A great niche luxury market in China

 China is the largest exporter of scarves

Although China's scarf market is large, it is difficult for brands to enter the Chinese market. Because scarves are manufactured at a higher volume than the market, this is why it's difficult for brands to enter the Chinese market. China was the first country to export scarf products in 2020 at a total of 1.01 billion USD. However, China's scarf import volume is only 127 million US dollars. This is significantly less than China's export volume. It is important for brands to understand that there are many local brands as well as other brands competing in the Chinese market.

What are the Top Countries to Import Scarves from China?

Brands who wish to enter this market should know who is winning it. These are the countries and regions that currently export the most scarves into mainland China.

France - 56.2M USD

Italy - 52.9M USD

Hong Kong - 2.76M USD

United Kingdom - 2.45M USD

India - 2.07M USD

This survey shows that Italy and France are the clear winners in exporting scarves to China. It is clear that Chinese consumers value the unique selling point (USP) of scarves made from French or Italian origin. You can also see that Chinese consumers will trust scarves made from French or Italian fabrics, as they are more likely to believe these products are high-quality.

What You Need to Know About Chinese Scarves Customers

What are the most popular scarf materials in China?

Silk, cashmere silk rayon, acrylic and polyester are the most popular scarf materials in China. Because they are natural materials with a premium touch, silk, cashmere and cotton are always considered to be the best quality. The personal value of these 3 materials is also different for Chinese consumers.

Cotton can be considered Warm, Non-luxury Daily Use

Cashmere can be considered Warm, Luxury, Fashion & Daily Use

Silk can be regarded as Fashion, Luxury, Decorative.

These materials are viewed by Chinese consumers from many perspectives, including price, function, and situation. You will use different advertising and storytelling depending on the materials used to position scarves. Using scarves from your collection to promote your brand in China will allow you to create different stories and advertising.

How Western Brands Can Succeed in China, 

The Chinese 5500 year-old Silk invention was the first. The material and craftsmanship are three of the most important elements in silk products.

What is the best symbol for high-quality silk material quality? Pure silk is rarer and more valuable than other silk materials. While many brands claim their product is 100% silk, they are not using pure silk. This is because pure silk is more difficult to produce and therefore more valuable.

Silk products require skilled craftsmanship. The manufacturing process has a significant impact on the final product's quality. In China silk is a highly skilled material. It is important to let your customers know that your brand is proud of the quality of silk craftsmanship.

The design is another important factor that demonstrates the variety of silk brands. Imagine your brand competing against local silk brands that are well-crafted and have good materials. Your design can help you stand out from the rest. Silk scarfs are different than other silk products because they are connected to fashion design and not touch and material. Adding value to your products by underlining your design. read this 

How did Luxury Brands win the Chinese Scarf Market in China?

The modern silk scarf, despite its long history in China was actually created in the west in the middle-age. Hermes discovered the untapped area of western silk scarf culture, and played a nice game on it. Hermes Silk Knots is a free app that teaches customers how to tie and wear their scarf. It also includes styling tips and step-by-step tutorials. This was a great market education move that helped build their brand in the scarf industry.

Read more https://fashionchinaagency.com/stand-your-brand-in-scarf-market-of-china/

Traveling to China after lockdown my experience

 As soon as the confinement was lifted in China, life resumed its course. Commercial activity is gradually normalizing, including the tourism sector. The Chinese authorities are working hard to restart international travel as soon as possible. Recently, many tourist sites have been allowed to reopen in order to promote tourism without compromising the protective measures imposed.

However, the Chinese authorities still advise against traveling to certain regions of the country. Many security measures have also been imposed on travelers to avoid any risk of spreading the coronavirus.

Traveling to China after lockdown

Very strict entry conditions: the authorities require a negative test.

Since the end of March, China has prohibited the entry of foreign nationals into its territory in order to limit the spread of Covid-19. However, some exceptions are possible, the authorities having accepted the entry of some diplomats, businessmen and women, provided that they scrupulously respect the constraints of entry into the territory. Non-essential travel is currently prohibited. If you plan to go to China, you will have to respect the health control rules imposed by the Chinese government.

First of all, China requires that anyone, regardless of nationality, wishing to travel to its territory by plane must take a Covid-19 test before leaving. This must be done at least 5 days before the take-off date. The test must of course be “negative”. Otherwise, the traveler is not allowed to travel to China.

Upon arrival at the airport, all passengers undergo further testing. They must then go into mandatory quarantine. This isolation is aimed at both travelers who have tested positive and those who are in good health. Failure to comply with these health control rules may result in penalties. If you are planning to organize a trip to China very soon, it is advisable to first check with a specialized travel agency to find out all the entry conditions. For that, you can visit this site.

Traveling to China after lockdown

Isolation measures applying to foreigners

Anyone arriving in Chinese territory must undergo a local Covid-19 test during their 14-day quarantine. If the result is positive, the person will be taken directly to the hospital for treatment until the coronavirus test becomes negative. A new period of isolation of 14 days in a collective center will then be proposed in order to closely monitor the state of health of the sick person. It should be noted that the costs of care and accommodation are the responsibility of the travellers.

Even if the traveler tests negative, they must still be quarantined for 14 days in a collective center. However, the person concerned can choose to be isolated at home after 7 days of confinement in a collective center. All the same, the accommodation must comply with the health observation conditions. If this is not the case, the traveler will be obliged to continue their period of isolation in a collective center.

If the traveler chooses to continue their period of isolation at home, a new nucleic acid test will be carried out on the fifth day of their confinement in a collective center. If the result is still negative, she can be transferred to her home. In any case, the initial duration of the quarantine measure cannot exceed 14 days. It should be noted that this measure is particularly aimed at the elderly, people with other pathologies, pregnant women, people with reduced mobility and minors. Be aware that people who break quarantine (before 14 days) expose themselves to legal proceedings.

The 10 years of the Chinese business club

 the 10 years of the Chinese business club can boast of having united around the club a hundred member companies

harld parisot the founder, wears in his lapel the badge of Merit that Emmanuel Macron gave him in 2015 when he was Minister of the Economy. “A before and an after”, for Harold Parisot, and his little pride. Because it was only three years after the creation of his "start-up", the Chinese Business Club, that, "starting from nothing, having never set foot in China and not speaking Chinese", this former Deutsche Telekom and Bouygues Telecom has succeeded in imposing itself at high speed as a center of Parisian influence. Its vocation: to do business and develop its network with French and Chinese decision-makers and opinion leaders.

source figaro

China, a market of the future for France

Second and third, “via the Chinese in Mainland China which can be reached in two ways. Either via e-commerce or via a physical presence. A physical presence means a lot of time, a lot of money. It's a tough commitment. Chinese e-commerce is not very complicated, it is not very expensive and it allows you to reach more consumers. However, it is imperative to be present on Baidu, the Chinese Google and translate your site into Mandarin,” explains Harold Parisot in economie matin

The share of Chinese in France, whether tourism or business, is set to grow in the years to come. The Chinese unlike the French, who are very modest, have a very simple vision of business, for them, a period of crisis is also a period of opportunity. In the space of eighteen months, several million Chinese have become considerably richer and will swell the ranks of potential consumers. For Harold Parisot, things are clear: “There is a boulevard in front of us, fifteen to twenty years of business to build”

read more interview on touristeschinois on the secret interview of harold parisot

China 12th country in the world in terms of innovation

 In 10 years, the number of Chinese high-tech companies has increased from 49,000 to 330,000 and the country's R&D investments, which represented 1030 billion yuan (about $155 billion), have now reached 2790 billion yuan.

These figures are those of the Global Innovation Index, including the 2021 report published by the WIPO (World Intellectual Property Organization), which ranks China 12th in the world in terms of innovation. That is 22 places gained in 10 years.

According to the report among the top 10 most innovative economies in the world (out of 132 in the ranking) the USA is 3rd, the European economies are Switzerland, Sweden, the United Kingdom, the Netherlands, Finland, the Denmark and Germany, the two Asian economies are South Korea (5) and Singapore (8). India is only 46th and Japan 13th.

The 7 key criteria of the GII are the quality of infrastructures, the value of human capital and research, the efficiency of institutions, the maturity of the market, the maturity of the business, creativity, the production and dissemination of knowledge and technologies. Note on the details of the 7 criteria: China underperforms on the efficiency of institutions (61 st rank) and over-performs on the production and dissemination of knowledge and technologies (4 th rank ). 

France is 11th. We are late explained a French member of the Chinese Business community. 

To innovate is to know how to abandon thousands of good ideas said Steve Jobs.

The future of business in China is really Positive?

 As China turns inward to move upmarket, adopting the concepts of "decoupling" and "dual circulation", it is becoming more and more complicated for foreign companies to do business in China.

Doing business alone 

Looking around, in a popular cafe in one of Shanghai's major malls, Gregory Prudhommeaux realized that he was the only foreigner. An improbable situation, a few years ago. “In my entourage, I have counted 60 departures over the past two years. This creates a somewhat anxiety-provoking atmosphere,” says the entrepreneur, at the head of a consulting firm for agrifood SMEs. The zero Covid health policy is turning into a headache for Western companies established in China. Unable to leave the country, and especially to return, some of the expatriates have packed up. For two years, business travel has been non-existent and international flights have fallen by 98%.

The distancing of local subsidiaries vis-à-vis head offices is becoming a reality. "I haven't seen anyone from the Paris headquarters for eighteen months, except during videoconferences", warns Nicolas Ajacques, the deputy general manager of Tianneng Saft Energy, the joint venture 40% owned by the battery manufacturer, a subsidiary of Total. . The expatriate is overseeing the construction of a gigafactory in Chanxing, which should be operational from mid-2023. But other staffs, unable to go there, have eased off on long-term projects. For the 2,100 French subsidiaries based in the Asian giant, this situation reinforces doubts about their future in the largest market in the world explained the Chinese Business event

Freedom in China a big problem

The grandson of a great lawyer, saw his family downgraded by the Chinese Communist Party (CCP). He grew up in very modest circumstances in Shanghai and then in Hong Kong, then British, where his parents were able to go into exile. But the young man is a fighter. After studying finance in the United States, he launched into business in China in the early 2000s, at a time of dizzying growth.

In a country where nothing is possible without connections, a woman will help him penetrate the heart of communist power. Whitney, who would become his wife, bonded with "Aunt Zhang", the wife of then Prime Minister Wen Jiabao. By multiplying the sumptuous dinners and the gifts to the "red princes", the couple becomes immensely rich - their fortune is counted in billions. In Beijing, they are building China's largest cargo airport and one of the most luxurious hotels in the city

in Business in China, Branding is crutial

 Branding in China is Crucial

A consumer’s perspective on a certain product may greatly change the moment they hear its brand. Effective branding can mean a huge difference in how much it will be sold for so it’s not a step in your business building that you can take for granted.

Chinese consumers will welcome foreign brands but will, of course, only be willing to spend their hard-earned money on known ones, or at least the brands that are well marketed or established. 

https://fashionchinaagency.com/china-marketing-strategy-that-sets-you-up-for-success/

And then, take note that there are domestic brands that you need to compete with. Domestic brands will have a lot of advantages. For one, they have lower operational costs so their products are cheaper. Expect that they will also know their target market better.

Our ambition is to observe the phenomena of branding, practice branding, and unveil the principles of branding. Here are a few observations about the growth of branding in China gleaned over the past years

https://www.brandingmag.com/2015/11/14/the-growth-of-branding-in-china/

When you ask people “What are the key things that make a brand succeed in China?” you usually get a very predictable answer that includes: hire a celebrity, work with KOLs and, as of late, be sure to do live streaming.

https://retailinasia.com/in-markets/what-are-the-key-ingredients-of-branding-which-bring-success-in-china/

Melscience a top startup in China

 MEL Science, a London-based, science-focused EdTech platform, today announces that it has secured $14m (£10.5m) in Series B funding.

The firm offers educational kits, combining hands-on experiments with interactive VR simulations and live lessons. Its products are designed for children aged 5 – 14 and are intended to be used either as an at-home teaching aid or by schools.

It claims its VR technology has been found to improve both test-scores and student engagement levels in a study by the New Jersey Institute of Technology.

Melscience is a popular edtech brands in the world, and get attraction in China. 

The startup has secured a 14M$ funds raise in Dec 2020.

Today, social media are everywhere and the last generation, millennials, are always connected. Those new habits lead people to learn at home. New ways of teaching, which can even be more productive. 

Here an example to show you how this can be done: 

Let us see the case study of MelScience. 

In seeking limited partner investors in Day One funds, she told one target that others investing included Mamut through his firm, according to a pitch document from Bucher obtained by The Post. The billionaire and former Kremlin adviser had recently taken control of blogging platform LiveJournal. Another person Bucher listed as an investor in the same fundraising email told The Post that he was pitched by Bucher but never actually invested.

She emailed a slide deck presentation to another possible limited partner that included claims she had led media efforts for science education start-up MEL Science and “made 10+ introductions to investors that helped to close $2.5 million round led by Sistema Venture Capital,” owned by a Yevtushenkov company that has the biggest stake in Russia’s largest mobile telecom carrier.

Melscience a case study in China 

https://redmillennial.com/melscience-a-success-story-in-china/

China Covid Situation is bad for business

China Covid Situation is bad for business

7,346 new cases announced (including 5,559 asymptomatic) during the day of March 31, including more than 60% in Shanghai.

National total = 82,754 cases (54,911 asymptomatic)

 

A =Shanghai=

4 days after the start of the Pudong containment, the figures for new cases announced in Shanghai show a drop for the second consecutive day after a peak of nearly 6,000 cases.

4502 new cases announced (including 3710 asymptomatic) during the day of March 31.

Current total = 33,988 cases (including 32,648 asymptomatic)

 

At =Jiangsu=

43 new cases announced (including 34 asymptomatic) during the day of March 31, including 13 in Suzhou and 9 in Nantong.

Current total = 461 cases (including 413 asymptomatic) distributed in Nanjing, Changzhou, Lianyungang, Suqian, Zhenjiang, Suzhou, Wuxi, Taizhou, Nantong, Yancheng

 

In =Zhejiang=

18 new cases announced (including 8 asymptomatic) during the day of March 31.

Current total = 355 cases spread across Ningbo, Quzhou, Kecheng, Hangzhou, Wenzhou, Huzhou, Jiaxing, Zhoushan, Lishui, Shaoxing

 

In =Anhui=

51 new cases announced (49 asymptomatic) during the day of March 31

Current total = 326 cases (including 308 asymptomatic) distributed in Hefei, Tongling, Ma'anshan, Suzhou, Anqing, Chuzhou, Hanshan, Bozhou, Bengbu Huainan, Wuhu, Fuyang

 

 

2- Announcement of Pudong post-lockdown measures

 

The Shanghai Municipality yesterday announced the terms that will apply to Pudong and other districts that were locked down on March 28-31 (Pudong, Fengxian, Jinshan, Chongmin and several townships in Minhang and Songjiang).

 

· Depending on the results of the screening campaign, three different types of regimes are applied. These areas also apply in the event of new screenings:

 

1/ “confined area”（封控区）: Concerns residences (workplaces, premises) where positive cases are detected, as well as adjacent residences (following a map of the city in a non-public “grid”):

The buildings where positive cases live remain in strict confinement for 14 days (from March 28). The other buildings in the confined area are placed in strict confinement for 7 days (counted from March 28), followed by 7 days of “community health observation”. In practice, this second week is also home confinement according to the information provided by the municipality. In all cases, tests (PCR and antigenic) are carried out on a regular basis. Home deliveries are possible.

 

2/ “controlled area”（管控区）Concerns the rest of the neighborhoods where there are confined areas:

During 7 days of “community health observation” (counted from March 28), residents are not allowed to leave their residences and gatherings are prohibited. Residents are also asked to stay at home. PCR and antigen tests are performed. One person per household is authorized to go out each day to pick up parcel deliveries at the residence's drop-off point.

source photo

 

· "Prevention Zone" （防范区） The rest of the city (excluding Puxi): 7 days of health self-observation with PCR and antigen tests. Calling residents to limit themselves to essential travel. Travel is possible within districts, but authorities are restricting travel between districts, or across the Huangpu River. Restaurants are reopening for take-out sales only.

 

· In practice, at this stage, it seems that almost all neighborhoods are in a confined area or controlled area and therefore remain in some form of confinement.

 

· The metros partially resume their activity in Pudong, as well as the buses, which do not however serve the confined areas. Bus lines are limited to their route within the same district. Taxi and VTC services resume in the areas that were subject to confinement on March 28-31, but do not allow travel between districts.

 

The other partial containment measures for residences or neighborhoods remain in effect.

 

3- Reminder: confinement of Puxi

 

· Puxi districts are confined until Tuesday, April 5 at 3 a.m.

 

Shanghai City Hall has published a list of emergency contact numbers and food delivery platforms (link) that will operate during the lockdown, while noting that delivery times could be particularly long.

source 

https://www.theguardian.com/world/2022/apr/01/covid-lockdown-extended-for-parts-of-shanghai-as-city-struggles-to-control-omicron

https://www.scmp.com/news/china/politics/article/3172721/shanghai-enters-second-phase-lockdown-west-city-covid