns. Daxlr is creating the conditions for its clients to succeed with lower risks in China and gaining leverage in China.

Coffee Shop Market in China

Coffee shop market in China has been flourishing in the past 5 years. Coffee drinking has become a fashionable and daily habit, especially among young Chinese consumers in urban areas. The coffee consumption has been steadily growing around 20% annually. In 2012, there were approx. 31,000 coffee shops in China and it almost doubled in 2016 with over 60,000 coffee shops. Although with the rapid growth, the average coffee consumption in China is far less than the worldwide average level. Chinese per capita coffee consumption is less than 5 cups per year. In the urban area, the average consumption is around 20 cups per year. In contrast, the countries of Europe and North America have an average per capita coffee consumption in excess of 400 cups annually. Japan’s per capita coffee consumption is roughly 360 cups annually. As a consequence, the coffee industry and coffee shop operation represent highly promising blue sea business areas in China.

Coffee Shop Market in China features in the past five years

The adoption of the coffee shop culture has been evolving in China.  Consumer’s preferences for the taste of coffee and a mix of experiential consumption create an excessive market dynamic for the coffee shop market.

From the consumer perspective, there are four significant types of coffee shop user: some visit coffee shops occasionally as a treat to indulge themselves; some use this type of venue as a springboard to lead them to a different lifestyle temporarily; some have a strong desire to adopt the diet guided by coffee shops; and some are solely focusing on coffee. From the coffee shop operator’s perspective, there are four main coffee shop streams in China: the Western (European and American) coffee chain brands, the Korean coffee shop chain brand, the indigenous coffee shops chain, and independent operators. The Western coffee shop chains dominate the current market. However, the other streams bring more varieties and possibilities to the market. The common products that coffee shops provide are coffee, coffee beverage, and desserts.

Unlike Western countries, in which coffee shops do about 70% of their business before 10 am, in China, more than 70% of their businesses are done in the afternoon and evening. In addition, Chinese customers prefer to sit down to have the coffee in the coffee shop instead of taking it away. They value consumption experience very much. Coffee shops have become more of a gathering place for social occasions. Many young people take coffee shop as a Petty Bourgeoisie place and the symbol of lifestyle. In order to meet Chinese customer’s preference, coffee shop chains add more seats and tables in the shop. Western coffee shops chain, take Starbucks for example, have developed larger seating areas in China. Most local coffee shops and Korean coffee shop brands put great emphasis on the decoration and location, aiming to create an ambiance of casual elegance and exquisiteness to attract customers. For example, the Korean coffee shop chain Caffebene, provides sweet and artistic coffee shop environment. Caffebene’s target customers are young urbanites especially ladies. The similar strategy has been applied by other Korean coffee shops chain, eg. MAAN COFFEE and ZOO COFFEE. Many independent coffee shop operators also emphasize on the experiential consumption and provide beautiful scenes as background for photographing. A lot of consumers would take photos at the coffee shop and post on the social media. Some theme coffee shops are decorated with specific theme and style that related to the movies, pets, cartoons, histories, constellation etc. For example, Friends theme cafés are opened in Beijing, Guangzhou Shanghai, attracting numerous fans of the series.

Chinese are not used to the bitter flavor of coffee. In order to cater to Chinese consumer’s taste, some coffee shops change their standard recipe to make coffee less bitter. Starbucks and Costa adjust their drinking coffee formulas according to Chinese preference and add more tea flavor drinks on the menu. The success of this strategy is to offer more varieties of drinks along with coffee instead of trying to use coffee to take place of tea.

There is a trend for shops to mix coffee drinks business with other businesses. Some bakeries incorporate coffee-based drinks as a main business, eg. 85 Degrees C Bakery and Café, who provides both Bakery and Coffee drinks with lower price than coffee shops chain. Some book/café shops also embrace the  “mix-and-match style”. In some cities, coffee shops become a business incubator and enterprise center for entrepreneurs. 3W Coffee is a typical coffee shop that provides office for entrepreneurs to work, network, and get financing. It generates revenues from the coffee drinks and desserts. Meanwhile it acts as a bridge between the entrepreneurs and the investors.

Independent coffee shops have been springing up and seizing the market in the past 5 years. Some of them take advantage of new media to broadcast their coffee shop. Some take advantage of celebrity charm in film and television. La Petite Fontaine(小芳廷) in Shanghai has became popular after the coffee shop showed up in a popular Chinese TV drama (Silent Separation). Furthermore, an increasing number of specialist coffee shops and cafés in retail expanded rapidly in order to cater to the increasing demand. Although with wide presence in China’s market, most independent coffee shops are not profitable and couldn’t survive in the long term.

Coffee Shop Market Trend in the future

In the future China has the potential to become a major coffee-consuming country. The coffee shop chain will continue to penetrate in China’s market. For example, Starbucks planned to open up to 3,400 coffee shops in China. At the same time, there will be more varieties in China’s coffee shop market in the next 5 years and reduce the degree of Coffee shop market concentration. The shop ambience will still play a critical role while more attentions will be given to the details of each step of coffee process. With growing knowledge of coffee production, consumers will be picker about coffee beans origin, roasting process, and coffee equipment. Therefore specialty coffee shops will expand rapidly to provide high quality coffee and consumption experiences. Specialty coffee shops connects the Barista to the consumer, and finally, to the coffee beverage. Customers associate their coffee with social interactions, and they love the sense of belonging that comes from the barista knowing their name or remembering their favorite drink. Moreover, the “mix-and-match style” will be more and more popular. Coffee shop will incorporate with various businesses and change the market shape.

Finding the balance between the quality of coffee and unique store ambience to achieve multiple purposes becomes of paramount importance in the future. Recognizing the desire for fast casual formats or a homely setting and novelty partnership to embrace creatively is certainly important for coffee shops in China.

 

Water Sports Industry in China

Water Sports Industry in China Overview

The Shanghai Water Sports Trade Show will be held on September 2, 2016, the same day as the Beijing International Diving Expo 2016. These theme exhibitions focus on various kinds of boat, beach articles, diving, and surfing equipment, providing a stage for different buyers to seek trading partners and explore the Chinese market and China consulting firms. Water sports industry in China is no longer something far away or fresh for the public. Also, more Chinese consumers are willing to invest a larger part of their earnings in leisure activities and professional products. The water sports industry in China usually includes yachting, surfing, and other water-based recreational activities. Globally, there is a dramatic change in the sector over the last several years. Water sports’ popularity is slowly declining in Europe, while the market is heating up in other places, for example, China. More specifically, countries in colder climates, which usually have high nautical histories, are experiencing a declining in the number of boats. This trend is partly affected by their financial downturn, but the declining cost of air travel has also had a robust and enduring impact. Warmer countries, however, see their water sports on the rise. Even though in China, the growth has been slower than expected, it has still risen sharply compared to other countries.

Currently, water sports industry in China is still in the beginning and developing stage. With the increase of economy and people’s pursuit of higher standard lifestyle, more and more cities transferred to a service industry, water sports market also starts to grow. Cities like Qingdao, Rizhao, Weihai, Yantai, Sanya, Haikou and Dalian are using their own natural advantage to seize the opportunities and various ways to develop water sports industry.

Water Sports Industry in China: Development In Different Products

Swimwear

Speedo is a company based in the United Kingdom. It started its business in China more than 16 years ago. It notes that the market for swimwear has been quickly developing, because of an increasing interest in health and fitness. The company has stores in more than 50 cities across China. According to China Daily, Chinese government’s policies supporting the construction of swimming pools and high-end fitness clubs with pools are driving growth in the market. Roger Mao, Speedo’s marketing manager in China, indicated that Chinese people are expecting branded goods with functions and technology that provide an enjoyable swim experience. More attention is paid to the quality rather than the price. The Chinese swimwear market is predicted to see an annual average growth of twenty percent from 2015 to 2020, according to Frost and Sullivan’s research. In 2015, the swimwear market in China reached the sales of over 4 billion yuan ($601.3 million), boosted by the spread of swimming activities to more locations such as community centers, fitness gyms, and seaside resorts.

Water Sports Clubs

Popular water sports places are Golden Sail Water Sports Club and Happy Magic Water Park in Beijing, the Government-run Chong Hing Water Sports Center, and Cheung Chau Windsurfing Center. These clubs or parks provide all kinds of different water sports and services.

Yachts, Kayaks and Boats

Today, the business of yachts, kayaks, and boats in China is heating up. Is becoming hotter. For example, the 21st China (Shanghai) International Boat Show, which opened on April 7 this year, featured more affordable water sports facilities. The report from China Daily suggested that although yachts still remain rich people’s pastime, kayaks’ popularity among the young and upwardly mobile is rising. Hangzhou Winner Kayak Manufacturing Co Ltd has been serving this relatively new segment since 1995. For long, exports used to be their primary business, contributing almost 95% of the company’s annual sales revenue. But for now, more and more Chinese customers are consuming kayaks products, also thanks to the promotion and social media strategy.

Challenges

There are various problems existing existed in China’s water sports industry. Firstly, waters quality in China is now considered imperfect for water sports activities due to the pollution or the lack of water in lakes and rivers. Others difficulties also exist in the private sector sports management skills. Inadequate storage facilities for water sports equipment like kayaks are another problem. Further, delivery problem creates challenges too. For instance, products cannot be delivered on time or are not well-preserved when received. Even if consumers are willing to pay for certain priced water sports facilities, delivery can be a hindering factor in the whole business. Weihai Noah Yacht Co Ltd is a great water sports company. According to Gao Wei, the sales manager of the enterprise, kayaks can be quite affordable for ordinary consumers. One can get a good kayak for about 1,000 yuan ($154) to 2,000 yuan. A kayak is also easy to maintain. If properly treated, it can be well used for 10 years. It is really economical, especially when comparing with the bigger fishing boats, or luxury yachts. The State Council of China just issued the National Fitness Program (2016-2020), emphasizing the importance of National Fitness. The report also predicted that Chinese people’s sports consumption will reach 1.5 trillion yuan by 2020. Based on the status quo and its popularity, water sports will continue to see a sustainable development and a very promising future.

Clothes Market in China: Qipao VS Kimono

Clothes market in China. The qipao and kimono are both traditional Asian clothing. They have their stories before they became fashionable clothes.
The qipao is a Chinese garment of Manchu origin, modernized and made fashionable in Shanghai in the early twentieth century as the Changhan she kept in southern China. It’s a long, loose dress that designed the costume worn by Manchu women exclusively, rigor to the court. In its original form, it was a revealing clothing does nothing tangible forms, to suit all shapes and ages.
The kimono kiru and mono, literally anything that is worn on oneself is the traditional Japanese clothing. It is often confused, wrongly, with workout clothes martial arts. Before the introduction of Western clothing in Japan, the word “kimono” referred to all types of clothing. Today it refers to traditional Japanese dress, T-shaped, driven mainly for special occasions.
On the market in China, they are both very popular because they each have their uses on various occasions.

Clothes Market in China: The qipao kimono and the market in China

In recent decades, China has been seen as the world’s factory. And the now famous “Made in China” has become synonymous with counterfeit and inferior products. But never mind, the clothes market in China is in full evolution. Asian products such as textiles are back on the market with new styles and new trends such as the qipao and kimono. They have become very expensive clothes because of their qualities and manufacturing materials. With the rising purchasing power of Chinese who want to offer things very fashionable with brands and very distinguished styles, the Clothes market in China will experience explosive growth that propels at the top. Its turnover will explode.

Clothes Market in China: What is the most popular clothing in China qipao or kimono?

The qipao and kimono are traditional Asian clothes that are revisited with modern tastes and trends. The qipao is now combined with coats, jackets, and sweaters western section, with a new form near the body, sleeves and collar variations of different styles, it is worn on many occasion, and even movie stars have adopted the style. The kimono is a symbol of Japanese femininity. Both admired for the beauty of the cut, fabric finishing, but also for the elegance it brings to the person clothed him; this garment is synonymous with tradition. It is out of fashion because today the girls were hardly in the solemn moments. He became a regalia even if revisited to date. In China and also in all other countries, the qipao is more popular than the kimono. In fashion, if we did a poll vs. qipao kimono, the qipao won the race handily. He became an elegant garment that showcases a beautiful body and movie stars get enough of him. For cons, the same kimono is beautiful rather neglected because it is too ceremonial and does not relate to in various occasions.
The qipao and kimono are two traditional clothing but do not evolve in the same way.

organic food in China

Organic Food in China

Organic Food in China: The New Trends

For some years now, the whole world knows the organic trend. Regarding China, the first step of this great change was emphasized. Whether through the application of this lifestyle or simply by the protection of the environment, the country has made much progress. But as China has adopted this diet recently, opinions still diverge about her situation regarding the organic industry in China. Here is important information facing the perspective of organic food in China.

The Chinese market face Organic

Based on the organic food in China recent years, it is possible to see very large advances. Indeed, it should be noted that the country is currently one of the largest producers of bio worldwide. This was done due to changes in the Chinese Ministry of Agriculture. The reasons for this change are many like finding too much pollution in Chinese production or the opportunity to gain a new market. Internally, China is still very close to organic. The lack of information about face, the difficulty of access to products in certain regions, or just lack of interest in organic food are the basis of factors hindering the adoption of the regime in China. Thus the organic market, whether on the level food, cosmetic, or textile is not very developed. Of course, China has organic production areas of Inner Mongolia, Heilongjiang, Jilian, and Liaoaning.

Green Labels in China

In China there are different Labels Green certifying organic products. The Wugonghai is known to be the one having no harmful comprising sections without transformation. This label is characterized by reduced chemical residues but also in the quality of the final product. Then there is the Label Lüsse Shipin including processed products. It should be noted however that this is of secondary processing and is accepted for companies involved in agribusiness. This label is divided into two levels which A is an environmental protection insurance, and AA is an equivalence of Wugonghai. Finally, there is the Label Youji Shipin. These include a foreign certification for the export of products from China. This includes the different characteristics of the first two labels in addition to presenting its criteria. Given that this product to be exported, the Youji Shipin prohibits the use of chemical inputs while it promotes the use of a conversion period of 2 to 3 years.

The most popular organic products in China

Although the organic trend is not yet widespread in China, more and more people are experimenting and discovering new products every day. Although cosmetically and textile part of this change is the food industry in China is the most affected. Among the products that are most affected by this, we can, for example, mention the tea. It is also the subject of the first green label product in the country during 1990 from Zheijang the province to be exported abroad. Apart from this, there are also vegetables and fruits that are the subject of evolution more interesting either for export or the domestic market. Of course, that assessment still depends on the accessibility of products and their production, but it is clear that the quality of the organic food in China is very interesting.

See also Focus Groups in China

THE DECORATION MARKET IN CHINA

Regardless of culture or country , all the people around the world love to give their personal touch to their decor, it’s a way for everyone to feel more comfortable at home. But China has become a major player on the world market of decoration in recent years . In fact, this country has a very important socio- economic change since the country opened to the world. Principal Chinese cities like Shanghai and Beijing are becoming major players connected to the rest of the planet, these cities are becoming more « eldorado »where it is possible to work ; but also where to lodge resulting in a ” housing boom “. The very tall buildings in large cities are only the evidence.

This boom has had many implications for the decoration market in China. Housing conditions have changed in these cities and become more modern.Consumption patterns have moved closer to Western standards .Furniture design became more and more with a minimalist style with large natural color curtains like white cream , brown or green in the living room, for example , many Asian inspired by the many trips they did in the West to decorate their house ; it is a way to differentiate.

China furniture designers and sellers have decided to go up market which represents an alternative to the many copies as their predecessors realized the western decor. They had to choose this particular alternative because international competition is entering the market , afterit has emerged an innovative and original local Chinese creation. In Chinese decoration companies many foreign artistic directors have been integrated in order to put theircreativity to the west of the People’sRepublic of China. New customers were targeted : young, wealthy and urban. As company selling furniture in China couldbecited : Kinhom , hoba . Many of these companies participate in exhibitions, to increase their visibility ; the main lounge furniture , are: Shanghai Furniture China

The decoration market in China revealsa real growth potential, thanks to the replacement market boom of used furniture but also the development of new futuristic constructions. Not to mention that a gradual emergence of Chinese creativity to address the opening of the market to foreign companies. A real market with real opportunity exists today.

Infant Milk Industry in China: Getting rid of Food Scandal

http://www.daxueconsulting.com.hk/wp-content/uploads/2014/04/Infant-fomula-Le-Monde-Matthieu-David-Daxue-Consulting.pdf

Two maximum powdered milk boxes, eight for the luckiest. In Australia, since a fewdays, the parents run stores for finding this ‘white gold’ victim of a shortage in the country. Increased demand from the Chinese market which has increased on 11 November last, famous day of outstanding balances online at the world‘s leading economic power.

 

But this “Singles Day” accounts for not only this shortage, latent for several months.Since the crisis of the contaminated milk with melamine in China in 2008, recalls theGlobal Post, crisis which had killed six babies and reaches hundreds of thousands of others, Chinese parents are turning to foreign countries to feed their toddlers, and especially to the Australia and the New Zealand. And their application in infant food is steadily increasing, she would have been multiplied by 10 in 10 years, “and with the end of the onechild policy, it is not likely to be reversed.

Australian and New Zealand companies producing milk are the first to take advantage of this distrust of the Chinese products in their own countries. One of the main, Bellamy, has even opened a Chinese online sales platform. A way to directly trade with its neighbouring distant. 

If the recent shortage results in part from the regular trade, it is also and above all the consequence of a “grey market” of this white gold. By purchasing milk powder wholesale and reselling it in China on sites like Ebay and Taobao.com, individuals area maximum of profit. On 11 November, on Single day”, this kind of site is full, but even in normal times, Chinese parents sometimes prefer to order online rather than buy Australian products in their local shops. Bellamy estimated that about a third of its products sold in Australia end up finally in China.

In Australia, the anger rises in parents who no longer see the cans of the milk preferred their offspring in the rays. On social networks, they require discontinuation of exports to China until the shortage is resolved. Some call also upon the Government to better control the grey market. The Director Bellamy is reassuring:

“Our ambition is to continue providing milk to as many moms as possible, not only in Australia, but also in China and around the world”.

The company, like its competitors, announced an increase in their production to meet this demand.

See also:

If you have question about China and its huge and diverse market, contact me!