Quick lube market booming in ChinaTOP
The huge automobile lubricant market in China has attracted global lubricant giants to make investments in China. Total Group of France, one of the biggest lubricant producers in the world, will expand investments in China this year to increase its share in the Chinese lubricant market.
Foreign brands have taken up 78 percent of the sedan lubricant market in China, and most of some 4,000 domestic lube brands gathered in the low-end market and only accounted for 22 percent of the high-end market, said China Petroleum & Chemical Corporation (SinoPec).
According to China's leading petroleum producer, the country uses nearly 4 million tons of lubricant annually, ranking third in the world. With the increasing number of private cars, it added that the volume is likely to rise by over five percent annually in next three to five years.
The high-end products, like sedan-used lubricants, make up 30 percent of the total volume but approximately 80 percent of the profit in this market goes to them.
Almost all world leading lube brands have entered the Chinese market, including Esso, Shell, BP and Caltex.
China's tariffs on lubricants have reduced from nine percent to six percent since it entered the World Trade Organization (WTO) in late 2001.
SinoPec said that domestic lubricants are competitive in quality with foreign products but their marketing is weak.
Traditionally, Chinese car owners would go to the dealership or buy motor oil at a store and take it to a garage for changing, but as the quick lube concept becomes more widespread, people are opting for a standardized level of service at a lower price than the car dealerships offer. Like in the more mature markets in Europe and the U.S., Chinese quick lube concept offer convenience with the oil included in the price of service, but virtually all locations need to offer extras like car washes and small repairs to make the business profitable. New-car purchases in China are expected to grow at 10 to 15 per cent a year over the next five years, which will boost consumption of consumer automotive lubricants; as well, the Chinese government is working to upgrade the standard of car repairs by eliminating thousands of "mom-and-pop garages" across China.
Understanding the business culture in ChinaTOP
Despite the odd horror story here and there, most companies that venture into China come up smiling. Even companies that make grievous mistakes have the opportunity to correct them and usually manage to come out on top. They key is to do your research and make an attempt to understand the Chinese culture and the way they business.
If you want to get your Chinese launch right first time, you must research your market and any potential business partners thoroughly. It took one company we spoke to, two years to establish its joint venture with a Chinese company. In many cases, a week-long meeting takes a month to prepare and a month to follow up. Any proposals take time to draw up and time for your potential partners to translate, mull over and get back to you.
It only takes a couple of repetitions of this before the process begins to stretch out. Company's going out to China might expect the process to stretch out even more. Try and build as many contacts as possible and use the support available through trade missions and support organizations to hit the ground running.
Two or three visits should be enough to get you used to the Chinese way of business. Ideally the first one should be through a specialist organization such as Connect China or UK Trade and Investment. A translator – preferably a Chinese person, who speaks English, is a must.
Investment environment of ShenyangTOP
Situated in the south of Northeast China and the middle of Liaoning Province, Shenyang City is the center of politics, economic, communication and culture in Northeast China and an old heavy-industrial base in China. Shenyang backs on the foot of Changbai Mountains and faces the Bohai Sea. It is the hinterland of Liaodong Peninsular. Shenyang is located at the center of the Northeast Asian economic ring and Bohai economic ring, so it has important strategic status. With its advantageous geographical position, Shenyang has tremendous absorbing, radiating and driving force to the whole country and even Northeast Asia.
Shenyang is the largest collecting and distributing center for commodities in the northeast, it is also the market for essential factors of science and technology, talent and labor force at the national level. In recent years, with the rapid expansion of integral scale of commercial circulation, a brand-new structure for commercial and trade circulation has taken shape in Shenyang. With swift growth of the trade fair and conference industry, hundreds of exhibitions are held in Shenyang every year on the average. It has already established trade relationships with over 180 countries and regions in the world, its products are on sale all over the world.
901 contracts as to utilization of foreign investment project are newly reached and the foreign investment reaches USD 6.167 billion. Actually utilization of foreign capital is USD 2.123 billion, an increase of 106% over the previous year on comparable basis. There are 35 projects with over USD 10 million each.
Gross import and export is USD 4.59 billion, an increase of 7.5 % over the previous year on comparable basis. Of which, gross import is USD 2.219 billion, a decrease of 8.3%; gross export is USD 2.371 billion, an increase of 29.7%. In terms of export products, mechanical equipment export has realized USD 1.397 billion, an increase of 37.3% on comparable basis and accounting for 56.3% of the gross export and an increase of 3.2% over the previous year. The new and high-tech products export has realized USD 609 million, an increase of 24.7% on comparable basis, accounting for 20.9%, and decreasing by 0.8 % over previous year. Supply volume of export commodity has accomplished RMB 16.43 billion yuan, an increase of 19.6% on comparable basis. The products are exported to over 148 countries and regions.
The amount of newly signed foreign contract engineering and labor contract totals USD 103.81 million, an increase of 180%; the business turnover has realized USD 88.59 million, an increase of 12.3%; labors sent to foreign countries are 14,300 person-times, an increase of 11.8%.
Shenyang has concluded the relationship of sister city with 12 cities in 11 countries. The leaders of Shenyang City have met foreign guests of 9750 person-times from over 70 countries and regions in 924 batches.
Double Seventh FestivalTOP
The Double Seventh Festival, on the 7th day of the 7th lunar month, is a traditional festival full of romance. It often goes into August in the Gregorian calendar
This festival is in mid-summer when the weather is warm and the grass and trees reveal their luxurious greens. At night when the sky is dotted with stars, and people can see the Milky Way spanning from the north to the south. On each bank of it is a bright star, which sees each other from afar. They are the Cowherd and Weaver Maid, and about them there is a beautiful love story passed down from generation to generation.
Long, long ago, there was an honest and kind-hearted fellow named Niu Lang (Cowhand). His parents died when he was a child. Later he was driven out of his home by his sister-in-law. So he lived by himself herding cattle and farming. One day, a fairy from heaven Zhi Nu (Weaver Maid) fell in love with him and came down secretly to earth and married him. The cowhand farmed in the field and the Weaver Maid wove at home. They lived a happy life and gave birth to a boy and a girl. Unfortunately, the God of Heaven soon found out the fact and ordered the Queen Mother of the Western Heavens to bring the Weaver Maid back.
Today some traditional customs are still observed in rural areas of China, but have been weakened or diluted in urban cities. However, the legend of the Cowhand and Weaver Maid has taken root in the hearts of the people. In recent years, in particular, urban youths have celebrated it as Valentine's Day in China. As a result, owners of flower shops, bars and stores are full of joy as they sell more commodities for love.
China Import Network starts to develop the market of developing countriesTOP
This is an era of economic globalization. And the development of network has made each other even closer. The companies which China Import Network has contacted are all very interested in the China Market and eager to enter the China Market. Whether they are from developed countries or developing countries, big or small countries, they all may become the partners of China Import Network.
In July of 2007, Business Commission which consists of experts from Colombia, Venezuela, Mexico, Sudan, Tanzania, Nigeria, Indonesia, Macedonian and so on has visited the headquarter of China Import Network in Hang Zhou. This exchange will make China Import Network much easier to develop the market of developing countries.
People know China is also a developing country, but the product made in China is as good as made in the developed countries. As a matter of fact, the product made in other developing countries is also excellent. Therefore, it is really worth bringing their product into China and making Chinese know and use their good product.
The cooperation between China Import Network and many developing countries has not only developed international trade, but also promoted non-governmental exchange of the developing countries.
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