Archives for posts with tag: urbanisation

For the 2016 Olympics Coca-Cola has adapted it’s global campaign idea to the Chinese market. The 2016 Message: “Gold” is not about winning at all costs.

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The campaign is an example of how marketers in China try to tap into the national zeitgeist. China experienced years of fast-paced economic growth and development; growth has slowed, and the government has pushed to rebalance the economy to something more sustainable. That feeling has trickled down to ordinary people too, with a sense that after years of striving to get ahead, it’s time to take stock of what’s important.

“People are trying to lead a more balanced life – it’s not about winning at any cost,” said Richard Cotton, head of creative excellence for Coca-Cola China.

See the video and further background from AdAge here.

Coca-Cola partnered with internet giant Tencent and its social network Qzone, which has 588 million monthly active users. It has a feature similar to Facebook’s “On This Day,” which offers prompts about memories people have shared in the past. Coke is sponsoring the memories, turning them into “Gold Moments.”

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One of the new notions Premier Li Keqiang put forward in this year’s Government Work Report on March 5 is a “New era of mass tourism”.

In it, the phrase “Paid vacations” appears again as a fundamental aspect of the trend. “We will ensure people are able to take their paid vacations, strengthen the development of tourist and transport facilities, scenic spots and tourist sites, and recreational vehicle parks, and see that the tourist market operates in line with regulations. With these efforts, we will usher in a new era of mass tourism,” he said.

Premier Li’s mention of “Paid vacations” has ignited widespread public reactions.

Liang Jianzhang, co-founder of Ctrip (a leading online travel agency), who views tourism as the most promising industry in the future, believes that the implementation of “Paid vacations” is an incentive to Chinese economy. He maintains that “the average number of travels made by Chinese tourists is still far below that of the developed countries, so in the decades to come, China’s tourism industry will have to make great strides and will eventually become a significant driver for economic growth. During this process, opportunities for innovation and employment will increase”.

In Liang’s opinion, facilitating paid vacations can bring a new cycle of tourism consumption and investment-as long as competent travel products can be developed, stable profit can be expected in the long run.

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As far as public holiday arrangement is concerned, several proposals emerged into the spotlight during the ongoing two sessions, all of which focus on a modification of the current holiday arrangement. NPC deputy, deputy director of Shaanxi Provincial Tourism Bureau CSU Mingzheng proposesthat the Spring Festival holiday should be extended to 10-12 days from the current 7-day vacation.

Whatever the solution, what can’t be denied is the substantial potential China has for tourism and Chinesepeople’s ever-increasing need to upgrade their consumption style. According to reports of theNational Tourism Administration, in 2015, 120 million Chinese went overseas and spent$104.5 billion.

“Tourism is a high-level spiritual need”, said Liang Jianzhang, and this inner driving force candefinitely lead China into an era of mass tourism.

See the full article from China Daily here.

While China’s economy is still blazing ahead at an amazing pace, regions outside the conventional Tier 1 markets may offer the most lucrative opportunities. In 2016, more than ever given the shifting patterns of China’s economy, it will be worth looking at the vast country through the changing fortunes of its cities.

The key to growth may now lie in the “Rising Suns”: Places that few outsiders have heard of, such as Guiyang, Xiangyang and Hengyang, which will shine brightly in 2016, their economies growing by up to 12%. Coincidentally, in their names they all have the character yang, which means “sun” in Chinese.

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A key shift in these markets has made them an ideal growth market: 40% of all Chinese prefecture-level cities will have an average disposable income of at least 30,000 yuan (nearly $5,000) by 2016—an important threshold, at which people start to spend on goods other than food and clothes.

A brief overview on the Rising Suns cities below, see the original article from the Economist here, a synthesised review of the top cities below (from the original post here).

No. 1: Guiyang

China top 5 emerging cities GuiyangGuiyang is the capital of Guizhou province of Southwest China. Guizhou has been the poorest of China provinces with economy heavily relying on state owned enterprises. With the population of 2.8 million, it is now becoming a hub of operations for Chinese giant telecom companies. Private companies are also following the lead with Alibaba setting up cloud-computing facilities in the city.

Guiyang also serves as an important transportation hub for South Western China with Guiyang–Guangzhou High-Speed Railway already operating and three more high-speed rail lines tocommence operations within the next few years.

Disposable income per person is currently at USD 5,100, almost half of China’s average of USD 9,800. Guiyang has been ranked number 1 fastest growing local economy by the Economist.

No.2: Xiangyang

China top 5 emerging cities XiangyangXiangyang is a prefecture-level city in northwestern Hubei province. Xiangyang possesses large water energy resources whilst its mineral deposits include rutile, ilmenite, phosphorus, barite, coal, iron, aluminum, gold, manganese, nitre, and rock salt.

Textile production has been the mainstream industry of the area, however, in the last few years, it has become an attractive destination for industrial transfers, the trend of companies relocating their manufacturing facilities to cheaper locations.

With its population of 1.6 million and disposable income per person stands at USD 4,300 and the city has been ranked at number 2 among China emerging cities.

No.3: Hengyang

Hengyang is the second largest city of Hunan Province after its capital Changsha. The population of the metro area is 1.3 million but if counting the suburbs, it reaches over 7 million people. Hengyang’s disposable income per person is currently USD 4,900.

No.4: Chongqing

Chongqing is a major city in Southwest China and one of the five national central cities in China. Administratively, it is one of China’s four direct-controlled municipalities (the other three are Beijing, Shanghai and Tianjin), and the only such municipality in inland China. Chongqing disposable income per person stands at USD 5,400.

It is an enormous city of 8.9 million people and booming real estate market. It is also one of the fastest urbanizing centers in China with more than 1,300 people moving into the city daily, adding almost 100 million yuan (US$15 million) to the local economy.

No.5: Suqian

Suqian is a prefecture-level city in northern Jiangsu Province. With the population of about 1 million and relatively low disposable income per person (USD 4,100), Suqian is still one of the cheapest location for manufacturing in the province.

The BBC is taking a closer look at what urbanisation in China is doing to individuals in the country:

The country’s urbanisation is the biggest and fastest in history and it’s by no means over. By 2030, China’s cities will house close to a billion people, that’s 70% of the population.

The speed of this transition is also breathtaking. In just 30 years, China has gone from 20% urbanisation to 54%, a journey that took Britain 100 years and the US 60 years. Already there are more than 100 cities in China with a population of more than one million people, compared with only nine in America.

Some may call it a success…

“In the past 30 years we turned farmers into factory workers, triggering massive gains in productivity and hence growth.”

So says Premier Li Keqiang, insisting that urbanisation remains a gigantic engine for growth, “The greatest potential for expanding domestic demand lies in urbanisation.”

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But the successes of China’s urban adventure have been matched by equally great failures. The test now is to avoid repeating the mistakes and to make the next chapter for China’s cities better in the interests of the one billion people who have to live in them. 

The government acknowledges as much. In 2014 it published a plan for China’s urban future which admitted to the problems of pollution, urban sprawl, congestion and social tension.

On top of questions of environmental safety, food safety and quality of urban services, those who now own property are as obsessed by the value of that asset as the middle classes anywhere. They worry about what is happening to prices, and any sudden fall in prices might trigger not just a financial crisis in China but serious protest. 

Just such a political shock is the threat that keeps China’s leaders awake at night. But a more fundamental problem for the future of China’s cities is migrants.

The rapid urbanisation of cities is putting strain on natural resources but also on cultural identities, occupations, living habits and emotions.

See the BBC’s full story here.  Also, see their eye-opening portrait of how this change effects the individual here.