Quo Vadis Fuel-Cell in China?What is the state of automotive fuel-cell development worldwide? After years of development, fuel-cell electric vehicles (FCEV) still pose a considerable controversy among OEMs, particularly when it comes to passenger car applications. Although notable progress has been made to develop hydrogen fuel-cell vehicles, the overall market in the passenger segment remains small compared to battery cars (BEV). The global FCEV stock reached 45,000 units by 2021, with Japanese and Korean car models leading the market. Long-term projections forecast an annual sales volume of 150,000 units by 2030, and mobility heavyweights have put hydrogen on their development …
A Primer on E-Commerce Livestreaming in China
A Primer on E-Commerce Livestreaming in ChinaOverview of China’s E-commerce Livestreaming Industry In 2020, China’s e-commerce livestreaming market was estimated at 1.2 trillion RMB – an increase of almost 3x over 2019. The industry is projected to grow with a CAGR of 58% in the next years. The penetration rate of e-commerce livestreaming in online retail was 10.6% in 2020 and is expected to further rise, primarily driven by new users as well as an increase in order frequency and average basket size. Main drivers behind the rapid growth of the e-commerce livestreaming are: Vivid information and real-time interactive answers …
China’s Pet Boom
The Boom of China’s Pet IndustryOverview of China’s Pet Industry With the expansion of urban incomes and increase of Chinese choosing to raise pets especially in tier-1 cities, pet-related products and services in China are continuously evolving, resulting in a rapid expansion of the industry. In 2020, China’s pet industry reached a total value of 300 billion CNY. With the penetration rate of pets expected to further rise and related offerings continuing to mature, the Chinese pet industry is expected to grow with a CAGR of 14% and will reach 450 billion CNY in 2023. The pet industry consists of …
China Case Study: KONE
China Case Study: KONEAs one of the most successful foreign companies in the Chinese market, the Finnish company KONE is a striking example of how the right strategy can turn your business into remarkable profits.KONE in China Since its market entry in 1996, the Finnish company KONE has seen rapid growth in the past 20 years. It has become the market leader in elevator and escalator solutions in China, which accounts for 60% of the global demand and contributes 30% to KONE’s global business (~3bn EUR in 2020). As of today, the company has around 20,000 employees deployed in 600 …
The State of China’s Automotive Industry in 2021
China Automotive Industry in 2021What is the state of the Chinese automotive market? China as the world’s largest automotive market represents ~30% of global sales – despite being affected by the COVID-19 pandemic in the beginning of 2020. 25.3 million cars were sold (-1.9% YoY) in 2020 and passenger and commercial vehicle contributed 80% and 20% share respectively. Booming NEV sales also drove the market with 1.3 million sold units (+11% YoY). Up to the end of September in 2021, the entire car market has reached sales volume of 18.6 million (+8.7% YoY) with 2.2 million NEV sold (+190% YoY), …
Three Red Lines Policy – Regulating China’s Real Estate Developers
Three Red Lines Policy – Regulating China’s Real Estate DevelopersEven before the recent turbulences around Evergrande and other property developers, the Chinese government has already been worried about a potentially overheating real estate market for several years now. In this Executive Briefing, we are providing some background on the issue and introduce one of the most impactful policy measures that has been introduced so far to reduce risks: the Three Red Lines Policy.Why was the Three Red Lines Policy implemented? The development of the Chinese real estate market in recent years (marked by rising housing prices and the growing debt …
China Standards 2035 – Shaping the World of Tomorrow?
China Standards 2035 – Shaping the World of Tomorrow?What is ’China Standards 2035’? Following the ‘Made in China 2025’ strategic plan, China has officially launched the ‘China Standards 2035’ strategy in 2018, aiming to lay out a blueprint for the Chinese government and leading tech companies to set global standards for emerging technologies, such as 5G, Internet of Things (IoT), and Artificial Intelligence (AI). After a planning phase of two years, the National Standardization Committee published a preliminary report in May 2020, with the final strategic document expected to be released this year. China strives to play an increasing role …
Will Blue Collar Labor Shortages Lead to More Automation in China?
Blue-Collar Labor Shortage and China’s Automation DriveWhy is there a blue-collar labor shortage in China? As the consequence of the one-child policy as well as rising financial pressure, China’s fertility rate has remained at a low level for years, leading to a rapidly aging population which heavily impacts the available workforce within the country. The population aged 15 to 59 only accounted for 63% of the total population in 2020 – down by around 7% points compared to a decade ago. Since 2017, the labor force has been decreasing and could further shrink by 5% in the next ten years, …
Distribution in China: Obstacles and Success Factors
Distribution in China: Obstacles and Success FactorsIn the dynamic Chinese market, distributors are often ‘gatekeepers’ to drive growth. EAC experience shows that many foreign companies are faced with complex distribution challenges in China, ranging from reliance on legacy distributors, lack of transparency to e-commerce exposure. Choosing the right distribution approach and managing distribution partners most efficiently is crucial to succeed in China.Distributors are often ‘Gatekeepers’ for Growth in China Foreign companies face a range of challenges when managing their distribution setup in the vast Chinese market: Reliance on Legacy Distributors Unstructured selection of only one general distributor Lack of critical …
China’s „Double Reduction“ in Education: Impacts and Opportunities
China’s „Double Reduction“ in Education: Impacts and OpportunitiesWhat does China’s Double Reduction mean? The General Office of CPC Central Committee and General Office of the State Council jointly released the “Opinions on Further Reducing the Burden of Homework and Off-Campus Training for Compulsory Education Students” on July 24, 2021, taking immediate effect. This “Double Reduction” policy is intended to improve the overall quality of school education, reduce excessive study burdens and protect the health of students, relieve the burdens and anxiety of parents, reduce social inequity, further regulate and standardize off-campus training (including both on-line and off-line training), and strictly …
China’s Offline Retail Challenge
China’s Offline Retail ChallengeIn the past decades, the Chinese retail market has experienced a significant transformation from traditional to modern, and is now again being disrupted by e-commerce. Since 1992, China’s retail market developed with the country’s rising economy and changing consumption habits. New and modern shop formats have been introduced during this period, such as department stores, hyper/supermarkets, convenience stores, exclusive stores, and other forms of business, which are shaping China’s modern retail landscape until now.What threats are China’s offline retail facing? After 2003, with the establishment of Alibaba’s Taobao platform, China consumers’ consumption habits have been changed dramatically …
Trends in China’s Textile & Apparel Industry
Trends in China’s Textile and Apparel IndustryWhile China’s textile market is experiencing a continually decline in revenues, the apparel market shows a much more dynamic development in terms of concentration, brands and customer preferences.China Textile Industry Revenues of China’s textile industry has been declining from 386 billion CNY in 2017 to 227 billion CNY in 2020, resulting in a CAGR of -16%. Drivers: With the increase of resident income, consumption upgrade, and implementation of China’s second-child policy, the demand for high-quality textile materials will remain increase. Technologies applied in design, manufacture, marketing, and logistics in the textile industry will accelerate …