BlueBook Business Weekly
Every week BlueBook collects the 'must read' business news
This week focus on China's richest person according to Forbes magazine, growth opportunities for SME's and what are the hippest brands in China
Richest Chinese - US$14 billion - made fortune in property and retailing
Wang Jianlin is now the richest Chinese. Jianlin, head of conglomerate Wanda Group, has an estimated wealth of US$14 billion. According to Forbes Magazine his fortune soared from US$8 billion last year, when he was in third place, putting him now US$3 billion ahead of beverage tycoon Zong Qinghou. The US$14 billion figure puts Wang in 63rd place in Forbes global billionaires list, just ahead of Facebook founder Mark Zuckerberg.
Wanda Group is a private firm with interests ranging from property to retailing. Wanda recently bought US cinema chain AMC Entertainment and British yacht builder Sunseeker whose powerboats have featured in James Bond films.
Growth opportunities for SMEs in China: sausages
China's growth opportunities are not just for large enterprises, but most certainly for SMEs, states a British government report titled 'UK Exports to China: Now and in the future'. A UK family business that has become a very successful exporter to China is Devon food business Westaway Sausages. The company’s pork sausage range is flying off the shelves in China. Two years ago Baughan opened his first factory in Guangzhou, the country’s third-largest city in China. The country became the key export territory for this £3.5m family business. “When I consider how quickly the Chinese pork market is growing – about 19 per cent a year – I feel dizzy with excitement,” said managing director Charles Baughan. "As long as the product has a story to tell and a sweet taste, the Chinese will flock to buy it.”
If Apple is not cool in China – what is?
To Chinese consumers in their twenties, Apple is no longer the coolest product in the world. Apple can learn a lot from Starbucks, says Brand Consultant Shaun Rein. “To young Chinese consumers, Starbucks is ‘luxury in a cup’. The cheaper iPhone that is expected to be launched, will, according to Rein, “hurt Apple’s business in China. Young Chinese used to buy the iPhone because it was cool. If it becomes too cheap, it will not be the item that everyone is aspiring for.” Immensely popular among Chinese young people are Adidas (with their sub brand NEO), which is hip and urban cool. “Nike’s growth is sputtering, because it is too much ‘sports apparel’. Local herbal tea softdrink JDB is outselling Coca Cola and Pepsi. Coke is not perceived as healthy.”