Why China failed in creating own brands

kenduffy

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I am using mobile device perhaps you can post it here with translation I am always open to learn more and gain knowledge. Please don't take anything I say to be offensive is to you and anyone. I am only trying to express what I think and am open to reasonable and justified discussion.
Private companies have ushered in to take over the coaching change the tide of wealthy parents Industry
private enterprise is welcoming boss change


Red Group Zhang Yun Blue succeed his father as president Zhang agents, chairman 傅振瑞 Thai Asahi Wood, daughter of Fu Ayami major companies as Group General Manager and Chairman Goodwood Group 王友旭 son Gang took the scepter from his father ...... In recent years, with the in the 1980s a group of entrepreneurs to venture into the retirement age, their children began to come to the stage to become the new head of the enterprise. These born 70 golden spoon in his mouth, after 80 successors to take over companies in the process What is the story? Enterprises will bring to where? Can they, like fathers, like a good business at the helm? This reporter conducted a thorough investigation.

Professional managers hard into the "discernment" play the leading role or a family member

Although there are many mature professional managers, but for Castle entrepreneurs, "Biography bit" in children is most people's choice. Has completed the succession of Red Group, Goodwood Group, the ongoing succession of Thai Asahi Group, is still brewing successors Hengda Group, all reflect this feature.

"My father did not think should start business to me, but to a professional manager to take care of." General manager of Thai Asahi Group, a subsidiary of a major enterprise of Fu text quality, said the decision to call her back in succession before his father to find at least two professional managers do successors are not feeling satisfied, but finally she was called back from the United States. "I think it might be more likely to trust with the family concerned."

It is understood that Red Group "old head" Zhang agents also thought the beginning of the business to his daughter. "Why chose me? Kinship I think this and little sense of responsibility based on enterprise development, succession father very careful to treat the problem, he told me in a long test and observation, they finally decided to take over from me . "Zhang agent does not want to fight the family business enterprises, Zhang Yun in blue studying abroad in five years, Zhang agents are always looking for people who can take over, more than any hired professional managers, but also made "‹"‹a separate equity, etc., have been made a public enterprise for trying, but professional managers for a term of another term, no one to his satisfaction, so just think of his daughter recalled to.

Castle a company official said that this may be related to Shandong businessman habits. "Lu providers prefer family-run, pass at children more normal."

Grassroots level multi-sectoral experience beauty when the corporate head

2009 3 years, located in Jimo City Avenue Red Collar Red Collar Group headquarters, held a grand ceremony, Zhang Yun Blue officially took over from his father, "baton", went to the front desk, to become president of Red Group.

This scene is not Zhang Yun blue a few years ago can imagine. Study abroad after graduation to work in local, not short of money Zhang Yun Blue abroad and lived a comfortable life. Later, because of missing family members, Zhang Yun blue back home, when an American company in Shanghai on a decent income white-collar workers. But, all of this is "business trip" to Shanghai Zhang agent a seat "talk" changed completely.

Zhang Yun returned to the red and blue collar, began to prepare for succession, this is not a smooth road, but full of thorns. At first, Zhang Yun blue placed in the international business department made "‹"‹a declaration, in charge of customs clearance, inspection, with work orders and international business negotiations, a year later, Zhang Yun Blue was transferred to a marketing center. Then he was sent to the front-line production workshop. In various departments of the company, Zhang Yun blue all hard work, meticulous, by the end of 2008, only to sit on the president's position. Zhang agents still not assured, and her daughter were investigated for several months, in March 2009, Zhang proxy formal handover ceremony was held with her daughter.

"Succession process is quite smooth, I withstood the father of 'test', cultivate their successors quality." Blue said Zhang Yun, from the grassroots level, through the various "key" sectors righting, is China's private entrepreneurs succession one of the traditional path.

Experience taught old customers sending a horse and rode away

Fu succession course text quality is much shorter than the blue Zhang Yun. November 2, she revealed in an interview with reporters, "I'm back from the States in February of this year, because I go abroad earlier, has been living for 14 years in the United States, and a back particularly suited. Came back, after a few months, my father soon appointed me as the Group General Manager, following a major enterprise. "

33-year-old Fu Wen qualitative believe studying abroad is not a good thing for too long, his friends began to think she was completely westernized, out of tune with the surrounding environment. "I also opened a U.S. company, had just returned when everything and the United States than do their attitude is very good. Domestic efficiency may be almost, obviously speak good January 10 payment can be made to the time that come back, calling to each other, the caller said, this kind of accident, I thought, how could it, the contract should specify what time what time does it? "

For these problems she encountered, still served as chairman of the company's father kept her guidance, gradually, she adapted a lot of their business gradually led on the road, hit a few things, but also to understand the . "My father took me to know he had to make friends introduced me to the customer, helped me a lot. After six months of running, and now a big problem in the management company, and next year I want according to their own ideas into the family cupboard development of sales. huge piece of the market, the company has not properly operate. "

Most often learn from each other to stay over the ocean

And grass-roots origin, not well educated, "Ni Tuizi" status fathers founded the family business, these 70, 80 "successor" almost all ports gold spoon born, most of them received formal education, which many people with families favorable economic conditions abroad before, plated gold.

Zhang Yun Blue spent five years in Canada, the first to study and then founded his own company. Fu text quality in the United States until 14 years after graduating from the same university in a foreign country since the company opened their own businesses. Goodwood Group chairman Wang Youxu a dozen years ago, the son of Wang Gang went to Japan to study arrangements.

These took the scepter of "rich" from the hands of their parents, will often sit together gathering, exchange, discuss succession experience, vent pressure to run a business, the way to explore cooperation and business opportunities that may occur. "Similar to our background, similar to the experience, there are many common languages"‹"‹, each chat are likely to be harvested."

Dr. economic Qingdao University 张宗强 said, "rich second generation" not only to the family business tradition, but you want to flourish, in the present social context, a good education is to allow companies greater vitality glow important condition. Many entrepreneurs Castle will send their children abroad not let them come back after gilded succession, but also let them touch Gunda social climbing for many years, has plenty of experience in the real life experiences or later, before allowing them to "return to the nest" in charge the family business.

Yong, general manager of Qingdao Kun Wo die after graduation worked for many years before his own, Spark Group's successor at a government department for eight years, both theoretical and practical ability to reach a certain level, then returned to his father's office .

Zhangzong Jiang said that today's business environment is different from 20 years ago, the competition is more intense, the reality is the "rich second generation" who put a higher demand, asking them both to have a modern enterprise management capabilities, but also have an international outlook. "Most of the Castle of wealthy abroad or to develop a vision, learned a lot of things. They compared with fathers, might almost entrepreneurial spirit of hard-working, but in the knowledge structure and international perspective, they will definitely beyond predecessors. new 'successor' after White, the companies will bring new blood, business strategy may be a significant change or adjustment.
 

Compersion

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sorry, this case is not good, but there are so many private companies and they have been passed by to the second generation.
No need say the sorry. I was a little surprise to see that also that it is a communist party company,

I am sure there are but they must have communist party approval and control. That's my point. The communist party selected and allowed second generation.

The communist party has many second generation in power now, but they don't need approval like business people. They have a different approach and procedure.

One also sees a lot of cross matrix and nodules of communist party leaders and their family members that are leading and making big and large and wealthy business. Again that is a different procedure and approval from communist party.
 

Compersion

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sina.com
Yinlu FOOD
Harbin Brewery
Little Sheep Group
Red Chilli Group
blabla
A conflict of nationality ...

American listed PRC company.

American primary listed PRC company does that mean the brand is not 100% PRC. The communist party knows the risk.

what conflict? conflict against your imagination, right?

Will look into those later. But from initial impression they are majority owners are PRC and not foreigners . Please clear the doubt.

The conflict is there because if a company is listed in USA the rules and laws and compliance of USA authorities comes into play. That's not my Imagination it's the realty.

The communist party knows the risk. And in such analysis the brand is not 100% PRC because the presumption is there that such a company is of higher value since it can survive on the USA stock exchange.

But you read the quote earlier about qinhoo

In 2011 and 2012, Qihoo 360 has experienced scrutiny from short sellers on the stock exchange. The main concerns have been quality of accounts and quality of user data provided by Qihoo 360. The short sellers have mainly pointed to the discrepancy in reporting figures market shares between Qihoo 360 and firms such as Baidu. The most prominent critique has come from Citron Research, the stock research firm, and Anonymous Analytics, the hacker network.[5][6] However, Qihoo 360 responded forcefully to both of these critiques by releasing the 20-F full annual report which was audited by Deloitte which is very unusual for American listed Chinese companies and a response to Anonymous Analytics
 
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kenduffy

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Corruption issue can be control by communist party.
no, China's previous president doesn't severely crack down corruption. When he was in school, he was just a very obedient and honest student. He is conservative and actually without big ambition. He was nominated as president coz the CCP central committee chose him. When he took office, he thought if he is non-corrupt, then all the officials will follow him. But things don't work as he wish and he began to do nothing, that is why he looks like a puppet. And under his rule, although he paid big attention to the poor and villagers, the chinese society has been very bad, corruption, wealth gap, low moral standard, sex, blabla, just a grotesque capitalist/materialist society.

But since the new president took office, everything seem to be changed. Severe crackdown of corruption, reforms to promote private companies and individual business, protection of labor, blabla
 

kenduffy

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I want to see a example of a foreign owned internet tech company that only does business in PRC and is listed overseas.
I don't understand what you meant?
you mean foreign companies running their business in China?
then, Newegg, ebay, MSN, Amazon, Bing

You have mention control in alibaba. The control is not with jack ma at this moment, and majority ownership is with foreigners like you said. further the plan is to have control with jack ma and "partners". In other words compliance with communist party.

Yahoo sold and wants to sell. SoftBank also will in future. Pretty expensive for jack ma if he was the brain child. R u saying jack ma is like the Steve jobs.
but Alibaba is run by Ma Yun. Softbank and Yahoo don't run the business or order Ma Yun to do anything.

If Yahoo and Softbank sell their share to Chinese government or nationals, I feel happy coz the profit will go back to China.
Why it is expensive for jack Ma? what do u mean by mentioning Steve jobs?
 

kenduffy

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Will look into those later. But from initial impression they are majority owners are PRC and not foreigners . Please clear the doubt.
for example,

Yinlu Foods is a Chinese company, specializing in manufacturing processed and prepared foods and beverages. In 2011, Nestlé purchased 60% of Yinlu Foods, and became the parent company and main shareholder. In 2012, the company employed more than 10,000 people at 3 factories, and was constructing two more. Its 2010 revenues were equivalent to $812 million USD.

The conflict is there because if a company is listed in USA the rules and laws and compliance of USA authorities comes into play. That's not my Imagination it's the realty.
You imagine that CCP must have full control of all the companies in China, but the reality is CCP don't care whether the companies obey the rules and laws of USA. So this reality have conflict with your imagination.

The communist party knows the risk. And in such analysis the brand is not 100% PRC because the presumption is there that such a company is of higher value since it can survive on the USA stock exchange.
what risks? why should CCP control every companies? they may control some sensitive companies like 360 Qihoo or Baidu, or Weibo coz they are related to security or social stability. But they don't need to control most companies which have nonthing to do with social network or security or economic arteries of the country.

if you think these companies are like Alibaba, not a PRC company, then you have admitted there are similar companies like Alibaba.
 

Compersion

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no, China's previous president doesn't severely crack down corruption. When he was in school, he was just a very obedient and honest student. He is conservative and actually without big ambition. He was nominated as president coz the CCP central committee chose him. When he took office, he thought if he is non-corrupt, then all the officials will follow him. But things don't work as he wish and he began to do nothing, that is why he looks like a puppet. And under his rule, although he paid big attention to the poor and villagers, the chinese society has been very bad, corruption, wealth gap, low moral standard, sex, blabla, just a grotesque capitalist/materialist society.

But since the new president took office, everything seem to be changed. Severe crackdown of corruption, reforms to promote private companies and individual business, protection of labor, blabla
Not often one is given chance to read such specific criticism of previous president of PRC.

The communist party will not survive if it does not go along with business and control it. This includes being brand creators, You already gave a example of a daughter of a business person who spoke her mind (she had to give up her American residency)

The current president is more like jiang zemin. The previous one was more like a phd. You seem to prefer the current one.
 

kenduffy

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One also sees a lot of cross matrix and nodules of communist party leaders and their family members that are leading and making big and large and wealthy business. Again that is a different procedure and approval from communist party.
this is the consequence of the previous president, as I mentioned before.
The new president is dealing with these CCP second generation business problem. Now some CCP second generation have quit their business. The battle is going on.
 

kenduffy

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Not often one is given chance to read such specific criticism of previous president of PRC.
those criticism are in Chinese and you have no access to them coz you don't read Chinese.

The communist party will not survive if it does not go along with business and control it. This includes being brand creators, You already gave a example of a daughter of a business person who spoke her mind (she had to give up her American residency)
Maybe some CCP official love the west and their children are with west nationality. But CCP, as a whole or as an organization, is nationalist. They don't want foreign intervention, not only politically or economically, that's why they hope she give up her US residency.

The current president is more like jiang zemin. The previous one was more like a phd. You seem to prefer the current one.
No, you are wrong. It is Jiang who made China become a greedy capitalist country. But yeh, coz at that time China really needs to rush to capitalism ASAP.
But Jiang also started the "corruption wave" inside CCP and he use this to balance the interest sharing among different political parts inside CCP.
Hu Jintao is actually a socialist good student. But he is cowardly and did nothing against the corruption. Many ppl support the current president Xi Jinping
 

Compersion

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those criticism are in Chinese and you have no access to them coz you don't read Chinese.


Maybe some CCP official love the west and their children are with west nationality. But CCP, as a whole or as an organization, is nationalist. They don't want foreign intervention, not only politically or economically, that's why they hope she give up her US residency.


No, you are wrong. It is Jiang who made China become a greedy capitalist country. But yeh, coz at that time China really needs to rush to capitalism ASAP.
But Jiang also started the "corruption wave" inside CCP and he use this to balance the interest sharing among different political parts inside CCP.
Hu Jintao is actually a socialist good student. But he is cowardly and did nothing against the corruption. Many ppl support the current president Xi Jinping
Fascinating to read from you. I have not heard such a criticism about Jiang and Hu Jintao (especially). Also it seems afterwards and when they are not in power. Is Hu Jintao a Gordan Brown (promised a seat in power) ...

What happened to Bo Xialai ... that was done under Xi. Any news where he is. Seems Xi is doing a lot of good things according to you at this moment. Has he done anything wrong and bad up to now anything he can do better ??

Focusing more on the thread since it would be unfair to deviate too much.

How many of the top 100 brands in PRC are state-ownded. If a company is state-owned are they assisted to make sure they have benefit and in return the brand. I was to believe all companies of any worth in PRC have state-ownership. In areas like internet and public domain i would imagine that state-control is and has to be there. Whats the latest on Alibaba.

I was looking at your list:

sina.com - cannot find information on ownership. - would like your help
Yinlu FOOD - owned by Nestle 60% but what about the rest. (FDI) Where is Nestle main business and control center. Can Communist Party control and direct.
Harbin Brewery - In 2004 it was taken over by Anheuser-Busch after a bitter takeover battle with SABMiller. (American). Who did they buy from. (FDI) Where is Anheuser-Busch main business and control center. Can Communist Party control and direct.
Little Sheep Group - Subsidiary of Yum! Brands. (FDI) Where is Yum Brands main business and control center. Can Communist Party control and direct.
Red Chilli Group - Seems like some restaurant group based in australia (FDI) Where is Red Chilli main business and control center. Can Communist Party control and direct.
blabla - not sure what that is.

None of the above are PRC company that is foreign owned that has its primary listing overseas and control center in PRC. Also the areas are in consumer goods that PRC does not mind FDI in and the reasons why is for another thread (it legitimatizes market and brings in FDI). What i mean by "primary listing" is like Sina where they are listed primarily overseas but do main business in PRC and main control in PRC.

Sina i cannot find ownership details about that. please read about a term called Variable interest entity to understand what I am trying to say:

King & Wood : Variable Interest Entity (VIE) Structure for Foreign Investment in the PRC May Face Challenges

In essence, a VIE refers to a structure whereby an entity established in China that is wholly or partially foreign owned (the "Controlling Company") has de facto control over an operating company (the "Operating Company") which holds the necessary license(s) to operate in an FDI restricted/prohibited sector. As such sectors are subject to investment restrictions in China, foreign investors are not able to directly invest in the Operating Company. Accordingly, the foreign investors adopt various contractual arrangements between the Controlling Company and the Operating Company in order to obtain de facto control over the operation and management of the Operating Company. The profits of the Operating Company would also flow back to the Controlling Company and ultimately be consolidated with the finances of the Controlling Company.
However, the investors should note that since the overseas listing of domestic companies by way of VIE structure has gradually been extended from traditional light industries to heavy industries involving material assets (such as infrastructure and natural resources) and therefore also avoiding PRC government supervision, the motivation for the PRC government to regulate the VIE structure has become greater. Although we expect the government will not launch a severe clampdown upon the VIE structure in the short run, it is an issue very likely to be tackled by the government at some time in the future.
 

kenduffy

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How many of the top 100 brands in PRC are state-ownded. If a company is state-owned are they assisted to make sure they have benefit and in return the brand. I was to believe all companies of any worth in PRC have state-ownership. In areas like internet and public domain i would imagine that state-control is and has to be there. Whats the latest on Alibaba.
I'm not sure the number, for consumer goods, like food, consumer electronics, clothes, commodities, blabla are mostly private company brands.
State-owned companies are usually about electricity, running water, gas, telecom, cars, finance, blalba, but the under the new president's rule, the next 10 years, a lot of private companies will also march into these areas.

Now debate on privitization of many state-owned companies are in severe debate inside the party and outside the party. Too many debates on Internet.


I was looking at your list:

sina.com - cannot find information on ownership. - would like your help
Yinlu FOOD - owned by Nestle 60% but what about the rest. (FDI) Where is Nestle main business and control center. Can Communist Party control and direct.
Harbin Brewery - In 2004 it was taken over by Anheuser-Busch after a bitter takeover battle with SABMiller. (American). Who did they buy from. (FDI) Where is Anheuser-Busch main business and control center. Can Communist Party control and direct.
Little Sheep Group - Subsidiary of Yum! Brands. (FDI) Where is Yum Brands main business and control center. Can Communist Party control and direct.
Red Chilli Group - Seems like some restaurant group based in australia (FDI) Where is Red Chilli main business and control center. Can Communist Party control and direct.
blabla - not sure what that is.

None of the above are PRC company that is foreign owned that has its primary listing overseas and control center in PRC. Also the areas are in consumer goods that PRC does not mind FDI in and the reasons why is for another thread (it legitimatizes market and brings in FDI). What i mean by "primary listing" is like Sina where they are listed primarily overseas but do main business in PRC and main control in PRC.

Sina i cannot find ownership details about that. please read about a term called Variable interest entity to understand what I am trying to say:

King & Wood : Variable Interest Entity (VIE) Structure for Foreign Investment in the PRC May Face Challenges
the companies you investigated are PRC companies, they were Chinese brands and then acquired by foreign companies.

share holders of Sina


there are many companies which are similar to Alibaba and Sina, I list 3 examples if you want to study
jd.com, qihoo 360, perfect world gaming company
 

kenduffy

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Fascinating to read from you. I have not heard such a criticism about Jiang and Hu Jintao (especially). Also it seems afterwards and when they are not in power. Is Hu Jintao a Gordan Brown (promised a seat in power) ...

What happened to Bo Xialai ... that was done under Xi. Any news where he is. Seems Xi is doing a lot of good things according to you at this moment. Has he done anything wrong and bad up to now anything he can do better ??
previously, the old top leaders can still have a say in the Politburo. From Xi's Government on, they need to quit politics.

Bo is a ambitious guy and he is supported by maoists in China, which is dangerous for China. I don't know what he will do if he really becomes our president, coz he may not actually be a maoist. He just want to use maoist support to get the power. He actually performs like a politic figure in a democratic country, by which I mean he actually want to get the power using propoganda and publicity stunt. Or you can call it populism. What he did is to favor the underclass ppl while exploiting businessman and rich ppl. He keeps a high profile and let his son show in public a lot. It seems he would hope his son can be a president through election. So I guess maybe he think China will finally be democritized. But what he did really scares us, reminding us of cultural revolution and maoist governance. I think if he succeed, it is probably a disaster for China. But I think he is stupid, coz the current CCP government seem to have an way to deal such political outliers so as to keep balance, that is why he failed.

For Xi Jinping, until now it seems he is doing well. Under Hu's rule, although there are still a lot of corrupt official put into prision or sentenced, Xi's rule is thoroughly different. Last year, more than 200 thousand officials get punished due to corruption. Government expenditures has been severely cut. New rules, laws and reforms from the central government happen every day.
 

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