Interview of Jiaqi Wang

MARKET CHINA: Can you tell us more about yourself?

A: I am born and raised in Nanjing, China. Being passionate about both economics and business, I went to France after high school at Sciences Po Europe-Asia Campus for my bachelor degree with a concentration on economics and Europe-Asia relations. There, I met people from different parts of the world and enjoyed talking with them, which really widened my horizon and helped me better understand this world and the people. In my spare time, I play guitar and basketball.

MARKET CHINA: What brought you to Daxue Consulting?

A: As part of the Sciences-Po third year curriculum, I have to do an internship outside of France. I saw the announcement on our school’s website. Being curious about consulting, I found that this start-up company has some really big clients, such as Sumsung, European Commission, etc. After talking with some staff n this company via Skype, I found staff here is really multi-cultural, and really excellent with various professional background, such as Nielsen, German Chamber of Commerce, etc. Even the part-time assistants are from top universities such as ESCP, LSE, Imperial College, Manchester University, Fudan University, Shanghai Jiaotong University etc. Everybody has certain autonomy to do things that are challenging, and the atmosphere is very dynamic. It would be a great experience working with them. Thus, I chose to come to Daxue Consulting.

MARKET CHINA: What is your vision of market research and consulting in China? What do you like about it?

A: Personally, I found the data is more difficult to get in China than European markets. By the time I managed the project of electric bicycle in China, the data collection costed much time. This is partly due to the opacity of SMEs, the entreprises are reluctant to show their financial situation to the public; also due to the unregulated market, the enforcement of law, regulations are very weak in a local level. The more time we spent on data collection, the less time we have on market analysis. Thus, normally a market research project in China is expected to have a longer duration than the one in Europe. I like doing market research and consulting because I feel a great achievement and I love working together with smart minds, the process of brainstorming is something I appreciate a lot. 

MARKET CHINA: Which business verticals do you specialize in?

A: I have an education of general courses including economics, corporate finance. 

MARKET CHINA: What is your consultant’s adage?

A: (I don't think I have an adage so far, but if I have to say, I would say "being efficient, being organized" )

http://chinaparadigm.com/

Daxue Consulting / 

Developing China market of technology

Reach agreement in technological sector

At the beginning of 2002, tablets drives made in China were blocked in customs in several countries of Europe, because the manufacturers had not settled the rights of the used patents. Afterward, Philips, Sony, and Pioneer began a legal battle in front of the European Court of Justice, pressing the Chinese manufacturers of tablets drives so that they pay the rights of the used technologies. Initially, the wanted payment was 20 US dollars by reader, sum considered as too high by the Chinese part which put forward an only 90-dollar sale price by device. Later, they also reached agreements with other companies for the payment of rights: 4 % of the sale price or 4 dollars by reader to NEC, Panasonic, Toshiba, JVC, Mitsubishi, and Time Warner, 10 dollars to DTS, 4,95 dollars to Dolby Laboratories, and 2,5 dollars with Mysimax. More recently, Thomson, the partner of TCL, asked for the payment of 1 or 1,5 dollars by reader, according to his place of sale, in China or abroad. According to Daxue Consulting, at least 50 million tablets were made in China in 2003, the total sum in game is thus very important.

Daxue Consulting provides market research tools to analyze high-tech sectors in China

Practices in Chinese economy

Such practices are typical of the Chinese industry during the last ten years. Multinationals gradually relocated the manufacturing of their electronic consumer goods of the United States and Japan towards Singapore, South Korea, Taiwan and Hong-Kong, and then towards China and other countries to the cheap workforce. They use the patents of key technologies as levers and concentrate on the development of the technologies of the next generation of these products.

China is supposed to absorb and to assimilate these technologies imported to develop gradually national products and progress in the technological scale. Unfortunately, it does not so take place. Situated at the end of the chain, China has other choice no than to continue to pay for the use of foreign technologies. At the same time, the homogenization and the everyday acceptance of these products pull the Chinese firms in valuable wars.

Example in manufacturing sector in China

According to SJ Grand, the phenomenon does not limit itself to the industry of electronic consumer goods. Let us take the example of Legend, the main Chinese manufacturer of tablets staff. In 1998, it exceeded IBM and became leading on the Chinese market. But as said by Liu Chuanzhi, his president, the company especially played a role of "locomotive (banyungong)" for the technologies.

More information: here / JX Paulin / here

China market of nursing home is growing

 For the French specialists of retirement homes, China market is the new El Dorado as well as China market of mini cars in China. Companies as Coliseum, Orpea and DomusVi already try to become established on this market in the immense potential, but have to be patient and of humility in front of cultural gap to be filled.

China market of nursing home and mini cars are huge in China

«The expansion in China is a logical solution for groups which can feel cramped in France ", judge Pascal Brunelet, Deputy Chief Executive Officer of the Group Coliseum, who participated in the 14th Congress of the national Labor unionof establishments and residences deprived for the elderly, organized on June 5th and 6th in Antibes. He is also an important person of the market of mini cars in China.

In spite of its small size (3000 beds for 54 establishments in France), Coliseum dashed into the Chinese adventure 8 years ago, by creating the Coliseum Beijing subsidiary China, based in Beijing. Its objective: create 50 nursing homes in the Middle Kingdom before 5 years.

But in China, «patience and humility are the key words ", mister Brunelet warns. In June, the group of Bordeaux " is going to put down the statuses of a joint-venture with a Chinese partner and a building permit should be granted in September, for the opening of a first establishment of 200 beds to Guangzhou at the end of 2015 ", he specifies. The China market of mini-cars are expending in line with nursing home.

Other example in the China market

Following the example of Coliseum, Orpea signed in March a protocol with living districts and hospital in Nankin, for the development of a nursing home of 180 beds.

At the same time, DomusVi (number three of the sector in France) signed a partnership agreement with Hanfor, a Chinese investment fund, creating the Duomei company, which will allow him to manage in China 100 retirement homes and 20 agencies of home help before five years.

http://daxueconsulting.com/online-research-china-mini-cars-market-2/

www.thestorecheckers.com

http://www.forbes.com/sites/gordonchang/2014/02/09/should-we-put-granny-in-a-nursing-home-in-china/

http://www.chinadaily.com.cn/china/2011-12/05/content_14210912.htm

China market of milk see foreign brands taking control

The reasons of the outperformance of the powdered milk for baby on China market are known: a context of suspicion around the Chinese producers, arisen from the scandal of the melamine in 2008; a rush towards products imported or made by the foreign brands which see their China market share doubling, of 35 about 70 %; in front of this peak of demand, rises in prices repeated during the last five years, which positioned this category at levels of gross margin very superior to the rest of the market; in view of this profitability, of big investments granted in marketing and promotion to stimulate an extremely profitable demand.

Authorities want to protect China market

This dynamism urged the Chinese authorities to react: launch of a public campaign on China market to encourage the breast-feeding; penalties for the actors practicing promotion drives considered too aggressive in hospitals; fines for the producers accused of price fixing, who had to lower the price rate of certain references; implementation of new regulations relative to the marketing of these products, to eliminate the small opportunist producers incapable to assure quality and traceability; financing brought to the consolidation of the Chinese actors, to reconstruct a sector capable of rebalancing market shares with the international producers.

New products on China market

All in all, 54 international companies obtained this year a license to import some infantile milk in China, where they are going to face hundred local producers. If this wild competition can support the growth of the category for the next years, on the contrary its profitability, in particular for the new incomers, is not assured. On the other hand, outside this emergent very competed segment of numerous doubtless more attractive opportunities of value creation for the international actors on China market.

For example, new categories of products appear and benefit from a fast growth. The best illustration is maybe the yoghurt to drink UHT marketed by the Chinese Bright Dairy.

大学Consulting

http://www.ibtimes.com/chinas-growing-dairy-demand-boon-quality-local-foreign-brands-1562191

http://www.euromonitor.com/drinking-milk-products-in-china/report

http://marketingtochina.com/the-store-checkers/

Meeting with expert on tech from China and Africa

Le Premier ministre chinois Li Keqiang a rencontré lundi le ministre français des Affaires étrangères Laurent Fabius et appelé à renforcer la coopération technologique entre la Chine et l'Afrique.

Lors de la réunion, M. Li a indiqué que la Chine était prête à travailler avec l'Afrique pour promouvoir les relations bilatérales, ce qui contribuera au développement des relations sino-européennes, à la coopération des deux pays avec les pays africains et le traitement des le monde conteste, en particulier dans la haute technologie.

Investissements bilatéraux sur la haute technologie

Il a noté que la coopération pragmatique a été la cheville ouvrière du développement des relations sino-françaises et que la Chine était prête à profiter de l'occasion du 50e anniversaire de l'établissement des relations bilatérales pour intensifier la coopération pragmatique dans tous les domaines, développer conjointement un troisième marché dans le secteur de l'énergie nucléaire, technologie et élargir les échanges culturels.

M. Li a souhaité que la partie française serait plus positif dans la coopération technologique avec la Chine et contribuer à développer expert sur la technologie en Afrique.

Monsieur. Fabius a indiqué pour sa part que l'Afrique a souhaité élargir le plus coopération avec la Chine dans les domaines clés, pour développer conjointement un troisième marché, d'améliorer le mécanisme des échanges culturels de haut niveau et de promouvoir la coopération dans la culture, l'éducation et la tourisme par expert en technologie.

D'experts sur la technologie pour contribuer au développement de l'Afrique

Il a salué la récente visite de M. Li en Afrique et a noté que l'Afrique espère travailler avec la Chine pour promouvoir la coopération avec les pays africains, ajoutant que l'Afrique souhaitait renforcer la communication et la coordination avec la Chine pour faire face aux problèmes internationaux, dont le changement climatique avec un expert sur la technologie.

Le potentiel du marché chinois offre de grandes opportunités en Afrique, et la partie chinoise est prête à se répandre efforts communs pour renforcer la coopération dans des domaines tels que les affaires et les investissements, l'énergie, la protection de l'environnement et de la lutte contre le changement climatique, ainsi que de faire avancer les négociations sur un accord bilatéral sur les investissements, a indiqué le Premier ministre chinois. Certaines entreprises comme MySimax, avec son fondateur JX Paulin, vont être une partie principale de ce processus.

MYSIMAX , JX Paulin

http://www.china.org.cn/english/features/38229.htm

http://blogs.ft.com/beyond-brics/2014/03/18/china-leads-em-surge-in-high-tech-exports/

market of cars in China

The sales of vehicles automobile in China increased by 15 % last year, exceeding expectations by reaching nearly of the 22 million sold units, with about 18 million passenger cars, the Chinese association car manufacturers announced on Thursday.

China strengthened is position of market leader

China confirmed in 2013 its status of first automobile market to the world, a place which was acquired in 2012. In the Middle Kingdom, the sales any confused vehicles increased by 14 % last year to 22 million units, a growth which exceeded expectations, announced on Thursday the Chinese Association of the car manufacturers. For the only passenger cars and SUV (except commercial vehicles), sales progressed of 16 % to reach 18 million units sold.

The latter amounts, which integrates a 18 % jump of the registrations in December, is clearly upper to the forecasts of the association, which banked initially on a 7 % progress only of the market after two years of low growth.

What are the positions of the French manufacturers in China? After many disappointments, PSA has three production units to Wuhan by means of its joint venture with the Chinese manufacturer Dongfeng today. The production capacity, which is about 600.000 cars a year, should be increased to 750.000 in 2015.

The market of second-hand is still emerging

Still embryonic, the market of the second-hand car should explode in China in the years which come, following the sales of new vehicles, and the foreign builders already position to make sure a share of the cake.

In China, we count approximately a second-hand vehicle sold for three new, what little by report of the other regions, in particular in the United States where on the contrary there are 27 second-hand vehicles for new 10.

The reason of this delay is simple: the take-off of the Chinese market goes back up only in a decade and at the moment the Chinese who reach the automobile favor the new. 65 % of them are always first-buyers.

http://www.lesechos.fr/09/01/2014/lesechos.fr/0203231651589_la-chine-premier-marche-auto-mondial-en-2013.htm

http://daxueconsulting.com/consulting-china/

Automotive market China are going to Africa

The Chinese groups always suffer from a deficit of image compared with their main rivals, Korean Kia and Hyundai, which cavort at the top of sales both in the Maghreb (with French Renault and Peugeot) and in the South of Sahara (with Japanese Toyota and Nissan). Hyundai sells 150 000 cars on the continent, it is near 7 times more than Great Wall.

African market are not fully open to China's brands

In their offensive on Africa, the Chinese brands are supported by their government. «Just after the crisis, China made present of 50 sedans Great Wall to the Ivory Coast government. A very beneficial operation for our image ", the managing director of Rimco in Ivory Coast recognizes. Since then, the public companies and the administration represent not less than 40 % of the turnover of this one. " And when the Chinese companies become established in Ivory Coast, they provide themselves naturally at our home(naturally with us) ", the distributor congratulates himself, who so sells vehicles Great Wall to Sinohydro, the manufacturer of the dam of Soubré ( Ivory Coast).

To make progress their market shares, the manufacturers of the Middle Kingdom implant assembly plants, in particular in North Africa and in Southern Africa, where the sold volumes are the most important. Great Wall Motors and Chery already assemble cars in Egypt, market considered attractive because of its pond of population of 80 million inhabitants. First Automobile Works announced industrial projects in South Africa and in Cameroon. Great Wall studies other possibilities of factories in Senegal and in South Africa. These installations - which content with assembling rooms come from China - do not represent colossal investments.

Other work for the Chinese brands, the improvement of their system of distribution thanks to agreements with the biggest actors of the continent. The group CAD-CAM, leading in French-speaking Africa, distribute Great Wall in Morocco, whereas the number two of the market, Tartaric Motors, represents Chery and JAC Motors in several countries via its subsidiary Tiger Motors. But both are little pressed to knot agreements with other Chinese actors and to widen their existing partnerships somewhere else. The subject is sensitive: for a question of image, the Japanese and western brands, which they also distribute, do not want to be sold in the same concessions. CAD-CAM comes besides being acquired by Toyota Tsusho Corporation.

JX Paulin

http://www.pourquoi-entreprendre.fr/jx-paulin-mysimax/

Mix Pro MK3

http://chinametrix.com/