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MADE BETTER IN CHINABrands and innovations from China are going global. You ain’t seen nothing yet!
trendwatching.com’s free Monthly Trend BriefingJune 2012
trendwatching.com/trends/madebetterinchina/
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No wonder then that examples of top quality, innovative Chinese* products
and services brands are easier to find than ever. And if Chinese creativity ever
gets truly unleashed, well, then we ain’t seen nothing yet! Hyper competition
may need a new definition, as MADE IN CHINA is traded in for MADE BETTER
IN CHINA.
* In this Trend Briefing, Chinese means mainland Chinese. We’ve filtered out
many excellent examples from Hong Kong and Taiwan, as well as American
Chinese entrepreneurs, powerful Western brands intensely partnering with Chi-
nese ventures, and so on.
DefinitionChina still faces many potential obstacles in its attempts to foster a deep and lasting culture of innovation and creativity (State economics! Politics! Demographics! The environment! Intellectual property!).
However an avalanche of Chinese brands are already catering to an increasingly large and sophisticated internal market, and competing with and even beating established incumbents from all over the world at their own game. Just think what the future will hold when China is truly unleashed.
DESIGNED BETTER IN CHINA /
MADE BETTER BY CHINA FOR ALL /
MADE GREENER IN CHINA /
MADE ONLINE IN CHINA /
MADE STRANGER IN CHINA /
MADE TOGETHER IN CHINA /
MADE BIGGER IN CHINA /
MADE EASIER IN CHINA /
MADE FASTER IN CHINA /
MADE MORE LUXURIOUS IN CHINA /
MADE BETTER IN CHINA FOR A WHILE NOW /
Watch out for the following sub-trends:
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1.URBAN BOOM
DRIvERSThe lure of rapid riches is drawing Chinese to urban areas in droves. Just two recent stats to illustrate
the mind-blowing scale of China’s urban consumption boom:
Urban household disposable income is expected to double between 2010 and 2020 (Source:
McKinsey, March 2012).
In 2010, China had 18 million households with an annual income above USD 16,000. By
2020, this number will be 167 million households. That’s nearly 400 million people (Source:
McKinsey, March 2012).
The outcome? A massive, sophisticated urban Chinese class of CITYSUMERS, with a massive
demand for high quality goods and services.
Here are just three forces driving the MADE BETTER IN CHINA phenomenon:
The demand for high quality goods and services has been met (more often than not) by Western
brands trading on the status that comes with their heritage. Indeed, Western brands have
scrambled to not only sell to Chinese consumers, but to pay homage to them. With special
ranges or products that are MADE FOR CHINA, or by rolling out the RED CARPET to Chinese
consumers around the world.
Both of which have set the expectations of Chinese consumers, and given Chinese brands and
entrepreneurs the inspiration and confidence to step forward, while still remaining mindful
of the need to match – or exceed – the standards of quality set by the very best of their Western
counterparts.
2. BEST OF THE WEST IN THE EAST
The impact of the Great Firewall of China is well-documented, but China is connected. With over
513 million Internet users (compared to 245 million Americans online)*, Chinese entrepreneurs and
consumers are part of the GLOBAL BRAIN: frantically feeding off (and adding to) global
consumer culture and creativity. * Source: www.worldinternetstats.com, December 2011
3. GLOBAL BRAIN
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DESIGNED BETTER IN CHINA
You know you’ve truly arrived as an economy
when local art, architecture and design move
from functional to desirable:
Chinese architect Wang Shu was awarded
the 2012 Pritzker Architecture Prize in May 2012
in Beijing, the first Chinese architect to win the
prize for work on the Chinese mainland.
Wang Shu: Wins 2012 Pritzker Architecture Prize
The Brand New China Store, situated in Beijing,
is a fashion and lifestyle store that focuses
exclusively on Chinese designers. Selling clothes,
accessories, furniture, home décor items and
paintings at a wide variety of prices. It’s owned
by Hong Huang, a major celebrity (media figure,
blogger, television host and publisher) in China.
Brand New China Store: A design store for and by modern China
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Due to be completed in 2013, the Sinosteel
International Plaza in Tianjin, China, was designed
by Chinese architect Ma Yansong, of MAD
Architects. The Plaza’s steel façade ensures
that no internal columns are needed within the
structure, meaning more space can be used within
the building.
MAD Architects
DESIGNED BETTER IN CHINA
Hexagonal windows of various sizes create a
pattern across the surface of the Plaza, and
also improve energy efficiency. Their strategic
positioning will help to preserve heat during the
winter, and keep residents cool during the summer.
Above: a global selection of designs from Beijing-
based MAD Architects. These designs are all
under construction or completed.
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MADE BETTER BY CHINA FOR ALL
Despite China’s growing economic power,
there are still hundreds of millions of Chinese
with relatively modest incomes. And alongside
this huge domestic market, there are billions of
In December 2011, China Unicom announced that
they would distribute Xiaomi’s MI-ONE, featuring
a 1.5GHz processor, a four inch display, and an 8
megapixel camera. Designed to capitalize on the
growing domestic demand for reasonably priced
smartphones, the MI-ONE costs CNY 1,999, less
than half what comparable smartphones from
Apple or Samsung usually cost.
other emerging market consumers, making the
rewards for Chinese brands which bring high
quality, yet low cost products to market almost
endless.
China Unicom: Low cost smartphones
At the end of 2011, China’s state owned JAC
Motors announced an investment of USD 500
million in Brazil, the world’s fourth largest car
market. The company’s first overseas factory is
expected to produce 100,000 cars per year.
JAC Motors: First overseas factory in Brazil
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MADE BETTER BY CHINA FOR ALL
Operating around 1,800 stores across mainland
China and catering to the country’s increasingly
fashion-conscious youth, retailer Meters/
bonwe has proved very popular. The brand
offers reasonable prices and an international feel;
indeed it’s often assumed not to be Chinese by
consumers.
Meters/bonwe: Chinese fashion with an international feel
The sneaker brand Warrior (‘Hui Li’ in Mandarin),
originally created for Chinese athletes, has
been a household name in the country since
the 1950s. The brand keeps its designs simple
and unpretentious, maintaining its status as ‘the
everyman’s shoe’. While the footwear retails for
EUR 50-120 overseas (and features in publications
such as GQ and Vogue), it is still affordable in the
domestic market.
Warrior Shoes: The everyman’s shoe everywhere
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MADE GREENER IN CHINA
With the Chinese government pushing the green
agenda hard (for both reasons of economics
and national pride), and both urban and rural
populations mindful of increasingly visible
The city of Shenzhen boasts a fleet of electric taxis.
The fleet was supplied by Chinese automobile
manufacturer BYD, and the pilot project has seen
50 electric taxis take to the streets. There are plans
to add a further 250 vehicles to the fleet during
2012, as well as 200 electric buses.
BYD: Electric taxis take to the streets of Shenzhen
At the end of 2011, China ENFI Engineering
Corp completed work on the world’s largest
solar tracking station in Ningxia. The plant’s
solar tracking systems deliver a 25% increase in
capacity over traditional solar power stations.
ENFI: World’s largest solar tracking station
environmental degradation, expect to see
a steady stream of Chinese planet-saving
innovations and initiatives:
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MADE GREENER IN CHINA
The Tianjin Eco City, a joint initiative from the
Chinese and Singaporean governments, has
invited brands from around the world to help solve
pressing environmental issues. In the next 10
years, 350,000 people are expected to move to the
city, trialing new systems and technologies. The
government hopes that many of these will have the
potential to solve the environmental issues facing
China’s huge cities.
Tianjin: Eco-city experiments with practical solutions for greener living
Chinese Suntech Power is the world’s largest
producer of solar panels, now totalling over 20
million panels in over 80 countries. In early 2012,
the company was named one of the world’s 50
most innovative companies by MIT, partly due to its
Pluto cell processing technology, which has since
achieved a world record 20.3% efficiency.
Suntech Power leads global solar panel market
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MADE ONLINE IN CHINA
Driven by a massive online population and
the censorship of key Western online brands,
Chinese services are not simply imitating
the Googles, Facebooks and Twitters of the
O.cn is a stylized online mapping service that
covers 38 of China’s largest cities. The 3D maps
interface with social networks, and users can click
on individual buildings and areas to access user-
created and curated content.
O.cn: Maps China’s cities in illustrated 3D
In 2011, Sina, the Chinese web portal, launched
a check-in service called WeiLingDi via their
resident Twitter-like website Weibo. Users are able
to check-in at locations using WeiLingDi, earn
badges, write reviews about local businesses, and
connect with 60,000 verified Chinese celebrities.
WeiLingDi: Check-in and review local businesses
world. Instead they are often showing their
better-known counterparts the way forward by
integrating, if not adding to and enhancing,
popular online services.
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In early 2012, Chinese social network Renren
launched a travel journal service, available online
or as an app. The Fengche service allows users
to create image-rich ‘sets’ detailing their travels,
ready to share with friends and family.
Renren: Networking site launches social travel app
Chinese group buying site Yikuair is tapping
into the microblogging service Sina Weibo.
The service carefully curates daily deals, and
then lets Weibo users place a small deposit to
secure the offer. Deposits can even be made
using Weibo’s own virtual currency.
Yikuair: Daily deals site offers micro group buying
MADE ONLINE IN CHINA
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IIn April 2012, the latest version of
Tencent’s Weixin instant messaging app
introduced users to its English-language name:
WeChat. The app offers login via the vast QQ
messaging network, which boasts over 700
million users, and a range of additional features.
These include recent features familiar to
Facebook and Google+ users, such as Timeline
and Circles, as well as QR tags, location-based
services, voice messaging and a ‘Game Center’.
Pinterest–inspired Buykee launched in China in
April 2012. The pinboard-style site differentiates
itself from its predecessor, by focusing
exclusively on luxury products and offering users
the ability to buy what they are seeing.
Tencent: Weixin app offers QQ instant messaging and more
Buykee: Pinboards and purchasing power
MADE ONLINE IN CHINA
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MADE STRANGER IN CHINA
The rise of consumer culture in China
has inevitably led to the creation of some
‘remarkable’ products and services. However
unusual consumers’ tastes, they are being met
by Chinese brands.
In 2011, former Soviet aircraft carrier, the Kiev,
was converted into a luxury hotel by its new
Chinese owners. The ship has 137 standard hotel
rooms, three VIP guest rooms, two presidential
suites, and a luxury restaurant.
The Kiev: Former Soviet aircraft carrier transformed into luxury hotel
China Post offers a service enabling individuals
to send letters from space, with a ‘Space City 1′
postmark. Users send an email to Tiangong-1, a
Chinese spacecraft orbiting the earth, which is
then rerouted to a special China Space Post Office
branch in Beijing. The emails are printed, placed in
space-themed envelopes, stamped with a ‘galactic
postmark’, and sent in the mail.
China Post: Letters routed via spacecraft with ‘galactic postmark’
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MADE STRANGER IN CHINA
Offering a memorable learning experience, the
conspicuously named Sexy Mandarin is an online
service that teaches users to speak Mandarin
via YouTube and YouKu (the former’s Chinese
equivalent) videos, for free. The twist? All the
teachers are attractive, sexily dressed women.
Learn Mandarin the sexy way
Chinese online shopping platform Taobao
(commonly referred to as the Chinese eBay or
Amazon), is reportedly working on an unusual
initiative to spice up e-commerce – Tao Girls.
Customers will be able to choose (at a slightly
higher cost) attractive women living in their city, to
deliver their web purchases to the door.
Tao Girls deliver
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MADE TOGETHER IN CHINA
As the most populous country in the world,
and one with a strong collectivist culture, it’s no
surprise to see a wave of innovative Chinese
products and services that bring consumers
together.
Handsup.cn aims to hand power over to the
consumer by asking them to recommend products
and services they want to buy, as well as the price
tag. The more users that want a particular product,
the higher the chance of it being available, and the
lower the price.
Handsup.cn: Hands stock and pricing suggestions over to customers
In late 2011, Chinese P2P lending
site CreditEase secured a round of funding,
while founder Tang Ning was honored by the
Communist party. Both achievements signal the
dramatic impact of P2P lending in China, where
there are now over 100 sites offering services.
CreditEase has become one of the country’s
largest independent financial service providers,
with more than 5,000 workers.
CreditEase: P2P lending
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MADE BIGGER IN CHINA
Whether it’s the size of the population, the
cities, or the economy, China means ‘big’, if
not ‘biggest’. Just three consumer-focused
examples to illustrate:
The Youngman JNP6250G is believed to be the
largest bus in the world, capable of transporting
up to 300 passengers. The first of the buses will
be deployed in Beijing and Hangzhou, using
dedicated highway lanes.
Beijing & Hangzhou: ‘World’s largest bus’
Construction of Beijing Daxing International
Airport is due to begin in late 2012. By the time
it’s completed in 2017, the airport’s planned
capacity is 200 million passengers per year. It will
be connected to Beijing via a new high-speed rail
link.
Beijing Daxing: ‘World’s largest airport’
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MADE BIGGER IN CHINA
2013 will see the opening of the world’s largest
freestanding shopping mall in the Chinese city
of Tianjin, which is just 30 minutes from Beijing
by high-speed train. The SM Tianjin Shopping
Center will cover 530,000 square meters, an area
larger than 74 football fields.
SM Tianjin: World’s largest shopping mall opening 2013
“Chinese brands are already catering to
demanding consumers, both at home and
increasingly abroad. Including yours.”
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MADE EASIER IN CHINA
All of the pressures that lead global consumers
to seek convenience are amplified in Chinese
cities. A couple of Chinese innovations
leading the way when it comes to ease and
convenience:
The Ubox mobile app for Android, iPhone and
Java-based phones enables users to select and
pay for snacks using their mobile device. It also
includes a discount on the cash price for users.
Ubox: App enables mobile payments at vending machines
In September 2011, Sichuan hotpot chain Hai
Di Lao and Chinese technology firm Huawei
announced a partnership to install telepresence
screens in restaurants across China. Thanks to
the screens, customers can enjoy their meal with
faraway friends and family – via a video link.
Hai Di Lao: video links for connected dining
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MADE FASTER IN CHINA
The Huawei Ascend D Quad was launched in
early 2012, claiming to be the world’s fastest
smartphone. The company’s first quad-core
smartphone features a 720p HD touchscreen and
an 8 megapixel camera.
Huawei: ‘World’s fastest smartphone’
In 15 days at the end of 2011, Chinese
manufacturing and construction firm Broad
Group built a 30-storey hotel in China’s
Hunan Province. The aim of the project was to
demonstrate the company’s Broad Sustainable
Building technology. Needless to say we hope we
can file this example under ‘MADE STRONGER
IN CHINA’ too.
Broad Group: Builds 30-story building in 15 days
Everything is going, has to be and can be
done faster, worldwide. Something Chinese
companies are very much aware of.
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China’s National Supercomputing Center in
Tianjin is home to the Tianhe-1A supercomputer,
which held the position of the world’s fastest until
mid-2011. The country now has 61 machines in
the TOP500, second only to the US.
Chinese supercomputing takes on the world
MADE FASTER IN CHINA
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MADE MORE LUXURIOUS IN CHINA
Of course, luxury is a key part of the China
story, and one that could take up many future
Trend Briefings ;-). From ‘Chinese’ sub-
brands (e.g. Hermes’ Shang Xia) to Chinese
brands being made in Italy (e.g. China
Garments’ Sorgere) Chinese consumers’
Originally launched in Shanghai in 1898, cosmetics
brand Shanghai Vive was recently re-launched
to appeal to luxury consumers in China and the
West. The brand hopes to tap into its heritage and
China’s growing global cultural identity.
Shanghai vive: Heritage, relaunched
China Railways Group has created the world’s
longest high-speed rail network with about 7055
km of routes in China, and trains topping speeds
of 350 km/h. The Beijing – Shanghai route was
opened in 2011 with business class travelers
being waited on by uniformed stewardesses, and
enjoying LCD TVs.
China Railways: Business class beds on Beijing – Shanghai ‘Harmony Express’
cravings for luxury goods shows no sign
of slowing. Relevant here: wealthy Chinese
splurging on an increasing number of home-
grown Chinese luxury brands and services.
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China’s NE-TIGER is a leading luxury brand that
has found global success. The brand hosted
the opening show of China International Fashion
Week in late 2011, showcasing designs reflecting
Chinese tradition and heritage.
NE-TIGER: Chinese luxury fashion house
MADE MORE LUXURIOUS IN CHINA
“Spending on personal luxury goods on the
Chinese mainland rose from EUR 7.1
billion in 2009 to EUR 12.9 billion in 2011”
(Source: Bain, December 2011).
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P1.cn is an invitation-only social network for well-
connected or fashionable Chinese, that claims to
have over 1.2 million members. Invitations can only
be obtained by knowing five existing members, or
by being approached by one of the site’s staff.
P1.cn: Invitation-only social network
In early 2012, Chinese travel website Ctrip
launched their new site, HHtravel. The site is
designed to offer packages to Chinese tycoons
with disposable assets of more than RMB 10
million. A typical trip includes business class
travel, Michelin-starred dining, and award
winning hotels and attractions.
Ctrip: Travel service for the very wealthy
MADE MORE LUXURIOUS IN CHINA
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Personal care brand Ba Yan Ka offers Chinese
consumers totally natural skin, body and hair
care products. Formulas are free of chemicals,
not tested on animals, and all packing is
biodegradable.
Ba Yan Ka: ‘Pure water. Natural elements. Chinese Wisdom’
Swiss watch brand Swatch invited Chinese
fashion designer Uma Wang to create two
limited edition wristwatches. One is plastic and
branded with Uma Wang’s name, while the other
uses traditional Yunnan Province embroidered
print and coloring. Both designs retail for GBP
44.50.
Swatch and Uma Wang
MADE MORE LUXURIOUS IN CHINA
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MADE BETTER IN CHINA FOR A WHILE NOW
While many of the brands in this Trend Briefing
have only relatively recently made waves, there
are of course plenty of established Chinese
brands already operating comfortably on a
global scale:
Sportswear brand Li Ning launched its US retail
site in March 2012, heavily branded with the
slogan ‘Straight Out of New China’ and featuring a
number of high-profile endorsements. A promotion
at the end of the month for special-edition ‘Year of
the Dragon’ shoes caused the site to crash due to
demand.
Li Ning: Straight Out of New China
In January 2012, Chinese consumer electronics
giant Haier demonstrated their ‘Brain Wave TV’,
which allows users to control the action on their
TV sets using their minds. The experimental
technology was showcased alongside consumer-
ready innovations such as 3D TVs with 2D to 3D
conversion.
Haier: Brain Wave Tv
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MADE BETTER IN CHINA FOR A WHILE NOW
Personal care brand Herborist incorporates
traditional Chinese medicine with contemporary
cosmetic science to create its range of products.
The brand has been expanding global distribution,
and is now available in Paris, and across a range
of European retailers.
Herborist: Takes Chinese cosmetics global
In February 2012, French luxury giant LVMH
purchased a 10% stake in one of China’s top
luxury fashion brands, Ochirly. The deal values
the brand at over USD 2 billion, as it considers an
IPO.
Ochirly: LvMH Investment
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MADE BETTER IN CHINA FOR A WHILE NOW
Following Li Ning’s creation of a US headquarters
and retail operation, fellow Chinese sports
brand PEAK opened a US headquarters in 2011,
and its first US store in Los Angeles in early 2012.
The brand ranks third in NBA endorsements, and
has over 6,000 authorized retailers globally.
PEAK: Opens first US sports store
In early 2012, Chinese computer
manufacturer Lenovo announced the Yoga.
The device is a hybrid laptop/tablet which uses
a 360 degree dual hinge design to allow for
use in four different configurations. Meanwhile,
the company’s shipments grew by 43.7% over
the first quarter of 2011, extending Lenovo’s
lead over Dell as the world’s second-largest PC
manufacturer.
Lenovo: Yoga laptop/tablet hybrid
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MADE BETTER IN CHINA FOR A WHILE NOW
Aspiring to represent the ideals of China’s
Generation-Y (members born between 1980-
89), Hi Panda is a fashionable clothing and
accessories brand that has breached the confines
of its native country and spread to Japan, Korea
and Europe, including retail stores in London and
Paris. There is also talk of entering North America
later this year.
Hi Panda represents Chinese youth, globally
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made better in chinaw w w. t r e n d w a t c h i n g . c o m 29
Forget the ‘Made in China’ stigma. It should be clear by now that ambitious
and confident Chinese brands are already catering to demanding
consumers, both at home and increasingly abroad. Including yours.
And if you’re a non-Chinese entrepreneur, why not get in touch with some of
these brands to see if you can help them roll out globally even faster?
Again, these brands and innovations are just the start. Fuelled by constantly
improving technologies, a higher quality workforce and booming domestic
consumption, Chinese brands are just warming up.
Which is why all brands need to keep both eyes firmly on China, a market
that will increasingly define consumer culture. With Chinese brands
exporting goods and services to the rest of the world (not to mention Western
brands rolling out the RED CARPET for Chinese consumers around the
world), expect to see Chinese tastes and preferences exert ever-
greater influence on consumer products and services, and on a global
scale too (yes, that’s a Trend Briefing in itself!).
Of course, we’ve said it before and we’ll say it again: the rise of Chinese
brands does not signal the end for more traditional brands from
Western economies. Brilliance and heritage, from whatever corner of
the world, will continue to have a global appeal. Things will ‘just’ get more
competitive, meaning you will have to work even harder and smarter. Hey,
c’est la vie ;-)
Oh, and while you’re busy preparing for the globally hyper-competitive future,
we’re hard at work on our next Trend Briefing. Make sure you’re subscribed!
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