Climb its StartUp in Asia

Do you want to undertake in Asia? To open a startup and take advantage of the significant growth of the Asian market? This continent, which is currently being developed now represents lucrative opportunities for startups. Singapore comes top of the list as the best place in Asia to create and develop a startup, but China, South Korea, and Hong Kong are also supportive environments. A ride on the subject of the creation of his startup in Asia.

StartUp in Asia, a continent where it ‘s nice to start a business

While in some countries, particularly in Europe, entrepreneurship represents an obstacle course, some Asian countries have more favorable regulations for entrepreneurs. Administrative, fiscal and legal framework, among other factors essential in starting a business, are much more facilities and offer some advantages if you embark on creating your startup in Asia. An area of the world where businesses flourish out of sight now, Asia has a pro-business environment with ease of installation, but also thanks to its attractive taxation and the availability of labor cost reasonable. The innovation in many sectors and the excellent quality of life in most of these countries are only further encouraging the establishment of startups in the continent.

Singapore, the paradise of startups in Asia

Of all the countries in Asia, Singapore is currently top of the list of the best places where the business environment is more favorable and advantageous to create and develop a startup. Some actions of the local government have also exacerbated the phenomenon of rapid development of startup in Asia. Their goal is to stimulate the emergence and growth of this sector of the business while encouraging the actors to innovation. While most of the largest investors favored their presence in China and India there a few years back, today the credit goes to Singapore with its universe of more favorable business and further facilitating the creation and development of startups.

Some tips to raise its startup in Asia

If the board in China or India or Estonia for the creation and development of startup was most acclaimed in the last few years, South Korea, Hong Kong, and Singapore are now represented as parts of the world find new nuggets for investors. However, each country and region may represent each of the different elements mainly promoting the establishment and development of business abroad. Besides, if you want to mount your startup in Asia successfully, it is important to take into account elements such as the area where the business will be most interesting. Indeed, the technology sector is more promising now. Also, some Asian countries have opted for government grants specifically intended to motivate boxes of foreign technology to settle in their countries. Moreover, although in some countries the cost of living can be quite high, the possibilities for getting your business to minimal cost are numerous. It is also more important to be in order with the laws in force because the controls are not greener in some countries like Singapore. Council in China and Singapore for investors, know that consumers are very brand-addict and not always very attracted to new products, it would be preferable to have a business that will require little regarding cash, the customer acquisition can be more time consuming and laborious.


The phenomenal growth of China and its openness to the world train in parallel an increase in wealth is a tendency to individualism and hedonism, conducive to spending, rather than the traditional savings. The luxury market in China represents a tremendous opportunity but also poses many challenges. Very competitive, it now hosts the biggest international brands, and many niche brands, and laggards , still seeking their place in Chinese sun. Chinese consumers are savvy and more than ever, for “over- informed,” most experienced and very busy; they become fussy and changing targets. In parallel of increasing marketing investment, the most prestigious brands need to differentiate themselves and set their segmentation.

On the Chinese territory, the growth of luxury goods to dedicated sales areas should stabilize and even slightly increased in the short term. All indicators confirm that the Chinese are buying more luxury goods in their own country. This should lead to an increase of stores located in China in China. The growing market for luxury goods in China is expected to grow about 20% this year. The current luxury market of the Chinese mainland market is an atypical, 60% of these products being purchased as gifts.

For example, Hermes International SCA , which released last Thursday its sales figures for the second quarter , announced an increase in revenues in Asia. Hermes has decorated its stores to attract Chinese customers with a large curtain, for example, to create a warm atmosphere at home .

More and more international brands locate in smaller towns still little explored because the potential market is huge in these places , according to Zhou

The markets for American luxury goods, European and Japanese do not have a great potential for growth within 1-3 years ahead. This is why more and more luxury goods companies in the world have rushed to China to invest in the Chinese market. With the continued growth in consumption of luxury goods by the Chinese, China will undoubtedly become the world’s largest center of commerce and consumption of luxury goods.

An element more differentiator of luxury brands is their country. This is the most important factor for 40% of buyers. They prefer the French brands for perfumes and cosmetics, skin care, ready to wear and accessories as well as wines and spirits. Switzerland excels in the fields of watch making and jewelry . Germany in the automotive and Italy in leather goods . Chinese consumers also associate countries at different luxury styles : French brands provide the feeling of being unique, the Italian right to be sexy. The Swiss brands , British , and German are associated with a more rational feeling of just being premium . Chinese brands give the feeling of belonging to a group.

China is the most promising market for luxury brands. It is the country with the highest consumption of luxury goods in the world. The Chinese market by its size and rapid sophistication offers more opportunities than challenges: the challenge today is to fully understand the evolution of consumer motivations and find the right balance between the Western heritage and local adjustment.

Chinese Tourism in China

Chinese Tourism

Chinese tourists have a strong reputation abroad. First, they are numerous: China is one of the leading markets worldwide. According to the Tourist Administration of China, over 97 millions of Chinese went abroad in 2013 and it will be more than 100 millions in 2024.

Australia has become the number one destination. Of course, the strong love of China for France is still strong and the European country remains at the 2nd step of the podium. Meanwhile, New Zealand is in 3rd place. Surprisingly the actual most visited destinations are none of these three. USA, Hong Kong and Thailand are on the podium while France is in 5th place.

market of bag in China

The Rising Income of Chinese Households

With the rising income in households in China, Chinese travelers have more confident to travel independently and try out new destinations. It’s easier to search, compare and book thanks to Internet. Moreover, governments worldwide have relaxed their visa regulations and there are more and more low cost airlines launching. From the latest report of Daxue Consulting on its Market Research, we could see that these changes have encouraged Chinese people traveling 4.67 times during the 5 previous years in 2014 against 3.53 in 2013. Almost all Chinese (97%) travel for leisure purposes, and 54% of the time they travel with children and wife/husband. Only 16% travel alone.

Chinese people travel more and their habits are evolving, creating a gap between the older generation and the new one. First, 67% book their trips on their own. But the 55+ years old (56%) still prefer to organize their trip through travel agencies. Nowadays, 53% of bookings are done online through web browser or applications.

China’s international travelers are amongst the wealthier of China’s citizens, with an average annual household income of 245,729 RMB (US$39,7846), compared to the Chinese population average of 49,920 RMB (US$8,0827) in 2013. Nevertheless, 21 % of Chinese international travelers have a household income of less than 100,000 RMB (US$16,1906) per year. Of course, with the growing incomes standards come the increasing of higher and services and structures.

Chinese tourists choose their destinations by crosschecking multiples criteria such as safety, historical and heritage sites or cuisine. They are now much more difficult to satisfy. Things, which were “options” before, are now mandatory, such as free Wi-Fi, mandarin speaking staff or union pay support. Medical tourism has also the wind in its sails with main destinations like Thailand, India or Singapore. Consumers in this booming tourism are ten times richer than the average traveler.


Niche Perfume brands : Shanghai Market Analysis

Global Market Situation:

Today the global perfume industry is a $25 billion market. There is a $9 billion market in Europe and $4 billion market in the USA, but only a $1.2 billion market in China, which represents a big potential opportunity. Of the entire beauty market in China, only 5% is contributed by the perfume industry, while in Western countries perfume is already involved in all aspects of life: from educational activities (mostly from family influences and society customs), to all kinds of daily necessities (from daily work to private life).

Take for example the French market, which is mature and stable. In France, perfume is an important element of life:55.5million bottles are sold/year and about one person will consume a bottle/year. Furthermore the fragrance market can be segmented by the following categories: age (from children to seniors), by gender, or by the types of fragrances(eau de parfum, eau de cologne…). In contrast, in Shanghai, the market of users is most often only female from age 20 to 50 (and even age 25 to 45 just 5 years ago).

Customers in Western countries use perfume almost every day and may change the perfume depending on their circumstances (day/night, week/weekend). Some of themeven have more than 2 types of perfume. However in China, most people use perfume only because of specific situations, for example only if they have a date, are meeting somebody, or will attend an important activity. Those users only have one bottle and due to the occasional use it takes a long time for a bottle to be finished.

Brand awareness:

The best selling brands in France are: Chanel Coco, No. 5, J’adore from Dior, Angel from Thierry Mugler and Tresore from Lancome. This range is very similar to the top 10 perfume brands in the Chinese market.

People in China know about these brands because they are linked to the reputation of their fashion counterparts like Chanel, Dior,Hermes,Marc Jacobs, Burberry, CK,Ferragamo,Versace… or their international beauty counterparts such as Lancôme, Estee Lauder, Mary Kay and Avon. Normally the prices are between 400 to 1000 RMB / bottle.

Meanwhile, regarding the prestigious luxury perfume company, knowledge of perfume brand is still limited,such as Serge Luttens, Penhaligon’s, Annick Goutal or Creed. Average prices are also higher from 1000 to 2000 RMB/bottle.The few peoples who know these niche brands only know so because they have either had an education abroad, have lived a long period of time in western countries, or are very interested in the beauty & luxury industry.

How can these prestigious niche brands enter the Chinese market?

Type of Product: Luxury and niche fragrances brands (Serge Luttens, Penhaligon’s, AnnickGoutal, Creed…) Average price: 1200 RMB /bottle


  • Family owned or private collection perfume
  • Have a long history
  • Appreciated by famous stars, royal families, or upper class people
  • Have a rare scent, that is different from typical fragrance brands

Potential Clients / Target:

1) This target group has very strong purchasing power but has no knowledge of these brands:

  • People who have a car that is valued at more than 400.000 RMB (BMW, Mercedes-Benz,Audi, Ferrari, Lamborghini, Porsche, Maserati, Aston Martin, etc.)
  • Have an apartment or house valued at more than 5 million
  • Travel abroad more than once a year
  • Frequently visit high beauty salon (nails, hairs, massage, etc.)
  • Attend private clubs (private parties, meetings, etc.)

Strengths: Can easily purchase more than 1 bottle/year, and may become a repeat buyer

Weakness: Needs to be educated about luxury fragrance brands, especially males in this demographic

2) This target group includes people who have less income per year, but because they have great interest in these niche brands are still willing to purchase one or more bottles per year:

  • People who have study abroad & high education experiences
  • Frequently read fashion blogs, websites, and magazine
  • Often visit lifestyle stores
  • Share their discoveries on social media (weibo, wechat, douban, etc.)

Potential Distribution Channels:

1) In-Store:

  • Beauty retailors
  • High-endshopping malls
  • Outlet Malls (For example in Shanghai: Florence village, Suzhou Yioulai village)

2) On-line(Morethan 80% population having high incomes have online buying experiences):

  • Nationally famous sites(like Tmall)
  • Online luxury retail sites (like SECOO, Zhengpin, Youhuo)
  • Brands own official website

Potential Communication Outlets:

People who have already heard about these brands will often search their names on websites like Douban, Baidubaike… These search results will have general information such as brand background or historical introductions.

A brand that has no local awareness can be promoted by the following:

  • Influential people andfamous bloggers on Weibo (some bloggers have more than 4,500,000 following their fashion photo shots)
  • Subscriptions from Wechat public accounts (more and more Western brand use this kind of communication)
  • Recommendations from beauty TV shows (a lot of people like to look at the beauty TV show from Taiwan which is becoming a very popular purchasing guide!)
  • Books or websites published by famous stars or praised publicly (such asMeiliShuo)
  • And finally the most traditional way: magazines & newspapers

Developing market opportunities in Shanghai:

Shanghai is one of the cities in China that have the strongest purchasing power. Many young peoples are willing to accept new “lifestyle” elements and to consider that perfume is an important luxury element alongside beauty products like skin care & cosmetics, and the fashion products like clothes & accessories. According to fashion market research, perfume will continue to attract more and more people(larger segmentation of ages, gender, interest…) There are also an increasing amount of local distribution channels. For example, there are already 130 shopping centers in Shanghai, and 36 more will be opened in 2015.

Shanghai’s population exceeds 25 million and the yearly disposable income is increasing stably every year. It is estimated that the average income in 2014 is 47,710 RMB/person, and this number has increased 55% since 5 years previously(which was 28,830 RMB/person). The average family income of the top 20% of the population is 200,000 RMB, and they may purchase a 1000 RMB (or more) perfume bottle per year.

Therefore, because of this research and analysis, there represents a large potential for growth and profit in the Chinese market. Due to the eccentric and unique target groups in Shanghai, the niche luxury brand market potential should not be neglected as it has a good potential to be discovered and marketed long-term.

Ronald, Daxue C. 

English tests have growing importance for international students

The GRE English test program has experienced a new growth in 2014. As other language tests have experienced a slowdown for the second year (in particular the TOEFL has been denied in UK), the volume of the GRE test showed continuous rise and have reached a double-digit growth among the international base of candidate as well as among business population.

English testGenerally speaking, English level tests in China have been stable in 2014, while internationally the growth has been more than 11%, recording a sales profit of 25% in Africa, 11% in Asia and about 30% in Latin America.

Here are some specific trends about the English Test in 2014, compared with 2013:

  • In India, the application for the English test has grown to nearly 22%, with more than 110 000 in this country only.
  • In Korea, the rise has been about 10%
  • Le nombre de tests qui ont eu lieu en Chine est demeuré stable, mais le nombre de citoyens chinois qui ont subi le test GRE aux États-Unis a augmenté.
  • The number of tests which have been passed in China has been stable. Still, the number of Chinese citizens who have passed the English test in the US has been growing.

“The English test program GRE is still as much developing. The total annual volume has showed growth to 15% since 2008 and applicants from all around the world have claimed interest in 2014 for this English test”, said D. Vincent, from English test preparation program Global Exam (more information here). “While English level never has been so popular worldwide, students can use these exams to apply for International programs, MBA programs and market programs all around the world.”

Results of English tests are recognized in thousands of institution and hundreds of countries in the world. In particular, about 1500 schools ask for English test results to apply for MBA programs. Currently, 105 out of 120 of the most prestigious business schools in the US recognized English tests according to USA Today and FT.

Consumer research China: Automotive Infotainment Market in China

Consumer research China: Automotive Infotainment Market in China

car market in China

The word “infotainment” comes from the combination of “information” and “entertainment”. Automotive infotainment was developed based on audio system in the car, and nowadays represents a range of electronic devices concerned with a vehicle’s delivery of information and entertainment content to the motorists. The field includes areas like navigation systems, premium audio, telematics, fuel efficiency, safety and connectivity solutions.

During the past decade, there has been a dramatic change in the automotive industry due to the rise of infotainment technology. According to the online press releases from the information and analytics provider HIS and from consumer research China from Daxue Consulting, the global automotive infotainment revenue grew by 3.4% from 2010 to 2011, amounted to $32.5 billion. In 2012, the revenue went up to $34.6 billion, and is expected to reach $41.2 billion by 2016. The main auto infotainment suppliers are from Japan, Europe and the US. In 2012, Panasonic listed Top 1 with revenue of nearly $4 billion. This counted for more than 10% of global market revenue. Other companies such as Japan’s Pioneer, the American company Harman and Germany Continental also listed in the Top 10 global suppliers.

The Chinese infotainment market accounts a small share in the global market at present with revenue for OEM (original equipment manufacture) infotainment system of $2.3 billion in 2012. However, China’s motorists are shifting their demand from simple audio systems to full navigation and telematics solutions. This market is expected to triple by 2020. Considering the specific situation in China, there are several possible future trends:

Firstly, audio system will remain dominant in the market. It is estimated that in 2012, 83% of all passenger vehicles, including cars, SUVs and MPVs sold in China were still equipped with audio systems alone. Secondly, navigation systems are growing fast in the OEM infotainment market. On one hand, the navigation systems are expected to target more on mid- and entry-level light vehicle models andhence the price is falling. On the other hand, the road infrastructure in China is developing so fast that navigation is becoming a must for the motorists. Thirdly, OEM-embedded telematics systems market also sees big growth potential. This market is still at its early phase, and the systems are mainly installed in luxury and high-end light vehicles. As the income of Chinese consumers increase, the installation proportion of OEM telematics systems will also increase.

China became the world’s largest car market in 2013, and there is undoubtedly huge potential in the automotive infotainment market. In the fast-changing digital age, it becomes more and more important to examine carefully the future trends and design new products, which can meet the consumers’ demand.

By Matthieu David

See also:

Investment Prospect of Satellite Industry – Marketing Research & Report

Investment Prospect of Satellite Industry – Marketing Research & Report

1. Introduction

With the continuous improvement of artificial satellites and the rapid development of social economy, Variety kinds of applications appear and the industry threshold seems not so unreachable. In China, an increasing number of applications for civil use herald the rise of satellite industry and the coming explosive market for investment.

The Satellite Industry

Satellite industry, including manufacturing of satellite, manufacturing of terminal on ground, launch, application, and other relative business, is experiencing the most energetic expanding era. As displayed in figure 1, clearly, the biggest part of this pie is not the most complicated high-tech Satellite manufacturing or launch. Inversely, the applications maximum the value of artificial satellites! Meanwhile, from online survey in China, we can also see the dramatic expanding of application market. Considering the huge cost of Satellite development and the launch, and their altogether less than 15% market, we can definitely draw this conclusion‒what a grander prospect of the satellite application industry!


The application of navigation plays a big in military location, but as investors, we will mainly focus on transportation navigation and individual location. The navigation terminals and devices are becoming more and more powerful and inexpensive. As we can see, 5 years ago, Nokia’s flagship‒N95‒would spend around half an hour to connect with the satellite in China. Now? Even the SAMSUNG’s I739, whose price is only 10% of N95 5 years ago, can easily get the location info. Some E-business and express companies‒say, Jingdong, and Sf-express‒even paste the real-time localization information on the web so that people can get the most accurate location info about their parcels. The cab drivers start using their mobile as terminal, and put their location on App, such as Autonavi Navigation. Within a minute, people can get a taxi!

Honestly, the list of navigation applications will go on, but from the listed, it is absolutely a fast-growth market. And the most important, in China, it is just a start, full of potential.

Remote Sensing

Remote sensing includes the applications in weather, ocean, environment, geological, and mapping. According to some statistic data, it also experienced mushrooming in the last 10 years. And of course the local government is trying to open this industry to non-state-owned enterprises, but so far, we don’t find any document about it. So actually, it is and high-threshold industry, hard to enter for the government issues.


Communication means the phone, TV, broadcasting, internet, and other data-exchange functions. These industries, though also have some dramatic growth as listed in figure 3, are not the perfect industries for investment in China for the reason of government like remote sensing.

Therefore, in China, the friendliest satellite-relative industry with potentiality for investment may be the navigation. The entrant level isn’t high, and there are many kinds of choices about investment, for example, terminal and device manufacturing, and application development.

3. The Opportunities and Threats

Concentrating on navigation, we continue research the market, trying to find the opportunities and threats from this industry.


The biggest opportunity comes from the potential market segments that hardly exist. Innovation is the unique attribution of human beings. In newly market, image the future, the possibility, and we will find the covered demands.

There already is demands‒transportation navigation and individual location services‒are facing higher and higher requirements. Real-time location updating to DBS is the pursuing of many companies, especially for logistics. And in China, it is just an early start.

With the opening up of policies, it will be more convenient for private capital to enter this industry.

Industry standardization

In new market, some standardization is not clarified. It is a chance to gain monopoly power if we can be the industry leader.


It is a newly industry which changes so fast, say, Private car navigation. 10 years ago, only the cars priced more than 500,000 Yuan would install the navigation module; these days, people even prefer using IPad for navigation. Following this trend, if without further developing, people will get rid of the car navigation system. Only 10 years, that is the instability.

High-tech industry sometimes needs a big amount of investment at the beginning. In view of the instability, it may hurt.

As a new market, there are many companies staring at this pie. Threat from potential competitors will also be a big problem. How to make the story non-copyable will be one of the mainly concern.

4. Innovation and Potential Market Segments

Based on reality, we offer some innovations and future visions about navigation industry. They will be some good choices for investment if technology permitted.

Location devices for children

As Patents, if there has some types of trinkets within dimension-minimized navigation module, they will feel safer. The questions are dimension and radiation.

Navigation info sharing and connecting

We will need this kind of application. Finding another person’s location and offer navigation; knowing the traffic situation if there are terminals on all the cars; searching the dispatcher’s location so that you can access to your parcel if necessary, and so on.

5. Conclusion

This report analyzed the investment prospective of satellite and found the best industry for investment is navigation which is under fast expanding and changeable. In China, it is an industry newly opened to private capital some years ago. The explosive market growth will bring hundreds of thousands of new market segments. It is the right time to enter whether the emerging market or the potential.

Writing assignment in China

Writing assignment in China

Why are some of us easily affected by the majority’s action whereas others frequently make unique choices? Biometric model fitting revealed suggests that the common family and cultural environment has important ramifications for conformity. It is said that the shared environmental component played a sizable role in shaping individuals’ conforming behavior, and the influence increased with age. So we need Chinese conformity assessment system, which stands by the decision of the majority.

Chinese conformity assessment system, which was lawfully established by the certification and accreditation administration of the people’s republic of china, is responsible for the qualification accreditationof all kinds of management system certifications and product certifications.

Actors in the Chinese conformity assessment system:

  • Organizational Structure:
  • The Board;
  • Executive Committee;
  • Technical Committee for Certification Body;
  • Technical Committee for Laboratory;
  • Technical Committee for Inspection Body;
  • Appraisal Committee;
  • Appeal Handling Committee;
  • End-User Committee and Secretariat.

CMembers of CNAS Boardare from:

  • Government departments;
  • Conformity assessment bodies;
  • Clients of conformity assessment service;
  • Users of conformity assessment;
  • Professional bodies and technical experts.

CCNAS Main Leadership:

  • CNAS Chair: Madam Wang Fengqing;
  • CNAS Chief Executive: Mr. Xiao Jianhua;
  • CNAS Deputy Chief Executive:Mr.LiuXin,Mr.FanEnjian,Dr.SongGuilan.

CCertification body:

By the end of June 2013, CNAS has totally issued 134 certification bodies in various fields. Thesecertification bodies have issued more than 720,000 accredited certificates. CNAS has totally accredited 5648laboratories, including 4792 testing laboratories, 653 calibration laboratories, 125 medical laboratories, 46Bio-safety laboratories, 7 reference material producers and 25 providers of proficiency testing. CNAS hastotally accredited 379 inspection bodies.


Who is influencing the conformity?

  • International:

Accreditationlaw: China national accreditation system for conformity assessment has a significant position in international accreditationactivities. Its accreditation has been brought into the international multilateral recognition system, and is playing animportant part in it. CNAS is a full member of International Accreditation Forum (IAF), International LaboratoryAccreditation Cooperation (ILAC), Asia Pacific Laboratory Accreditation Cooperation (APLAC) and PacificAccreditation Cooperation (PAC).As a signatory of IAF MLA and ILAC MRA, CNAS is licensed to use the combined marks within MLA/MRA scope. Meanwhile, its accreditation results are recognized by other MLA/MRA signatories.

So as far as I’m concerned, Chinese conformity assessment system should obey the international law of the MLA/MRA.

(2)           Chinese Government;

CLaw: The members (CNAS) must guarantee that the decisions made by them are according to the law and regulations of People’s Republic of china, and promise to undertake the corresponding responsibilities.

CDomestic Economic Situation:In exercising the regulation, the government must focus on ensuring a sustained and rapid growth of the economy, be alert to changes in the international and domestic economic situations, and improve their ability to predict and cope with them effectively. For example, as severe as the economic impact has been, the outcome could be decidedly worse. The government would increase the quantity of the qualified enterprises, which may be a big driver of the current upturn. The economic turnaround would pull millions out of poverty and is creating a thriving middle class.

CGuidance of the state plan: Organizations have decision-making power in conducting independent economic activities, on condition that they accept the guidance of the state plan and abide by the relevant laws. These organizations would get benefits under the quota system.

CPolitical interference and corruption: Collusion between government and businessmen and the corruption are serious. There has been a happy marriage between corporations and government officials, which has had the effect of corrupting both.

(3)           CNAS;

CWhether the evaluation ability of CNAS is high or not;

CPolitical interference and corruption: Collusion between CNAS makers and businessmen and the corruption are serious.

(4)           Organizations;

CThe operation of the organizations to be evaluated is well;

CCorporate fraud: Outright fraud aside, most SOE (state-owned enterprises) managers do not know what their real profits are, and tell their superiors what they want to hear.

(5)           The force of public opinion.


The decision maker:

  • CNAS workers play a major role:

CAcceptance specification:

(1) Certification Body Accreditation:

  1. Accreditation of Management System Certification Bodies;
  2. Accreditation of Product Certification Bodies
  3. Accreditation of Personnel Certification Bodies;
  4. Accreditation of Software Process and Capability Maturity Assessment Bodies.

(2) Laboratory and Relevant Bodies Accreditation

(3) Inspection Body Accreditation

CAcceptance Criteria:

(1) Accreditation Criteria for Certification Bodies;

  1. Requirements for bodies providing audit and certification of management system;
  2. General requirements for bodies operating product certification systems;
  3. General requirements for bodies operating certification of persons;
  4. General requirements for software process and capability maturity assessment bodies;
  5. Requirements for Information Security Management System Certification Bodies;
  6. Requirements for Food Safety Management System Certification Bodies;
  7. Requirements for Energy Management System Certification Bodies.

(2) Accreditation Criteria for Laboratories and Relevant Bodies;

  1. Accreditation Criteria for the Competence of Testing and Calibration Laboratories;
  2. Accreditation Criteria for the Quality and Competence of Medical Laboratories;
  3. Accreditation Criteria for Proficiency Testing Providers;
  4. Accreditation Criteria for the Competence of Reference Material Producers;
  5. Accreditation Criteria for Laboratory Bio-safety.

(3) Accreditation Criteria for Inspection Bodies.

  • Accreditation Criteria for the Competence of Inspection Bodies.
  • Chinese government and Relevant international organizationsplays a secondary role.


By Matthieu David

Coffee shops in China

Coffee shops in China

coffee shops in China

Growth from less than 20 stores to 1,400 restaurants in 20 years is a big investment. It’s not huge for some companies, but for Dunkin’ Donuts especially it’s a bold plan, considering they’re entering a market where 50% of their selling point (donuts) is virtually unknown, and the other 50% (coffee) is dominated by Starbucks.

– Currently has only a few locations in a big city (3 in Shanghai), none like Beijing, Guangzhou, Shenzhen, etc.  As these cities already have a significant coffee culture, we expect that they’ll be able to find significant acceptance among the populations there. Big city dwellers are quite accepting but also more fickle; they’ll get a surge of initial customers but it’s a question of if they can retain them.

Impact on other food-and-beverage

Small in big cities, big in small cities.  The growth is steady over 20 years, and China’s market is big enough and growing fast enough to absorb another foreign fast-food giant. In terms of market share, they’re effectively competing with Starbucks, which has longer experience and wider footprint when it comes to coffee. In big cities, it’s unlikely they’ll be able to compete significantly. Starbucks has nearly 800 outlets in China already and plans to have 1,500 by the end of 2015, so Dunkin’s entry is unlikely to stunt their growth much in big cities.

However, Dunkin is already in a few Tier-2 cities, so that might be their strategy. They may try to establish themselves in lower-tier cities where the more down-to-earth and price-conscious coffee and snacks fast food culture will seem less intimidating than Starbucks’ fancier interiors and drinks.

While Starbucks generally serves higher-end coffees, dunkin donuts serves a kind of “good old fashioned cup of joe” styles coffee. It’s very American and quite “working-class” in image so it’ll be interesting to see if this appeals to China’s coffee-drinking middle and upper class, who typically like a product that looks more refined, sophisticated and prestigious.

By getting in ahead of Krispy Kreme, however, Dunkin has, at least, gotten a headstart on their biggest direct competitor.

Factors of Success

When appealing to the consumers on coffee, they’re coming up against Starbucks which has a much larger footprint and much longer experience in China. That will be tough, but they’ll be able to ride the wave of Starbucks’ attempts to introduce the Chinese customers to coffee; Dunkin won’t have to push hard to convert customers to their core coffees like espressos and lattes, etc.

When appealing more on the basis of their donuts and confectionary, they’ll have less competition as there is not a major fast food doughnuts player, though Krispy Kreme might be entering in the future. However, as it stands, they’re facing a much less well-developed market. Doughnuts could slot nicely into the niche already created by the popular cupcake and muffins snacks, since they’re sweet pastry that’s easily and quickly consumed, but they’ll be blazing the trail.

– Their plans to create localised snacks such as mochi rings (rice-based doughnuts) and locally flavoured doughnuts (honeydew melon/green tea) will be a risky maneuver; generally such strategies have paid off at first as the novelty factor drives up sales, but it’s still the mainstays of the menus that attract that majority of customers.

Market research: The market of bag in China

The market of bag in China

market of bag in ChinaOverview of the market, female needs for bags are higher than male. Femalelooks for brands and styles to demonstrate their tastes. The way of sales are including wholesale market, shopping center, exclusive store, boutique and online-store. Premium brands are located in department such as Samsonite and Santa Barbara. Luxury brands like Louis Vuitton and Chanel have its own boutique store. Wholesale market is for low-end products. For the past few years, online shopping growth fast, it becomes the most popular main channel, Amazon, Ebay and Taobao are present for the famous E-commerce company.

2.Bag market analysis


Brands studies can de divided into three part, luxury brands, normal brands, and non-brands.  From China IRN, it shows that in 2013, bags are the 3rd popular products in the luxury market, with annual increase12%, sales revenue at 42.4 billion. Top three brands named as Hermes, Chanel and Louis Vuitton. (China Luxury Institute). Normal brands such as Chinese local brand have 65% market share. These new brands with unique style, high quality and affordable prices attract lots of young people.  Use brand “Dissona” as an example, it’s a Chinese local brand, one shop with monthly sales at 300 thousands, have 25% market share among middle to high rated bags.  Non-branded bags have a long history in China. Because of the economic increase and mind changes, people are more pursue branded ones. In additional, low price brand bags are filled within market, people have more choice. As a result non- branded market share lower from 70% to 30%. (Chinese luxury market research)


One stylist said that “Female has more than 100 bags are reasonably”. It clearly demonstrate that bags ‘important to female. Customers can be classifying into four groups, eager ones, fashion icon, new rich and core group. Eager ones are both female and male who aged at 18 to 30 with annual income around from 100,000 to 300,000. They spend least of their income to buy compare to other groups. This group size is largest nearly 50%. Next is fashion icon. Almost of them are female aged at 20-35 with annual income 150,000 to 500,000. Icons want to catch up the fashion so they may spend more of their income to invest in bags.  These kinds of people are around 5% with an upgrade numbers. The third is new rich with the age from 30-50. They come from private owners or wealth person, with income over 500,000. New rich are chasing logo, they pay more for bags than those icons. New rich group size is 30%. Last is core group with age 30-60. Their income is over 800,000, they comes from government officials, famous celebrities and entrepreneur. They enjoy high quality and luxury lifestyle so they consume most. This group is accounted for 15%. (Bain & Company 2013)

2.3Way of sale

Fast-paced life changes our shopping habit. We switch from in-store shopping to online shopping. According to all E-commerce sales, top 10 ranking list comes out. Louis Vuitton is first following by Septwolves, Goldlion, Ferlybird, Polo, Playboy, Satchi, Montagut, Hugo Boss, and Gucci. Traditional shopping is that people walking around to look for their products, they compare quality and price in different store, after that they can make the decision. It wastes time and energy. In contrast, on-line shopping can shop the goods around worlds, compare the goods just by clicking the mouse. It seems easy and comfortable, more over it’s door to door shipment. In 2012, clothing and bags are top1 sold online with the percentage 38.7%. (I research). Female spends 12.4% more than male on clothing and bags. Researches show that there are 28.9% of Chinese online shopping over 40 times, only 3.4% of people shop online less than 3 times. There is a online shopping festival called “double 11” from Taobao. At that time, nearly everything give discount.  11.11.2013, the total trading is 35 billion. The following charts show the amount of sold.  Septwolves is top 1 with amount 12 million, following by Elle at 14million.

bag market China

3.SWOT analysis

3.1What are the strengths

Consumption concepts change, bags are no more just bags, and they are accessories, stands for taste and lifestyle. Different apparel should match different bag, so everybody are not satisfy with less bags. Economy growth makes crowds increase income. The more income the more they will consume.

3.2What are the weaknesses

New polices upcoming will affect the taxes and other costs. Then the total manufacture cost will apply, profit will be influenced.

3.3What are the opportunities

E-commerce gradually improved, more people turn to online shopping. Online shop for seller is the way to reduce the cost as well.

3.4What are the threatens

New brands coming to market include local and overseas. It’s a competitive market, how company can keep the market share is an issue.

4.Porter’s five forces

Porter’s five forces also can apply for this market. Industry competitors indicate the intensity of rivalry among the bag industry. Competitors are from local and overseas, and their market position is different. Next are new entrants. Newer can be a brand, store or just personal hand-made bags. Third is supplier that includes leather suppliers, hardware suppliers, water, electricity and etc. The following comes with customers. Customer’s interests can be change anywhere anytime. Bag Company should trace the fashion and people tastes. Last one is substitute. Bags are easily substitute.  As a result company maybe more focus on the quality, serveries and pattern.


Non-countable bags are sold in the market. Luxury bags and normal brands even non-brands bags are fulfill in markets. Although function of the bags is almost the same, people seek what they love even it is with higher price. Online shopping is a trend, customers have more chance to compare to choose. For company, the way to gain more market share is to find the right position and the target populations.  In-store sell is not the only way, E-commerce will give company opportunity to gain more shares as well as save costs.


China luxury institute,