Tag Archives: Business

Chinese Acquisition Of Scottish Cashmere Producer Todd & Duncan “Sewn Up”

Ningxia Zhongyin Becomes First Chinese Firm To Take Over A UK Cashmere Company, Eyeing Growth Of Domestic Market In China

Ningxia Zhongyin is one of the world's top producers of cashmere fibers -- with its acquisition of Todd & Duncan, it has greatly increased its global footprint

Ningxia Zhongyin is one of the world's top producers of cashmere fibers -- with its acquisition of Todd & Duncan, it has greatly increased its global footprint

Cashmere, a major contributor to the economy in China’s mid-western Ningxia Hui Autonomous Region, has quickly become big business in China, as more companies in Ningxia attempt to move beyond producing raw cashmere and into the much higher profit-margin sector of finished product exports. Of the major cashmere producers in Ningxia, in the last few years the Ningxia Lingwu Zhongyin Cashmere Company has emerged as the most ambitious, with executives making it clear that the company wants to not only capture the lucrative Chinese domestic market but also the even more lucrative overseas market.

To secure both groups of customers, the company has set out to acquire marquee foreign brands, which have the brand history and pedigree to appeal to Chinese luxury consumers. Last year, Zhongyin made its first moves to try to acquire the Scottish firm Dawson International, a deal that ultimately fell through but showed Zhongyin’s intentions to break into the Scottish cashmere market. From China.org:

In 2008, the Ningxia-based Lingwu Zhongyin Cashmere Company entered into negotiations to take over 120-year old Dawson International, widely regarded as the world’s number one cashmere business. Although the takeover talks were called off on June 4, the bid was an indicator of the ambition of Ningxia’s emerging cashmere giants.

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Shanghai Developer Plans Luxury Home Furnishing Store “With A Twist”

Ausen Real Estate Development Set To Invest US$22 Million In Luxury Home Furnishing Retail Complex, Due To Open Next Year

Ausen World will bring a Western-style furniture shopping experience to Shanghai

Ausen World will bring a Western-style furniture shopping experience to Shanghai

While announcements of new large-scale real estate projects in China are nothing new, nor are they particularly exciting on the whole, Ausen Real Estate Development Co.’s recently-announced plans to open a massive home furnishing retail complex near Shanghai next year stand out. Set to be located in Xinbang, in Shanghai’s Songjiang District (less than an hour’s drive southwest of downtown), the austerely named Ausen World Brand Home Furnishings Center will include features not often seen at furniture stores, including a hotel and restaurant for shoppers who prefer to make a weekend out of their shopping trips. Although slapping a hotel onto a massive furniture store isn’t exactly unheard of, it most certainly is unusual.

According to company spokespeople, Ausen World‘s main focus will be on American and European furniture, popular but often poorly understood by Shanghai-area residents. The center will also include Premium home furnishing areas designed to emulate “DIY” stores like the Home Depot. From Furniture Today:

Another unusual feature for a Chinese retail center will be the presence of on-site interior designers, who can help consumers with home design and product choices.

In a statement, Ausen said it intends to be a door to the Chinese market for Western brands. It will offer help with operating in the country, including support of import entry, logistics and storage.

Zhang said he believes the center will offer a “family feel” that is missing from most Chinese retail spaces, with a rewarding consumer experience for shoppers and their children. An Australian company will design the “eco-garden” look of the complex, including outdoor leisure areas.

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Luxury China Travel Agent Unveils Shanghai Expo Packages

Mandarin Journeys’ 2010 World Expo Package To Target High-End Foreign Travelers During Shanghai’s “Coming Out Party”

The Shanghai World Expo is expected to attract upwards of 70 million visitors

The Shanghai World Expo is expected to attract upwards of 70 million visitors

Mandarin Journeys, a “Western-run, China based luxury tour operator,” has announced an innovative tour package for visitors to Shanghai’s 2010 World Expo, set to take place from May 1 to October 31 of next year. According to a press release, the luxury tours will be designed in association with some of the leading hotels of Shanghai:

Working with such exclusive properties as Langham, Hyatt, Portman Ritz-Carlton, PuLi and JW Marriott, Mandarin Journeys presents a comprehensive selection of Expo tour packages targeted at a worldwide discerning client base.

Based in China and operated by former tour managers and long-term Western expatriates the company caters to independent travelers from Europe, the United States and Australia. Our destinations include China & Tibet, Japan, Central Asia, Vietnam, Laos, Cambodia and Thailand.

 

Wynn To Seek $1.6 Billion In Hong Kong IPO: WSJ

IPO Follows Record Revenue In Macau Last Month And Indications That Beijing Will Loosen Visa Restrictions F0r Mainland Chinese

Macau, the "Vegas of the East," is bouncing back to life after a tough year

Macau, the "Vegas of the East," is bouncing back to life after a tough year

The Wall Street Journal reports today that Las Vegas-based casino operator Wynn Resorts is looking for as much as US$1.6 billion (HK$ 12.6 billion) “based on pricing set over the weekend for a Hong Kong listing of the company’s Macau assets next month.” This IPO could precede others by foreign casinos in Macau, as the article notes that Wynn competitor Sheldon Adelson may also be eyeing a Hong Kong listing for his company as it emerges from the global economic downturn — which put a sizeable dent in several construction projects that had been slated for the Venetian Macau last year.

The relatively quick rebound of the Chinese tourist (or, even more likely, Cantonese gambling enthusiasts from Hong Kong, Shenzhen and elsewhere in Guangdong province) has injected a much-needed dose of optimism among major companies in Macau, which depend greatly on the continued spending and investment of mainland Chinese visitors and companies as well as the capital and expertise of foreign casino operators like Wynn to keep the former Portuguese colony’s growing economy running smoothly.

Over the weekend, Wynn and its bankers set a price range of between HK$8.52 and HK$10.08 per share for the IPO, the person said. The company is offering 1.25 billion shares, equivalent to 25% of the equity of Wynn’s Macau operations, the person added. The company had earlier been expected to raise about US$1 billion in its offering.

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“Re-Enter The Dragon”: What Will Chinese Investment In Australia Do For The Arts?

After Failed Business Deals Earlier In The Year, Chinese Investment In Australia Is Back In A Big Way

Despite setbacks, Chinese-Australian business ties have deepened in the last few years

Despite setbacks, Chinese-Australian business ties have deepened in the last few years

The Australian reports this week that Australia remains a popular destination for Chinese investments, even after the ill-fated Chinalco-Rio Tinto negotiations earlier this year and China’s subsequent incarceration of Rio executive Stern Hu, an Australian national, along with three of his Chinese colleagues:

[T]he core complementary elements that have increasingly driven the economies together — Australia’s need for capital and for markets, China’s need for inputs for its industrial machine, and for international enmeshment — have not changed.

Paul Glasson, Shanghai-based managing director of Sigiriya Capital, a leading figure in putting together deals between Chinese and Australian companies, says: “The core proposition between Australia and China remains the same. The bottom line demand and desire to supply resources has not changed.”

This became palpable when Resources Minister Martin Ferguson flew to Beijing to initial on August 18 the deal through which state-owned giant PetroChina agreed to buy $50bn worth of gas from the Gorgon field off Western Australia.

With scant notice, he secured a brief but crucial meeting with the central player in China’s zou chu qu — go global — campaign, the chairman of the immensely powerful National Development and Reform Commission (NDRC), Zhang Ping.

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Abu Dhabi Courting Chinese Businesses, Tourists

Abu Dhabi Making Chinese Business Travelers, Tourists Key Priority Following Reports That UAE Will Be Given Approved Destination Status

Relations between China and Abu Dhabi have improved greatly in the last decade, benefitting businesses (and soon, tourists)

Relations between China and Abu Dhabi have improved greatly in the last decade, benefitting businesses (and soon, tourists)

News that ties between China and the United Arab Emirates (UAE) are deepening are not new, but until now the seven emirates have not been a major destination for Chinese tourists or business travelers. Although this has changed in recent years, at least on the business side — as Dubai and Abu Dhabi in particular have drawn thousands of these travelers as commercial __ have deepened — Chinese tourists have had a difficult time procuring visas.

That may change now, according to reports that the UAE will soon be appointed as an approved destination by the Chinese government. This should open new doors for waves of Chinese tour groups to head westward, and Abu Dhabi’s tourism department will, undoubtedly, be waiting for these free-spending groups with open arms. Already the Abu Dhabi authorities have begun to promote the emirate in China:

The Abu Dhabi Tourism Authority, a participant of the two-day China Incentive, Business Travel & Meetings Exhibition, that ended in Beijing on Thursday, will establish dedicated MICE (Meetings, Incentives, Conventions and Exhibitions) divisions in its three offices established over a year ago in Beijing, Shanghai and Guangzhou. Abu Dhabi will also appear at the China International Travel Mart in November in Kunming.

“China is going to play a significant role in Abu Dhabi, reaching its goal of attracting 2.3 million hotel guests by 2012’s end,” says Dayne Lim, product development director of the Abu Dhabi Tourism Authority. “As China is also now a leading world manufacturing powerhouse we will also be looking to increase awareness of Abu Dhabi as a business tourism destination.”

Alibaba Will Launch B2B Platform in US By End Of Year

Hugely Successful Chinese Online Platform Seeks To Further Globalize Its Brand With Expansion Of US Business

Jack Ma hopes his company, Alibaba, can become a truly global brand

Jack Ma hopes his company, Alibaba, can become a truly global brand

Reuters reports today that Alibaba, the popular China-based B2B online portal, is looking to further build its brand through expansion into the US market. CEO Jack Ma today presented  the new Ali Express (wholesale.alibaba.com) portal at a conference at the company’s headquarters in Hangzhou. The move to expand further in the US market follows the opening of a European headquarters and massive global marketing campaign for Alibaba:

[In addition to its online marketplace,] Alibaba Group is also the parent of Taobao, China’s largest online auction site, and Alipay, an online payment service provider.

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