This article talks the story of when all people focusing on Transformation of the company or shop in the media impression, or about how great bosses,most stores will ignore the most important visual art. 

No one was to enter a shop heard detailed enterprise culture, but you will notice many small details, such as a shop assistant was wearing a tidy, shop decoration properly or lighting brightness is comfortable, it will become a customer to store a first impression is very important.

I very much agree with this point of view, because we as consumers, when I entered into a new store, into the eye is the decoration and the atmosphere.A part of the course staff attitude is essential. We always focus on some big place, but forget the many tiny place is also important, even more than thebig with no reality whatever things more convincing and appealing.

Sources: Pay Attention to Small Visual Marketing Details.By Glenn Muske(outside ubc blog)

Pay Attention to Small Visual Marketing Details

From her blog, “the research shows that a medium-size latte in Beijing costs 27 Yuan ($4.43), or one-third more than at a Chicago store in United States,” she also said that in China, holding Starbucks is kind of the representative of the rich. So consumer’s blind faith is one of the reasons causes the high price in China

From my research, not only Starbucks has high price in China, almost every foreign brand has double price standard between China and western countries. Some domestic industry standard is too low or too thick, the lack of fine evaluation gives the multinational company provides “hotbed” perform a double standard. Some foreign brands  gradually become localization in China, even with two standard management of its branch at home and abroad. The production and sales link exist some loopholes. That even if appear in quality problem, recalls in other places, nor will be included inChina, the reason is: the product conforms to specifications in China

In order to eradicate this unfair phenomena, China ourself must increase our domestic quantity standard first and then use this standard to estimate these foreign brands.

references:

https://blogs.ubc.ca/alicechan/

http://biz.cb.com.cn/12716612/20121129/430116.html

As data shows, the Android has 81.3% market share in third quarter 2013, However, Ios only has 13.4% market share. An increasing number of consumers choose Android because the cheap price of Android phones and the easily-available Android apps. Why the android is so successful? I think it’s due to three reasons.

First, Android catches its own market. When people are admiring the successful development of ios , some consumers and manufacturers hope to have a other systems also good. Make people to be able to share the big screen, unlimited control experience. The emergence of android  satisfied people’s needs at this moment because Android win the market with free! The whole world all love cheap and free!

Second is the creativity. Android  takes the way of open source, free to win a number of mobile phone manufacturers. Because open source, low entry barriers more and more small developers willing to join the Android market.

Third is the  wide range of consumer groups. Unlike Ios mainly focus on High earners. Android not only gears to High-end market, but also has lots of mid-and-low-end customers. what’s more, Samsung plays an important role in Android market. Data shows in 2013, 63.3% Android consumers choose Samsung’s smartphones.

references:

http://www.engadget.com/2013/10/31/strategy-analytics-q3-2013-phone-share/

http://mobile.zol.com.cn/412/4124008.html

Total 2013 Chinese luxury consumption is up to $102 billion, and the global market for luxury goods will reach a record of $217 billion in total, this also means that the Chinese will buy 47% of the world’s luxury goods. China is the undisputed largest consumer of the world’s luxury goods market.

What’s more,In 2012, Chinese people implemented about 40% luxury consumption in Europe and American. In 2013, the luxury consumption outside the mainland area reach 80%. due to the foreign travel, foreign price difference exists as well as the influence factors such as the appreciation of the renminbi, the Chinese luxury consumption outflow phenomenon is increasingly serious.

Luxury consumption of the world’s average level is to use about 4% of their wealth to buy, in China, with the proportion of 40% or more to realize the situation of the “dream”, and even these groups constitute support is an important part of the luxury consumption. This group through the way of efforts to save money to realize the dream of the buy luxury goods. They often wait the discounting season, and often to buy some small accessories of the top brands , which suggests he or she  is also one of the top consumer class.

references:

http://finance.chinanews.com/cj/2012/01-16/3606425_3.shtml

http://finance.qq.com/a/20131115/009190.htm

Twitter shares opened at $45.10 and marking a 73% pop from its initial public offering price and its market value is more than 24billion dollars. Twitter is so success in social networking and which give other companies confidence to go public.  Why twitter is so success to go public? I think it is due to three reasons.

The first is the market prospect of the Twitter is valued. In the past year, the company’s revenue of $534 million,  created a loss of $143 million. But this year, the company’s revenue in the first nine months has more than doubled, to $422 million. In addition, compared with billion users of Facebook, only 0.23 billion active users of Twitter’s investment risk is lower.

The second is the creativity. compared with Facebook CEO Zuckerberg annouced they come into the market. Twitter choose three common people, an actor, a little girl and a middle-age women. Twitter skillfully chose three different needs of users, from entertainment, charity and government propaganda these three angles to reflect the value of the company.

The last is the  market has been a lack of good company IPO  a long time. After Facebook, the capital market has been a long time without IPO, market accumulated too much money, this make twitter’s opening price continue to rise.

references:

http://tech.sina.com.cn/i/2013-11-07/23528893645.shtml

American has black Friday. Now China has crazyNov 11. November eleventh was used a common day, but now, with the popularity of Taobao,the biggest online company in Chinese which belongs to Alibaba., November eleventh has become the crazy online shopping festival. From my friends Chen Qian’s blog, I  know how crazy it is from the data in Nov 11 2013. Just 55seconds after midnight,  the sum of business transaction is over 100 million RMB and the whole day’s business transaction is more than 6 billion dollars !

Why the Nov 11 is so successful in China, I think it’s due to three reasons. First is the big discount, most goods sold online all have more than 50% discout,the Albaba chairman Yun Ma said his purpose is not make profit on this day, he tried to provide a thanksgiving for all Chinese consumers. Second is the successful advertisement, the website, newspaper and TV programs all provided the advertisements for Taobao which let consumers know how crazy discount will be on Nov11. The third is the good delivery service, most online stores promise to consumers that they will recieve their good within 48 hours. So due to these three reasons, Noc 11 online shopping Festival is very successful.

http://zj.sina.com.cn/news/s/2013-11-12/1111140736_4.html

http://news.mydrivers.com/1/282/282306.htm

https://blogs.ubc.ca/chen163825/

China (Shanghai) Pilot Free-Trade Zone is a free-trade zone launched in Shanghai, on September 29, 2013. Free-Trade Zone is a breakthrough in China’s Economic development. In this zone， Chinese government relieves all the restrictions in international trade. Fro example, a tax-free period of 10 years for the businesses in the area， unrestricted foreign currency exchange and no firewall in the Internet.

Some people assimilate Free-Trade Zone to the “one country, two systems” in China’s economic policy.  Due to the financial crisis in 2008 and continue appreciation in RMB, China’s import trade fell significantly so Chinese government wants to use the Free-Trade Zone as a useful tool to increase the amount of import trade. Within few days Free-Trade zone has made considerable influence on many local companies and banks, and stock prices of these firms doing business have climbed. They can have a easy way to expand their foreign market. Moreover, foreign companies also benefit a lot in the Free-Trade Zone, they don’t need to pay expansive tax in China, which can help them reduce the trade cost.

Free-Trade Zone is a bold idea and now is still remain experimental stage. In my opinion, it is a win-win strategy and will help Shanghai become the Asia financial center in the future.

References:

http://baike.baidu.com/link?url=oO9Bjh_eaByGXdh4v1IP-XixCNVTe4lIyPPZfabCVICCNhZRK0NTGVcZKXXGszIQ2Dnl_cEbb6kW94sa8axrfuoJpd5z0UiTrASlJY-15xmhmvp_Gt3Bv-PRguwSilQZp1OT8oL8Ol2LT5xrkYRNLK

http://online.wsj.com/article/SB10001424052702304795804579100640245613408.html

http://en.wikipedia.org/wiki/China_(Shanghai)_Pilot_Free-Trade_Zone

After finishing the individual assignment “SWOT” which analyzed the situation of the second biggest energy drink company- Monster, I just knew Monster is the second biggest energy drink company! I never saw Monster’s products in China!

The Red Bull is the number one energy company and was the first to be introduced into the market in 1987. Red Bull has a clear leading position in China and almost has no competitors.  Differs from Red Bull, the Monster has small China market and is relative popular in Canada. Monster wants to reduce the gap between Red Bull and itself.  Expanding its market in China is very important. China has the most population in the world. Little increase in Chinese market will cause obvious increase in Monster’s whole market.

The second thing for the Monster to do is remain its cheep- price advantage. In general consumers can get a can of 8.3oz Red Bull drink or a can of 16oz Monster drink at the same price. If the Monster can remain its price advantage and pay great efforts on expanding Chinese marketing, it will reduce its gap with Red Bull in the future. Mons consumers prefer cheap price products.

references:

http://www.ukessays.com/essays/business/competition-and-market-analysis-for-red-bull-business-essay.php

Difference Between Red Bull and Monster

I begun to queue up for new iPhone 5s at 3 am on September 20th, but unfortunately, I still didn’t get the gold one because Apple only had very limited quantity of the gold iPhone 5s. Fewer days later, the gold iPhone 5s was sold on EBay and the price was more than 1000 dolor! Why the gold iPhone 5s is so hard to but and still some people willing to pay lots of money but it? I think it is due to two reasons.

The first is Apple’s number one brand position. Most consumers trust Apple’s products even they never used them because Apple is the number one brand. This brand position value plays an important role to influence consumers’ decision when they choose to buy a new phone. They always think of the  iPhone firstly.

The second is the Apple’s hunger marketing strategy. Apple reduces the supply of the gold iPhone 5s and causes “ demand exceeds supply” which attracts more people’s interest of its products and increases its products’ value. Some people are willing to pay more money to get the scare gold iPhone 5s. “Objects are valued because of their rarity”.

References:

http://www.ibtimes.com/gold-iphone-5s-where-still-buy-apples-rare-gold-iphone-1409270

http://blog.gsmarena.com/apple-retains-position-as-worlds-top-brand/

Business ethics is not only the basic standard of a company but also one of the most important things of a company. The company which observes the business ethics usually owns good reputation. However, at present, some companies violates the business ethics and cheats the customers in order to improve their profit.

This phenomena is commoner in China than in west countries. After I read my classmate Gracia Chua’s blog, I found that the most famous one is the toxic Sanlu milk powder event. Sanlu company used cheap milk powder which contained poisonous material to pretend healthy milk powder and sold them to infants. Thousands of infants got ill after drinking the milk and some of them even died! Government punished the Sanlu Company severely and some top officers were put into prison. People would never forget Sanlu Company’s cheating behavior whatever the company and government did to compensate for it.

Why some companies do not obey the business ethics and continue to cheat customers ? I think its due to the temptation of the money. It is hard to find a balance between high profit and good business ethics. Companies must give up something to obey the business ethics and maintain the good reputation among the customers.

references:

Ethics