ECONOMIC INTEGRATION: Mustapa (left) delivers his speech during the 10th Asean Leadership Forum yesterday. Also present were Former Prime Minister Tun Abdullah Ahmad Badawi (right) and Asian Strategy and Leadership Institute (Asli) chief executive officer Tan Sri Michael Yeoh (third right). — Bernama photo PETALING JAYA: Malaysia is confident the Asean Economic Community (AEC) will be realised by 2015 as 80 per cent of the measures have already been implemented by member nations. International Trade and Industry Minister Datuk Seri Mustapa Mohamed said in the case of Malaysia, 88 per cent of the measures have been implemented. Speaking to reporters after launching the 10th Asean Leadership Forum, Mustapa said Malaysian entrepreneurs were getting ready, especially in capacity- building measures to enhance their resilience. He said capacity building was important as it was easier for bigger companies to adapt but some small and medium enterprises (SMEs) are feeling the pressure. Earlier in his speech, Mustapa said Malaysian companies have been benefiting from closer Asean economic integration by expanding their operations to other Asean countries. “Companies such as Maybank, AirAsia, CIMB, Sime Darby, Petronas and Ingress Auto Ventures are some examples of companies that have been very active in the regions. “Similarly, we are seeing companies from Singapore, Thailand, Indonesia and the Philippines increasing their investments in Malaysia. Perhaps, what I would like to see is the participation of more SMEs,” he said. Mustapa said there are many economic areas whose integration success rates have been very good. In terms of a single market and production base, Asean has eliminated tariffs, liberalised trade in services and removed many restrictions on investments, he said. “Efforts are ongoing to deepen financial market integration. “Progress in connectivity initiatives in creating a single aviation market, single shopping market and cross-border sectors have been very encouraging,” Mustapa said. In the context of further enhancing integration, Mustapa said two AEC Post-2015 studies are being undertaken. “One study is being done by the Economic Research Institute of Asean and East Asia and the other by the Rajaratnam School of International Studies in Singapore and the Institute of South East Asian Studies. “These studies are being undertaken to facilitate Asean in drawing up the Post-2015 economic integration initiative. “These studies will provide valuable inputs to Asean in further enhancing its position as a competitive economic region,” Mustapa added. — Bernama Read more:http://www.theborneopost.com/2013/07/19/msia-confident-aec-can-be-realised-by-2015/#ixzz2a2ystRqn
2013-07-19During the China Daily Asia Leadership Roundtable, a co-branded session with the Omni Channel Retailing Conference at Retail Asia Expo 2013, a panel of four leading retailers and retail space asset managers shared their views on a variety of issues facing retailers in Asia today. Dr Peter Lau, chairman and chief executive of Giordano International said that China is entering a phase of normalising spending and that the free spending of two years ago probably is not the norm now. His advice to retailers was to maintain high discipline in managing every single aspect of the retail operation from understanding consumers, spending trends, implementing fast product development, adopting just-in-time manufacturing and delivery to communication with consumers through marketing and the in-store experience. Lau’s theory is that the online retail business is not just successful because it is on a consumer’s computer: it’s due to the amount and relevance of the information about the products and services that consumers can get at their leisure which is a great deal more than they get at the store. “When you pass the store clerks, or the sales person, half the time they don’t know what they are talking about,” said Lau. “But on the internet or the e-shop you can see the type of fabric, the colour and look at details a lot more closely before making a decision.” According to Lau, people have been spoiled with information. They are so hungry for it that they take it for granted that all the service providers, such as retailers, should be able to give them complete product information and when and where to buy. In-store information and the in-store experience are still relevant customer exchanges but the consumer should still wnats to be able to control the information flow. “To be successful in China or around the world the discipline of managing all aspects of the retail operations is fundamental because Chinese consumers are not engaging in frenzied selfish spending any longer,” said Lau. “Just because certain customers are so rich and have so much money they can’t spend it fast enough is no longer happening in China.” Lau added that China is a diversified consumer market and has definite differences in regional tastes and spending habits. A one-size approach to marketing does not fit all. Consumers in the country’s third- and fourth-tiered cities could still be irrational spenders easily allured by retailers – though this is changing as more travel abroad, but consumers in the country’s first- and second-tiered cities are much more rational. Roy Ho, head of general asset management and managing director of commercial platform at GCP Retail Management Ltd, agreed with Lau. Having worked with many brands over the years in China, saying that only two-thirds of the known brands still survive in the Chinese market. Ho said, “For retailers to survive in China, they must understand the market, maintain good logistics support and be good at creating an in-store shopping experience for consumers.” Ho was former general manager of Plaza 66 Shanghai developed by Hang Lung Properties, and highlighted the success of high-end retail brands to shopping mall operators. In 2011, Plaza 66 Shanghai had more than 160 shops that contributed RMB3 billion (US$490 million) in sales and that 20 of the top retail brands out of that contributed 70 percent of those sales. Tom Gaffney, Jones Lang LaSalle’s national director and head of retail, emphasized the importance of tenant mix to mall operators and that this should be wide-ranging and include a variety of brands. He stated that he was bullish on the Asian retail market because some regional markets such as Hong Kong are the beneficiary of the recent influx of US and European fashion brands with Thailand as another Asian retail market that is set to boom as it relies on regional tourist arrivals from China, Russia and the Middle East. Retail markets in Singapore, Bangkok and Jakarta will also supply strong opportunities for retailers in the future. Gaffney said that the major problem facing retailers in Asia is the soaring cost of retail rental space that will impact margins. Hong Kong’s retail rental space is currently the highest in the world, especially in areas of Causeway Bay due to the competitiveness of the retail environment. Gaffney commented that Canton Road in Kowloon will continue to be the prime brand-shopping district in the city. Retailers are looking at the peripheries of these areas and even locating further afield into secondary locations such as Shatin which are nearer the Hong Kong-Mainland border crossings. Agreeing with Lau, Francis Cheng, Occasions PR & Marketing’s CEO, said tailored-made services are important to capture consumers’ attention and that prime locations still influenced Chinese consumers. Brands should focus on geographical and cultural proximity to maintain their popularity and that brands that host regional fashion shows and manufacture specifically for the local market, such as apparel in Asian sizes, are finding more success. Photo: Paris Mok/China Daily Source: http://www.retailinasia.com/article/retail/consumer/2013/06/omni-channel-retailing-conference-china-daily-asia-leadership-roundt
2013-06-18Retailers and retail space asset managers are positive on the industry’s prospects in the Asian region, but retailers are urged to adopt different strategies to meet the diversified tastes of consumers amid the fast-changing Asian consumer market. Retailers and retail space asset managers shared their views on the mega trends of Asia’s retail industry at the China Daily Asia Leadership Roundtable held in Hong Kong on Wednesday. The conference was a special co-branded session in the Omni Channel Retailing Conference. Giordano International, a men’s, women’s and children’s wear fashion retailer across China and 30 other markets, believes that retailers must “have discipline in employing different strategies to manage retail operations to maintain long-term sustainability” because of the Asian retail market’s diversity. “We are maintaining the just-in-time inventory to maintain our competitiveness,” said Peter Lau, Giordano International chairman and CEO. “Another point we emphasize is the creation of an in-store shopping experience for the consumers in which we present product and services information in a way that are considered to be controllable by consumers,” Lau added. The Asian retail market is growing more diversified and China is most representative of it. “China is a diversified consumer market because of the differences in regional tastes and spending habits. Consumers in the country’s third- and fourth-tiered cities may be irrational spenders easily allured by retailers, but consumers in the country’s first- and second-tiered cities are much more rational.” Roy Ho, head of general asset management and managing director of commercial platform at GCP Retail Management Ltd, concurred with Lau. “My job enables me to work with many brands and from my experience, only two-thirds of the known brands still survive in the Chinese market,” Ho said. “For retailers to survive in China, they must understand the market, maintain good logistics support and be good at creating an in-store shopping experience for consumers.” As a former general manager of Plaza 66 Shanghai developed by Hang Lung Properties, Ho highlighted the success of retail brands to shopping mall operators. “In 2011, Plaza 66 Shanghai involved more than 160 shops that contributed 3 billion yuan ($163 million) sales whereas the 20 retail brands out of that total contributed 70 percent of sales,” Ho noted. Tom Gaffney, Jones Lang LaSalle’s national director and head of retail, also agreed on the importance of tenant mix to mall operators. “I think a good tenant mix should be wide-ranging and include a variety of brands.” “I am bullish on the Asian retail market because some regional markets such as Hong Kong are the beneficiary of the recent influx of US and European fashion brands,” said Gaffney. “Big business exposure in China can enable big brands to generate huge income for their businesses.” Thailand is another Asian retail market that is set to boom as it relies on regional tourist arrivals from China, Russia and the Middle East. He said that the Thai retail sector is growing, which can help nurture the growth of some Thai retail brands. The retail markets of Singapore, Bangkok and Jakarta will also bode well for retailers in the future. However, Gaffney cautioned that Asian retailers may confront soaring rental costs which may squeeze their margins drastically. He cited certain parts of Hong Kong’s retail rental space as being the highest in the world, such as Causeway Bay, due to the competitiveness of the retail environment. Turning to Hong Kong, Gaffney said that Canton Road in Kowloon will continue to be the prime brand-shopping district in the city whereas the Kowloon East district will become the next popular shopping areas in Hong Kong. Francis Cheng, Occasions PR & Marketing’s CEO, said that prime location and tailored-made services are important to capture consumers’ attention. “For retail brands to capture the Chinese market, they usually organize their fashion shows in China. Geographical and cultural proximity are important for brands to maintain their popularity. US fashion brand Gap came to Hong Kong in 2011 and since then they developed Asian style to keep the Asian customers.” “There is no one single formula that can work to allure consumers. You have to formulate a marketing package to attract the customers,” Cheng said. Contact the writers at oswald@chinadailyhk.com and linjingcd@chinadaily.com.cn
2013-06-135 Jun 2013 – Hong Kong, China Daily Asia Leadership Roundtable is pleased to cooperate with Omni Channel Retailing Conference on the special co-branded session on “China Daily Asia Leadership Roundtable: Strategic Challenges and Opportunities for Retailers in Asia” at 3:45pm – 5:15pm today at Meeting Room S221, Hong Kong Convention and Exhibition Centre, Hong Kong Convention and Exhibition Centre. Held alongside Retail Asia Expo, one of Asia’s most influential retail trade fairs, the Conference is a significant event for the regional retail sector. More than 200 senior executives from across Asia Pacific are expected to attend the three-day event where they will share strategies, discuss new technologies and tools, and set the future direction for retail in the region. Expert panelists including Dr. Peter Lau, Chairman and Chief Executive, Giordano International Limited; Mr. Roy Ho, Head of General Assets Management, Gaw Capital Partners & Managing Director of Commercial Platform (GCP Retail Management Ltd); Mr. Tom Gaffney, National Director & Head of Retail, Jones Lang LaSalle & Mr. Francis Cheng, Chief Executive Officer, Occasions PR & Marketing Ltd. have examined the mega trends of the retail industry in Asia and defined the next generation retail consumers and discussed about the industry value chain, and strategies to grasp the opportunities and tackle the challenges among industry players. About China Daily Asia Leadership Roundtable The China Daily Asia Leadership Roundtable is a by-invitation network of movers and shakers in Asia providing platforms for focused dialogue, issue investigation, and possible collective action on strategic issues relating to economic, business and social development in Asia. Our aim is to enhance communication and increase mutual understanding between China, other Asian countries and Western countries. Roundtable events are held in major cities across Asia Pacific. (http://www.cdroundtable.com)
2013-06-05East side story: Rise of Asia’s film industry Speakers and organizers at the China Daily Asia Leadership Roundtable event on ‘Challenges, Opportunities and Partnership for Asia’s Film Industry’ at the Hong Kong Convention and Exhibition Centre on March 20. (Photos by Edmond Tang / China Daily) Asia’s film industry is developing rapidly. Box-office revenues are rising fast while the number and quality of films coming out of various national film industries has increased substantially in recent years. This evolution was the focus of the China Daily Asia Leadership Roundtable on the “Challenges, Opportunities and Partnership for Asia’s Film Industry” held on the sidelines of the Hong Kong International Film & TV Market (FILMART) at the Hong Kong Convention and Exhibition Centre on March 20. “As Asia continues to enjoy sustained economic growth, more and more people, particularly the youth, choose to go to the cinema as part of their lifestyle,” said Zhou Li, publisher and editor-in-chief at China Daily Asia Pacific. “Movies are one of the best arms of soft power. More and more governments realize this and are pushing it forcefully.” For the time being though, Hollywood is the dominant force in the global film industry. Last year North America, the largest film market in the world, earned $10.8 billion in box-office sales. The Chinese mainland has also emerged as a giant market and revenues in 2012 jumped more than 30 percent from the previous year to $2.69 billion. However, about half of that — $1.38 billion — went to foreign films. Still, growth is visible. Every day, four new movie screens come up somewhere in China. The markets in Japan and South Korea are also growing fast. Hong Kong, despite its small size, has evolved as a hub. Great films are being made in Thailand, Taiwan and the Philippines. Other countries around the region are also stepping up their participation in the industry. “We are all witnessing the rise of Asia’s film industry,” said Jenny Koo, director of service promotion at the Hong Kong Trade Development Council (HKTDC). The HKTDC organized FILMART, which has been held annually for 17 years. Some 710 exhibitors participated in the largest film market event in Asia. “The success of Hong Kong-(Chinese) mainland co-productions is a good example of how we can work together,” Koo said. Co-productions accounted for the majority of the top 10 box-office hits on the mainland. One hurdle that only a handful of Asian films have managed to overcome is attracting audiences from different cultural backgrounds, which would help raise revenues. In China, for example, targeted revenues are still low, said Crucindo Hung Cho-sing, managing director at Delon International Film. “Why can America earn a lot of money but China cannot?” asked Hung. “It is very hard for us to compete in the international market.” The income of Hong Kong films is often not enough to cover costs. The same is often true on the mainland. In the first half of 2012, only seven of the over 140 movies made on the mainland broke even or were profitable. “And we have to produce very large movies to compete with American movies,” said Hung. “There is still a very large discrepancy between Chinese films and American films.” Increasing revenues would be a sure way of improving quality. As revenues rise, so do budgets and production values, said William Pfeiffer, CEO of the Hong Kong-based feature film company Dragongate Entertainment. “I would not have guessed that Chinese films would have crossed the $200 million mark in revenue (so quickly),” said Pfeiffer. “In fact, two films have crossed it.” Part of the challenge for the industry is to overcome complex regulatory environments that affect distribution and content. It is difficult to put in place cooperative ventures to produce content that appeals to audiences across borders. Ongoing concerns over intellectual property protection also make it harder to attract investment. “A key solution is partnerships,” Pfeiffer said. “What is required for a good partnership is trust.” Still, there are opportunities to reach beyond national borders, like taking Asian ideas and projects to the English-speaking world and vice-versa. “You are taking the best of all these cultures and doing something that works internationally,” said Pfeiffer. One place that has managed to leverage joint ventures into a thriving film industry is Hong Kong, where growth is rapid, said Wilfred Wong Ying-wai, chairman of The Hong Kong International Film Festival Society. “The world’s focus is on Asia today. It is not just Hong Kong … Hong Kong is too small (but) it is a hub for Asia,” said Wong. “The trend is unlikely to change. Asia’s box-office accounts for about a third of the world’s box-office.” The Hong Kong International Film Festival, for example, has been held annually for 37 years and has showcased some of the most famous filmmakers from Hong Kong, the Chinese mainland and other parts of Asia. “The challenge is really the diverse culture and tastes within Asia,” said Wong. “When you talk about Asia, you are not talking about one country or one culture.” Wong believes the movie industry has the potential to cater to all of these diverse tastes. If Hollywood can do it, why not Asian film industries? The challenge is not so much in the potential or ability of the individuals involved in the business but rather in the lack of an industrial system, which is what makes Hollywood so powerful. “There is no lack of opportunity,” said Wong. Leveraging this opportunity may require working through the regulatory environment and understanding that a movie means entertainment, said Zhang Yuan, a film director in China. “We need rules in the film industry so that we can compete with others,” he added. “We need to see a total change of the system of entertainment and film and TV,” said Fred Wang Cheung Yue, chairman of the Salon Films Group. “Unless you change the whole system and update it, your film and TV industry is still running in the stone age.” Creativity has been a key factor behind the success of Hollywood. Another important factor has been technology and the creative use of financing. “They have been constantly upgrading themselves,” said Wang. “They have also used the financial system.” Distributing a film globally may cost $50 million to $70 million. No other film industry in the world has the resources to distribute films worldwide on that scale. Films in Asia have budgets that are a tenth the size of just the distribution budget of a US blockbuster, added Wang. This does not mean that there isn’t potential. China has shown in a myriad of examples that it has the potential to grow almost any industry. “Aviation and telecom have good organizations worldwide,” said Wang. Groups like International Air Transport Association, for example, can help the industry grow. “We need to make a total change. Forget the other places and start with Hong Kong. Hong Kong has all the ingredients if you have the courage.” “China ranks number two in the world,” said Song Dai, chairman and general manager of Sil-Metropole Organisation. “But today, facing the momentum of the Hollywood film industry, the industries on the Chinese mainland and in Asia are facing (great) pressure.” Recent agreements have opened the door to more foreign films in China, partly due to the country’s participation in the World Trade Organization. But it is not just China. Industries elsewhere — like South Korea and India — are also under pressure. Alternative forms of marketing, using the Internet and new media, are emerging. “There is still room for us to improve,” said Song. “Especially when we are facing Hollywood, such a mature film industry.” Source: http://www.chinadailyapac.com/article/east-side-story-rise-asias-film-industry China Daily Hong Kong Edition PDF version available at: www.cdroundtable.com/pdf/20130322-P18-19-HK.pdf China Daily Asia Weekly PDF version available at: www.cdroundtable.com/pdf/20130322-P12-13-AW.pdf
2013-03-28Regional reel industries need cooperation in their plots Wilfred Wong Ying-wai (right), chairman of The Hong Kong International Film Festival Society, delivers his speech as William Pfeiffer, CEO of Dragongate Entertainment, listens. Asia’s film industry is growing fast but is not very competitive and that will make it hard for Asian filmmakers to expand internationally. Speakers at the China Daily Asia Leadership Roundtable held on March 20 on the sidelines of the Hong Kong International Film and TV Market noted time and again that the massive opportunities are curbed by the challenge of reaching audiences with different cultural backgrounds. “There is strength in the Asian market. There is a very large, young population with a very large disposable income. So the future is very clear,” said Wilfred Wong Ying-wai, chairman of the Hong Kong International Film Festival Society. Last year, Asia overtook Europe as the second largest region in terms of digital cinemas. A recent Ernst & Young study suggests China will replace the US as the largest film market by 2020. There are plenty of opportunities for growth, not only by adding more screens and raising box-office revenues but also through collaborative productions, making films and TV programs that appeal to multiple audiences and expanding into new media offerings that have the possibility of adding revenue streams. South Korea is an example of growth. In 2012, the republic’s film and television industry contributed $6.77 billion to the economy and supported more than 67,000 jobs. A report by Oxford Economics suggests that since 2005, the South Korean film industry has expanded by 49 percent, marking annual growth of about 6.9 percent — double the rate of the real GDP. Taiwan, with 22 million people, has 696 movie screens. So does Indonesia. However, the Islamic country has a population of 242 million, which means a high potential for growth. Hong Kong is one of the largest exporters of films and television content. Signs of challenges are evident on the Chinese mainland. While ticket sales are on the rise and new theaters are being built around the country, domestic films are struggling. In the first six months of 2012, foreign film revenues jumped 90 percent to 5.27 billion yuan ($840 million) but revenues from domestic films hit a five-year low, dropping despite a 40 percent increase in overall box-office profits. Of the 141 made-in-China movies in the first half of 2012, only about seven broke even or made money. The drop followed an increase in the number of foreign films China allows in — from 20 to 38. For the time being, Asian films have very limited reach. “Part of it is (due to) fragmentation and part of it is that the films are not international enough,” said William Pfeiffer, CEO of Dragongate Entertainment. “That is the key, to get writers and directors to be more international. The talent will follow.” Mixing the Asian industry with Hollywood could help take the regional industry to the next level. Money is not really the problem. Wealth in Asia is growing twice as fast as in other regions. “The name of the game is catching up. Today what we are lacking is quality films that can sell everywhere. Quality films that appeal to the world,” said Wong. Some good Asian films are not even distributed outside their home markets. What is going to help in future productions is a more scientific approach to market research. Better market research would make it easier for filmmakers to invest. “This really needs the countries to put their heads together and form an institute to do market research,” said Wong. There may also be opportunities to expand revenues in other areas. “People talk about the box-office but in new media, we don’t have that (issue),” said Gong Yu, founder and CEO of Qiyi.com, the video channel of major Chinese browser Baidu. New media cannot compete with the box-office but around a third of their revenue comes from the Internet, which often hurts film revenue. Their business model is also different. As much as 90 percent of the income for new media comes from advertisements. Movies, by comparison, cannot rely on advertising for their revenue. Films with small audiences cannot be released in cinemas but they can be released online, as the cost is relatively low, said Gong. “We have to set up very standard regulations for cinemas and the cinema industry,” said Gong. After the theatrical release, movies can earn revenue and be protected by Internet companies willing to oversee intellectual property rights. Perhaps the most obvious solution is for the industry to take up cooperation in a big way. As it is, making a “big” movie on the Chinese mainland requires cooperation with industries elsewhere. In the long run, the mainland is one of the few markets that can compete with the US, particularly in cooperation with other markets in the region. But regulators may have to step in with policies conducive to the growth of the industry, said Zhang Yuan, a Chinese film director with more than 10 films under his belt. “Many of us have found that a movie is not a propaganda tool but entertainment,” Zhang said. http://www.chinadailyapac.com/article/regional-reel-industries-need-cooperation-their-plots
2013-03-28The Big Picture Somewhere on the Chinese mainland, four new movie screens are being put up every day as investors seek to capitalize on a rapidly growing film industry. Box-office receipts in 2012 jumped 30 percent to 17 billion yuan ($2.7 billion). The mainland film market is now the second-largest in the world after the US. Foreign films account for more than half of this revenue while the domestic industry, which generates more content every year, tries to find its footing. It is not just the mainland that has seen significant growth. Japan and South Korea are large movie markets. Hong Kong has evolved into a regional hub with global reach. Great films are being made in Thailand, Taiwan, the Philippines and Indonesia. The growth of the Hong Kong International Film & TV Market (Filmart), now the largest film market in Asia, is a testament to the growth of the industry. Filmart is being held in Hong Kong this week and has attracted more than 700 exhibitors. The growth and development of the film industry was the focus of a China Daily Asia Leadership Roundtable, co-organized with the Hong Kong Trade Development Council, on the “Challenges, Opportunities and Partnership for Asia’s Film Industry” held as part of Filmart. Industry leaders gathered to discuss the evolution of the business. “As Asia continues to enjoy sustained economic growth, more and more people, especially the young, choose to go to the cinema as part of their lifestyle,” said Zhou Li, publisher and editor-in-chief of China Daily Asia-Pacific. For the time being, Hollywood is the dominant force in the global film industry. In 2012, the US market generated $10.8 billion in box-office receipts, four times as much as the Chinese mainland. More significantly, Hollywood remains almost the single reliable generator of films with international reach. “We are all witnessing the rise of Asia’s film industry,” said Jenny Koo, director of service promotion at the Hong Kong Trade Development Council (HKTDC), the organizer of Filmart. “The success of Hong Kong-mainland co-productions is a good example of how we can work together.” In fact, co-productions accounted for a majority of the top 10 box office hits on the Chinese mainland. Asia as a whole is a large market and much of that moves, at one point or another, through Hong Kong. Hong Kong’s film industry is growing rapidly, said Wilfred Wong Ying-wai, chairman of The Hong Kong International Film Festival Society. “The world’s focus is on Asia today. It is not just Hong Kong. It is Asia. Hong Kong is too small (but) it is a hub for Asia,” said Wong. “The trend is unlikely to change. Asia’s box office accounts for about a third of the world’s box office.” One of the most influential film festivals in the region, for example, is the Hong Kong International Film Festival. It has been held annually for 37 years and nurtured some of the most famous filmmakers in Hong Kong, the Chinese mainland and other parts of Asia. Cultural boundaries The biggest challenge for filmmakers in the region is how to reach beyond their cultural boundaries. “The challenge is really the diverse culture and tastes within Asia,” said Wong. “When you talk about Asia, you are not talking about one country, or one culture.” The question is whether the movie industry can cater to all these diverse tastes. The answer, said Wong, is a resounding “yes”. If Hollywood can do it, so can Asian film industries. “China ranks number two around the world,” said Song Dai, chairman and general manager of Sil-Metropole Organization Ltd. “But today, facing the momentum of the Hollywood film industry, the industry on the Chinese mainland and in Asia are facing (great) pressure.” Recent agreements have opened the door to more foreign films on the Chinese mainland, partly due to the country’s participation in the World Trade Organization, and that puts further pressure on domestic film makers. But it is not just the mainland. Industries elsewhere – like Taiwan, South Korea, India and Hong Kong – are also under pressure. On the other hand, a number of famous Chinese directors and stars have hit the sweet spot in the global film industry. “There is still room for us to improve,” said Song, “especially when we are facing Hollywood, which is such a mature film industry.” The challenges have more to do with the products themselves rather than with infrastructure. Sometimes the products are not good enough to compete at international standard. Often it is because the quality of storytelling is weak. At other times, budgets are hard to match. Western audiences often find storylines in Asian films too complicated. This makes such films less attractive. “The (solution) will exist in the problem itself,” said Song. “We have to tell a story to meet the requirements of the market but also meet international standards.” Increasing revenues and budgets will help. More money in the system translates into higher production values, more respectable writing fees, and greater opportunities across the industrial spectrum, said William Pfeiffer, CEO of Dragongate Entertainment. “I would not have guessed that Chinese films would have crossed the $200 million revenue mark so quickly,” said Pfeiffer. “In fact, two films have crossed it.” Avatar, the Hollywood blockbuster, was the first film to cross that mark when it earned $220 million at the mainland box office. Global audience However, warned Pfeiffer, while the industry is rapidly growing on the mainland and box-office receipts are rising, Chinese movies have not done as well overseas. There was a short spurt powered by the success of such hits as Crouching Tiger, Hidden Dragon but, by and large, Chinese films have floundered abroad. The problem is developing content that is appealing to audiences across borders. Co-productions might help as would the emergence of opportunities in new media. “A key solution is partnerships,” Pfeiffer said. “What is required for a good partnership is trust.” There are plenty of opportunities in this area, from taking Asian ideas and projects to the English-speaking world and vice-versa. Conversely, Asian countries are looking for projects that can be adapted to their markets. Remakes, which are increasingly popular, are a case in point. “You are taking the best of all these cultures and doing something that works internationally,” Pfeiffer said. The creative use of new media could also help the industry grow, particularly given the different revenue models. “People talk about the box office but in new media we don’t have that (issue),” said Gong Yu, founder and CEO of iQIYI.com. Around a third of revenue in new media comes from the Internet. Advertising revenue is rising but it accounted for about a tenth of television advertising on the mainland. Movies with small audiences that would never be profitable through cinema distribution may be released online, which is relatively low-cost, said Gong. The overarching message is that the film industry on the Chinese mainland, and in other parts of Asia, needs to be stabilized, said Crucindo Hung Cho-sing, managing director at Delon International Film. The strategic target for box-office revenues on the mainland is still low. Raising that can help make the industry into a bigger success “Why can America earn a lot of money but China cannot?” asked Hung. The income of Hong Kong films, for example, is often not enough to cover costs. Often, the same is the case on the mainland. Making a “big” movie on the mainland requires cooperation with industries elsewhere like in Hong Kong and, ideally, Hollywood. “And we have to produce very large movies to compete with American movies,” said Hung. “There is still a very large discrepancy between Chinese films and American films … We have to occupy a position by ourselves in the world.” “It is very hard for us to compete in the international market,” said Hung. “When the box office is stable we can make improvements and compete with US movies.” Zhang Yuan, a Chinese director with 10 films to his name, most recently Beijing Flickers, said both regulators and audiences should start looking at movies as entertainment. The outlook for the industry is generally positive, said Fred Wang Cheung-yue, chairman of Salon Films Group, as long as the industry finds ways to step-up its game. China has shown in myriad industries that it has the potential to expand. There are dozens of examples, from aviation to telecoms. These are industries that have powered forward domestically but also internationally, in no small part thanks to existing international systems. “Aviation and telecom have good organizations worldwide,” said Wang. “Why not film?” “All we need is the courage of the people who make decisions and Asia is the best, because the economy is based in Asia,” Wang said. “All we need is to open the market, set rules and share.” “We need to make a total change. Forget the other places and start with Hong Kong. Hong Kong has all the ingredients if you have the courage,” he said. http://www.chinadailyapac.com/article/big-picture
2013-03-22"Challenges, Opportunities and Partnership for the Asia’s Film Industry" Stage, Hall 1, Hong Kong Convention and Exhibition Centre 10.00 - 12.00, 3/20, 2013 20 Mar 2013 – Hong Kong, China Daily Asia Leadership Roundtable is pleased to cooperate with Hong Kong Trade Development Council at the 17th edition of the Hong Kong International Film and Television Market (FILMART) on the special Thematic Conference on “Challenges, Opportunities and Partnership for the Asia's Film Industry” at 10:00 – 12:00 noon today at Stage, Hall 1, Hong Kong Convention and Exhibition Centre. Besides being the world's second largest economy, China now is also the second largest market for film with 17.07 billion yuan in box office receipts in 2012, a 30.18 percent increase over 2011. As Asia’s entertainment hub, Hong Kong plays an important role in helping China develop closer partnership with other Asian countries and leverage substantial movie resources in the region and the world at large. This thematic conference provides a platform for significant speakers in movieindustryfrom Asia to talk about how Asia's movie industry shouldwork together to achieve a win-win situation and deliver more box-office films to the world, what roles of policy, capital, talent development, technology, production and distributionare in boosting the growth of the industry. Additionally, they will share their insights on the road ahead in the next five years for the industry. Mr. ZHOU Li, Publisher & Editor-in-Chief of China Daily Asia Pacific opened the conference with Ms. Jenny KOO, Director, Service Promotion, Hong Kong Trade Development Council and gave a warm welcome to the prominent speakers including Mr. Wilfred WONG Ying-wai, Chairman, The Hong Kong International Film Festival Society Limited; Mr. William PFEIFFER, Chief Executive Officer, Dragongate Entertainment Ltd; Mr. Crucindo HUNG Cho Sing, Managing Director, Delon International Film Ltd; Mr. ZHANG Yuan, Chinese Film Director; Mr. Fred WANG Cheung Yue, Chairman, Salon Films Group; Mr. SONG Dai, Chairman & General Manager, Sil-MetropoleOrganisation Ltd and Mr. GONG Yu, Founder & CEO, iQIYI.COM, Inc. About China Daily Asia Leadership Roundtable The China Daily Asia Leadership Roundtable is a by-invitation network of movers and shakers in Asia providing platforms for focused dialogue, issue investigation, and possible collective action on strategic issues relating to economic, business and social development in Asia. Our aim is to enhance communication and increase mutual understanding between China, other Asian countries and Western countries. Roundtable events are held in major cities across Asia Pacific. (http://www.cdroundtable.com)
2013-03-20March 14, 2013 - 10:15am http://www.chinadailyapac.com ZTE – the mainland’s leading telecommunications equipment provider -- is to expand investments in brand building in the business-to-customer market, reaping from its years of experience and expertise in the business-to-business market. The company has been in the business-to-business market for moré than two decades and is now trying to take on the business-to-customer model, Zhang Xiaoke, managing director of ZTE (HK) Ltd, told the China Daily Asia Leadership Roundtable. He explained that when the company focuses on the business-to-business market, it does not have to worry much about brand building, as its good reputation is already known to telecom operators. For the past five years, ZTE has been strengthening its business-to-business relationships while diverting more resources to business-to-customer marketing. “As for our way of brand building (in the business-to-customer market), we’ll continue to work with operators in joint market activities, using our relationship with operators as one of our branding advantages,” Zhang said. ZTE will also sponsor large-scale events, such as concerts and sports games, to put extra resources on the social media. . Zhang stressed that there is no single media that can help them fully identify their target audience, and there will be no single marketing campaign that can change a company’s image completely. That is why ZTE will increase investments in marketing and advertising gradually and rationally. He said the company hopes that customers, inside and outside of the mainland, will know that ZTE’s products have solid technical strength, offer the right price and are suitable for young people. “We’re still learning how to build up our brand in the business-to-customer market. We want to find our target customers in different places, but we also think of our budget, we want to be rational,” Zhang said. He said the last thing the company wants to do is dumping tons of money into a commercial because although the audience might be enticed, customers could still end up going after their competitors’ products. ZTE’s brand-building efforts are not easy, especially in overseas markets, Zhang said, recalling a crisis it encountered in the United States last year. The US House of Representatives Intelligence Committee released a report, after an 11-month investigation into ZTE and Huawei Technologies Co Ltd, saying US telecommunications operators should not do business with China’s leading network equipment makers because potential Chinese state influence on the companies poses a security threat. According to Zhang, ZTE responded quickly and proactively to the investigation, expressing its sincerity to the investigators and providing them with accurate information. Instead of debating with the investigators, he said the company tried to help them understand ZTE’s position and culture. Due to ZTE’s sincerity and openness during the investigation, the demand for ZTE’s terminal equipment rose in the US, and the company’s crisis management ability became a successful brand building itself, Zhang added. Source: http://www.chinadailyapac.com/article/ztes-new-way-win-niche-markets
2013-03-14March 14, 2013 - 10:11am http://www.chinadailyapac.com Chinese corporations must convey appropriate brand messages and launch stringent product quality control to make brand-building successful amid the huge market potential of the Chinese consumer market. It is, nevertheless, not an easy job today given the fierce market competition from other Asian and international companies which are all chasing for a piece of profit from the world’s second-largest economy, making brand-building even more crucial and important for domestic Chinese companies, said Howard Lam Pong-yuen, EMBA program associate director at The Chinese University of Hong Kong (CUHK). Speaking on the sidelines of roundtable panel discussions on “Strategic Brand Building in China,” organized by China Daily and the CUHK Business School’s EMBA Program on Monday, Lam said many consumers these days may only “know about” and “understand” Chinese brands, but they still may not be able to “like”, “act upon” or stay “loyal to” these brands. Therefore, Chinese companies must be more proactive in brand-building ventures. “Chinese companies must understand the unique tastes and demands of the consumers from the angle of the consumers in order to create compelling brand-building messages,” he said. Lam, who was formerly Coca-Cola China’s Olympics consumer marketing general manager, cited a TV commercial produced by Coca-Cola China for the Olympic Games in China in August 2008 as an example. He said the US brewage maker designed the MTV content with a mixture of different Olympic song singer versions, brand cues through red color images and the use of celebrities so that the Coca-Cola company can execute brand association to different viewers through the TV commercial. The advertisement won world-wide acclaim due to its successful marriage of different elements to cater to the specific tastes of Chinese people for a special occasion. And once consumers’ tastes and demands have been gauged, one brand building technique that can be employed is to create “exchanges of content” among multiple parties in brand-building messages, Lam added. “Chinese companies must find their own unique way in telling their brand development stories,” Lam noted. “Chinese enterprises should gradually establish their brand images through influencing the country’s opinion leaders first. “Cultural and language homogeneity in China and the ease of logistics allow brand-building messages to be easily conveyed across the whole country. I’m totally optimistic that more Chinese companies can successfully build up their corporate brands,” Lam said. He is optimistic that more Chinese corporations, especially small-and-medium size enterprises, will make it to Fortune Global 500 if they cultivate their brand images successfully. Although brand building is all about changing consumers’ perception, Chinese companies should also pay attention to product quality enhancement, as only one single incident of product recall would wipe out all their efforts in brand building. Hence, product quality control is also vital along with the brand-building process, Lam said. Other speakers at the China Daily Asia Leadership Roundtable also shared their views on Chinese brand-building strategies domestically and internationally. Jack Lee, Lenovo Group corporate vice president, who oversees the Hong Kong, Taiwan and Korea region business, outlined the importance of multinational companies securing a big slice of revenue from overseas markets. He said not only have the group’s M&A activities brought financial benefits to the company, they have added great value to the Lenovo brand in various economies. Zhang Xiaoke, managing director of ZTE (HK) Ltd, said the company will allocate more resources on business-to-customer (B2C) marketing and continue to work with operators in joint marketing events and activities. The telecommunications equipment maker will seek to expand its brand awareness by holding large-scale events, including concerts and sport games, which will also emphasize the adoption of social media in communicating with the public. Source: http://www.chinadailyapac.com/article/product-quality-control-key-brand-building
2013-03-14March 14, 2013 - 10:12am http://www.chinadailyapac.com “You hear people say Lenovo is a Chinese brand, but we are a global brand that has a deep heritage in China,” says Jack Lee, corporate vice-president of the Lenovo group. While Lenovo, the personal electronic products giant which ranks 23rd as the most valuable Chinese brand in a BrandZ report in 2013, Lee said the company draws 58 percent of its revenue from overseas markets. The brand not only leads the mainland’s PC market with a 36.7 percent share, it’s also the No 2 in Middle East, African and Canadian markets. “We work very hard to achieve that,” he said, adding that their dedication to build revenue overseas is critical. “One must not use ‘Made in China’ as an excuse, and give people a reason to buy,” he said. “In that way, if you go out, you are not a one-trick pony, you are not a China play. A lot of people know Chinese products, but they don’t know Chinese brands. It’s a bit shameful for me to go outside and find out that the brand consumers only recognize is Tsingtao beer. There should be a lot more. It’s our responsibility to make these brands not just big in China but also well-recognized worldwide.” The industry is all about speed and validity, Lee said. However, to build a global brand, one should always invest in the long term and not tentative. “My chairman always says, M&A (mergers and acquisitions) goes like when you want to buy, people don’t want to sell to you and when they want to sell to you, you don’t necessarily want to court.” Back in 2011, Lenovo bought the PC branch of NEC, the then biggest player in the Japanese market. “Our strategy is localization through acquisition. So immediately, you get there.” But Lee warned “that is only meaningful when it adds value to your brand”, adding one should spend on building brand equity. “Don’t expect a quick ROI (return on investment). I guard A&P (advertisement and promotion) tougher than anything else. I believe branding will finally drive margins.” Besides, executing strategy in a well-choreographed way helps a great deal. Lee pointed out that while Intel is an engineer excellent company and Microsoft is a product excellent one, Lenovo is execution excellent. “Some say sales people are just box movers. It’s true. But this is the industry we are in. My black box versus your black box, but my black has something better than yours. We rely on frontline workers. The frontline sales are what we go for … A lot of Chinese companies do big projects with low margins, but we believe in strong performance,” he said. Last year, Lenovo revenue has increased by 12 percent to $9.359 billion, while earnings jumped by 33 percent to $205 million. In March, the company won back its blue-chip status as one of the 50 HSI constituent stocks. “That curve is nice, but not easily done. You need to have a strong execution to ensure results.” To be global also means believing and investing in diversity. “Not just localization, but hiring people who understand the local market,” Lee stressed. Source: http://www.chinadailyapac.com/article/global-brand-profound-china-heritage
2013-03-14Recycling glass requires collecting bottles, crushing them and turning them into reusable material such as the stuff used to pave roads. But, because there is very little profit to be made, businesses have shied away from it. Now the government is trying to step up efforts as part of a drive to create a better “recycling loop”, said Christine Loh Kung-wai, Hong Kong’s Under Secretary for the Environment. Less than a week after Hong Kong Chief Executive Leung Chun-ying outlined the government’s policy initiatives for the year, speakers at a China Daily Asia Leadership Roundtable themed “The Future of Hong Kong’s Green Economy” on Monday, said there is a lot of work to do to raise environmental standards and attract business focused on environmental sustainability and green technology. Lowering emissions and cleaning up the air is only part of the challenges Hong Kong will have to tackle as it focuses on creating a greener economy. The aim of the discussion on Monday was to create a more competitive environment for Hong Kong, said Zhou Li, publisher and editor-in-chief at China Daily Asia Pacific. “Many cities in the mainland are in the throes of pollution,” said Zhou. “Hong Kong may feel a bit luckier this time… (but) there are enormous challenges ahead in the long way to make Hong Kong a more livable and healthy city.” Pointing out that Hong Kong is stepping up efforts to clean up its environment to improve public health and generate new business opportunities, Loh said the government’s investment commitments and new priorities included building two food waste treatment plants and ramping up recycling. At the heart of this push for a greener economy and a better environment is a drive to reduce roadside pollution, which made the environmental cornerstone of the policy speech last week. While the negative side effects of pollution are myriad, the impact on public health may be the most serious and hard to control. “Once you focus on public health you realize how much you have to do to reduce public health risks,” said Loh. “The daily exposure to pollution of our people is very, very high.” The government’s efforts, outlined in Leung’s policy speech on January 16, focuses on lowering emissions from 88,000 vehicles while taking older vehicles off the road. The push is part of an HK$10 billion initiative to retrofit vehicles to meet Euro-III standards or higher. Eventually, the goal is for vehicles to meet standards as high as Euro-V. New vehicles will be given a lifespan of 15 years. The impact of this push could be significant, said Loh. A pre-Euro standard vehicle generates 35 times as many emissions as one that meets the new standards. New catalytic converters will also be installed on LPG taxis and minibuses. When dirty, these vehicles also produce a significant amount of pollution. Low-sulfur fuel law The government is also driving legislation that would see cargo ships arriving in Hong Kong switch to low-sulfur fuels while berthing. The push comes almost two years after a group of 18 leading container lines signed a voluntary Fair Wind Charter, under which they switch fuels while in port. “This is the only voluntary scheme in the world in which the industry pays for its own cost of fuel switching,” said Loh. “These people are doing it, essentially, at their own cost.” Both the Hong Kong Liner Shipping Association and the Hong Kong Shipowners’ Association have been asking government to regulate fuel switching to create an even playing field. Hong Kong would be the first port in the region to do so and it would be “quite an aggressive move”. “One of the most important things that we are doing is mandating fuel switching at berth,” said Loh. “Hopefully we can pass the legislation relatively soon.” Expanding this policy to the whole Pearl River Delta “would be good for the people of the whole region… The vision is a low emission area for the whole water of the region.” On-shore power Another associated initiative would provide on-shore power at the new Kai Tak Cruise Terminal being developed in East Kowloon. The introduction of international standards for on-shore power would facilitate this initiative. In the last 10 years, more than $1.5 trillion has been spent on green energy projects worldwide, said Justin Wu, lead analyst for Wind at Bloomberg New Energy Finance. Last year alone, investment from both public and private sources on green energy projects was about $270 billion worldwide. “China is actually the leading country, by far, in clean energy investment at more than 25 percent of the total (at $68 billion),” said Wu, who added that the USA was in the second place, with 50 percent less investment than China. “I think there is a great level of awareness in Beijing and citizens in China of environmental sustainability,” said Wu. In China, the challenge is finding and transmitting clean energy as the country has limited clean energy resources. Most of China is ill suited to produce much wind or solar energy. On the other hand, production in parts of Western China could supply Guangdong Province with a single transmission line. Hong Kong also has limited opportunities to generate energy from renewable sources, said Richard Lancaster, managing director at CLP Power Hong Kong. Electricity producer and distributor CLP has been moving away from coal-fired plants in the past two decades but about half of the city’s power comes from coal. The other half comes from gas or nuclear power. “If you go back to the 1990s, almost all of our power came from coal-fired plants,” said Lancaster. Today, “we have a relatively clean mix of coal power, gas and nuclear power… To do more, we will need to shift further away from coal-fired power.” “In the last 20 years, emissions from power generation have reduced by 80 percent and this is despite the fact that electricity demand has risen by 82 percent,” said Lancaster. But getting sustained environmental improvement is not cheap. It requires a “regular, consistent and a sustained level of investment,” Lancaster said. In 2011, CLP spent HK$10 billion to clean up its coal-fired plant in The Peak in Hong Kong and every year the company spends about HK$10 billion in gas to fuel its gas-powered plant. These are major and long-term investments. Lowering emissions, whether from vehicles or power generation, is only part of the challenge as there are other environmental problems that Hong Kong has to tackle. Waste challenge One of them, which Loh called “enormous”, is waste. The city is filling up landfills at a rate of 13,500 tons per day — as much as a third of that is food waste. “There is quite a lot that we can do… food that is not consumed that is still of excellent quality, like the bread rolls, can it be donated?” asked Loh. “It does require all of us to change our habits.” Last year, Hong Kong launched the Food Wise campaign working with business and NGOs. “We want people who are already leaders in their field to call upon their brothers and sisters in their field, to show them by demonstration how it can be done.” It is not all bad news. While very little food waste is recycled, the city does recycle as much as 48 percent of all waste and the government would like to raise that to 55 percent. For the time being, Hong Kong does not have a complete waste treatment infrastructure. The total needed spending is HK$31 billion to build the necessary infrastructure. “We are going to have to build a whole range of hardware to deal with the waste we are not able to reuse or recycle,” said Loh. “It is continuous investment. We can’t run away from it.” First incinerator “At the end of the year we will have a first incinerator… We, in Hong Kong, need this type of technology to deal with this type of waste.” The city is also centralizing efforts to lower energy consumption through the Steering Committee for the Promotion of Green Building and also working to improve nature conservation. In order for these initiatives to succeed and provide benefits, both government and private sector have to work together to drive environmental and sustainable investment, said Alexandra Boakes Tracy, chairman of the Association for Sustainable & Responsible Investment in Asia. The association is a grouping of financial institutions and investors that promotes sustainable investment. Tracy said investors look for reliable and long-term policies. Such policies have already led to the creation of more than 400 funds that invest in clean energy or sustainable technology. Unfortunately, Hong Kong has lagged other jurisdictions in attracting such funds or their investments. South Korea, an industrial country that imports as much as 97 percent of its energy, may provide some inspiration for useful policies. “For (South) Korea, there are a lot of reasons why energy efficiency and moving to a green economy (makes sense),” said Tracy. Hong Kong, basically a service economy with limited manufacturing, has an opportunity to be a leader in this area. “I think some people would say Hong Kong is arguably lagging now on green finance business. Therefore, we should be absolutely building on our strength,” said Tracy. “This investment flow will start to become sizeable and Hong Kong has an opportunity to play a role here.” While last week’s policy initiatives were generally welcome, many wondered whether they go far enough. Among them is Hendrik Rosenthal, director of policy and research at the Business Environment Council (BEC). He wondered, whether the investment to raise the quality of the emissions control in the city’s public transportation fleet would be sufficient to help small businesses deal with the challenges. “Is it enough? Is it enough for the little guy that is running a one-man shop to feed his family? Is it enough for him to phase out?” asked Rosenthal, talking about the $10 billion that will be spent on upgrading vehicles. Efforts to clean up vehicles are welcome and rarely controversial, said Rosenthal, as such a move is definitely not as controversial as initiatives to eliminate trash. “The big elephant in the room is incineration,” Rosenthal said. “People want to know how big it is going to be, where it is going to be and all that.” In the end, said Loh, government initiatives along are not enough. It will be up to the community, business and civil society to do their part as well. “Once you get down to having the policy direction then you have to stitch it all together,” said Loh. “How can we… find the time to work together to define this path together?” she asked. http://www.chinadailyapac.com/article/giant-steps-toward-greener-hk-economy
2013-01-22ECONOMIC INTEGRATION: Mustapa (left) delivers his speech during the 10th Asean Leadership Forum yesterday. Also present were Former Prime Minister Tun Abdullah Ahmad Badawi (right) and Asian Strategy and Leadership Institute (Asli) chief executive officer Tan Sri Michael Yeoh (third right). — Bernama photo PETALING JAYA: Malaysia is confident the Asean Economic Community (AEC) will be realised by 2015 as 80 per cent of the measures have already been implemented by member nations. International Trade and Industry Minister Datuk Seri Mustapa Mohamed said in the case of Malaysia, 88 per cent of the measures have been implemented. Speaking to reporters after launching the 10th Asean Leadership Forum, Mustapa said Malaysian entrepreneurs were getting ready, especially in capacity- building measures to enhance their resilience. He said capacity building was important as it was easier for bigger companies to adapt but some small and medium enterprises (SMEs) are feeling the pressure. Earlier in his speech, Mustapa said Malaysian companies have been benefiting from closer Asean economic integration by expanding their operations to other Asean countries. “Companies such as Maybank, AirAsia, CIMB, Sime Darby, Petronas and Ingress Auto Ventures are some examples of companies that have been very active in the regions. “Similarly, we are seeing companies from Singapore, Thailand, Indonesia and the Philippines increasing their investments in Malaysia. Perhaps, what I would like to see is the participation of more SMEs,” he said. Mustapa said there are many economic areas whose integration success rates have been very good. In terms of a single market and production base, Asean has eliminated tariffs, liberalised trade in services and removed many restrictions on investments, he said. “Efforts are ongoing to deepen financial market integration. “Progress in connectivity initiatives in creating a single aviation market, single shopping market and cross-border sectors have been very encouraging,” Mustapa said. In the context of further enhancing integration, Mustapa said two AEC Post-2015 studies are being undertaken. “One study is being done by the Economic Research Institute of Asean and East Asia and the other by the Rajaratnam School of International Studies in Singapore and the Institute of South East Asian Studies. “These studies are being undertaken to facilitate Asean in drawing up the Post-2015 economic integration initiative. “These studies will provide valuable inputs to Asean in further enhancing its position as a competitive economic region,” Mustapa added. — Bernama Read more:http://www.theborneopost.com/2013/07/19/msia-confident-aec-can-be-realised-by-2015/#ixzz2a2ystRqn
2013-07-19During the China Daily Asia Leadership Roundtable, a co-branded session with the Omni Channel Retailing Conference at Retail Asia Expo 2013, a panel of four leading retailers and retail space asset managers shared their views on a variety of issues facing retailers in Asia today. Dr Peter Lau, chairman and chief executive of Giordano International said that China is entering a phase of normalising spending and that the free spending of two years ago probably is not the norm now. His advice to retailers was to maintain high discipline in managing every single aspect of the retail operation from understanding consumers, spending trends, implementing fast product development, adopting just-in-time manufacturing and delivery to communication with consumers through marketing and the in-store experience. Lau’s theory is that the online retail business is not just successful because it is on a consumer’s computer: it’s due to the amount and relevance of the information about the products and services that consumers can get at their leisure which is a great deal more than they get at the store. “When you pass the store clerks, or the sales person, half the time they don’t know what they are talking about,” said Lau. “But on the internet or the e-shop you can see the type of fabric, the colour and look at details a lot more closely before making a decision.” According to Lau, people have been spoiled with information. They are so hungry for it that they take it for granted that all the service providers, such as retailers, should be able to give them complete product information and when and where to buy. In-store information and the in-store experience are still relevant customer exchanges but the consumer should still wnats to be able to control the information flow. “To be successful in China or around the world the discipline of managing all aspects of the retail operations is fundamental because Chinese consumers are not engaging in frenzied selfish spending any longer,” said Lau. “Just because certain customers are so rich and have so much money they can’t spend it fast enough is no longer happening in China.” Lau added that China is a diversified consumer market and has definite differences in regional tastes and spending habits. A one-size approach to marketing does not fit all. Consumers in the country’s third- and fourth-tiered cities could still be irrational spenders easily allured by retailers – though this is changing as more travel abroad, but consumers in the country’s first- and second-tiered cities are much more rational. Roy Ho, head of general asset management and managing director of commercial platform at GCP Retail Management Ltd, agreed with Lau. Having worked with many brands over the years in China, saying that only two-thirds of the known brands still survive in the Chinese market. Ho said, “For retailers to survive in China, they must understand the market, maintain good logistics support and be good at creating an in-store shopping experience for consumers.” Ho was former general manager of Plaza 66 Shanghai developed by Hang Lung Properties, and highlighted the success of high-end retail brands to shopping mall operators. In 2011, Plaza 66 Shanghai had more than 160 shops that contributed RMB3 billion (US$490 million) in sales and that 20 of the top retail brands out of that contributed 70 percent of those sales. Tom Gaffney, Jones Lang LaSalle’s national director and head of retail, emphasized the importance of tenant mix to mall operators and that this should be wide-ranging and include a variety of brands. He stated that he was bullish on the Asian retail market because some regional markets such as Hong Kong are the beneficiary of the recent influx of US and European fashion brands with Thailand as another Asian retail market that is set to boom as it relies on regional tourist arrivals from China, Russia and the Middle East. Retail markets in Singapore, Bangkok and Jakarta will also supply strong opportunities for retailers in the future. Gaffney said that the major problem facing retailers in Asia is the soaring cost of retail rental space that will impact margins. Hong Kong’s retail rental space is currently the highest in the world, especially in areas of Causeway Bay due to the competitiveness of the retail environment. Gaffney commented that Canton Road in Kowloon will continue to be the prime brand-shopping district in the city. Retailers are looking at the peripheries of these areas and even locating further afield into secondary locations such as Shatin which are nearer the Hong Kong-Mainland border crossings. Agreeing with Lau, Francis Cheng, Occasions PR & Marketing’s CEO, said tailored-made services are important to capture consumers’ attention and that prime locations still influenced Chinese consumers. Brands should focus on geographical and cultural proximity to maintain their popularity and that brands that host regional fashion shows and manufacture specifically for the local market, such as apparel in Asian sizes, are finding more success. Photo: Paris Mok/China Daily Source: http://www.retailinasia.com/article/retail/consumer/2013/06/omni-channel-retailing-conference-china-daily-asia-leadership-roundt
2013-06-18Retailers and retail space asset managers are positive on the industry’s prospects in the Asian region, but retailers are urged to adopt different strategies to meet the diversified tastes of consumers amid the fast-changing Asian consumer market. Retailers and retail space asset managers shared their views on the mega trends of Asia’s retail industry at the China Daily Asia Leadership Roundtable held in Hong Kong on Wednesday. The conference was a special co-branded session in the Omni Channel Retailing Conference. Giordano International, a men’s, women’s and children’s wear fashion retailer across China and 30 other markets, believes that retailers must “have discipline in employing different strategies to manage retail operations to maintain long-term sustainability” because of the Asian retail market’s diversity. “We are maintaining the just-in-time inventory to maintain our competitiveness,” said Peter Lau, Giordano International chairman and CEO. “Another point we emphasize is the creation of an in-store shopping experience for the consumers in which we present product and services information in a way that are considered to be controllable by consumers,” Lau added. The Asian retail market is growing more diversified and China is most representative of it. “China is a diversified consumer market because of the differences in regional tastes and spending habits. Consumers in the country’s third- and fourth-tiered cities may be irrational spenders easily allured by retailers, but consumers in the country’s first- and second-tiered cities are much more rational.” Roy Ho, head of general asset management and managing director of commercial platform at GCP Retail Management Ltd, concurred with Lau. “My job enables me to work with many brands and from my experience, only two-thirds of the known brands still survive in the Chinese market,” Ho said. “For retailers to survive in China, they must understand the market, maintain good logistics support and be good at creating an in-store shopping experience for consumers.” As a former general manager of Plaza 66 Shanghai developed by Hang Lung Properties, Ho highlighted the success of retail brands to shopping mall operators. “In 2011, Plaza 66 Shanghai involved more than 160 shops that contributed 3 billion yuan ($163 million) sales whereas the 20 retail brands out of that total contributed 70 percent of sales,” Ho noted. Tom Gaffney, Jones Lang LaSalle’s national director and head of retail, also agreed on the importance of tenant mix to mall operators. “I think a good tenant mix should be wide-ranging and include a variety of brands.” “I am bullish on the Asian retail market because some regional markets such as Hong Kong are the beneficiary of the recent influx of US and European fashion brands,” said Gaffney. “Big business exposure in China can enable big brands to generate huge income for their businesses.” Thailand is another Asian retail market that is set to boom as it relies on regional tourist arrivals from China, Russia and the Middle East. He said that the Thai retail sector is growing, which can help nurture the growth of some Thai retail brands. The retail markets of Singapore, Bangkok and Jakarta will also bode well for retailers in the future. However, Gaffney cautioned that Asian retailers may confront soaring rental costs which may squeeze their margins drastically. He cited certain parts of Hong Kong’s retail rental space as being the highest in the world, such as Causeway Bay, due to the competitiveness of the retail environment. Turning to Hong Kong, Gaffney said that Canton Road in Kowloon will continue to be the prime brand-shopping district in the city whereas the Kowloon East district will become the next popular shopping areas in Hong Kong. Francis Cheng, Occasions PR & Marketing’s CEO, said that prime location and tailored-made services are important to capture consumers’ attention. “For retail brands to capture the Chinese market, they usually organize their fashion shows in China. Geographical and cultural proximity are important for brands to maintain their popularity. US fashion brand Gap came to Hong Kong in 2011 and since then they developed Asian style to keep the Asian customers.” “There is no one single formula that can work to allure consumers. You have to formulate a marketing package to attract the customers,” Cheng said. Contact the writers at oswald@chinadailyhk.com and linjingcd@chinadaily.com.cn
2013-06-135 Jun 2013 – Hong Kong, China Daily Asia Leadership Roundtable is pleased to cooperate with Omni Channel Retailing Conference on the special co-branded session on “China Daily Asia Leadership Roundtable: Strategic Challenges and Opportunities for Retailers in Asia” at 3:45pm – 5:15pm today at Meeting Room S221, Hong Kong Convention and Exhibition Centre, Hong Kong Convention and Exhibition Centre. Held alongside Retail Asia Expo, one of Asia’s most influential retail trade fairs, the Conference is a significant event for the regional retail sector. More than 200 senior executives from across Asia Pacific are expected to attend the three-day event where they will share strategies, discuss new technologies and tools, and set the future direction for retail in the region. Expert panelists including Dr. Peter Lau, Chairman and Chief Executive, Giordano International Limited; Mr. Roy Ho, Head of General Assets Management, Gaw Capital Partners & Managing Director of Commercial Platform (GCP Retail Management Ltd); Mr. Tom Gaffney, National Director & Head of Retail, Jones Lang LaSalle & Mr. Francis Cheng, Chief Executive Officer, Occasions PR & Marketing Ltd. have examined the mega trends of the retail industry in Asia and defined the next generation retail consumers and discussed about the industry value chain, and strategies to grasp the opportunities and tackle the challenges among industry players. About China Daily Asia Leadership Roundtable The China Daily Asia Leadership Roundtable is a by-invitation network of movers and shakers in Asia providing platforms for focused dialogue, issue investigation, and possible collective action on strategic issues relating to economic, business and social development in Asia. Our aim is to enhance communication and increase mutual understanding between China, other Asian countries and Western countries. Roundtable events are held in major cities across Asia Pacific. (http://www.cdroundtable.com)
2013-06-05East side story: Rise of Asia’s film industry Speakers and organizers at the China Daily Asia Leadership Roundtable event on ‘Challenges, Opportunities and Partnership for Asia’s Film Industry’ at the Hong Kong Convention and Exhibition Centre on March 20. (Photos by Edmond Tang / China Daily) Asia’s film industry is developing rapidly. Box-office revenues are rising fast while the number and quality of films coming out of various national film industries has increased substantially in recent years. This evolution was the focus of the China Daily Asia Leadership Roundtable on the “Challenges, Opportunities and Partnership for Asia’s Film Industry” held on the sidelines of the Hong Kong International Film & TV Market (FILMART) at the Hong Kong Convention and Exhibition Centre on March 20. “As Asia continues to enjoy sustained economic growth, more and more people, particularly the youth, choose to go to the cinema as part of their lifestyle,” said Zhou Li, publisher and editor-in-chief at China Daily Asia Pacific. “Movies are one of the best arms of soft power. More and more governments realize this and are pushing it forcefully.” For the time being though, Hollywood is the dominant force in the global film industry. Last year North America, the largest film market in the world, earned $10.8 billion in box-office sales. The Chinese mainland has also emerged as a giant market and revenues in 2012 jumped more than 30 percent from the previous year to $2.69 billion. However, about half of that — $1.38 billion — went to foreign films. Still, growth is visible. Every day, four new movie screens come up somewhere in China. The markets in Japan and South Korea are also growing fast. Hong Kong, despite its small size, has evolved as a hub. Great films are being made in Thailand, Taiwan and the Philippines. Other countries around the region are also stepping up their participation in the industry. “We are all witnessing the rise of Asia’s film industry,” said Jenny Koo, director of service promotion at the Hong Kong Trade Development Council (HKTDC). The HKTDC organized FILMART, which has been held annually for 17 years. Some 710 exhibitors participated in the largest film market event in Asia. “The success of Hong Kong-(Chinese) mainland co-productions is a good example of how we can work together,” Koo said. Co-productions accounted for the majority of the top 10 box-office hits on the mainland. One hurdle that only a handful of Asian films have managed to overcome is attracting audiences from different cultural backgrounds, which would help raise revenues. In China, for example, targeted revenues are still low, said Crucindo Hung Cho-sing, managing director at Delon International Film. “Why can America earn a lot of money but China cannot?” asked Hung. “It is very hard for us to compete in the international market.” The income of Hong Kong films is often not enough to cover costs. The same is often true on the mainland. In the first half of 2012, only seven of the over 140 movies made on the mainland broke even or were profitable. “And we have to produce very large movies to compete with American movies,” said Hung. “There is still a very large discrepancy between Chinese films and American films.” Increasing revenues would be a sure way of improving quality. As revenues rise, so do budgets and production values, said William Pfeiffer, CEO of the Hong Kong-based feature film company Dragongate Entertainment. “I would not have guessed that Chinese films would have crossed the $200 million mark in revenue (so quickly),” said Pfeiffer. “In fact, two films have crossed it.” Part of the challenge for the industry is to overcome complex regulatory environments that affect distribution and content. It is difficult to put in place cooperative ventures to produce content that appeals to audiences across borders. Ongoing concerns over intellectual property protection also make it harder to attract investment. “A key solution is partnerships,” Pfeiffer said. “What is required for a good partnership is trust.” Still, there are opportunities to reach beyond national borders, like taking Asian ideas and projects to the English-speaking world and vice-versa. “You are taking the best of all these cultures and doing something that works internationally,” said Pfeiffer. One place that has managed to leverage joint ventures into a thriving film industry is Hong Kong, where growth is rapid, said Wilfred Wong Ying-wai, chairman of The Hong Kong International Film Festival Society. “The world’s focus is on Asia today. It is not just Hong Kong … Hong Kong is too small (but) it is a hub for Asia,” said Wong. “The trend is unlikely to change. Asia’s box-office accounts for about a third of the world’s box-office.” The Hong Kong International Film Festival, for example, has been held annually for 37 years and has showcased some of the most famous filmmakers from Hong Kong, the Chinese mainland and other parts of Asia. “The challenge is really the diverse culture and tastes within Asia,” said Wong. “When you talk about Asia, you are not talking about one country or one culture.” Wong believes the movie industry has the potential to cater to all of these diverse tastes. If Hollywood can do it, why not Asian film industries? The challenge is not so much in the potential or ability of the individuals involved in the business but rather in the lack of an industrial system, which is what makes Hollywood so powerful. “There is no lack of opportunity,” said Wong. Leveraging this opportunity may require working through the regulatory environment and understanding that a movie means entertainment, said Zhang Yuan, a film director in China. “We need rules in the film industry so that we can compete with others,” he added. “We need to see a total change of the system of entertainment and film and TV,” said Fred Wang Cheung Yue, chairman of the Salon Films Group. “Unless you change the whole system and update it, your film and TV industry is still running in the stone age.” Creativity has been a key factor behind the success of Hollywood. Another important factor has been technology and the creative use of financing. “They have been constantly upgrading themselves,” said Wang. “They have also used the financial system.” Distributing a film globally may cost $50 million to $70 million. No other film industry in the world has the resources to distribute films worldwide on that scale. Films in Asia have budgets that are a tenth the size of just the distribution budget of a US blockbuster, added Wang. This does not mean that there isn’t potential. China has shown in a myriad of examples that it has the potential to grow almost any industry. “Aviation and telecom have good organizations worldwide,” said Wang. Groups like International Air Transport Association, for example, can help the industry grow. “We need to make a total change. Forget the other places and start with Hong Kong. Hong Kong has all the ingredients if you have the courage.” “China ranks number two in the world,” said Song Dai, chairman and general manager of Sil-Metropole Organisation. “But today, facing the momentum of the Hollywood film industry, the industries on the Chinese mainland and in Asia are facing (great) pressure.” Recent agreements have opened the door to more foreign films in China, partly due to the country’s participation in the World Trade Organization. But it is not just China. Industries elsewhere — like South Korea and India — are also under pressure. Alternative forms of marketing, using the Internet and new media, are emerging. “There is still room for us to improve,” said Song. “Especially when we are facing Hollywood, such a mature film industry.” Source: http://www.chinadailyapac.com/article/east-side-story-rise-asias-film-industry China Daily Hong Kong Edition PDF version available at: www.cdroundtable.com/pdf/20130322-P18-19-HK.pdf China Daily Asia Weekly PDF version available at: www.cdroundtable.com/pdf/20130322-P12-13-AW.pdf
2013-03-28Regional reel industries need cooperation in their plots Wilfred Wong Ying-wai (right), chairman of The Hong Kong International Film Festival Society, delivers his speech as William Pfeiffer, CEO of Dragongate Entertainment, listens. Asia’s film industry is growing fast but is not very competitive and that will make it hard for Asian filmmakers to expand internationally. Speakers at the China Daily Asia Leadership Roundtable held on March 20 on the sidelines of the Hong Kong International Film and TV Market noted time and again that the massive opportunities are curbed by the challenge of reaching audiences with different cultural backgrounds. “There is strength in the Asian market. There is a very large, young population with a very large disposable income. So the future is very clear,” said Wilfred Wong Ying-wai, chairman of the Hong Kong International Film Festival Society. Last year, Asia overtook Europe as the second largest region in terms of digital cinemas. A recent Ernst & Young study suggests China will replace the US as the largest film market by 2020. There are plenty of opportunities for growth, not only by adding more screens and raising box-office revenues but also through collaborative productions, making films and TV programs that appeal to multiple audiences and expanding into new media offerings that have the possibility of adding revenue streams. South Korea is an example of growth. In 2012, the republic’s film and television industry contributed $6.77 billion to the economy and supported more than 67,000 jobs. A report by Oxford Economics suggests that since 2005, the South Korean film industry has expanded by 49 percent, marking annual growth of about 6.9 percent — double the rate of the real GDP. Taiwan, with 22 million people, has 696 movie screens. So does Indonesia. However, the Islamic country has a population of 242 million, which means a high potential for growth. Hong Kong is one of the largest exporters of films and television content. Signs of challenges are evident on the Chinese mainland. While ticket sales are on the rise and new theaters are being built around the country, domestic films are struggling. In the first six months of 2012, foreign film revenues jumped 90 percent to 5.27 billion yuan ($840 million) but revenues from domestic films hit a five-year low, dropping despite a 40 percent increase in overall box-office profits. Of the 141 made-in-China movies in the first half of 2012, only about seven broke even or made money. The drop followed an increase in the number of foreign films China allows in — from 20 to 38. For the time being, Asian films have very limited reach. “Part of it is (due to) fragmentation and part of it is that the films are not international enough,” said William Pfeiffer, CEO of Dragongate Entertainment. “That is the key, to get writers and directors to be more international. The talent will follow.” Mixing the Asian industry with Hollywood could help take the regional industry to the next level. Money is not really the problem. Wealth in Asia is growing twice as fast as in other regions. “The name of the game is catching up. Today what we are lacking is quality films that can sell everywhere. Quality films that appeal to the world,” said Wong. Some good Asian films are not even distributed outside their home markets. What is going to help in future productions is a more scientific approach to market research. Better market research would make it easier for filmmakers to invest. “This really needs the countries to put their heads together and form an institute to do market research,” said Wong. There may also be opportunities to expand revenues in other areas. “People talk about the box-office but in new media, we don’t have that (issue),” said Gong Yu, founder and CEO of Qiyi.com, the video channel of major Chinese browser Baidu. New media cannot compete with the box-office but around a third of their revenue comes from the Internet, which often hurts film revenue. Their business model is also different. As much as 90 percent of the income for new media comes from advertisements. Movies, by comparison, cannot rely on advertising for their revenue. Films with small audiences cannot be released in cinemas but they can be released online, as the cost is relatively low, said Gong. “We have to set up very standard regulations for cinemas and the cinema industry,” said Gong. After the theatrical release, movies can earn revenue and be protected by Internet companies willing to oversee intellectual property rights. Perhaps the most obvious solution is for the industry to take up cooperation in a big way. As it is, making a “big” movie on the Chinese mainland requires cooperation with industries elsewhere. In the long run, the mainland is one of the few markets that can compete with the US, particularly in cooperation with other markets in the region. But regulators may have to step in with policies conducive to the growth of the industry, said Zhang Yuan, a Chinese film director with more than 10 films under his belt. “Many of us have found that a movie is not a propaganda tool but entertainment,” Zhang said. http://www.chinadailyapac.com/article/regional-reel-industries-need-cooperation-their-plots
2013-03-28The Big Picture Somewhere on the Chinese mainland, four new movie screens are being put up every day as investors seek to capitalize on a rapidly growing film industry. Box-office receipts in 2012 jumped 30 percent to 17 billion yuan ($2.7 billion). The mainland film market is now the second-largest in the world after the US. Foreign films account for more than half of this revenue while the domestic industry, which generates more content every year, tries to find its footing. It is not just the mainland that has seen significant growth. Japan and South Korea are large movie markets. Hong Kong has evolved into a regional hub with global reach. Great films are being made in Thailand, Taiwan, the Philippines and Indonesia. The growth of the Hong Kong International Film & TV Market (Filmart), now the largest film market in Asia, is a testament to the growth of the industry. Filmart is being held in Hong Kong this week and has attracted more than 700 exhibitors. The growth and development of the film industry was the focus of a China Daily Asia Leadership Roundtable, co-organized with the Hong Kong Trade Development Council, on the “Challenges, Opportunities and Partnership for Asia’s Film Industry” held as part of Filmart. Industry leaders gathered to discuss the evolution of the business. “As Asia continues to enjoy sustained economic growth, more and more people, especially the young, choose to go to the cinema as part of their lifestyle,” said Zhou Li, publisher and editor-in-chief of China Daily Asia-Pacific. For the time being, Hollywood is the dominant force in the global film industry. In 2012, the US market generated $10.8 billion in box-office receipts, four times as much as the Chinese mainland. More significantly, Hollywood remains almost the single reliable generator of films with international reach. “We are all witnessing the rise of Asia’s film industry,” said Jenny Koo, director of service promotion at the Hong Kong Trade Development Council (HKTDC), the organizer of Filmart. “The success of Hong Kong-mainland co-productions is a good example of how we can work together.” In fact, co-productions accounted for a majority of the top 10 box office hits on the Chinese mainland. Asia as a whole is a large market and much of that moves, at one point or another, through Hong Kong. Hong Kong’s film industry is growing rapidly, said Wilfred Wong Ying-wai, chairman of The Hong Kong International Film Festival Society. “The world’s focus is on Asia today. It is not just Hong Kong. It is Asia. Hong Kong is too small (but) it is a hub for Asia,” said Wong. “The trend is unlikely to change. Asia’s box office accounts for about a third of the world’s box office.” One of the most influential film festivals in the region, for example, is the Hong Kong International Film Festival. It has been held annually for 37 years and nurtured some of the most famous filmmakers in Hong Kong, the Chinese mainland and other parts of Asia. Cultural boundaries The biggest challenge for filmmakers in the region is how to reach beyond their cultural boundaries. “The challenge is really the diverse culture and tastes within Asia,” said Wong. “When you talk about Asia, you are not talking about one country, or one culture.” The question is whether the movie industry can cater to all these diverse tastes. The answer, said Wong, is a resounding “yes”. If Hollywood can do it, so can Asian film industries. “China ranks number two around the world,” said Song Dai, chairman and general manager of Sil-Metropole Organization Ltd. “But today, facing the momentum of the Hollywood film industry, the industry on the Chinese mainland and in Asia are facing (great) pressure.” Recent agreements have opened the door to more foreign films on the Chinese mainland, partly due to the country’s participation in the World Trade Organization, and that puts further pressure on domestic film makers. But it is not just the mainland. Industries elsewhere – like Taiwan, South Korea, India and Hong Kong – are also under pressure. On the other hand, a number of famous Chinese directors and stars have hit the sweet spot in the global film industry. “There is still room for us to improve,” said Song, “especially when we are facing Hollywood, which is such a mature film industry.” The challenges have more to do with the products themselves rather than with infrastructure. Sometimes the products are not good enough to compete at international standard. Often it is because the quality of storytelling is weak. At other times, budgets are hard to match. Western audiences often find storylines in Asian films too complicated. This makes such films less attractive. “The (solution) will exist in the problem itself,” said Song. “We have to tell a story to meet the requirements of the market but also meet international standards.” Increasing revenues and budgets will help. More money in the system translates into higher production values, more respectable writing fees, and greater opportunities across the industrial spectrum, said William Pfeiffer, CEO of Dragongate Entertainment. “I would not have guessed that Chinese films would have crossed the $200 million revenue mark so quickly,” said Pfeiffer. “In fact, two films have crossed it.” Avatar, the Hollywood blockbuster, was the first film to cross that mark when it earned $220 million at the mainland box office. Global audience However, warned Pfeiffer, while the industry is rapidly growing on the mainland and box-office receipts are rising, Chinese movies have not done as well overseas. There was a short spurt powered by the success of such hits as Crouching Tiger, Hidden Dragon but, by and large, Chinese films have floundered abroad. The problem is developing content that is appealing to audiences across borders. Co-productions might help as would the emergence of opportunities in new media. “A key solution is partnerships,” Pfeiffer said. “What is required for a good partnership is trust.” There are plenty of opportunities in this area, from taking Asian ideas and projects to the English-speaking world and vice-versa. Conversely, Asian countries are looking for projects that can be adapted to their markets. Remakes, which are increasingly popular, are a case in point. “You are taking the best of all these cultures and doing something that works internationally,” Pfeiffer said. The creative use of new media could also help the industry grow, particularly given the different revenue models. “People talk about the box office but in new media we don’t have that (issue),” said Gong Yu, founder and CEO of iQIYI.com. Around a third of revenue in new media comes from the Internet. Advertising revenue is rising but it accounted for about a tenth of television advertising on the mainland. Movies with small audiences that would never be profitable through cinema distribution may be released online, which is relatively low-cost, said Gong. The overarching message is that the film industry on the Chinese mainland, and in other parts of Asia, needs to be stabilized, said Crucindo Hung Cho-sing, managing director at Delon International Film. The strategic target for box-office revenues on the mainland is still low. Raising that can help make the industry into a bigger success “Why can America earn a lot of money but China cannot?” asked Hung. The income of Hong Kong films, for example, is often not enough to cover costs. Often, the same is the case on the mainland. Making a “big” movie on the mainland requires cooperation with industries elsewhere like in Hong Kong and, ideally, Hollywood. “And we have to produce very large movies to compete with American movies,” said Hung. “There is still a very large discrepancy between Chinese films and American films … We have to occupy a position by ourselves in the world.” “It is very hard for us to compete in the international market,” said Hung. “When the box office is stable we can make improvements and compete with US movies.” Zhang Yuan, a Chinese director with 10 films to his name, most recently Beijing Flickers, said both regulators and audiences should start looking at movies as entertainment. The outlook for the industry is generally positive, said Fred Wang Cheung-yue, chairman of Salon Films Group, as long as the industry finds ways to step-up its game. China has shown in myriad industries that it has the potential to expand. There are dozens of examples, from aviation to telecoms. These are industries that have powered forward domestically but also internationally, in no small part thanks to existing international systems. “Aviation and telecom have good organizations worldwide,” said Wang. “Why not film?” “All we need is the courage of the people who make decisions and Asia is the best, because the economy is based in Asia,” Wang said. “All we need is to open the market, set rules and share.” “We need to make a total change. Forget the other places and start with Hong Kong. Hong Kong has all the ingredients if you have the courage,” he said. http://www.chinadailyapac.com/article/big-picture
2013-03-22"Challenges, Opportunities and Partnership for the Asia’s Film Industry" Stage, Hall 1, Hong Kong Convention and Exhibition Centre 10.00 - 12.00, 3/20, 2013 20 Mar 2013 – Hong Kong, China Daily Asia Leadership Roundtable is pleased to cooperate with Hong Kong Trade Development Council at the 17th edition of the Hong Kong International Film and Television Market (FILMART) on the special Thematic Conference on “Challenges, Opportunities and Partnership for the Asia's Film Industry” at 10:00 – 12:00 noon today at Stage, Hall 1, Hong Kong Convention and Exhibition Centre. Besides being the world's second largest economy, China now is also the second largest market for film with 17.07 billion yuan in box office receipts in 2012, a 30.18 percent increase over 2011. As Asia’s entertainment hub, Hong Kong plays an important role in helping China develop closer partnership with other Asian countries and leverage substantial movie resources in the region and the world at large. This thematic conference provides a platform for significant speakers in movieindustryfrom Asia to talk about how Asia's movie industry shouldwork together to achieve a win-win situation and deliver more box-office films to the world, what roles of policy, capital, talent development, technology, production and distributionare in boosting the growth of the industry. Additionally, they will share their insights on the road ahead in the next five years for the industry. Mr. ZHOU Li, Publisher & Editor-in-Chief of China Daily Asia Pacific opened the conference with Ms. Jenny KOO, Director, Service Promotion, Hong Kong Trade Development Council and gave a warm welcome to the prominent speakers including Mr. Wilfred WONG Ying-wai, Chairman, The Hong Kong International Film Festival Society Limited; Mr. William PFEIFFER, Chief Executive Officer, Dragongate Entertainment Ltd; Mr. Crucindo HUNG Cho Sing, Managing Director, Delon International Film Ltd; Mr. ZHANG Yuan, Chinese Film Director; Mr. Fred WANG Cheung Yue, Chairman, Salon Films Group; Mr. SONG Dai, Chairman & General Manager, Sil-MetropoleOrganisation Ltd and Mr. GONG Yu, Founder & CEO, iQIYI.COM, Inc. About China Daily Asia Leadership Roundtable The China Daily Asia Leadership Roundtable is a by-invitation network of movers and shakers in Asia providing platforms for focused dialogue, issue investigation, and possible collective action on strategic issues relating to economic, business and social development in Asia. Our aim is to enhance communication and increase mutual understanding between China, other Asian countries and Western countries. Roundtable events are held in major cities across Asia Pacific. (http://www.cdroundtable.com)
2013-03-20March 14, 2013 - 10:15am http://www.chinadailyapac.com ZTE – the mainland’s leading telecommunications equipment provider -- is to expand investments in brand building in the business-to-customer market, reaping from its years of experience and expertise in the business-to-business market. The company has been in the business-to-business market for moré than two decades and is now trying to take on the business-to-customer model, Zhang Xiaoke, managing director of ZTE (HK) Ltd, told the China Daily Asia Leadership Roundtable. He explained that when the company focuses on the business-to-business market, it does not have to worry much about brand building, as its good reputation is already known to telecom operators. For the past five years, ZTE has been strengthening its business-to-business relationships while diverting more resources to business-to-customer marketing. “As for our way of brand building (in the business-to-customer market), we’ll continue to work with operators in joint market activities, using our relationship with operators as one of our branding advantages,” Zhang said. ZTE will also sponsor large-scale events, such as concerts and sports games, to put extra resources on the social media. . Zhang stressed that there is no single media that can help them fully identify their target audience, and there will be no single marketing campaign that can change a company’s image completely. That is why ZTE will increase investments in marketing and advertising gradually and rationally. He said the company hopes that customers, inside and outside of the mainland, will know that ZTE’s products have solid technical strength, offer the right price and are suitable for young people. “We’re still learning how to build up our brand in the business-to-customer market. We want to find our target customers in different places, but we also think of our budget, we want to be rational,” Zhang said. He said the last thing the company wants to do is dumping tons of money into a commercial because although the audience might be enticed, customers could still end up going after their competitors’ products. ZTE’s brand-building efforts are not easy, especially in overseas markets, Zhang said, recalling a crisis it encountered in the United States last year. The US House of Representatives Intelligence Committee released a report, after an 11-month investigation into ZTE and Huawei Technologies Co Ltd, saying US telecommunications operators should not do business with China’s leading network equipment makers because potential Chinese state influence on the companies poses a security threat. According to Zhang, ZTE responded quickly and proactively to the investigation, expressing its sincerity to the investigators and providing them with accurate information. Instead of debating with the investigators, he said the company tried to help them understand ZTE’s position and culture. Due to ZTE’s sincerity and openness during the investigation, the demand for ZTE’s terminal equipment rose in the US, and the company’s crisis management ability became a successful brand building itself, Zhang added. Source: http://www.chinadailyapac.com/article/ztes-new-way-win-niche-markets
2013-03-14March 14, 2013 - 10:11am http://www.chinadailyapac.com Chinese corporations must convey appropriate brand messages and launch stringent product quality control to make brand-building successful amid the huge market potential of the Chinese consumer market. It is, nevertheless, not an easy job today given the fierce market competition from other Asian and international companies which are all chasing for a piece of profit from the world’s second-largest economy, making brand-building even more crucial and important for domestic Chinese companies, said Howard Lam Pong-yuen, EMBA program associate director at The Chinese University of Hong Kong (CUHK). Speaking on the sidelines of roundtable panel discussions on “Strategic Brand Building in China,” organized by China Daily and the CUHK Business School’s EMBA Program on Monday, Lam said many consumers these days may only “know about” and “understand” Chinese brands, but they still may not be able to “like”, “act upon” or stay “loyal to” these brands. Therefore, Chinese companies must be more proactive in brand-building ventures. “Chinese companies must understand the unique tastes and demands of the consumers from the angle of the consumers in order to create compelling brand-building messages,” he said. Lam, who was formerly Coca-Cola China’s Olympics consumer marketing general manager, cited a TV commercial produced by Coca-Cola China for the Olympic Games in China in August 2008 as an example. He said the US brewage maker designed the MTV content with a mixture of different Olympic song singer versions, brand cues through red color images and the use of celebrities so that the Coca-Cola company can execute brand association to different viewers through the TV commercial. The advertisement won world-wide acclaim due to its successful marriage of different elements to cater to the specific tastes of Chinese people for a special occasion. And once consumers’ tastes and demands have been gauged, one brand building technique that can be employed is to create “exchanges of content” among multiple parties in brand-building messages, Lam added. “Chinese companies must find their own unique way in telling their brand development stories,” Lam noted. “Chinese enterprises should gradually establish their brand images through influencing the country’s opinion leaders first. “Cultural and language homogeneity in China and the ease of logistics allow brand-building messages to be easily conveyed across the whole country. I’m totally optimistic that more Chinese companies can successfully build up their corporate brands,” Lam said. He is optimistic that more Chinese corporations, especially small-and-medium size enterprises, will make it to Fortune Global 500 if they cultivate their brand images successfully. Although brand building is all about changing consumers’ perception, Chinese companies should also pay attention to product quality enhancement, as only one single incident of product recall would wipe out all their efforts in brand building. Hence, product quality control is also vital along with the brand-building process, Lam said. Other speakers at the China Daily Asia Leadership Roundtable also shared their views on Chinese brand-building strategies domestically and internationally. Jack Lee, Lenovo Group corporate vice president, who oversees the Hong Kong, Taiwan and Korea region business, outlined the importance of multinational companies securing a big slice of revenue from overseas markets. He said not only have the group’s M&A activities brought financial benefits to the company, they have added great value to the Lenovo brand in various economies. Zhang Xiaoke, managing director of ZTE (HK) Ltd, said the company will allocate more resources on business-to-customer (B2C) marketing and continue to work with operators in joint marketing events and activities. The telecommunications equipment maker will seek to expand its brand awareness by holding large-scale events, including concerts and sport games, which will also emphasize the adoption of social media in communicating with the public. Source: http://www.chinadailyapac.com/article/product-quality-control-key-brand-building
2013-03-14March 14, 2013 - 10:12am http://www.chinadailyapac.com “You hear people say Lenovo is a Chinese brand, but we are a global brand that has a deep heritage in China,” says Jack Lee, corporate vice-president of the Lenovo group. While Lenovo, the personal electronic products giant which ranks 23rd as the most valuable Chinese brand in a BrandZ report in 2013, Lee said the company draws 58 percent of its revenue from overseas markets. The brand not only leads the mainland’s PC market with a 36.7 percent share, it’s also the No 2 in Middle East, African and Canadian markets. “We work very hard to achieve that,” he said, adding that their dedication to build revenue overseas is critical. “One must not use ‘Made in China’ as an excuse, and give people a reason to buy,” he said. “In that way, if you go out, you are not a one-trick pony, you are not a China play. A lot of people know Chinese products, but they don’t know Chinese brands. It’s a bit shameful for me to go outside and find out that the brand consumers only recognize is Tsingtao beer. There should be a lot more. It’s our responsibility to make these brands not just big in China but also well-recognized worldwide.” The industry is all about speed and validity, Lee said. However, to build a global brand, one should always invest in the long term and not tentative. “My chairman always says, M&A (mergers and acquisitions) goes like when you want to buy, people don’t want to sell to you and when they want to sell to you, you don’t necessarily want to court.” Back in 2011, Lenovo bought the PC branch of NEC, the then biggest player in the Japanese market. “Our strategy is localization through acquisition. So immediately, you get there.” But Lee warned “that is only meaningful when it adds value to your brand”, adding one should spend on building brand equity. “Don’t expect a quick ROI (return on investment). I guard A&P (advertisement and promotion) tougher than anything else. I believe branding will finally drive margins.” Besides, executing strategy in a well-choreographed way helps a great deal. Lee pointed out that while Intel is an engineer excellent company and Microsoft is a product excellent one, Lenovo is execution excellent. “Some say sales people are just box movers. It’s true. But this is the industry we are in. My black box versus your black box, but my black has something better than yours. We rely on frontline workers. The frontline sales are what we go for … A lot of Chinese companies do big projects with low margins, but we believe in strong performance,” he said. Last year, Lenovo revenue has increased by 12 percent to $9.359 billion, while earnings jumped by 33 percent to $205 million. In March, the company won back its blue-chip status as one of the 50 HSI constituent stocks. “That curve is nice, but not easily done. You need to have a strong execution to ensure results.” To be global also means believing and investing in diversity. “Not just localization, but hiring people who understand the local market,” Lee stressed. Source: http://www.chinadailyapac.com/article/global-brand-profound-china-heritage
2013-03-14Recycling glass requires collecting bottles, crushing them and turning them into reusable material such as the stuff used to pave roads. But, because there is very little profit to be made, businesses have shied away from it. Now the government is trying to step up efforts as part of a drive to create a better “recycling loop”, said Christine Loh Kung-wai, Hong Kong’s Under Secretary for the Environment. Less than a week after Hong Kong Chief Executive Leung Chun-ying outlined the government’s policy initiatives for the year, speakers at a China Daily Asia Leadership Roundtable themed “The Future of Hong Kong’s Green Economy” on Monday, said there is a lot of work to do to raise environmental standards and attract business focused on environmental sustainability and green technology. Lowering emissions and cleaning up the air is only part of the challenges Hong Kong will have to tackle as it focuses on creating a greener economy. The aim of the discussion on Monday was to create a more competitive environment for Hong Kong, said Zhou Li, publisher and editor-in-chief at China Daily Asia Pacific. “Many cities in the mainland are in the throes of pollution,” said Zhou. “Hong Kong may feel a bit luckier this time… (but) there are enormous challenges ahead in the long way to make Hong Kong a more livable and healthy city.” Pointing out that Hong Kong is stepping up efforts to clean up its environment to improve public health and generate new business opportunities, Loh said the government’s investment commitments and new priorities included building two food waste treatment plants and ramping up recycling. At the heart of this push for a greener economy and a better environment is a drive to reduce roadside pollution, which made the environmental cornerstone of the policy speech last week. While the negative side effects of pollution are myriad, the impact on public health may be the most serious and hard to control. “Once you focus on public health you realize how much you have to do to reduce public health risks,” said Loh. “The daily exposure to pollution of our people is very, very high.” The government’s efforts, outlined in Leung’s policy speech on January 16, focuses on lowering emissions from 88,000 vehicles while taking older vehicles off the road. The push is part of an HK$10 billion initiative to retrofit vehicles to meet Euro-III standards or higher. Eventually, the goal is for vehicles to meet standards as high as Euro-V. New vehicles will be given a lifespan of 15 years. The impact of this push could be significant, said Loh. A pre-Euro standard vehicle generates 35 times as many emissions as one that meets the new standards. New catalytic converters will also be installed on LPG taxis and minibuses. When dirty, these vehicles also produce a significant amount of pollution. Low-sulfur fuel law The government is also driving legislation that would see cargo ships arriving in Hong Kong switch to low-sulfur fuels while berthing. The push comes almost two years after a group of 18 leading container lines signed a voluntary Fair Wind Charter, under which they switch fuels while in port. “This is the only voluntary scheme in the world in which the industry pays for its own cost of fuel switching,” said Loh. “These people are doing it, essentially, at their own cost.” Both the Hong Kong Liner Shipping Association and the Hong Kong Shipowners’ Association have been asking government to regulate fuel switching to create an even playing field. Hong Kong would be the first port in the region to do so and it would be “quite an aggressive move”. “One of the most important things that we are doing is mandating fuel switching at berth,” said Loh. “Hopefully we can pass the legislation relatively soon.” Expanding this policy to the whole Pearl River Delta “would be good for the people of the whole region… The vision is a low emission area for the whole water of the region.” On-shore power Another associated initiative would provide on-shore power at the new Kai Tak Cruise Terminal being developed in East Kowloon. The introduction of international standards for on-shore power would facilitate this initiative. In the last 10 years, more than $1.5 trillion has been spent on green energy projects worldwide, said Justin Wu, lead analyst for Wind at Bloomberg New Energy Finance. Last year alone, investment from both public and private sources on green energy projects was about $270 billion worldwide. “China is actually the leading country, by far, in clean energy investment at more than 25 percent of the total (at $68 billion),” said Wu, who added that the USA was in the second place, with 50 percent less investment than China. “I think there is a great level of awareness in Beijing and citizens in China of environmental sustainability,” said Wu. In China, the challenge is finding and transmitting clean energy as the country has limited clean energy resources. Most of China is ill suited to produce much wind or solar energy. On the other hand, production in parts of Western China could supply Guangdong Province with a single transmission line. Hong Kong also has limited opportunities to generate energy from renewable sources, said Richard Lancaster, managing director at CLP Power Hong Kong. Electricity producer and distributor CLP has been moving away from coal-fired plants in the past two decades but about half of the city’s power comes from coal. The other half comes from gas or nuclear power. “If you go back to the 1990s, almost all of our power came from coal-fired plants,” said Lancaster. Today, “we have a relatively clean mix of coal power, gas and nuclear power… To do more, we will need to shift further away from coal-fired power.” “In the last 20 years, emissions from power generation have reduced by 80 percent and this is despite the fact that electricity demand has risen by 82 percent,” said Lancaster. But getting sustained environmental improvement is not cheap. It requires a “regular, consistent and a sustained level of investment,” Lancaster said. In 2011, CLP spent HK$10 billion to clean up its coal-fired plant in The Peak in Hong Kong and every year the company spends about HK$10 billion in gas to fuel its gas-powered plant. These are major and long-term investments. Lowering emissions, whether from vehicles or power generation, is only part of the challenge as there are other environmental problems that Hong Kong has to tackle. Waste challenge One of them, which Loh called “enormous”, is waste. The city is filling up landfills at a rate of 13,500 tons per day — as much as a third of that is food waste. “There is quite a lot that we can do… food that is not consumed that is still of excellent quality, like the bread rolls, can it be donated?” asked Loh. “It does require all of us to change our habits.” Last year, Hong Kong launched the Food Wise campaign working with business and NGOs. “We want people who are already leaders in their field to call upon their brothers and sisters in their field, to show them by demonstration how it can be done.” It is not all bad news. While very little food waste is recycled, the city does recycle as much as 48 percent of all waste and the government would like to raise that to 55 percent. For the time being, Hong Kong does not have a complete waste treatment infrastructure. The total needed spending is HK$31 billion to build the necessary infrastructure. “We are going to have to build a whole range of hardware to deal with the waste we are not able to reuse or recycle,” said Loh. “It is continuous investment. We can’t run away from it.” First incinerator “At the end of the year we will have a first incinerator… We, in Hong Kong, need this type of technology to deal with this type of waste.” The city is also centralizing efforts to lower energy consumption through the Steering Committee for the Promotion of Green Building and also working to improve nature conservation. In order for these initiatives to succeed and provide benefits, both government and private sector have to work together to drive environmental and sustainable investment, said Alexandra Boakes Tracy, chairman of the Association for Sustainable & Responsible Investment in Asia. The association is a grouping of financial institutions and investors that promotes sustainable investment. Tracy said investors look for reliable and long-term policies. Such policies have already led to the creation of more than 400 funds that invest in clean energy or sustainable technology. Unfortunately, Hong Kong has lagged other jurisdictions in attracting such funds or their investments. South Korea, an industrial country that imports as much as 97 percent of its energy, may provide some inspiration for useful policies. “For (South) Korea, there are a lot of reasons why energy efficiency and moving to a green economy (makes sense),” said Tracy. Hong Kong, basically a service economy with limited manufacturing, has an opportunity to be a leader in this area. “I think some people would say Hong Kong is arguably lagging now on green finance business. Therefore, we should be absolutely building on our strength,” said Tracy. “This investment flow will start to become sizeable and Hong Kong has an opportunity to play a role here.” While last week’s policy initiatives were generally welcome, many wondered whether they go far enough. Among them is Hendrik Rosenthal, director of policy and research at the Business Environment Council (BEC). He wondered, whether the investment to raise the quality of the emissions control in the city’s public transportation fleet would be sufficient to help small businesses deal with the challenges. “Is it enough? Is it enough for the little guy that is running a one-man shop to feed his family? Is it enough for him to phase out?” asked Rosenthal, talking about the $10 billion that will be spent on upgrading vehicles. Efforts to clean up vehicles are welcome and rarely controversial, said Rosenthal, as such a move is definitely not as controversial as initiatives to eliminate trash. “The big elephant in the room is incineration,” Rosenthal said. “People want to know how big it is going to be, where it is going to be and all that.” In the end, said Loh, government initiatives along are not enough. It will be up to the community, business and civil society to do their part as well. “Once you get down to having the policy direction then you have to stitch it all together,” said Loh. “How can we… find the time to work together to define this path together?” she asked. http://www.chinadailyapac.com/article/giant-steps-toward-greener-hk-economy
2013-01-22