There was a recent article in the Financial Times entitled Chinese consumers prefer own products.  Basically the article states that a recent survey by McKinsey in China discovered that:

• 53 per cent of the 6,000 respondents said they preferred Chinese brands, up from 46 per cent when the same survey was conducted in 2005
• 11 per cent of consumers said they had a “strong” or “moderate” preference for foreign brands - and nearly half of those people said they would shift to a domestic brand if offered a product of similar quality or price

Interestingly enough, the survey also found that a majority of successful foreign brands in China are mistaken by Chinese consumers to be Chinese brands.

In addition, it was interesting to note that the author of the survey stated that while companies operating in foreign countries have to refresh their brand every three years, in China firms have to refresh their brand every six months.  I can only imagine the speed of the product life cycle that CPG firms go through in China, and I am not quite sure how a CPG company can create a cash cow product if the product refresh rate is so fast.

Anyways, while I do not doubt the findings of this survey (and I completely understand the nationalistic pride that Chinese citizens have towards Chinese products), I don’t see how this explains the success of brands like Nike, Puma, and Adidas; especially against fierce competition from Li Ning Co. (which has a logo that looks eerily similar to the Nike Swoosh).

If this trend towards preferring Chinese brands over foreign brands continue to rise, how will a non-Chinese brand survive in China?

I just found some pictures I took on my last day in Guangzhou. Click here to view them.

My favorite picture is this one.

I recently read Red China Blues, which is a memoir of life in China under the rule of both Mao and Deng.  I can’t believe I didn’t read this book earlier, as it really gave me a good interpretation of what the Chinese people went through during the 1950s - 1990s; I highly recommend this book.

As an added bonus, I was recently reading this blog and saw this NYT article published on October 12, 1964 (yes, 1964, the NYT now has an archive section of all articles written between 1851 - 1980).  It basically talks about how 100,000 students were sent from Shanghai to Xinjiang to work in farms, with the added benefit of helping to increase the Chinese population and protect it from both Muslim and Russian threats.

There was a good article in the globe discussing how Canadian business people don’t seem to care about Asia.  It quotes the Asia Pacific Foundation several times, including:

To succeed in today’s world, Canadian companies simply must have a strategy for dealing with the rising influence of Asia’s booming economies.

and

Canada is losing economic relevance in Asia

So how irrelevant has Canada become in Asia you ask?

Canada’s share of the overall Asian market is less than 1 per cent, down from 1.72 per cent in 1995 and 2.51 per cent in 1984.

Canadian direct investment in the Asia-Pacific region, at $30.4-billion in 2005, “seems paltry” compared with that of other countries, and much of it goes to established destinations, such as Australia and Japan.

“The recent Canadian enthusiasm for China does not match the reality that only 0.2 per cent of total Canadian outward investment is destined for China,” the report notes with a hint of bitterness. “Clearly, Canadian firms have generally not seen Asia as part of their investment strategies.”

As for trade, “Asia is booming and new markets are growing rapidly while Canada remains fixed in a pattern of trading relationships that has changed little in decades.”

In other words, Canadian business has become so accustomed to the convenience of the U.S. market next door that it can’t be bothered with Asia.

Canada’s reliance on the US market has placed Canada at a disadvantage in the global marketplace.  We have missed many opportunities abroad (and in Asia), and generally don’t have the skills or risk tolerance to pursue the non-US markets.

Below is a list of the key appointments for the just completed CCP 17th Party Congress.  This will be extremly important to know in the coming future as these appointees will be running key government ministries and agencies.

十七届一中全会选举为中央政治局常委 - The All-Important Politiburo Standing Committee 胡锦涛为中央委员会总书记 选举胡锦涛、吴邦国、温家宝、贾庆林、李长春、习近平、李克强、贺国强、周永康 Hu Jintao, Wu Bangguo, Wen Jiabao, Jia Qinglin, Li Changchun, Xi Jinping, Li Keqiang, He Guoqiang, Zhou Yongkang

中央政治局委员 - The CCP Politburo 习近平　王刚　王乐泉　王兆国　王岐山　回良玉（回族）　刘淇　刘云山　刘延东（女）　李长春　李克强　李源潮　吴邦国　汪洋　张高丽　张德江　周永康 　胡锦涛　俞正声　贺国强　贾庆林　徐才厚　郭伯雄　温家宝　薄熙来

Xi Jinping, Wang Gang, Wang Lequan, Wang Zhaoguo, Wang Qishan, Hui Liangyu, Liu Qi, Liu Yunshan, Liu Yandong, Li Changchun, Li Keqiang, Li Yuanchao, Wu Bangguo, Wang Yang, Zhang Gaoli, Zhang Dejiang, Zhou Yongkang, Hu Jintao, Yu Zhengsheng, He Guoqiang, Jia Qinglin, Xu Caihou, Guo Boxiong, Wen Jiabao, Bo Xilai

Secretariat 中央书记处书记: 习近平 (Xi Jinping)　刘云山 (Liu Yunshan)　李源潮 (Li Yuanchao)　何勇 (He Yong)　令计划 (Ling Jihua)　王沪宁 (Wang Hunning)

Central Military Commission 中央军事委员会主席 (Chairman) : 胡锦涛 (Hu Jintao) 副主席 (Vice Chairmen):郭伯雄 (Guo Boxiong) , 徐才厚 (Xu Caihou) 委员 (Members): 梁光烈 (Liang Guanglie) ,陈炳德 (Chen Bingde), 李继耐 (Li Jiduan),廖锡龙 (Liao Xilong), 常万全 (Chang Wanchuan), 靖志远 (Qing Zhiyuan), 吴胜利 (Wu Shengde),许其亮 (Xu Qiliang)