ARCTIC DIMENSION Design Lifestyle Crosssectoral Business Opportunities

1
ARCTIC DIMENSION Design LifestyleCross-sect
oral Business Opportunities

• Business Opportunities Quick Check China and Hong
  Kong

2
HONG KONG
3
Country facts in a nutshell / Hong Kong

• Population 7,6 million inhabitants
• number of households
• age structure
• GNP 23.000 USD capita
• Hong Kong Island Center, Admiralty, Causeway
  Bay, Kowloon Tsim Sha Tsui, Kowloon Tong, Shatin
• Marital status division (Married, Divorced,
  Widowed, Single) and how it differs in urban and
  rural areas
• Educational level

4
Everyday lifestyle

• Life in HK is busy. Work plays an important role
  and days are often long. Saturday is a working
  day as well (1/2 day).
• Homes are in average small and several
  generations may share a flat. It is common for
  young professionals to live with their parents
  until they get married.
• Eating is important part of social life and it is
  very common to have dinner with friends / family
  in a restaurant in the evening and weekends. It
  is said that a person eating alone has a heavy
  heart. All possible kitchens around the world are
  available in Hong Kong, but Hong Kong Chinese
  prefer Chinese food.
• Regarding beauty for women it is ideal to be
  slim, and perfect, white skin is favored. For men
  it is good to be a bit heavy on the waist to show
  that one has money to take good care of the
  family.
• Fitness, i.e. jogging and workout at gyms is more
  and more popular, though still more favored by
  westerners than Hong Kong Chinese. Tai Chi is
  practiced in parks throughout the year especially
  by middle aged and elderly.

5
Leading department stores in Hong Kong

• Lane Crawford
• Department store chain with shop-in-shop concept
• Clothes, accessories, table and bedware, gifts,
  cosmetics
• Most international brands like Mulberry, Calvin
  Klein, etc
• Causeway Bay, Admiralty, IFC (exclusive layout),
  Tsim Sha Tsui
• Wing On
• Clothes and accessories, household and bedware
• like Sokos
• Also foreign brands
• Chinese style
• Shopping malls (galleries with separate brand
  shops)
• Harbour Place
• Lee Theatre
• Pacific Place
• IFC
• Time Square
• Festival Walk, Kowloon Tong
• Several other in Central, Admiralty, Causeway
  Bay, Tsim Tsa Tsui, Shatin, Olympic City

6
Japanese department stores in Hong Kong

• Mitsukoshi
• Shop-in-shop
• Products according to brand names
• clothes bags jewellery combined according to
  consumer group
• Household, table and home ware, cosmetics
• SOGO
• Japanese department store
• Products arranged according to brand names
• Household, table and homeware, cosmetics
• Seibu
• By brands

7
Lifestyle chains and department stores in Hong
Kong

• Franc Franc Design for Life
• Japanese interior shop chain
• present in Shinjuku, Shibuya, Osaka, Fukuoka,
  Hokkaido and Hong Kong
• Furniture, lighting, appliances e.g. CD players,
  microwave ovens and rice cookers, goods specially
  for bedroom, bathroom and kitchen including
  tableware
• Colorful Scandinavian style, Japanese corner,
  currently Christmas Special- promotion
• GOD Goods of Desire, For good living
• Lifestyle chain, 4 stores in HK
• Furniture, lighting, home accessories, dinnerware
  drink ware, bathroom / housekeeping
  accessories, fashion bags, stationery and
  functional accessories.
• Exclusive own design, GOD lable, modern Chinese,
  oriental style
• Race course bed ware won Elles Product of the
  Year award

8
Lifestyle chains and department stores in Hong
Kong

• Shanghai Tang - Taste of China
• Chinese lifestyle chain
• First and only Chinese life style brand
• Idea by David Tang in 1994
• Wearable, relevant, commercial products
• Collaboration with leading European and Asian
  designers
• Modernized Shanghai Style innovative use of
  traditional motifs, bright colors, using old
  artisan techniques
• Stores Hong Kong, London, Shanghai, Singapore
  and New York
• Designed luxury-goods dress and suits for women
  and men made of silk and other prestige
  materials, accessories, interior decoration,
  gifts. Imperial tailor.
• Everything with own brand and design
• 2006 themes forbidden city, contemporary arts
• Clients mainly tourists and westerners, not so
  much HK or Mainland Chinese

9
Lifestyle chains and department stores

• Muji Lower price for a reason
• Japanese lifestyle chain
• A globally known brand
• Muji is short for Mujirushi Ryohin, which means
  "no brand
• Natural and simple design to propose rational
  lifestyles for today's world, natural colors
• More than 5,000 items as Muji products (private
  label)
• Muji Products Clothes for men, women and
  children,bags, accessories, cosmetics, food, home
  organizers
• Muji Cafe / Muji Meals bakery cafés and
  restaurants
• Muji Campsite
• Operating campsites (3 sites in Japan?)
• Promoting outdoor activities
• Florist selling flowers
• Living spaces home furnishing

10
Retailing market lifestyle chains and department
stores

• JUSCO
• Maybe not here, from my mind it is rather low
  priced concept
• Little bit like Tiimari but with wider
  assortment of goods
• Pacific Cafe The Perfect Cup
• Cafe chain with internet access
• Present in Hong Kong and Singapore
• Selling small items related to coffee/tea
  drinking
• mugs
• coffee beans blends, tea
• music
• Environment with comfortable music selection,
  warm lighting, couches and sofa chairs, an
  international selection of newspapers and
  lifestyle magazines, private space and space for
  community socializing

11
Characteristics of the retailing market in Hong
Kong

• Offering in Hong Kong is impressive all leading
  global brands are in Hong Kong
• Especially clothes, shoes, handbags and jewellary
• A lot of interior designers
• Interior shops Causeway Bay, My favorite shop,
  small stores in Sohossa
• Tequila Kola, Shambala (oriental) etc. in Ap Lei
  Chau
• Very brand oriented
• Shop-in-shop concepts
• Brand stores in shopping malls, small stores e.g.
  in Soho, spas, yacht or country or golf or
  fitness clubs etc.

12
Lifestyle concept in Hong Kong

• Leading lifestyle trends
• Western style is preferred over Chinese. Only
  modernized Chinese style is used. E.g. Shanghai
  Tang is mainly for westerners and tourists.
• Trends, latest versions are important. Last
  season is not interesting anymore, and even new
  goods are on sale in two weeks.
• Hi-tech and technical features are important
• Use and sell It is usual to up-grade to latest
  version and sell the older model to second hand
  traders or friends
• How does lifestyle concept show on the consumer
  good market
• Trecking and sports goods stores in Times Square,
  Mong kok
• High-technology, Leisure, LOHAS, home decoration
• Lifestyle issues are discussed
• SCMP Theme and supplements
• Promotion catalogues, HK Magazine, Perspective,
  and other magazines
• Cooking, fashion style
• Among your friends food, clothing
• Promotional events electronics, telephones,
  cosmetics
• Campaigns and free gifts are widely used in
  marketing.

13
Consumer groups with good consuming power

• Teen age people
• Get a lot of money from their parents
• Working young persons living with their parents
• Good income but low living expenses
• Children
• Parents and grandparents as purchasers

14
BEIJING
15
Beijing Facts 2004

• Population 14.213 million
• number of households, 4.75 million
• age structure (population census in 2000)
• 0-14 1.36 million 13.6
• 15-64 7.8 million 78
• Over 65 0.84 million 8.4
• Education level (population census in 2000)
• College and above 17
• Senior secondary school 23
• Junior secondary school 35
• Primary school 18
• Marital status (2004)
• population aged 15 and over 12.79 million
• single 24
• first married 67
• re-married 1
• divorced 1
• widowed 4

16
Beijing Facts 2004

• Per capita disposable income, 15638 RMB
• Per capita living expenditure, 12200 RMB
• Retail sales 219.2 billion RMB
• Per capita retail sales 14711 RMB

17
Everyday lifestyle in Beijing

• Living, young people like to live separately with
  their parents, rent or buy apartment, young
  couple with child who is less than 3 years old
  normally live together with parents
• Leisure, having dinner together with friends, go
  to bar, for weekend, go to the suburbs of Beijing
• Fitness, 2-3 time per week to fitness center,
  Yoga is very popular among young ladies. Losing
  weight is always the hot topic.

18
Retailing market in Beijing

• Leading department stores
• Beijing Wangfujing Department Store (local)
• Pacific Department Store (Taiwan)
• Parkson Department Store (Malaysia)
• New World (HK)
• Sogo (Japan)
• Leading design / decoration chains and shops
• The Home World Group (local)
• Orient Home (local)
• BQ (UK)
• OBI (Germany)
• IKEA (Sweden)

19
Retailing market in Beijing

• Life style concept stores the business idea and
  display is build around a certain life style
  theme
• Wangshi, sell honey, royal jelly, flower powder
  
• Shanghai Xue, traditional Chinese dress
• Loccitaine, French, body care products,
  fragrant products
• Characteristics of the retailing market
• Supermarket chain is the largest retail format.
  In Beijing we have Jingkelong and Wu-Mart
• Hypermarkets by international retailers,
  Carrefour, Wal-Mart
• Convenience store, 7-Eleven, Quik
• Specialty stores
• Home electrical appliances, Guomei, Suning,
  Dazhong
• Home decoration and furnishings (see the above)
• Clothing and apparel, casual brands from HK,
  Esprit, Giordano, Baleno
• Branded specialty stores (typically located in
  shopping arcades of hotels, increasingly setting
  up own flagship stores).
• Online purchasing is increasing, eBay, Taobao.com

20
Lifestyle concept in the Beijing market

• Leading lifestyle trends
• Healthy life
• - food safety
• - functional food
• - nutrition products (Amway, Tishi, Babycare
  etc.)
• - outdoor sports
• - fitness center
• - green decoration (non-pollution, simple
  style, light color)
• Youth trends
• - young Chinese motivated by sports fashion,
  music and high-tech gadgets
• - Urban Chinese teenagers typically download
  hip-hop tunes to trendy Samsung mobile phones,
  wear Nike training shoes, eat MCDonald and drink
  Coca-Cola (From EIU)
• Luxury brands keep on coming
• How does lifestyle concept show on the consumer
  good market
• - chain stores, like special food, outdoor
  sports equipments, body care products, clothing
• - direct selling, like the nutrition products
  (Amway, Tianshi)
• - shop in shopping mall, like luxury brands

21
SHANGHAI
22
Everyday lifestyle in Shanghai

• Living Conditions good
• Living Surroundings not so good
• Housing average price 7.000-15.000 RMB/M2
• Leisure dine with friends and relatives, home
  cinema DVD, outdoor activities and gym, shopping,
  Karaoke, traveling, playing cards and majiang
• Working Conditions high competition and
  pressure, frequent overtime, long-time and
  crowded traffic, higher salary, better welfare,
  global organization and international working
  method

23
Retailing market

• Leading department stores
• Pacific, Isten, Printemps, Parkson, Oriental,
  Friendship,
• Leading design / decoration chains and shops
• BQ, IKEA, Homemart
• Life style concept stores the business idea and
  display is build around a certain life style
  theme (like Body Shop, Pentik Shops in Finland,
  Muji in Japan)
• Watsons, City Mart, Herborist, Natural Beauty,
  Chiltina, Physical, Nep.star Drug Store
• Characteristics of the retailing market
• Single shops or chains? Chains
• Own brands (private label) or a range of branded
  products? Both
• Shop-in-shop concepts? Yes
• Are these type of shops located in shopping
  malls, in certain district, spas, yacht or
  country or golf or fitness clubs etc. Most are
  located in shopping malls, certain district,
  large resident community

24
Lifestyle concept in the Shanghai Market

• Leading lifestyle trends health well-being,
  high tech/design, digital home, relaxing, simple
  and convenience
• How does lifestyle concept show on the consumer
  good market
• In chains and shops that are built around the
  lifestyle concept
• Old shops may do not recognize the impact of
  lifestyle concept
• Some new shops are leading new lifestyle concepts
• What kind of lifestyle concept already are on the
  market like
• High-technology, Leisure, relaxation and simple
  home decoration, on-line shopping
• How widely are lifestyle issues discussed
• In media like magazines and TV Very wide in
  Shanghai. Shanghai have one TV channel on fashion
  and lifestyle, lots of magazines and papers of
  fashions.
• Among your friends
• It is widely and deeply discussion, but we will
  discuss it sometimes.
• Which topics, themes?
• Leisure (Travel, Art Show, Shopping, Drama etc.)
• Have you seen promotional events around this
  theme? Tell examples

25
GUANGZHOU
26
(No Transcript)
27
(No Transcript)
28
Brief-Guangzhou

• Guangzhou is the capital city of Guangdong
  Province, covers an area of 7,434.4 Sq. km. Its
  the political, economic, commercial, cultural
  center which combines manufacturing,
  transportation, finance, information, education
  and human resources as a hub. It's the largest
  coastal city in the southern China, which is
  adjacent with Hong Kong and Macao. Guangzhou is
  one of the most economically dynamic and
  flourishing areas in China.

29
Cities with best consuming power in Guangdong
province

• Guangzhou,
• Dongguang,
• Shenzhen

30
Guangzhou-Population (2004)
Unit person
31
Guangzhou-Population (2004)

• Birth Rate 9.56
• Death Rate 5.74
• Natural Growth Rate 3.82
• Number of Marriage Registration (couple) 61,885
• Number of Divorces 11,265
• Rate of Divorces 18.21
• Number of Married Women of Childbearing Age
  1,445,809
• Late Married Rate (aged 23) 77.64
• One-child Rate82.36
• More than One-child Rate0.80
• Life Expectancy 76.83 years old

32
Basic Statistics on National Population Census
2000-Guangzhou

• No. of Households 2,820,647
• Average Family Size (person) 3.21
• Average employed person in family (person) 1.79
• Population by Age Group
• Age 0-14 1,633,142 , 16.43
• Age15-65 7,702,721, 77.48
• Age 65 over 606,159, 6.10
• Population with Various Education Attainments
• College above 400,530, 4.03
• Junior college 525,815, 5.29
• Secondary Technical School 619,955, 6.24

33
Guangzhou-GDP 2004

• GDP per capita over USD6,800, 14 annual
  average growth rate
• Total Retail Sale of Consumer Goods RMB170
  billion
• Per Capita Annual Disposal Expenditure for
  Consumption of Urban Households

34
Guangzhou-Strong Purchasing Power
Disposable Income per Capita
Expenditure per Capita
35
Guangzhou-Growing Life Quality

• City employee salary total amount
• RMB44.314 billion, Increase rate -14.3
• Employee average salary
• RMB25104, Increase rate-13.4

36
Guangzhou-Main Indicators of Culture (2003)

• Release of Various Films (films) 91
• Chinese-made Films 47 (51)
• HK Import Films 44 (48)
• No. of Film Spectators (10000 person-time) 241
• No. of Cinemas (units) 27
• No. of Theaters Music Halls (unit) 15
• No. of Public Libraries 15
• No. of Performance for Arts Performance Troups
  (time) 2892
• No. of Exhibitions 965
• No. of Broadcasting Stations (unit) 2
• No. of TV Stations (units) 3
• No. of Newspaper published (kind) 84
• No. of Books published (kind) 4946
• No. of Magazines published (kind) 281

37
Guangzhou People Everyday Life

• Eating in Guangzhou is very famous around the
  world. Guangzhou people enjoy delicate food, such
  as dim sum, gong fu tea, soups with traditional
  medicinal materials, healthy herbal teas. People
  pay more attention on the healthy, natural green
  food.
• Guangzhou is now expanding its urban district
  area, people will trend to live a little far away
  from the downtown, with more spaces of living
  facilities, such as swimming pool, fitness
  facility, and green plants. Living quality is
  improving.
• Weekend pleasures shopping, massage, Yoga,
  facial, spa, golf, club, KTV, disco, bars,
  sports, tourist, etc.

38
Guangzhou-Retailing Market

• Leading department Stores
• Friendship, Grandbuy, Xin Da Xin,
• Leading shopping mall
• TeeMall, Grandview Mall (the biggest shopping
  mall in Asia), Hong Cheng Plaza
• Life style kauppojen paikka Shopping malleissa
• Characteristics of the retailing market
• Retail shops are mainly grouped in the 2
  pedestrian streets, and within the shopping
  malls.

39
Friendship department stores

• Chinese value Friendship stores into premium
  category
• Higher quality department store
• Mainly products made in China
• Life style concepts not visible
• Wide selection from home electronics to
  jewellery, clothes and food

40
Life Style Concept Stores

• Clothing Li Ren Fang, Buyizhai
• Decorations Ding Hao
• Foot Massage Mu Zu Tang
• Beauty Spa Hair Design Celebrity Hair Design
  Center
• Golf Club Guangzhou Luhu Golf Country Club
• Furniture living decoration Guangzhou Meiju
  Center
• Fitness Total Fitness Club

41
(No Transcript)
42
(No Transcript)