China Watch Blog

China Watch Blog reports that China’s e-commerce economy will grow nearly six times by 2020 as more retailers and vendors tap online shopping to lure consumers.

The e-commerce economy – including online transactions and the e-commerce related service industry and information technology infrastructure – will reach 43.8 trillion yuan (US$7.1 trillion), with the majority made up of enterprise transactions of 33 trillion yuan, according to a Shanghai Daily report.

The value of online retail sales, from individual and enterprise sellers, may reach a combined 10 trillion yuan by 2020, Alibaba Group Research Center said in a report yesterday.

Though e-commerce retail only accounted for 6 percent of China’s overall economy in 2012, the figure is seen to reach 16 percent by 2020 due to its huge growth potential as vendors move to the virtual world to lure shoppers, the report said.

Last year, Alibaba Group’s retail arm Taobao and Tmall recorded more than 1 trillion yuan of sales, 10 times their transaction size in 2008.

China is set to become the world’s largest online market whose size may exceed US$420 billion and rise to US$650 billion annually by 2020, McKinsey&Co said in a report in March this year.

China is home to the world’s largest Internet user base of over 560 million and a younger generation of consumers who shop by clicking their mouse.

China Watch Blog has learnt that a disturbing new type of telecom blackmail has appeared in Shanghai, one that seems to operate through enforcement loopholes of telephone companies and police.

Criminals are using telephone software to make very frequent phone calls to a victim’s cellphone, and threatening to keep it up until they are paid off, the Shanghai Daily reported.

In a recent case, a salesman surnamed Zhang said he received more than 2,000 calls, with a call every one to two minutes over two days, and as soon as he picked up, the call ended, the Shanghai Morning Post reported.

According to a message sent to Zhang, the harassment would stop only if he transferred 500 yuan to a designated bank account.

Zhang called police, but was told the amount of money was too small to file the case, and it is hard to collect evidence as the suspects usually use software and a server outside the city or country to make the calls.

Zhang’s phone service said it could act against only those calling or sending messages using their service.

The harassment started on Friday last week when a call that appeared as “private number” showed up on Zhang’s phone.

“I tried to call back, but the other side hung up right after the call was put through,” Zhang said.

In just 10 minutes, Zhang got 16 such calls. Zhang did not pay the 500 yuan and he received more than 2,000 calls that weekend.

Zhang dared not turn off his phone for fear of missing important calls.

“I think they found my number on the Internet,” Zhang said. “I’m so frustrated. I don’t want to change my number and I’m afraid they are just going to ask for more if I pay.”

“The suspects are very crafty as they asked for only a couple of hundred yuan just to avoid criminal charges,” a police officer said.

The phone company suggested Zhang set up his phone to allow only calls from contacts in his phone, which Zhang said wasn’t a good answer, either.

During the May Day holiday, Zhang turned off his phone and received no more of the calls when he turned it on again. He’s hoping they don’t come back.

China Watch Blog has learnt that Oil painter Zhou Chunya tops the Hurun Art List with sales of his auctioned works hitting US$75 million in 2012, according to a report.
Zhou, 58, is the youngest artist ever to top the list compiled by Hurun Report Inc based in Shanghai.

Zhou Chunya, oil painter

The value of Zhou’s work has more than doubled from last year when he ranked eighth, according to the report, best known for its annual Hurun China Rich List.

As many as 222 of Zhou’s paintings were sold in 2012. The most expensive one was a 1994 piece with stones as its theme, which was auctioned for 29.9 million yuan, XInhua reported.

Oil Painter Zeng Fanzhi, 49, came in second with US$73 million in sales last year.
Renowned Chinese ink painter and calligrapher Fan Zeng, 75, took third place with US$69 million in sales at public auctions last year.

The total turnover of the top 100 list fell 21 percent from last year to US$1.2 billion. The threshold for artists making the top 100 fell 11 percent from last year to US$2.4 million.

The average age of the artists is 66, three years older than last year. The youngest is 37-year-old Chinese ink painter and calligrapher Ren Zhong, whose work ranked 51st with US$7 million in sales in 2012.

The list also includes six female artists, more than any previous year, including 91-year-old Chen Peiqiu who had an annual turnover of US$22.4 million last year and is ranked 11th.

China Watch Blog reports that an industrial park Party boss in Jiangsu Province got fired yesterday after he was seen kneeing on a dining table and apologizing to angry people who caught him and other government officials at a lavish banquet.

Zhang Aihua, the Party secretary of Binjiang Industrial Zone in Taizhou City, and at least 30 officials were caught having expensive dishes and liquors in the park’s reception center last Friday, China News Service reported.

There were four tables piled with high-end cigarettes, premium liquors, and rare dishes. A whistleblower estimated that each table would cost at least 10,000 yuan (US$1,612), the report said.

The whistleblower notified local residents who besieged the officials in the banquet room and condemned them for corruption. To seek retreat, Zhang knelt on the table and said with a loudspeaker: “I am wrong. Please forgive me. You can ask me to do anything if you let us go.”

The scene was videotaped on a mobile phone and posted on the Internet, attracting many hits.

Taizhou authorities held a meeting on Sunday night after the video went viral and decided to strip Zhang of his position, the report said.

China Watch Blog reports that Qantas and the NSW Government have announced a new $30 million partnership to promote Sydney and regional NSW to the world.

NSW Premier Barry O’Farrell and Qantas Group Chief Executive Officer Alan Joyce signed the three-year agreement at Qantas’ facilities at Sydney Airport, marking the largest tourism and major events marketing partnership in the State’s history.

Qantas

Premier O’Farrell said the deal involved Qantas matching the NSW Government dollar for dollar to attract more international visitors particularly from the United States, United Kingdom, Continental Europe, China, South-East Asia, Japan and New Zealand.

“Nothing says Australia more than the unmistakeable red tail with the flying kangaroo and the home of Qantas is right here in Sydney,” O’Farrell said.

“This partnership with Qantas is the cornerstone of our strategy to increase tourism to NSW, providing a boost to our economy and helping to create more jobs.

“We will be aggressively targeting big spending leisure and business travellers from overseas which will be a boon for our hotels, restaurants and retail sector.

“This will build on our standing as the nation’s leader for international visitation and expenditure and the preferred destination for key emerging markets.

“We understand the importance of tourism to the State’s economy – that’s why we’re building a new convention and entertainment precinct at Darling Harbour and investing in partnerships like this with iconic brands like Qantas.”

Joyce said the time was right to elevate the partnership between Qantas and Destination NSW to a higher level.

“Qantas is Australia’s national airline, flying from Sydney to every continent on earth and to every corner of Australia,” Joyce said.

“Sydney is the gateway to Australia with more than 50 per cent of all international visitors to Australia arriving at Sydney Airport so it’s fitting this is the largest partnership we have ever entered into with a State Government.

“We have seen a fantastic and tangible response to work we have done with Destination NSW in the past and we think working more closely will result in more people visiting NSW and flying Qantas.”

The partnership – which sees both the NSW Government and Qantas invest $15 million each over the three years – will include international advertising and marketing campaigns, marketing activities around major events and joint public relations activities. There will be a strong focus on digital
platforms including online and social media.

China Watch Blog reports that when Yahoo! recently banned working from home, some companies followed suit. At the same time, hosts of other companies still believe that working from home increases productivity, creativity, and improves employee morale.

So is the issue really virtual work or the lack of good management coupled with an inability to capitalize on the virtual work environment?

The New World of Work: From the Cube to the Cloud is the new, eye-opening book from experts Tim Houlne and Terri Maxwell that underscores startling statistics about the global labor force.

There is a New Currency: The truth is that the new currency for top tier talent is freedom. These people came to the realization long ago that gold-watch retirements are a thing of the past, and to ensure a long-term career meant taking matters into their own hands. Since the benefits offered by corporations such as insurance and paid vacations are not part of this new world of work, freedom and flexibility became the desirable traits.

Spend the New Currency with Better Management: Progressive companies attract creative, productive talent with the way they “manage people,” which truthfully is not to manage people at all. Rather than buy into the “productivity can only be seen” mode of thinking, companies that embrace the virtualization of work product attract that always sought after motivated self-starter.

To capitalize on this new work currency, companies must:
• Manage the process and outcome, not the people.
• Utilize more peer to peer management to encourage collaboration.
• Invest in cloud technology to manage projects.
• Understand virtual collaboration both from a technology and communication standpoint in order to get the best ideas.
• Physical presence does not improve creativity. Creative people engaged in the idea and committed to a solid outcome do.

Top talent in the workplace today has options and they can choose freedom. They do not feel the necessity to work out of a cubicle so they will be more inclined to choose a position with a company that gives them freedom; offering options that encourage creativity, improve morale, and lead to greater productivity.

About The New World of Work: From the Cube to the Cloud: The New World of Work provides the knowledge to propel careers and businesses forward with a better understanding of next-generation work by explaining how to become a Virtualpreneur™ and highlighting how businesses can compete for virtual talent. Learn more by visiting www.newworldofwork.com.

China Watch Blog reports that airlines should charge obese passengers more, a Norwegian economist has suggested, arguing that “pay as you weigh” pricing would bring health, financial and environmental dividends.

Bharat Bhatta, an associate professor at Sogn og Fjordane University College, said that airlines should follow other transport sectors and charge by space and weight.

“To the degree that passengers lose weight and therefore reduce fares, the savings that result are net benefits to the passengers,” Bhatta wrote this week in the Journal of Revenue and Pricing Management.

“As a plane of a given make and model can accommodate more lightweight passengers, it may also reward airlines” and reduce the use of environmentally costly fuel.

Bhatta put together three models for what he called “pay as you weigh airline pricing.”

The first would charge passengers according to how much they and their baggage weighed. It would set a rate for kg per passenger so that someone weighing 59 kg (130 pounds) would pay half the fare of a 118 kg (260 pound) person.

A second model would use a fixed base rate, with an extra charge for heavier passengers to cover the extra costs. Under this option, every passenger would have a different fare.

Bhatta’s preferred option was the third, where the same fare would be charged if a passenger was of average weight. A discount or extra charge would be used if the passenger was above or below a certain limit.

That would lead to three kinds of fares – high, average and low, Bhatta said.

Airlines have grappled for years with how to deal with larger passengers as waistlines have steadily expanded. Such carriers as Air France and Southwest Airlines allow overweight passengers to buy extra seats and get a refund on them.

Asked about charging heavier passengers extra, Southwest spokesman Chris Mainz said: “We have our own policies in place and don’t anticipate changing those.”

United Air Lines requires passengers who cannot fit comfortably into a single seat to buy another one. A spokeswoman said the carrier would not discuss “future pricing.”

About two-thirds of US adults are obese or overweight.

In a 2010 online survey for the travel website Skyscanner, 76 percent of respondents said airlines should charge overweight passengers more if they needed an extra seat.

China Watch Blog reports that for Erica Barrett, life changed one Saturday morning on a trip to the grocery store. Frustrated at the lack of anything creative (and nutritious) on the breakfast aisle, she decided she was going to change the way people thought about breakfast.

This excellent cook went from dabbling with recipes for her husband to starting her own company, Southern Culture Artisan Foods, selling all-natural breakfast products. This talented young woman is now a true American success story – distributing her delicious pancakes, waffles and syrup to over 1,000 stores nationwide and three countries internationally! Erica is testament that dreams can come true when you follow your passion.

“We are on a mission to save people from drab, boring breakfasts and instead give them life with carefully hand-crafted batches of goodness,” says Barrett. Adding, “We are dedicated to using the best ingredients available and our vendors are hand-picked to ensure we get only top quality products. We want customers to experience true farm-to-table cooking when they open our products and cook with them.”

Her flagship products include Shortstacks Pancake and Waffle Mix and Shortstacks Maple Syrup. No more ‘blah’ in breakfast with these pancakes – they are divine! They contain only the purest ingredients; no chemicals and no powdered dairy (as most do), so vegans and anyone lactose intolerant can also devour them. With flavors like Bourbon Salted Pecan, Vanilla, Banana Pudding, Sweet Potato, Strawberry Shortcake and Oatmeal Raisin – what’s not to love?

Erica Barrett grew up in a large family in Mobile, Alabama, where creating delicious meals was essential. At the tender age of 9, she was already learning the fundamentals of cooking and by age 13 she was preparing the Sunday dinner for the whole family. This lip-smacking meal, which consisted of fried pork chops, cheddar scalloped potatoes and thin green beans, was a huge hit and made her the go-to girl in the family for great recipes and warm, home-cooked southern dishes. “Southern culture to me means something that’s made from scratch,” says Erica. “Something that’s pure. Something that’s made with a lot of love and made with your heart.”

Erica graduated Clark Atlanta University in 2004 with a Bachelors Degree in Business Finance. After 6 years in corporate America climbing the ranks, she knew something was missing. When one of her recipes won a contest in 2010, sponsored by the Food Network and Lea & Perrins, she knew this was her true calling.

According to Erica, “This is just the beginning; I won’t be happy until everyone around the world can experience breakfast at its best!”

China Watch Blog has learnt that WorldVentures, which is the industry’s largest seller of vacation club memberships, opens for business in Iceland. The organisation offers opportunities for local entrepreneurs to start their own businesses.

WorldVentures, the direct-selling industry’s largest seller of vacation club memberships, is proud to announce its expansion into Iceland. Launching in Iceland extends WorldVentures’ international presence to 23 countries, and is a natural progression to the company’s expansion in two other prominent Nordic markets, Sweden and Norway.

“Launching in Iceland demonstrates the importance WorldVentures attributes to the Nordic markets as a part of our global expansion plan,” said WorldVentures Co-Founder and Chief Visionary Officer Wayne Nugent. “Norway is one of our booming markets, and its tremendous success created demand from local Icelandic entrepreneurs to start their own businesses with WorldVentures. We are proud to welcome these future business owners to our team of global ambassadors, and to give them exclusive and affordable access to some of the most desirable travel destinations and resorts around the world.”

WorldVentures’ entrance into Iceland provides an opportunity for those interested in building an independent business to sell the company’s DreamTrips™ club memberships to those truly passionate about travel. DreamTrips Members enjoy one-of-a-kind, curated group vacation experiences designed and managed by an award-winning online travel agency.

Founded by two direct-selling veterans and visionaries, Wayne Nugent and Mike Azcue, WorldVentures is built on three guiding principles: a foundation of superior travel and vacation products for customers; fair and transparent economic opportunity for its Independent Representatives; and a genuine commitment to community coupled with good corporate citizenship. The company does significant strategic planning prior to launching in a new country, ensuring it has a viable market and is compliant with all local regulations. WorldVentures’ current markets include countries in Europe, North America, Asia and Africa.

China Watch Blog has learnt that sales training and coaching strategies that focus primarily on behaviors aren’t adequately preparing sales professionals to connect, persuade and win in today’s tough environment.

The reason, according to Herrmann International research, is that selling approaches and buying decisions are rooted in thinking, not behaviors. By embedding thinking into development strategies, companies will be able to improve sales training results and generate higher revenue, account penetration and client loyalty levels.

“Our more than 30 years of research on the brain and business performance has shown that thinking styles impact how we process information, how we buy and sell, what we pay most attention to, and how we make decisions,” says Ann Herrmann-Nehdi, CEO of Herrmann International. “Behavioral approaches can help the salesperson manage a sales conversation in an efficient way, but they don’t reflect the mental processes that actually drive sales activities or purchasing decisions, so they don’t provide the complete set of tools to be persuasive, effective and responsive. Particularly in today’s demanding world, many external factors are impacting behavior; thinking is what’s constant.”

Herrmann-Nehdi says the company advises clients to look at the entire sales process for opportunities to maximize efforts through a framework of thinking, including:

• Mapping the mental demands of the sales job to find alignment and uncover gaps
• Using thinking preference data to maximize time spent in training
• Optimizing coaching strategies by taking into account the thinking styles of the manager/coach and the salesperson
• Providing training and tools to uncover customer thinking preferences and communicate, present and sell with the customer in mind

“The best part is this doesn’t require throwing out everything you’re already doing or slowing down the process,” Orin Salas, VP of Sales at Herrmann International, adds. “It actually helps salespeople get prepared, proficient and closing larger, more profitable deals on a faster pace. In fact, one client reduced training time from 24 months to 7 using this approach. It also allows the salesperson to focus their attention in the most high-value way, which is especially important in today’s noisy, pressure-filled environment.”

Herrmann International has compiled best practices, research and tips for using a thinking-based framework to improve sales performance in the free white paper, Wired for Sales: Supercharge Sales Professionals’ Performance in a Demanding World. The paper explores the reasons traditional behavior-based sales training comes up short, the role thinking preferences play in buying decisions and selling approaches, tips for assessing and applying thinking to sales development strategies, and techniques to quickly build the proficiency and performance sales professionals. Additional tools will be available at the Herrmann International booth at the Sales 2.0 Conference, April 9-10 in San Francisco.

For more information, please visit: www.herrmannsolutions.com.

About Herrmann International

The originator of the Whole Brain® system and the Herrmann Brain Dominance Instrument® (HBDI®) thinking styles assessment, Herrmann International works with organizations around the world to help them put their full brainpower to work to outthink, outpace and outperform the competition. The company’s Whole Brain® Thinking framework, which includes a variety of learning solutions, facilitation resources, job aids and business tools, has helped nine out of 10 of the Fortune 100 harness their collective intelligence to sell more, spend less, innovate faster, and develop and retain the best talent.