China’s urbanisation is taking place at 10 times the pace of the first (that of the UK) and is 100 times the scale, according to McKinsey. Working out what’s going on can be pretty hard.
So, a final thought post-WEF in Dalian: industry experts share three Chinese “big city trends” – in real estate, consumption patterns, and employment.
Is not tailoring your food and drinks to Chinese taste a form of “food neo-colonialism”, as Roland Decorvet of Nestle China put it last year? Illycaffe, the Italian premium coffee roaster, thinks not.
Even as it looks to grind away Nestlé’s and Starbucks’ lead in China – a market that’s posting double-digit growth and which is worth about $1.5bn last year – the company says it has no plans to “localise” it product for the Chinese market.
You are on national television in a country known for censorship. You are talking to one of that country’s most influential policy makers. What do you tell him? That the country’s companies have serious problems with transparency, ethical practices and treatment of employees. Are you dreaming?
Not if your name is Richard Edelman, head the world’s largest independent public relations company. It has just happened to you at the World Economic Forum in Dalian, China.
“How many Chinese brands can you name?”, a Chinese host asked at the beginning of the WEF session on ‘Rebranding China’. His American interviewee, Richard Edelman, knew only three: Huawei, Air China, and Lenovo.
But this isn’t Edelman’s problem. The limited awareness about Chinese brands is mostly due to the faulty branding strategy by Chinese companies going abroad themselves. What then, can they do about it?
Chinese growth needs to come more from consumption than investment. However, Chinese consumption patterns will be nothing like what we’ve seen in developed countries. According to Gordon Orr, Asia Chairman at McKinsey, China will turn the consumption patterns known in the west upside down.
Several reasons have been given for Brazil’s economic slowdown: a self-inflicted sudden stop caused by capital controls; currency appreciation, making exports more expensive; and falling demand for commodities, especially from China.
But if Brazil really wants to hold onto its position as a leading emerging market, it must address structural problems, starting with infrastructure and education. And as Chart of the Week shows, it has a lot of ground to make up.
By Bernd Braasch of the Bundesbank
The financial crisis has clearly revealed a growing emphasis on short-termism in international finance, just when the global economy needs a new financial architecture in which long-term finance and sustainability play a central role.
Wednesday’s opening panel at the World Economic Forum’s annual India meeting was entitled “Rebooting India” – a rather ominous slogan as many of the participants noted.
And while India’s law minister, two local business chiefs, and the CEO of Nestle all took their turn in analysing the country’s economic woes, it was Harvard economics professor Gita Gopinath who found the most convincing argument.
Istanbul has been swarming this week with delegates from the World Economic Forum, gathered at an event that underlines Turkey’s aspirations to play a bigger role in the world. The meeting is officially addressing the Middle East, North Africa and Eurasia, mirroring Turkey’s view of itself as a power with growing influence in all three regions.
But the real agenda is the effect on Turkey of the eurozone crisis – and any Greek exit.