China Direct

Celebrating CBI Member Success in China May 2012

 

Please find attached our monthly briefing “Celebrating CBI member success in China” for May, covering 42 members.

Members covered include:

   

• ABB
• Airbus
• Alliance Boots
• ANZ
• Arup
• Atkins
• Benoy
• Boeing
• Burson-Marsteller
• Cardiff University
• Clifford Chance
• The Coca-Cola Company
• DHL
• Everything Everywhere
• Ford Motor Company
• Foster + Partners
• Fuji Xerox
• Gatwick Airport
• GE
• GKN
• GSK
• Herbert Smith
• HSBC
• IHG
• Jones Lang LaSalle
• King’s College London
• London Stock Exchange
• M&S
• Mott MacDonald
• Newcastle University
• News Corporation
• Nottingham Trent University
• Pfizer
• Philips
• Pinsent Masons
• Rio Tinto
• RBS
• Shell
• Siemens

Download CBI China, Celebrating CBI member success in China, May 2012

 

 

 

2011-12 British Business Climate Survey in China - Summary

 

[Images courtesy of www.cbbc.org and www.britishchamber.cn]

The CBI would like to thank our partners at the CBBC and British Chamber of Commerce in Beijing for sharing the findings of the 2011-12 British Business Climate Survey in China.

The results of the 2012 Business Climate Survey indicate increasing optimism about the outlook for revenue growth in 2012. The survey clearly demonstrates the growing importance of China to many companies as a driver of corporate growth, evidenced by plans to increase investments in China this year.

However, companies continue to acknowledge the complexity of the operating environment, especially in terms of rising labour costs, increasing local competition and the ongoing challenges of IPR & legal enforcement, protectionism and bureaucracy.

 Despite this, most UK companies remain confident about the outlook for their business in China.

 The key messages that arise from this survey are the following:

 

• Despite worries over the global economic outlook and rising domestic competition, performance in 2011 was generally positive with the majority of respondents seeing an increase in revenue.

 

• China remains a key market, with the majority of respondents planning an increase in investment and remaining positive in their expectations for the coming year.

 

• Human resource issues continue to be a substantial challenge for business, with members tackling increasing labour costs and problems attracting and retaining skilled staff.

 

• Whilst domestic competition still struggles to compete in terms of technical innovation and management expertise, they showed significant improvement in marketing and branding.

 

• The key business challenges facing those in the China market continue to be bureaucracy, securing licences and protecting intellectual property.

 

• Despite intellectual property rights being cited as an important factor in China operations, the number of infringements that actually harmed operations was relatively low.

 

To download the full survey please click below:

Download 2012_china_business_climate_survey

 

 

 

 

 

 

 

B&M flying high for Dragonair and Cathay in China

[Image courtesy of www.bm.com]

CBI member Burson-Marsteller was recently awarded a one-year retainer to manage the media relations and engagement in mainland China for Hong Kong-based airline Dragonair and its sister airline Cathay Pacific Airways. The firm will also provide Dragonair with corporate social responsibility counsel and support.

Burson-Marsteller will serve the two airlines from each of the firm's five offices in China.

Chris Deri, Burson-Marsteller China's CEO, said, "China's travel industry is growing at an exponential rate. We are pleased to work with these two Hong Kong airlines to raise their profile in mainland China. We have found during our work with premium brands that clearly communicating a company's values and actions are essential in rapidly growing industries where brand value and recognition significantly influence buying decisions."

Sam Swire, Dragonair and Cathay Pacific's General Manager China, said, "As the China airline market grows in size, the country's fliers become increasingly discerning. It is very important to Dragonair and Cathay Pacific that passengers in mainland China know what we stand for and demonstrate our commitment to them and the China market. We look forward to partnering with Burson-Marsteller China as we work to engage passengers, media, and industry stakeholders to increase awareness of our two brands here."

Please click here to read the full press release by Burson-Marsteller.

CBI member success stories in China Feb 2012

 

[Image courtesy of www.cbi.org.uk]

February 2012 was a bumper month for CBI members in China with at least 29 (matching the leap day!) confirmed successes that China Direct is aware of.

Member contributions came from:

• ABB
• Accenture
• Alstom
• Arup
• BAA
• BBC
• Benoy
• BMW
• BP
• Burberry
• Clifford Chance
• Devro
• Ernst & Young
• Eversheds
• Freshfields Bruckhaus Deringer
• Herbert Smith
• HSBC
• IHG
• INEOS
• J.P. Morgan
• Pfizer
• McKinsey
• Nike
• RBS
• Standard Chartered
• Thales
• University of Edinburgh
• University of Leeds
• WPP

China Direct would like to say a huge thank you to all of our members for their contributions and also to Ben Cooper at the CBI's Beijing office for patiently collating the information.

Please find our Feb 2012 summary below:

Download CBI China, Celebrating member success in China, February 2012

UK WPP's Ogilvy & Mather acquires stake in leading Chinese advertising agency

 

[Image courtesy of www.wpp.com]

Yesterday, CBI member WPP announced that its wholly-owned operating company Ogilvy & Mather, a leading advertising and marketing communications network, has acquired 49% of Nanjing Yindu Advertising and Commerce Co., Ltd. ("Yindu") in China.

Based in Nanjing, Yindu is a full-service communications agency with capabilities including strategic planning, advertising, branding and corporate identity, print and media production, and media buying.

Subject to regulatory approval, the acquisition will expand Ogilvy's reach into the Yangtze River Delta, underlining WPP's regional approach in China.

Please click here to read the full press release by WPP.  

Brand China - UK Company WPP launches key report on Chinese brands

 

[Image courtesy of www.wpp.com]

Commissioned by CBI member WPP, the annual BrandZ Top 50 Most Valuable Chinese Brands ranking was released earlier this week by Millward Brown.

Combining both financial data and consumer opinion gathered from interviews with over 35,000 Chinese consumers, the BrandZ China Top 50 is one of the most robust rankings of Chinese brands available.

Key trends emerging from the BrandZ China Top 50 study include:

     • China's shift from maker to innovator
     • The phenomenal rise of online and FMCG brands
     • Rising incomes and a rapidly expanding middle class
     • Consumers becoming increasingly brand-savvy

In 2011, the value of the Top 50 Chinese brands has grown by 16% to reach $325 billion, representing more than 5% of the Chinese economy. The top five brands in this year's ranking are as follows: China Mobile, ICBC, Construction Bank of China, Bank of China, and Agricultural Bank of China.

Please click here to read the full press release by WPP's Millward Brown and here to access the full report.

Celebrating UK and international CBI member success in China: Nov 2011

[Image courtesy of www.cbi.org.uk]

Dear China Direct readers, 

Kindly find more than 25 examples of UK and international CBI member companies that are celebrating business success in China in November 2011.

Download CBI China, Celebrating member success in China, November 2011

This will mark the 300th entry since China Direct went live back in June 2009.

Please let the CBI team in Beijing (ben.cooper@cbi.org.uk tel: 00 86 10 85253100) know if your company would like to share your China business news with the CBI's international member network.

Many thanks.

UK-China 2011Trade Statistics - room for improvement

[Image courtesy of www.uktradeinvest.gov.uk]

UK Trade & Investment (UKTI) in Beijing has kindly prepared an overview of the latest UK-China trade and investment statistics.

Highlights include:

UK imports of goods from China (Jan-Aug 2011): £18.6 billion.

UK exports of goods to China: £5.5 billion.

Total trade volume of goods between China and the UK: £24.1 billion. 

Total 2010 UK-China trade volume in services: £3.374 billion.

The UK exported £2.131 billion worth of services to China.

China exported £1.243 billion worth of services to the UK.

UK was China's top source of foreign direct investment (FDI) from the EU in 2010.

The UK's FDI into China reached $1.62 billion in 2010, up 10% over the previous year. 

The UK was the fourth largest destination for China's direct investment in the EU in 2010.

China's outbound foreign direct investment in the UK reached  $330.33 million in 2010.

As of the end of August 2011, there were eight Chinese companies listed on the LSE main market, with a total market value of £15.6 billion.

There were 43 Chinese companies listed on the LSE AIM, with a total market capitalisation of £3.5 billion.

Please click here to read the full overview by UKTI.

WPP establishes marketing and communications school in Shanghai

 

[Image courtesy of www.wpp.com]

Leading global marketing group and CBI member WPP and the Shanghai Art & Design Academy (SADA) recently launched the WPP School of Marketing and Communications on SADA's campus in Shanghai.

The WPP School marks China's first professional marketing and communications three-year diploma programme. WPP and WPP companies will work closely with SADA to develop the new School's curriculum and hire full-time faculty.

WPP Chief Executive Sir Martin Sorrell said, "China is currently facing a shortage of talent, particularly in the fields of marketing and communications, which is expected to become more acute in coming years. As the leading marketing group in China and the world, WPP is committed to helping China to develop a professional, and creatively-talented workforce in the sector.

"We are fortunate to have such a committed partner in SADA to establish the WPP School of Marketing and Communications. We look forward to working with them to build the WPP School and nurture market-leading talent."

Jiang Ming, the Principal of SADA, said, "The joint establishment of the WPP school to nurture world-class creative talents in marketing and communications and the development of a new model in the collaboration between colleges and companies is a new exploration on the path of higher vocational education for the Shanghai Art & Design Academy."

Please click here to read the full press release by WPP.

Chinese brands go global - with help from the IPA

 

 
[Image courtesy of www.ipa.co.uk]

CBI member The Institute of Practitioners in Advertising (IPA) recently launched a research and development service for Chinese brand owners aiming to go global.

The new consumer research and development service is called the IPA 'International Brand Incubator' and draws on the expertise of UK-based planners and creators within IPA member agencies to provide Chinese companies with the opportunity to test the consumer appeal of their brands outside Asia.

Commenting on the new IPA initiative, Janet Hull, IPA Director of Marketing, said, "This is the perfect time for Chinese companies to take their brands global via the UK. The relative strength of the Chinese economy makes brand investment highly efficient. All the economic indicators show that those companies that invest in brands in an economic downturn reap extraordinary rewards in terms of market share gain and profitability."

Sebastian Wood CMG, Her Majesty's Ambassador to the People's Republic of China, said, "The UKTI team in China welcomes this initiative and is available to support the internationalisation plans of Chinese brand owners who are seeking to use the UK as their springboard into new global markets."

Please click here to read the full press release by the IPA.