Co-working spaces are a booming industry concept in China thanks to billions of dollars in funding. But how long before the lack of profits causes a shake-out? Walk into any of the most popular co-working spaces in China and you will instantly understand their appeal. They feel different to the average office, with their stylish designs, open office plans, laidback atmosphere, endless supplies of coffee and beer, and trendy young unicorn-hopefuls bouncing around.
The Chinese economy faces some serious problems, including a slowing GDP growth, environmental degradation and financial disequilibrium. According to Larry Summers, former Treasury Secretary in the Clinton administration, there are some specific solutions, such as making sure that opportunities for children are the same regardless of where in China and to whom they are born, making sure that the success of enterprises depends on the quality of what they sell and taxes are collected in a fair way and, finally, making sure that those who lead enterprises and communities do so for the benefit of their stakeholders.
French carmaker Renault has finally begun production in China after selling imported cars here for more than a decade. In February 2014, Renault signed a joint venture agreement with Dongfeng Motor Corporation. Carlos Ghosn, chairman and CEO of the Renault Group, once said that he hoped that Dongfeng Renault could get 3% of the Chinese market. Jacques Daniel, CEO of Dongfeng Renault, has his work cut out for him: the market is slowing down and rivals are already well-entrenched. In this interview Daniel explains how the company is adjusting its strategy for a slowing Chinese market, marketing to the Chinese consumer and the opportunity in electric vehicles.
In China a healthy gaming culture centered around PC games, and more recently, mobile games, is thriving. Despite a historic decision by China’s Ministry of Culture in January 2014 to lift its 14-year ban on video game consoles, foreign console companies Sony and Microsoft have largely failed to woo China’s 517 million gamers. In July 2015, Niko Partners estimated that fewer than 550,000 of Sony Playstation 4 and Microsoft Xbox One, combined, will be sold in China by the end of the year, a pittance compared to the profits made by both PC and mobile gaming. Both companies are trying to make headway in this potentially fruitful market.
An underdog in an industry dominated by giants, sportswear brand Under Armour recently pulled off a growth miracle by increasing its quarterly revenues more than 20% in 21 consecutive quarters. The 19-year-old Baltimore, MD-based company surpassed its German competitor Adidas last year in sales in the US, only trailing Nike in the world’s largest sportswear market. And now Under Armour trying to replicate its success in global markets, especially China. What does it have going for it in the world’s second-largest consumer market?
Western consultancies are facing questions in China. Can Chinese companies capitalize on the moment?
As technology and consumers mature, firms in China are finding that a crisis management strategy is a must-have.
As it pushes for internationalization, what is Chinese smartphone maker Xiaomi up against?
In a little over 10 years, Proya has become a leading domestic cosmetics brand in China by focusing on the underserved population in the hinterland, and now it wants to go global.
Innovation Works, the Beijing-headquartered incubator founded by former Google China chief Kai-Fu Lee, has set up a base in Silicon Valley. Chris Evdemon, who is spearheading Innvation Works’ US foray, explains the rationale.