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
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.
Posted in Business, China, Culture, Economics, Investment, Luxury
Tagged ausen world, Business, China, chinese, Economics, furnishing, furniture, home, hotel, IKEA, Investment, Luxury, real estate, restaurant, shanghai, trade, western
Spanish Luxury Exporters Look To China As New Market For Rare And Expensive Ham, Jewelry
Spanish ham producers are hoping to get their products associated with wealth and sophistication in China
When people think of China — or the eating habits of urban Chinese — they probably don’t think of Spanish ham. But if Spanish ham producers have their way, China will be one of their top markets in coming years. Recently, after years of trade negotiations, Spanish ham was given the greenlight in China, after which they began a marketing blitz designed to get their products associated with wealth, luxury, and distinction among wealthy Chinese. To start off this marketing effort, a Spanish ham tasting event was held recently at Beijing’s LAN Club, one of the city’s most exclusive restuarant/nightclubs, along with a Spanish jewelry modeling show. Additionally, ham producers began a simultaneous effort to woo Japanese residents in China’s major cities, as these consumers — some of the world’s most seasoned luxury buyers — are already familiar with Spanish hams and require less dedicated marketing efforts.
As the Latin American Herald Tribune writes, as for every industry the Chinese market has great potential as a destination for ham producers, but it won’t be easy to convince Chinese buyers to spend top dollar on a culinary product with which they’re not that familiar — particularly in the age of swine flu:
The ham, produced in Extremadura by the Montesano company and distributed in China by the Olivarero Chinese Spanish Consortium, or COCE, was the star of a luxurious and glitzy evening at the distinguished club, although the jewelry of Madrid designer Paloma Sanchez, who has a store in Beijing, was also prominently featured.
“This is an event to launch the ham in Beijing, to see if there’s any demand and position (it) as an exclusive luxury product, for the upper class. Therefore, we’ve accompanied it with the jewelry show,” said Daniel Martin, COCE’s general director and the organizer of the event.
Posted in Business, China, Investment, Luxury
Tagged beijing, branding, China, COCE, extremadura, food, ham, japanese, jewelry, Luxury, marketing, montesano, olivarero, paloma sanchez, spain, spanish, trade, wealthy
Growing Interest In “Pú Tao Jiǔ” Among Urban Chinese Spurring Wineries To Intensify Their China Expansion Strategies
By next year, wine imports to China are projected to reach 250,000 tons
China’s growing middle class has emerged over the last 20 years to be one of the world’s most closely-watched demographics, with marketers in virtually every industry keeping a keen eye on every purchasing trend they make. In more recent years, one of the industries that has benefitted the most from this sizeable group’s interest in all things foreign has been wine. Although the vast majority of Chinese are either unfamiliar with foreign wine or simply do not drink it very often (if at all), many vintners see great potential in the market, as target customers in more remote urban areas remain underserved by existing bars, liquor stores or supermarkets, and returnees who’ve traveled, worked or studied abroad often come back to China wine aficionados with a taste for wine.
Although per capita wine consumption in China remains miniscule by comparison, in China’s major cities it is becoming a more popular beverage, particularly in business or family settings, and in recent auctions of fine wine mainland Chinese buyers have increased exponentially, gaining notoriety among seasoned wine investors as intense bidders (and avid drinkers). Trying to maximize their appeal in China while reaching new markets, wineries outside China are working overtime to get their products to the mainland market while promoting wine drinking in China and building sustained brand equity.
As most of these vintners remain completely unknown within China regardless of their size overseas, the Chinese market represents a blank slate of sorts, allowing them to brand themselves at will without the stigmas that may exist in other markets. A good example of this is American wineries, who are often shunned for their European counterparts among American wine aficionados. As the China wine trade has opened up in the last 10 or so years, vintners from California and Washington state in particular have worked to get their bottles in the hands of the emerging Chinese wine drinker, to mixed success. California’s Lodi News-Sentinel, interviewing Van Ruiten Wineries’ Kevin Sherwood, today illustrates some of the opportunities the Chinese market presents for American and other foreign wine producers:
Around 2006 [Sherwood] developed a desire to market to China. It was around the time of the Beijing Olympics that Sherwood started to sense an opportunity. “It’s just as easy to sell to China as it is to go and sell to the restaurants in San Francisco and Walnut Creek,” he said.
Posted in Business, China, Culture, Investment
Tagged america, california, China, chinese, consumer, consumption, kevin sherwood, middle class, Sino-US, trade, van ruiten, van ruiten wineries, vineyard, vintner, washington, wine, wine consumption, winery
China And Hong Kong Get Ready To Begin Bilateral Trade Scheme, Announced Last December. What Will It Mean For Holders Of Portable Chinese Assets Like Art?
The internationalization of the RMB could be a huge plus for holders of portable Chinese assets in coming years. Photo © Reuters
The internationalization of the Chinese yuan has hit a major milestone, as China’s Central Bank Governor Zhou Xiaochuan, and Joseph Yam, chief executive of the Hong Kong Monetary Authority, today signed a memorandum in Hong Kong to set off bilateral trade that can be settled in Chinese yuan rather than Hong Kong or U.S. dollars. The move, which follows similar “currency swap” agreements signed by China and Argentina, Malaysia, and South Korea in recent months, illustrates the urgency with which China’s Central Bank is looking to globalize China’s currency. While none of this is really “new” to China-watchers, the importance of this story — and the story of China’s rapidly-internationalizing currency — is in what it means for investors who have “bought into” China. While it won’t mean much for holders of Chinese real estate or stocks, the real story here is in portable goods, an area which we have covered in detail several times before. With the globalization of the RMB comes a revaluation of portable goods (which can be carried across borders and converted into alternate currencies).
Posted in Art, Business, China, Chinese Art, Currency, Economics
Tagged cash, China, Currency, hong kong, money, RMB, trade, yuan
China’s 4 Trillion Yuan Stimulus Takes Hold, Picking Up Slack For Lower Export Figures
Slowing Exports, but growing domestic growth, may help China's recovery come sooner rather than later
Results coming out of China this week show that the government’s massive 4 trillion RMB ($586 billion) stimulus package — which is designed to boost domestic consumption, inland infrastructure construction, and earthquake reconstruction projects — coupled with a recent 30.5% boost in urban fixed-asset investment in the first four months of this year are helping the world’s third-largest economy get back on a solid growth track earlier than many other major world economies.
This is good news for China as well as the global economy, which pins much of the hopes of a relatively quick recovery on China’s domestic consumption. As Chinese consumers start to head back to shops, and manufacturers start to work their way up to higher capacity, demand for all kinds of products, both imported and domestically-produced, will help America, the EU, and Japan breathe slightly more easily. Bloomberg’s article today on China’s recovery progress gives encouraging signs that the country’s efforts to stem the financial crisis by investing huge amounts into infrastructure projects that should pay off in the long term should have a far-reaching ripple effect:
Posted in Business, China, Economics, Economy, Investment
Tagged associated press, bloomberg, China, Economy, europe, infrastructure, japan, nomura, recovery, stimulus, trade, US, wen jiabao