China Mobile, NTT DoCoMo, Korea Telecom Launch Global NFC Roaming Service (chinatechnews.com)

China Mobile, NTT DoCoMo, Korea Telecom Launch Global NFC Roaming Service (chinatechnews.com)

http://www.chinatechnews.com/2013/03/05/19163-china-mobile-ntt-docomo-korea-telecom-launch-global-nfc-roaming-service

Nowhere fast: KFC’s China future (buybuychina.com)

March 2, 2013

by Zach Valenta

http://www.buybuychina.com/nowhere-fast-kfcs-china-future/
Is it time to downgrade the “credit rating” of foreign food sellers in China? Ongoing safety scandals involving KFC and other upmarket brands have garnered unwanted attention for foreign food from customers and regulators. While scandal is commonplace for domestic Chinese food and beverage makers, foreign companies have managed to maintain an image of health and safety, even when it comes to fast food and sweets. Those healthy images are now under interrogation in an environment where low public trust in food quality has spawned a cottage industry of home safety devices from smartphone apps to home chemical testers. Can foreign food stay a healthy choice?
Problems for KFC and its parent YUM! Brands began on November 23rd when reports emerged that the company’s supply chain was compromised by excessive chemical levels. A week later KFC predicted a drop in same store sales for 2012. Proceedings gained steam when CCTV broadcast an undercover report on suppliers in Shandong province who allegedly fed banned substances to KFC birds. Not long after Shanghai’s food and drug regulators released test results showing excessive antibiotics in KFC’s chicken. A 2012 that saw KFC open the company’s 4000th location and move into China’s interior ended with an announcement that growth of new KFC restaurants would slow more than 10% in 2013.
Ever since KFC opened its first location nearby Tiananmen Sq in 1987, the Colonel succeeded on “the freshness, purity and nutritional value of their foods (instead of their appealing tastes).” 25 years later, KFC serves 6 million Chinese customers a day. With greater public health awareness, fried chicken is no longer “nutritional”, and KFC’s Chinese name implies greasy spoon fare. Nonetheless, KFC has continued to succeed by paying attention to local partnerships and local tastes. KFC can be found in Suning electronic outlets, Carrefour superstores, and also counts NBA star Jeremy Lin as spokesperson. YUM brands have been lauded as a MNC that “gets” the Chinese consumer, using local management and customized menu sets for their Chinese audience.
KFC has safety issues, but they aren’t alone. McDonald’s was also accused of malfeasance in the aftermath of the KFC scandal. Even foreign dairy makers, beneficiaries of China’s baby formula scandal in 2008, found themselves defending their safety bona fides. New Zealand, which makes up 80% of China’s imported dairy, faced charges that milk products contained water treatment chemicals. While scandals are changing the PR landscape for MNCs, increased scrutiny is also part of regulatory shift affecting all food producers. The Ministry of Civil Affairs will be overhauled amidst promised nationwide reform on food safety. Tougher legislation in 2009 and the establishment of a national safety commission in 2010, however, have yet to make an impact on safety standards; the legal process and an intimate manufacturer/regulator relationship are two culprits. Until industry consolidation begins and regulatory capture ends, scandal will persist in Chinese food manufacturing.
A few old lessons to remember. One, foreign companies will be held to a higher standard in China. Whereas Chinese firms “going out” face special PR challenges, foreign firms moving into the mainland have often found their foreignness a useful asset. Foreign brands will receive the benefit of the doubt on market entry, but mistakes will be punished more harshly. Two, domestic food and beverage makers have less credibility with consumers but a strong PR edge due to homegrown media relationships. PR fiascos and photo-op protest against MNCs are less likely to be tolerated by homegrown brands.

Luxury Brands Hit Hard By China’s Anti-Corruption Drive (beijingcream.com)

By Johan U March 4, 2013

http://beijingcream.com/2013/03/luxury-brands-hit-hard-by-chinas-anti-corruption-drive/

If you listen really carefully, you can hear the world smallest violin playing for all the corrupt officials in the People’s Republic – the campaign against corruption and wasteful spending means they’re no longer allowed to splash out on 8,888 yuan on bottles of fine tiger penis wine or whatever they drink.
However, there’s always the law of unintended consequences (or rather, supply and demand): since the campaign started last year, a number of companies that cater to the needs of the rich and the powerful are now feeling the pinch.
Around Christmas it was reported that Maotai, the brand of choice for the drinker in want of some conspicuous consumption, was hit hard by the campaign.
Likewise, Compagnie Financière Richemont, which owns the Montblanc and Catier brands, has seen its sales slowing. It doesn’t take a Benedict Cumberbatch to see why: according to one luxury goods insider, “As much as 60% of expensive watches in China are gifted to officials.”
Meanwhile, corrupt officials have been rushing to sell luxury properties and move their assets abroad. According to a leaked goverment corruption report, a whopping $1 trillion was smuggled out of China in 2012 alone. (To put it in perspective, that’s about three billion bottles of Maotai).
A bit closer to home, the average turnover of high-end eateries in Beijing is reported to have fallen 35%, according to National Business Daily. (Being a respectable newspaper, NBD refrained from mentioning similar figures for escort services or top-notch brothels, but we’re all able to read between the lines.)
The paper mentions Beijing Xiangeqing, an upmarket chain of restaurants, is revamping its entire business model in the wake of the government anti-corruption campaign. Dishes that cost more than 200 yuan are going to be taken off the menu. There are also rumors that the chain will axe one third of its staff.
Mistresses all over China are no doubt shedding bitter tears over the rapidly declining dining options, but don’t worry, we’ll look into starting a charity foundation that will aid them in these difficult times.
We’re still waiting to see how the anti-corruption drive will affect Audi sales.

Directory: 2013
2013 -> Annual InStructional unit plan
2013 -> The Ministry of Education and Science of Ukraine
2013 -> #1 a lifesafer of virginia inc
2013 -> Name(s): your name here team or Group #(if applicable): Professor’s name
2013 -> Alcott Local School Council (lcs) Meeting Minutes
2013 -> Table Of Contents introduction 2
2013 -> Supplemental demographic information
2013 -> 【Education&Working Experience】

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