Green Hydrogen Technology Roadmap Europe – China as Competitor or Partner?

Green Hydrogen Technology Roadmap Europe – China as Competitor or Partner?In its efforts to promote energy transition in Europe and decarbonize the energy system, the Hydrogen Accelerator of the REPowerEU Plan highlighted the updated Green Hydrogen ambition. Upscaling of electrolysis capacities remain therefore as priority and with regards to PEM, European players still hold technology advantages. Which role does China play: Competitor or Partner?Europe formulated ambitious plans to boost green hydrogen This year, in its efforts to promote energy transition in Europe and decarbonize the energy system, the Hydrogen Accelerator of the REPowerEU Plan highlighted the updated Green Hydrogen (GH) …

US Semiconductor Ban on China & Implications for International Companies in China

US Semiconductor Ban on China & Implications for International Companies in ChinaAlongside the Chips and Science Act and a sweeping set of export controls, the US further undermines China’s ability to import, manufacture, and export the semiconductors that run the world. Finely calibrated and applied on most leading-edge chips, consequences are dramatic. International companies operating and banking on China are urged to re-balance and match their China strategy to prepare for de-risking but to stay in the game.US’s further moves to contain China’s semiconductor industry In early October 2022, the US issued nine new rules, detailing export controls on advanced …

2022 Single’s Day in China – Record set with New Players Joining the Frenzy

2022 Single’s Day in China – Record set with New Players Joining the FrenzyThis years’ China Single’s Day, also known as Double Eleven saw a stunning gross merchandising value beyond 1 trillion RMB for the first time. Besides the traditional e-commerce platforms Tmall, JD and Pinduoduo, the frenzy is joined by a variety of new retail platforms. Brands now have access to a much larger pool of consumers across different platforms but are required to refine their promotion strategies. Total GMV from all e-com platforms surpassed 1 trillion According to Syntun, an independent big data monitoring company, the total GMV …

De-risking China – Corporate Foresight and Risk Mitigation

De-risking China – Corporate Foresight and Risk MitigationIn times of ever-increasing geopolitical tensions China’s communist party held its 20th national congress, from the 16th to the 22nd of October, hinting at an even stronger push for self-sufficiency and preparing its population for challenges ahead in cooperating with the west.Soaring energy prices and a sky-high inflation made the headlines in Europe and beyond this year. The Russian invasion in the Ukraine being one main driver, putting into question an over-dependency on Russian oil and gas. This development as well put into spotlight the increasing mutual dependency of Europe, and especially Germany, …

RCEP Boosts Cross-Border E-Commerce

RCEP Boosts Cross-Border E-Commerce Since the Regional Comprehensive Economic Partnership (RCEP) came into effect, cooperation between RCEP regions has continued to deepen. On July 27, 2022, at the 2022 Consumption Innovation Forum of China International Consumer Products Expo, the RCEP Cross-Border E-commerce Purchase (B2C) Index report was released.The new RCEP B2C Index (RCEP Cross-Border E-commerce Purchase B2C Index), focuses on overseas small and medium-sized enterprises, presenting the development trend of digital trade in the RCEP regions.  The trend of the new index shows that the that cross-border e-commerce in the RCEP region is booming. The average annual growth rate from 2019 …

XIAOHONGSHU BRAND MARKETING

XIAOHONGSHU BRAND MARKETING Xiaohongshu, or “Little Red Book”/“Red” is a Chinese social-commerce platform founded in 2013. Red started off serving as an online tour guide for Chinese shoppers abroad for consumers to review products and to share their shopping experiences. Currently as a lifestyle sharing platform, Red is considered as one of the prominent channels for brands to reach the wide Chinese consumers.Young and urban users with significant purchasing power The monthly active user (MAU) of Red reached 200 million in November 2021, doubling the MAU of 100 million in January 2020; 50% of the users live in tier 1/2 …

Platform Business Models – Are Investments Justified?

Platform Business Models – Are Investments Justified?Can traditional process-based firms do asset light business? Is there a possibility to get into platform model of business as a replacement or an augmentation to existing source of revenue without increasing the operating cost too much? More than 60% of the Fortune 500 companies employ platform-based business models for their operations (most of them are consumer focused software system based B2C organizations) and the trend has quickly shifted to B2B companies in the recent past who wish to be closer to their final consumers. The issue is of commercialization of the innovation model …

Food Condiments in China: Three Opportunities

Food Condiments in China: Three OpportunitiesDuring China’s COVID-19 lockdowns (when restaurants did not operate and home cooking became the only choice), the demand for condiments experienced a surge in attention. But generally, as daily necessities, the consumption of condiment by both businesses and consumers is unlikely to be affected by economic fluctuations and will remain strong. It is estimated that China’s condiment market will reach 513 billion yuan in 2022 and 788 billion yuan in 2025 (CAGR of 9%). Given the vast size of the country, the market for condiments is huge, but also more fragmented compared with developed countries. …

Quo Vadis Biodegradable Plastics Industry In China?

Quo Vadis Biodegradable Plastics Industry in China?Environmental Background This year in May, the Ministry of Ecology and Environment released a brief report on environmental status-quo of China’s marine ecosystems. It concluded that the environmental performances are generally good, with medium- to low-level floating garbage of ~3.6 kg/km2 on average, while the water quality of estuaries and bays is less than satisfactory, with 21 thousand km2 of sea area of inferior water quality. Plastic is the main pollutant, accounting for 93%, 83% and 76% of floating, beach and submarine debris.China’s Anti-plastic Regulations To deal with ‘white pollution’, China issued a nation-wide …

China’s Oil Refining Industry: From Quantity to Quality

China’s Oil Refining Industry: From Quantity to QualityAfter a period of rapid development, China’s refining industry is moving into a high-quality development stage towards a healthier industrial structure, supported and guided by favorable government policies. Total capacity is expected to reach ca. 1 billion tons by 2025.Market Dynamics Starting from 1978, China’s oil refining industry experienced four major development stages: After an early stage, the scale of SOE’s refining capacity expanded rapidly in the 2020s due to rising demand and extensive new construction (esp. Sinopec and PetroChina). Afterwards, the industry developed steadily, and so-called Teapot refineries entered the picture as …

China Toy Market: Targeting „Kidults“

China Toy Market – Targeting „Kidults“A New Concept for Toys When talking about toys in the Chinese market, they no longer are exclusive targeted at infants or children, and go beyond the traditional categories such as puzzles, plush and dolls. A new concept of toy is on the rise, called trendy toy (or artistic toy). Trendy toys have become increasingly popular, especially among young Chinese consumers aged 15 to 25, the so-called generation Z or “Kidults”. According to research by the Chinese Academy of Social Science, the trendy toy industry in China had reached a sales volume of 30 billion …