The Taiwanese beverage maker posted above-average sales growth last year and has refrained from entering into a price war with aggressive rivals, focusing instead on bolstering its brand image.
Popular bottled water maker Nongfu Spring has been negatively affected by reports of poor water quality, with our channel checks suggesting that sales in major supermarkets declined by 10-20% YoY in April.
The competitive challenge of the Tingyi-PepsiCo alliance will continue to weigh on Coca-Cola’s China sales in 2013, but the US beverage maker’s heavy local investment and strong brand equity provides it with a sustainable long-term growth platform.
The smooth integration of Pepsi’s non-alcoholic beverage business in China should boost Tingyi’s performance in 2013.
Beverage makers face the challenge of adapting their brands and product portfolios to the rapidly evolving tastes of China's increasingly discerning consumers
Commentators debate the wisdom of Chinese consumers rushing into the gold market.
DANWEI - Companies moved quickly to publicize their donations to the relief effort for the April 20 earthquake in Ya'an, Sichuan province. Countering the bad press it received in China recently, Apple donated 50 million yuan, but it was topped by Samsung who donated 60 million yuan. Less visible in the aftermath of this year's earthquake was the opprobrium seen in the wake of the 2008 Wenchuan earthquake, when a spurious list of the top ten "international iron roosters" accused global brands like Samsung, Nokia and Coca-Cola of donating nothing to the earthquake relief effort despite reaping in millions in profits in China. This time round, companies have been swift and public about their donations.
DANWEI – In recent months, the unexplained appearance of dead ducks and pigs in rivers and ongoing debate on social media about fine particle (PM2.5) air pollution have been good news for some companies. The penetration rate of water and air purifying machines in China is still comparatively low. Both these markets are becoming very competitive with emerging Chinese competitors steadily gaining market share from more established foreign players, such as Dutch multinational Philips (NYSE:PHG) and Japan’s Sharp (TYO:6753), by developing cheaper models.
China’s leading online travel agency has maintained market share by offering aggressive discounts in the face of stiff competition from Qunar, a policy that is eroding revenue, profits and margins.
The decision to focus on hotel bookings may be a canny one in the long-term, but discount-led growth will make it hard for the company to stem losses in the short-term.
Renminbi Compass reflects key changes in the renminbi-denominated investment environment.
Providing research coverage on asset classes as diverse as chengtou bonds, dim sum bonds, real estate, trust products, underground banking, art and antiques, as well as its traditional equity fund research.
Renminbi Compass provides orientation for investors navigating the expanding universe of renminbi asset classes.