Chinese retailers, energy & consulting firms | Biz weekly

In this episode of Business Weekly we look at the tremendous peak in China’s retail sales during ‘Singles’ Day’ for Chinese retailers, on which 170 million transactions were registered. Looking at the big picture: China is close to becoming the world's largest oil importer, the Paris-based IEA said in its 2013 World Energy Outlook. Despite the slowdown of the Chinese economy, larges consulting and accounting firm are expanding their presence in China.

‘Singles’ Day’  and the Chinese retailer

‘Singles’ Day’ continues to stun Chinese (online) retailers and is on its way to become one of the major shopping events in China. China’s answer to Black Friday and Cyber Monday lead to a record number of 60 million pieces of express delivery being handled in one day, 1.7 times that of the shopping blowout last year.

Singles’ Day was started by Chinese college students in the 1990s as a version of Valentine's Day for people without partners. Unattached young people treat each other to dinner or give gifts to woo potential partners and end their single status. China's e-commerce companies usually roll out promotional sales and offer discounts of up to 50 percent to attract online shoppers. It worked, in a grand way.

According to the Telegraph (UK), more than 170 million transactions were registered over the 24 hour sale, with the total amount of revenue of online sales reaching 35 billion RMB (around €4.1 billion) while in last year the sales volume was 19.1 billion RMB (about € 2.3 billion). China's delivery companies had 800,000 employees working on this special day, including 65,000 temporary workers hired for the holiday.
Further reading

Energy in China (and India) grows

Energy in China and India is  increasingly driving the world demand, the International Energy Agency said. China is close to becoming the world's largest oil importer, the Paris-based IEA said in its 2013 World Energy Outlook.

"The dominance of Asia will be more and more visible. The demand and the thirst for energy in all its forms will be tremendous,” IEA executive director Maria van der Hoeven told The Associated Press.

While the IEA sees global daily oil demand rising by 14 million barrels by 2035 to 101 million barrels, the production of conventional crude oil will fall by then to 65 million barrels a day. Other products, such as light, tight oil — also known as LTO or shale oil — will make up the difference. The IEA warned that despite environmental policies being implemented by several of the world's largest consumers, including the U.S. and China, current projections show that energy-related carbon dioxide emissions will rise 20 percent by 2035.
Further reading

Consulting in China increases presence

Global management consulting firm McKinsey & Co and Ernst & Young – auditing, taxation, financial transactions and consulting – in China seems to step up their presence.

McKinsey & Co unveiled its latest office in Shenzhen, its third on the Chinese mainland after Beijing and Shanghai and its 107th worldwide. The move is to better tap into the business opportunities in the booming services and private sectors in the South China city. Shenzhen now sees nearly 60 percent of its corporate revenue generated by service-related businesses, compared with 37 percent in Shanghai and 29 percent in Beijing. The city is also home to leading Chinese private companies such as Ping An Insurance (Group), China Merchants Bank, Huawei Technologies Co Ltd, ZTE Corp, Tencent Holdings, and China Vanke Co Ltd.

Ernst & Young opened an office in Shenyang in Liaoning province, bringing the number of their offices in China to 16. According to EY, it is an important strategy for the company to develop and strengthen its business in Northeast China. The opening of the Shenyang office shows EY’s clients' businesses keep growing in China. Shenyang is the financial center of Northeast China.
Further reading here and here

< Previous Next >

Related articles