China Watch Blog

China Watch Blog announces that GCTL Insights Magazine Issue 13 has been published and can be downloaded for FREE by our readers.

GCTL Insights Magazine Issue No. 13

Go to www.GCTL8.com, click on register icon and then activate your account before downloading your GCTL Insights Magazine Issue 13 for FREE.

Its Cover story is on Hong Kong’s Outsourcing Potential. Other interesting topics include coverage on TOC Asia Conference 2012, Hong Kong’s Wine & Spirits business upsurge and how Russians speak of global connectivity.

The magazine includes lots of articles on aviation, maritime and logistics as well as interviews with independent logistics consultant Mark Millar, and others.

China Watch Blog normally will not report on this kind of controversial topics, but in this instance, your truly feels strongly over this report which the National Public Radio of the United States recently declared that a January broadcast featuring Mike Daisey’s monologue on working conditions in Apple factories in China contains fabrications.

In the monologue, Mike Daisey revealed with “his personal experience” that Shenzhen Foxconn Technology Group of China, which assembles Apple phones and tablet PCs, employed child labors, the People’s Daily reported.

The broadcast on Jan. 6 contained a large part of Mike Daisey’s performance in his program “The Agony and the Ecstasy of Steve Jobs.” The two-hour monologue started performing in U.S. theaters in as early as 2010, and more than 50,000 audiences have watched it. Currently, it is still performed in public theaters of New York.

Yours truly strongly suggests that Beijing should step in and fight with the authorities to stop the monologue from being screening, until the monologue clearly carried sub-titles in show explaining that this is merely a fiction, and that in real life, Foxconn does not employ child labor from the minute the show screens tha fabricated parts till the end of the show, so that the audience who see it know that it is not true.

According to People’s Daily, after the reporter of the program “Market” of the National Public Radio, who is in charge of reporting Chinese news, was contacted and interviewed Daisey’s translator in China, People’s Daily found that the translator’s statement was quite different from Daisey’s words. The part of “seeing employees poisoned by ethane” is fabricated, and he also got the ages of the employees “by guessing.”

Regarding this scandal, Daisey defended himself in his blog that he felt regret for his mistake, the wrong point was that his performance in the program was regarded as news, but actually it was not news but a performance of theater.

Daisey’s words denying his mistake are widely questioned and criticized by U.S. media. An article on the New York Times said that, Daisey, who claims that he is not a reporter, did not claim that in his program that he was one, and what he called “things he personally saw” are actually things fabricated. At the end, the article says that Daisey was actually aimed at showing that Chinese factories are violating human rights, and therefore he did not care about facts.

China Watch Blog has learnt that China’s top two online video companies are joining forces, with Youku.com buying smaller rival Tudou Holdings in an all-stock deal worth more than US$1 billion, creating an industry leader with more than a one-third share of a market that is losing money as it battles rising costs.

The two US-listed companies have been bitter rivals, locking horns in courtroom battles over alleged copyright infringement and unfair competitive practices, according to a Shanghai Reuters report.

Both companies this month reported a net loss for last year, pinched by rising costs for internet bandwidth, content and mobile video services.

Bringing the two together is a good move for a highly competitive industry with many players fighting over more than 450 million internet users, analysts said.

“This creates China’s biggest video site, but it doesn’t create a YouTube – they still have less than 50 percent market share,” said Bill Bishop, an independent analyst based in Beijing.

Shares of Tudou, which is 9 per cent owned by Sina Corporation, soared 159 per cent in early trading on Monday in New York to US$38.30 from Friday’s US$15.39 close. Partly reflecting the tough competition, Tudou shares, which debuted in August, had consistently traded below their IPO price of US$29 each.

Youku stock surged as well, gaining 15 per cent to US$28.80. Shares in Baidu, China’s top search engine, lost 1.2 per cent while Renren, dubbed China’s Facebook, saw its stock gain 4.3 per cent.

Youku currently leads the fragmented Chinese online video market with a 21.8 per cent share, ahead of Tudou’s 13.7 per cent, according to internet researcher Analysys International.

“We know online video is way too competitive. There are 10 players, where there should be only one to two,” said Michael Clendenin, managing director of Shanghai-based RedTech Advisors.

“After this merger there are still too many players in the industry,” he said, noting others in the market such as Sohu.com Inc, Baidu, and Tencent Holdings (SEHK: 0700) Ltd, which is trying to develop an online video platform.

“These are not small, insignificant players. So even though this is a step in the right direction in terms of consolidation, there’s still a long way to go,” Clendenin added.

China Watch Blog has learnt that “Creative Videographers’ Eyes”, a growing online blog invites shipping and logistics companies to submit their online videos and animations for inclusion in this globally publicized compendium of best-practice video tips.

Amy Munice, creator of the Global B2B Communications web site that is hosting the “Creative Videographers’ Eyes” blog assures shipping and logistics companies that only positive promotional comments by videographers that reference their video submissions as website video success stories will be included.

Munice’s blog has a two-fold purpose. One, we hope to create a short cut to help global companies that go to some lengths to create quality videos gain a wider worldwide audience.

The industry information might otherwise be too narrow in focus or too technical to become the type of global viral video that can be so important to driving traffic to web sites and assisting in search engine optimization.

The second goal of the blog is to showcase highly talented videographers, corporate video producers, and video production companies as a growing global roster of resources for web marketing videos and other commercial films that work.”

To submit a video for consideration as a globally publicized video success story on “Creative Videographers’ Eyes”, companies need to send a link to their video posted at a public video hosting service such as YouTube to MakeOurVideoViral@globalb2bcommunications.com.

“Creative Videographers’ Eyes” and other high return-on-investment resources for both online and off-line marketing are promoted worldwide through a combination of news releases to both web and print outlets.

Hundreds of articles and columns are written yearly by Global B2B Communications contributors on global marketing topics, pay per click advertising, and via global social networks such as Twitter, LinkedIn, Xing, Orkut, Viadeo and more.

China Watch Blog was informed by UK-based Pilot Marketing that it has been appointed to handle media relations for Hong Kong Air Cargo Terminals Ltd (Hactl) with immediate effect.

Cathay plane flies over Hactl

Account Director Derek Jones, based in London, says in a statement sent to the Hong Kong trade media saying that: “As you may know, Hactl operates SuperTerminal 1 in Hong Kong – the world’s busiest international air cargo hub.”

Jones tell us that Hactl’s senior management team is therefore highly authoritative on all matters related to airline cargo handling specifically, and on the air cargo industry in general throughout the Far East.

Derek says if you are researching for any air cargo feature on ground handling, Hong Kong, the Far East or Hactl itself, we will be very pleased to assist you with any interview, information and picture requirements you may have.

As a trade media, having established relationships with Hactl for nearly 20 years, we are puzzled why a UK PR company is telling us about Hactl which is on our door steps.

Maybe there is something going on at Hactl which we do not know.

China Watch Blog has learnt that a media official with the Ministry of Health who has made himself known to every journalist, if not every citizen, overnight by threatening reporters that the ministry would blacklist those that publish or broadcast “phony” food-scare reports.

A China Daily report said that by doing so, the official has made public the mindset of many officials vis-vis “trouble making” journalists.

The General Administration of Press and Publication (GAPP) stepped in on Monday to clean up the mess created by the official. The media watchdog announced that no organization or individual is allowed to stop journalists from doing their job or blacklist them. The GAPP conceded, though, that media supervision plays an indispensable part in promoting civil society and improving social management.

On Wednesday, members of the National People’s Congress Standing Committee opened the issue of food safety to greater supervision by citizens, and suggested food safety level be upgraded to become part of national security.

Poor food quality raises some important issues on the relationship between the media and government organizations. Investigative journalism, though in its infancy in China, has made some officials uncomfortable. When reporters dig up the truth about social problems, some government departments and officials try to cover it up and blame journalists.

But the media are becoming a force for social good. Officials have realized that transparency is required during emergencies because journalists persistently filed detailed reports on the SARS epidemic in 2003.

China Watch Blog reports that you can win HK$200 department store gift voucher and a souvenir by nominating us (GCTL8.com) for the Meritorious website nominations which open today (June 7), if you (the reader) think we (GCTL8.com) are a good website. Click on (http://www.merit.gov.hk/) to download the nomination form and do the necessary. Contact us: js@GCTL8.com for assistance.

The Meritorious website nominations open today(June 7) until July 7.
Now in its 12th year, the contest is part of the campaign to enhance understanding of the Control of Obscene & Indecent Articles Ordinance.

With the theme “Surf smartly. Spend our time wisely”, the contest aims to encourage young people to visit healthy websites and recognise website producers’ healthy contributions.

Contests nominations are divided into two categories, namely, individual nominations and organisation nominations. Each participant may nominate up to two websites. Winning entry nominators may be awarded a $200 department store gift voucher and a souvenir.

The contest is jointly organised by the Television & Entertainment Licensing Authority, Education Bureau, Committee on Home-School Co-operation, Hong Kong Internet Service Providers Association and Radio Television Hong Kong. Click here (http://www.merit.gov.hk/) to download the nomination form.

Public participation is also welcome in associated activities which offer prizes, including the “My Favourite APPS” nomination, an online game and a crossword puzzle.

China Watch Blog has learnt that a survey released on Friday showed the total output value of China’s media industry doubled in the past five years to hit 580.8 billion yuan ($89.2 billion) in 2010.

The China Daily reported that the survey, conducted by the School of Journalism and Communication of Tsinghua University, predicts that the country’s media industry will continue booming and generate an output value of 688.2 billion yuan in 2011.

“In 2010, the new media sector grew fast, reaching the same size as traditional media,” said the report, titled “Blue Paper on the Media Industry.”

Also according to the report, the fastest growing sectors in 2010 were online advertising, the film industry and radio broadcast advertising.

The report pointed out that in the next five years the media industry will become a pillar industry in the country’s national economy, with more capital flowing into the industry.

China Watch Blog has learnt that TNS, the world’s largest custom research company,  has launched TNS Mobile Life 2011, the largest ever global research study into today’s mobile consumer.

Now into its sixth year, TNS Mobile Life is the result of more than 25,000 hours of interviews with over 34,000 respondents in 43 countries. It provides a complete understanding of consumer experiences with mobility today and insights into how this will change tomorrow.

The findings highlight that as “static” functionality such as SMS and still imaging become commoditised, growth will be driven through further demand for social functionality and new demands for video calling, streaming and sharing services:

• The number of mobile web users visiting social networking sites grew from 30% to 46% globally, and from 26% to 50% in emerging markets*, leapfrogging much of the developed markets
• Only 18% of consumers globally managed to upload photos or video directly to the web from their mobiles, during the same period, but a further 44% would be interested in doing so in future
• Consumers in emerging markets are more likely to want to upload content (49%), but more than half (55%) do not have the ability to do so

“With mobiles increasingly becoming the primary device for internet access and communication, particularly in emerging markets, entertainment and multimedia features are a key requirement for engaging with consumers,” said James Fergusson, Managing Director, Global Technology Sector, TNS.

“Handset manufacturers need to ensure that entertainment offers, particularly mobile music, gaming, pictures, video and social networking are available and easy to access. Many are missing a trick in not bringing more smartphones to market in high-growth countries.”

Many emerging markets users outpace their western counterparts, leading demand for the latest mobile technologies

Camera features may have reached a saturation point, growing only 1% between 2010 and 2011, but nearly a quarter of global consumers (24%) say the ability to take andsharepictures and video will play a major role in their choice of next device.  TNS Mobile Life shows the strongest growth in new services in the last 12 months has come from social video (10% to 15%) and Live TV (9% to 12%). Over half of consumers (54%) are interested in video calling, despite not yet using the service and half are interested in watching live TV (50%) or in downloading or streaming video (48%).

In Asia, Latin America, the Middle East and North Africa, and Sub-Saharan Africa, demand for Live TV in particular is higher still, reaching upwards of 70%. “Emerging Tier 1 markets, such as China, Brazil and UAE already have penetration levels that match mature markets,” Fergusson continues. “Multimedia content presents an opportunity to leverage growth potential in emerging economies. Income constraints in many of these markets ensure the importance of imaging and video services through mobiles increases.”

Brand, partnerships and demand for tablets – challenges in maintaining market share in a crowded environment

Across developed (44%) and emerging (77%) markets handset brand is considered an important factor in product decision making. Content brands, however, are building equity in the mobile ecosystem, with more than 1 in 4 global consumers saying content and apps are a key consideration at the point of purchase. The results from TNS Mobile Life show that as markets mature, key purchase influencers shift to content and application offerings, along with operating system. Providing desirable content – and engaging with local partners where appropriate – is a clear opportunity to capture equity in markets where content brand share is low, but increasing.

Partnerships will become increasingly important as handset manufacturers look to maintain marketshare as tablets rapidly expand on the scene. Tablets are already generating substantial momentum, with intended ownership rates as high as 31% in Asia and 28% in Europe. Fortunately for handset manufacturers, consumers typically view the tablet either as a complementary device, or as a replacement for a PC, rather than a mobile.

Apple and Google continue to win the platform war, delivering better access to rich media

Further findings from the TNS Mobile Life study show that content and service offerings are also playing an increasingly important role in terms of operating systems, with consumer loyalty supporting the continued growth of Android and iOS systems. Google’s operating system – Android, as well as OMS and Tapas – have gained 24% share in the past 12 months, growing from 9% to 33%**. This loyalty is due, in part, to Apple’s and Google’s ability to keep pace with consumer’s content demands, particularly with regard to social networking and rich media functionality. For example:

• Over half of Apple (56%) and Android (52%) customers access social media via their mobiles daily, but this figure drops to 44% and 41% for Windows Mobile and Symbian, respectively
• 51% of Apple and 49% of Android customers are “very likely” to stay with that operating system, while that figure drops to 30% and 31% for Windows and Symbian

“While there has been previous research into mobility, Mobile Life has truly set a precedent in its scope, depth and breadth of information on mobile consumers’ behaviour and decision influences,” said Fergusson. “The study reveals significant breakthroughs and detailed analyses of the interests, key drivers and influencers in consumers’ purchase decisions across the globe.”

*Countries included in the “emerging markets” grouping of TNS Mobile Life are:
Tier one emerging markets – S Arabia, UAE, Mexico, Brazil, Argentina, China, Indonesia, S Africa, Chile, Morocco Tier two emerging markets – India, Pakistan, Vietnam, Thailand, Nigeria, Kenya, Philippines, Benin, Cameroon, Ghana, Guatemala & Costa Rica, Senegal, Tanzania, Uganda
**Source: Canalys estimates, 2011.

China Watch Blog’s parent website – GCTL8.com has launched International Forwarders Awards – China 2011 (IFA China 2011) to recognize Excellence of SME Freight & Logistics Companies.

Greater China Transport Logistics 8 (GCTL8.com) is pleased to announce that it is organizing the first International Forwarders Awards (IFA) 2011 to be held at the Shangri-la Hotel Ningbo, China on May 19, 2011 to recognize the significant contributions of Small and Medium-Sized Enterprise (SME) Freight & Logistics Companies to trade and commerce in Mainland China.

This prestigious event, co-organised by The Freight Summit and China Logistics Club with full support of the Ningbo Association of Port-of-Entry - a government body, is expected to draw nominations, participation and sponsorships from the transport logistics industry as it is a unique event focused on SME’s invaluable and tremendous support to China’s rapidly growing trade.

“IFA China aims to, for the first time, recognize, acknowledge and honour SME International Forwarders and Logistics Companies for their tireless and dedicated commitment to find innovative business solutions to meet the challenges of different sectors of the freight market,” said Mr. Wong Joon San, CEO of FocusAsia Media Ltd, publisher of GCTL8.com.

“Be among the first group of industry people to nominate SME International Forwarders and/or Logistics services providers whom you think should deserve to win an award. You can go directly to our newly created website -http://www.internationalforwardersawards.com/ – which has been specially created for your convenience to make the nominations,” he said, adding that they were also welcome to attend the IFA China and could make their bookings via the website.

Mr. Christian Raeuber, CEO of RW Solutions, organizer of the Freight Summit, says: “IFA China aims to become an event with a difference in that we will encourage SME forwarders and logistics providers to interact with their international counterparts so that they can learn how to uplift their services to international standards.

“Besides attending IFA China, the delegates will also have a good opportunity to attend The Freight Summit Ningbo 2011 which will provide them with good networking opportunities as well as to find partners to cooperate and enhance their businesses,” he said.

Mr. Henrik Christensen, China Logistics Club founder and chairman, said: “IFA China will showcase to the world that forwarders and logistics providers have evolved tremendously from arranging shipment of goods from Point A to Point B in the past to a new high level of service.

“Today’s SME independent forwarders and logistics services providers must also be knowledgeable about international trade/commerce and forwarding practice, including customs, cargo insurance and the law on carriage of goods aside from performing a host of other functions which are incidental to, but necessary for the international carriage of goods,” he said.

“In this respect, IFA 2011 wishes to give due recognition to the Modern SME Forwarder and Logistics Provider whose role in transportation has evolved and expanded so immensely, that their industry contributions in terms of excellence and quality of services to the functioning of global supply chains cannot be ignored,” Mr. Christensen remarked.

In China, there are an estimated more than 500,000 SME forwarders and logistics services providers who facilitate the country’s growth of trade and commerce on a daily basis.

Nominations for IFA China, which intends to salute the top of the class for their contributions, will close on April 15.

About GCTL8.com

GCTL8.com, a leading Greater China focused media company, is the world’s No. 1 Tri-Lingual daily breaking news web portal in the transport logistics industry which receives nearly 40 million hits per annum. Its daily email newsletter and bi-monthly GCTL Insights Magazine reaches to over 40,000 readers globally.

For additional information, kindly visit: www.GCTL8.com or www.focusasiamedia.com

CONTACT: Wong Joon San

28/F Soundwill Plaza

38 Russell Street

Causeway Bay

Hong Kong.

Email: focusasiamedia@runbox.com