China Direct

Marks & Spencer continues to grow in China

 

[Image courtesy of www.marksandspencer.com]

CBI member Marks & Spencer (M&S) recently released its results for the year ended 31 March 2012, reporting international sales up 5.8%. The U.K. retailer's key priority markets of India, China, and Hong Kong saw strong growth, driven by good like-for-like growth and new space. 

In China, its Shanghai stores continued to perform strongly, and M&S currently has seven stores in the city, having opened three new ones this year. Its Hong Kong stores also continued to perform well, and the retailer opened one new store in the city.

Please click here to read the full annual results for M&S.

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

 

 

 

 

 

 

 

Alliance Boots announces China growth for 2011-12

 

[Image courtesy of www.allianceboots.com]

CBI member Alliance Boots recently released its preliminary results for the year ended 31 March 2012, reporting revenue up 18.4% to £23 billion and underlying profit after tax up 10.2% to £693 million.

Alliance Boots continued to grow strongly in China as Guangzhou Pharmaceuticals Corporation, its joint venture in the country, made several acquisitions during the year to strengthen its position in key regional provinces. The joint venture performed well with good revenue growth, margin management, and control over costs, enabling the business to significantly improve profitability.

Commenting on Alliance Boots' preliminary results, Stefano Pessina, Executive Chairman, said, "Alliance Boots has again delivered double digit growth in trading profit while at the same time generating a strong operating cash flow to fund investment in growth and substantially reduce net borrowings. This performance, which reflects the excellent work of our teams, has been achieved through a combination of organic growth and benefits from the previous year's acquisitions, is particularly encouraging given the challenging economic environment.

"In the coming year, we expect the economic environment to remain difficult with continuing pressure on both consumer and governmental expenditure. This will generate both challenges and new opportunities for us.

"We are confident about our future prospects and ability to pursue profitable growth, both organically and through further international expansion. This will be supported by our strong operating cash flow and secure funding arrangements, which will enable us to continue to invest while at the same time reducing net borrowings. The development of new and existing partnerships will be a key component of our future growth."

Please click here to read the full results for Alliance Boots.

Retailer Burberry sees strong Greater China growth in 2012

 

[Image courtesy of www.burberry.com]

CBI member Burberry recently released its second half trading update for the six months to 31 March 2012, reporting total revenue of £1.027 billion, up 18% underlying.

Led by flagship markets in the U.K., France, and Greater China, Burberry’s retail revenue was up 23% underlying, reaching £743 million.

Burberry opened 11 mainline stores during the second half, including an 11,000 square foot store in Taipei, the first flagship in this market. Angela Ahrendts, Chief Executive Officer, said, "With underlying revenue up 18% in the second half, we are pleased with Burberry's finish to the year across all channels, regions, and product divisions. Looking ahead, while we remain vigilant about the external environment, our global teams continue to focus on optimising our core brand, digital and cultural initiatives, while investing to drive sustainable, profitable growth."

Please click here to read Burberry's full second half trading update.

Tesco's green China goals - every little helps

 

[Image courtesy of www.tesco.com]

With the support of China's Ministry of Commerce (MOFCOM), CBI member Tesco recently held its second Retail Sustainable Development Forum in China in Suzhou.

Tesco has set the target of becoming a zero carbon business by 2050. To meet that target, the retailer plans to halve the emissions from its stores by 2020 and in its distribution network by 2012/3. Tesco also aims to work with its suppliers to reduce the emissions in its supply chain by 30% by 2020.

In China, Tesco is actively supporting retailers in their efforts to go green, developing green and low carbon distribution networks, and advocating the concept of green consumption among customers.

As part of its sustainability efforts in the country, Tesco launched its first green logistics centre in China last year. Located in Jiashan in Zhejiang province, the 55,000 square metre facility features an integrated energy-efficient design, which incorporates an extensive range of green technologies that use renewable energy sources and reduce energy and water usage.

Employing over 26,000 people and serving over four million customers per week in China, Tesco currently has 110 hypermarkets across 11 provinces and 14 small trial express stores in Shanghai.

Please click here to read the speech delivered by Lucy Neville-Rolfe, CMG, Executive Director, Corporate and Legal Affairs at Tesco, at Tesco's Retail Sustainable Development Forum in China.  

UK company M&S announces good growth in China

 

 

[Image courtesy of www.marksandspencer.com]

CBI member Marks & Spencer (M&S) recently released its trading statement for the fourth quarter of 2011/12, reporting double digit growth in strategic international markets, including China and India.

Marc Bolland, Chief Executive of M&S, said, "Marks & Spencer continued to make progress in a challenging market. Group sales grew by 0.8%, and U.K. sales grew by 1.2%. Our Food business has again performed well, especially in healthy food, whilst the General Merchandise performance was more mixed.

"Direct had another strong quarter with sales up 22.8% through a number of new initiatives delivering an improved customer shopping experience.

"Strategic international markets, including India and China, delivered double digit growth, but we continue to experience macro-economic pressure and restructuring in some parts of Europe.

"We have continued to manage costs tightly, and are confident of delivering full year profits in line with expectations. While the short term trading outlook continues to be challenging, we are focused on investing in line with our plan and are making strong progress against our goal of becoming an international, multi-channel retailer."

Please click here to read the full press release by M&S.

2012 British Business Awards in China - celebrating the best of British

We are looking for the Best of British, is that you?

The British Chamber of Commerce Shanghai takes great pleasure in announcing the official launch of the British Business Awards 2012 and invites applications.

The British Business Awards are an awards programme organised by the British Chambers of Commerce in China to recognise and promote excellence in innovation enterprise and endeavour, in the British business community in China. Established in 2008, the awards programme is now held every two years.

Through eight categories, the Awards will showcase organisations and individuals who are achieving outstanding results and who demonstrate the highest level of commitment to Sino-British trade and investment relations in a variety of disciplines in China. The Awards will also recognise the excellent accomplishments of Chinese businesses operating in the UK.

The British Business Awards are open to all majority British Owned companies or organisations operating in China*, Chinese* Alumni of a British Higher Education Institution as well as Chinese* companies or organisations with a presence in the UK.

*mainland China/ Chinese nationals only

Applications are now open and the British Business Awards invites all eligible individuals and organisations to enter. Five finalists in each of the eight categories will be chosen by an independent panel of judges and announced at a Finalists Event in late June. The highlight event of the Awards, a Gala Awards Dinner will take place on the 8th November, when the winners will be announced.

Application deadline is 18th May 2012.

For more information: www.britishbusinessawards.cn or contact admin@britishbusinessawards.cn

The British Business Awards 2012 Awards Categories and sponsors:

• Sustainability Award Sponsored by BP
• Chinese UK Alumnus Award Sponsored by the British Council
• Entrepreneur of the Year Award Sponsored by COSTA
• Innovation Award Sponsored by GKN
• Chinese Investor of the Year Award Sponsored by Hogan Lovells
• Creativity Award Sponsored by Jaguar Land Rover
• Financial & Professional Services Award Sponsored by Manchester Business School
• British Company of the Year Award Sponsored by UK Trade and Investment

    Photos of the launch event can be viewed here.

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

CBI Member McKinsey shares China insights via new website

 

 

 
[Image courtesy of www.mckinsey.com]

CBI member company McKinsey has recently launched an exciting series of podcasts ranging from topics such as the Twelfth Five Year Plan to China's insatiable thirst for energy on its new China website at http://www.mckinseychina.com/podcasts

Please note that the series can also be downloaded from iTunes under "McKinsey on China".

For more information or any queries please contact Glenn Leibowitz at: china@mckinsey.com

China Direct would like to thank McKinsey for sharing this information with our CBI members.