There has been rumors of Facebook teaming up with China's #1 search engine, Baidu. Baidu came to prominence when it took over the search engine market after rivaling with Google and eventually became the top dog. What does it mean if Facebook teams up with Baidu? One way for Facebook to make money is to license its search algorithm or form strategic alliances to leverage its humongous information database.
Facebook issued the following statement: "Facebook is currently studying and learning about China, as part of evaluating any possible approaches that could benefit our users, developers and advertisers."
Showing posts with label China. Show all posts
Showing posts with label China. Show all posts
Monday, May 2, 2011
Monday, April 11, 2011
China Posts First Quarterly Trade Deficit In 7 Years
Surprise! Just when everyone is criticizing China for "fixing" their Yuan, China throws a curve ball at us by posting a quarterly trade deficit of $1.2 billion for the first time since 2004. From WSJ's China Real Time Reports Blog, this is a significant step signaling the impact of rising commodity prices on China.
Xianfang Ren and Alistair Thorton from IHS Global Insight reports that "the headline data — that China recorded its first quarterly trade deficit since 2004 — may suggest some significant progress on the rebalancing agenda, but it remains far too early to make such a bold call."
Lu Ting from Bank of America-Merrill Lynch is optimistic that China will most likely post a trade surplus for the year despite month deficits here and there. The slow trade growth is due to weaker terms of trade and rising prices.
By keeping Yuan at a lower exchange rate than other currencies, China continues to export its goods at a reasonable price. Can China keep this charade up? Will China be the next superpower?
Xianfang Ren and Alistair Thorton from IHS Global Insight reports that "the headline data — that China recorded its first quarterly trade deficit since 2004 — may suggest some significant progress on the rebalancing agenda, but it remains far too early to make such a bold call."
Lu Ting from Bank of America-Merrill Lynch is optimistic that China will most likely post a trade surplus for the year despite month deficits here and there. The slow trade growth is due to weaker terms of trade and rising prices.
By keeping Yuan at a lower exchange rate than other currencies, China continues to export its goods at a reasonable price. Can China keep this charade up? Will China be the next superpower?
Wednesday, March 23, 2011
Chinese Entertainment Firms and IPOs
The Hollywood Reporter compared quarterly earnings of two Chinese entertainment firms that went publicly recently - Youku.com and Bona Film Group.
Youku.com was successful in its IPO endeavor as China's leading video sharing website. With less than three months since its IPO offering, the company released better quarterly report in December 2010. Youku.com's debut was the strongest in the United States in five years.
On the other hand, Bona Film Group was not as lucky. In its end of year quarterly report, Bona Film Group had a whopping 22.2% loss in net revenue. Company's managers blamed the loss on movie flop and bad investments.
The mix results have investors feeling antsy. Expert said it will take time to rebuild confidence in China's growing entertainment industry.
Youku.com was successful in its IPO endeavor as China's leading video sharing website. With less than three months since its IPO offering, the company released better quarterly report in December 2010. Youku.com's debut was the strongest in the United States in five years.
On the other hand, Bona Film Group was not as lucky. In its end of year quarterly report, Bona Film Group had a whopping 22.2% loss in net revenue. Company's managers blamed the loss on movie flop and bad investments.
The mix results have investors feeling antsy. Expert said it will take time to rebuild confidence in China's growing entertainment industry.
Sunday, February 20, 2011
Groupon China Meets Obstacles
Groupon, a Chicago-based online website, wants to expand its business to one of China. Teaming up with its Chinese partner Tencent, they launched their site Gaopeng.com to its Chinese internet users. Based on the fact that China has over 420 million internet users, this seems to be an ideal joint venture with vast potential growth. Yet, Groupon appears to have trouble even before launching its site.
Here are three major issues that have been reported in recent news:
1. If you are one of the 111 million viewers who turned in to watch the Superbowl, then you have already seen the Groupon's controversial Superbowl ad about Tibet. Whether there was hidden political agenda involved or not, one blogger claims that "Groupon's Tibet Super Bowl ad offends everyone". (In Groupon's defense, as explained in its company blog, the commercial is a "a parody of a celebrity-narrated, PSA-style commercial that you think is about some noble cause, but then it’s revealed to actually be a passionate call to action to help yourself.")
2. Groupon China's marketing director Ren Xin resigned before the official site launch. This raised speculations about the prospects of Groupon's progress in China. It seems to directly dispute the bold statement that Groupon wants to assemble a Chinese team with its $950 million spending.
3. Lastly, when Groupon and Tencent finally launched its website, Gaopeng.com, it went offline in less than 24 hours. Sarah Lacey of TechCrunch states that Groupon and Tencent are facing gripes because the management team consists mostly of foreigners.
Not only is Groupon facing internal conflicts within the company, but also enters a competitive market where several Chinese websites (i.e. Tuan800.com, Lashou.com, Goutuan.net) have already gained major presence among local consumers.
If Groupon doesn't succeed in China, then it has wasted almost $1 billion on a sheer bubble. Is this a right move for Groupon? I hope we won't look back to this day and regret Groupon's rejection of Google's $6 billion bid.
Here are three major issues that have been reported in recent news:
1. If you are one of the 111 million viewers who turned in to watch the Superbowl, then you have already seen the Groupon's controversial Superbowl ad about Tibet. Whether there was hidden political agenda involved or not, one blogger claims that "Groupon's Tibet Super Bowl ad offends everyone". (In Groupon's defense, as explained in its company blog, the commercial is a "a parody of a celebrity-narrated, PSA-style commercial that you think is about some noble cause, but then it’s revealed to actually be a passionate call to action to help yourself.")
2. Groupon China's marketing director Ren Xin resigned before the official site launch. This raised speculations about the prospects of Groupon's progress in China. It seems to directly dispute the bold statement that Groupon wants to assemble a Chinese team with its $950 million spending.
3. Lastly, when Groupon and Tencent finally launched its website, Gaopeng.com, it went offline in less than 24 hours. Sarah Lacey of TechCrunch states that Groupon and Tencent are facing gripes because the management team consists mostly of foreigners.
Not only is Groupon facing internal conflicts within the company, but also enters a competitive market where several Chinese websites (i.e. Tuan800.com, Lashou.com, Goutuan.net) have already gained major presence among local consumers.
If Groupon doesn't succeed in China, then it has wasted almost $1 billion on a sheer bubble. Is this a right move for Groupon? I hope we won't look back to this day and regret Groupon's rejection of Google's $6 billion bid.
Sunday, February 13, 2011
KFC Cashes in on Love of Chinese Couples
KFC brings the Cupid's arrow to China for this Valentine's Day weekend! What food captures the millions of young couples in love? Egg tarts. For those unfamiliar with this pastry item, it originated in Portugal but has gained popularity in Hong Kong and Macau over recent decades. In fact, it has become a staple dish for the local dim sum cuisine. According to this Wall Street Journal article, KFC sells three times as many egg tarts on Valentine's Day than any other time throughout the year.
KFC is not the only one to have a love campaign to lure in more Chinese consumers. Starbucks Corp. and Haagen-Dazs each have their own Valentine's Day promotions.
Doesn't it seem strange? A western holiday such as Valentine's Day is receiving so much recognition in a country that has very different culture from America? This growing trend is the end result of western companies using every sales ploy in the book to create more revenue to their balance sheet. They pry on Chinese consumers' desperate desire to experience the American lifestyle by introducing these Hallmark holidays.
Is this the beginning of western invasion in China? Will one day Valentine's Day become a Chinese holiday? KFC's vision is to "be integrated into Chinese consumers' lives." I'm scared that one day I will see children in China gulf down super-sized burgers and drink a extra large cup of Coca-cola for dinner.
KFC is not the only one to have a love campaign to lure in more Chinese consumers. Starbucks Corp. and Haagen-Dazs each have their own Valentine's Day promotions.
Doesn't it seem strange? A western holiday such as Valentine's Day is receiving so much recognition in a country that has very different culture from America? This growing trend is the end result of western companies using every sales ploy in the book to create more revenue to their balance sheet. They pry on Chinese consumers' desperate desire to experience the American lifestyle by introducing these Hallmark holidays.
Is this the beginning of western invasion in China? Will one day Valentine's Day become a Chinese holiday? KFC's vision is to "be integrated into Chinese consumers' lives." I'm scared that one day I will see children in China gulf down super-sized burgers and drink a extra large cup of Coca-cola for dinner.
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