Dragon News - No. 2, 2014

Download the Dragon News app

M e m b e r M a g a z i n e f o r t h e S w e d i s h C h a m b e r s o f C o mm e r c e i n H o n g Ko n g a n d C h i n a

No.02

2014 E-commerce

– a lifestyle in China China’s digital retail market is now the largest in the world and online shopping has become a lifestyle, creating new behaviour patterns among both consumers and businesses.

6

Cecilia Lindqvist On the future of the Chinese characters

22

Liselotte Duthu Helping to build a better China

28

Mikael Lindström Still active after all these years

Publisher The Swedish Chambers of Commerce in Hong Kong and China For advertising inquiries, please contact respective chamber’s office The opinions expressed in articles in Dragon News are those of the authors and do not necessarily reflect the views of the publisher.

Editorial management, design and printing Bamboo Business Communications Ltd Tel: +852 2838 4553 Fax: +852 2873 3329 www.bambooinasia.com bamboo@bambooinasia.com Art director: Johnny Chan Designer: Victor Dai English editor: Chris Taylor Cover photo: iStock INQUIRIES Swedish Chamber of Commerce in Hong Kong Room 2503, 25/F, BEA Harbour View Centre 56, Gloucester Road, Wanchai, Hong Kong Tel: +852 2525 0349 E-mail: chamber@swedcham.com.hk Web: www.swedcham.com.hk General Manager: Eva Karlberg Marketing Manager: Emma Cosmo Finance Manager: Anna Mackel INQUIRIES Swedish Chamber of Commerce in China Room 313, Radisson Blu Hotel 6A, East Beisanhuan Road, Chaoyang District Beijing 100028, People’s Republic of China Tel: +86 10 5922 3388, ext 313 Fax: +86 10 6464 1271 E-mail: info@swedishchamber.com.cn Web: www.swedishchamber.com.cn Office Manager Beijing: Karin Roos Webmaster: Jaycee Yang Finance Assistant: Klara Wang Shanghai Contact Office Manager Shanghai: Marianne Westerback Event Manager: Emma Gunterberg Sachs Tel: +86 21 6217 1271 Fax: +86 21 6217 0562 Mobile: +86 1368 179 7675 E-mail: shanghai@swedishchamber.com.cn

CONTENTS

No.022014 6

4 Editorial 6 Opinion: Cecilia Lindqvist 8 Snippets 10 Cover story: E-commerce – a lifestyle in China

22 Executive talk: Liselotte Duthu

10

24 Young Professional interview: Anna Kjellsdotter

28 Feature: Mikael Lindström 30 Chamber activities in Hong Kong 32 Chamber activities in Beijing

22

34 Chamber activities in Shanghai 36 Chamber activities in Taipei 37 Chamber news 38 New members

24

46 Annual General Meeting in Hong Kong 48 Annual General Meeting in China 50 The chamber and I: Online shopping habits Swedish Chamber of Commerce in Hong Kong

Swedish Chamber of Commerce in China

ADVERTISERS APC Logistics page 35, Asia Perspective page 21, Bamboo page 27 B&B Tools page 51, Finnair page 2, Environmental Air of Sweden (EAS) page 49 Ericsson page 19, Executive Homes page 47, Geodis Wilson page 17 Greencarrier page 20, Handelsbanken page 52, Hellström page 49

Thank you!

APC Logistics for your immense generosity shipping and distributing Dragon News in China, Hong Kong, Asia and Sweden.

Radisson Blu page 45, Scania page 9, SEB page 5, Sigtuna Boarding School page 15

Iggesund Paperboard for being the proud sponsor for the paperboard cover sheet of Dragon News magazine in 2012.

Cover printed on Invercote® Creato 220gsm.

Swedbank page 41, Unimer page 47, Vinge page 33, Volvo page 39

The Swedish Chambers of Commerce in Hong Kong and China

Iggesund Paperboard page 13, IKEA page 25, Johnny’s Photo & Video Supply page 37 Kinnarps pages 43, Mannheimer Swartling pages 31, Nordea page 45

DRAGONNEWS • NO.02/2014 3

Jon Hicks/Corbis/Scanpix

EDITORIAL

When it’s time to do business, we’re exceptionally open.

Katarina Nilsson Chairman Swedish Chamber of Commerce in China

Ulf Ohrling Chairman Swedish Chamber of Commerce in Hong Kong

Filial piety – respect for the family Dear Reader, The theme for this issue of Dragon News is filial piety, a term almost impossible to pronounce for a Swede, and which therefore is probably better translated as “respect for the family”. The concept is an important aspect of Chinese culture and religions. As the population grows older in China, the onechild policy will put enormous pressure on the children to support the elder generations.

In Sweden the concept of filial piety has also had its role and importance historically, but has been largely redefined since World War II. What we have seen is that families have tended to become smaller without implementing population reduction policies and families have also become richer as they have less children to support. Everyone recognises the importance of taking good care of parents and grandparents but can it be done differently?

Sweden chose to create institutions, homes for elders. It was a move that increased the workforce, as children – primarily women – no longer needed to stay at home to take care of parents and grandparents, and it also created jobs for nurses and others at

the institutions. However, alienation and loneliness were negative side effects of this development. Another trend in Sweden is a post-war generation of elders that do not have time to take care of their children and grandchildren. Today, most older people are busy travelling or playing golf, and most of them maintain a tight schedule even as late as in their 80s. As time is a limited resource and taking care of family is not needed the way it used to be, the family as an institution itself has assumed a more secondary role.

Filial piety and the relaxation of the one child policy have had a huge impact on Chinese society. From a human rights perspective it is deeply satisfactory that Chinese individuals will have increased freedom to decide on the number of children they have. From an equality perspective, the focus on having a son may become less pressing, though the possibility of being able to have a second child may turn out to be a drawback for women professionally when the need for maternity leave and spending more time with family is taken into account.

The impact on business is similarly profound. More children will in turn result in an increased need for goods and services,

schools, hospitals, universities and also houses, cars, smart-phones, clean water and food. This issue of Dragon News pays particular attention to e-commerce. With time becoming increasingly scarce for both the younger generation and the increasingly active older generation, e-commerce is likely to flourish. Nevertheless, while business and individuals will gain from the current reforms in China, scarce resources will become even scarcer and the environment will suffer as the number of people increase. Short term, it will be good for sectors such as healthcare and education. Long term, it will have negative implications for the environment and collective resources.

Let’s hope that China will learn from the Swedish model – both the good and the bad, combining fewer restrictions on people’s choices about having children with a buildup of institutional healthcare and care for the elderly. This needs to be carried out while also preserving the real essence of filial piety – love and respect. It is only creating a welfare state that the need for huge families with many children as a sort of pension plan can be eliminated.

Every business has a different story and a different goal. We understand that.

Over many years in this market of unique opportunities, we’ve developed the local knowledge, resources and connections needed to turn ambitions into reality. That’s why we’re one of the most well-established northern European banks in the region. For corporates, financial institutions and private banking clients, we’re ready to listen and cater to your needs – in Beijing, Shanghai, Hong Kong, Singapore and New Delhi.

Discover more at www.sebgroup.com/asia

4 DRAGONNEWS • NO.02/2014

永

On the future of the Chinese characters

If the Chinese writing system were abandoned and the characters discarded in favour of pinyin, it would be a cultural genocide, writes Cecilia Lindqvist, a Swedish sinologist, professor and author of several award-winning books on China.

TEXT: Cecilia Lindqvist, lindqvistcecilia.linxili@gmail.com Photo: iStock

O

字

read the old writings and poems, and understand ne afternoon in 2007, when a the wonderful calligraphy that so many prominew edition of my book, China: nent artists and scholars have left to posterity?

Empire of Living Symbols, had just In fact, to discard the characters in favour of been published in China, I held a pinyin, the phonetic transcription system introtalk in a bookshop in Beijing, where I presented duced in the 1950s, would, I said, cause more the book and, using characters etched on oracle problems than it would solve. Standard Chinese bones and bronzes – China’s oldest known writcontains only 420 different sounds. A syllable ing – talked about the extraordinary continuity like shi is represented in writing, according to in the development of Chinese characters and a modern dictionary such as Xin shidai hanyu their close association with the real world. The da cidian (The New Age Chinese Dictionary), by room was crowded, and as soon as my talk was over 70 different characters, each with its own over, a question-and-answer session began that meaning. As long as one sticks to the more lasted an intense three hours until the manager common words of spoken Chinese, then using of the shop appeared and said that the discuspinyin is fine, but as soon as one ventures into sions, regrettably, would have to continue out more complex subject matters, it’s virtually imon the street, as it was five o’clock and he was possible. Without the characters, shutting up shop. most of what has been written in The main thrust of the China over the past two or three discussion centred on the very millennia would be unintelligiexistence of the characters. A ble. In other words, it would be group of young men in the The number of different cultural genocide. audience went immediately on Chinese characters, each the attack. Why had I gone to with its own meaning, such lengths to explain why the I then drew a parallel with that a syllable like shi is my own world, where such an characters look the way they represented in writing. act has already been committed. do? Why should the Chinese For almost two thousand years, have to waste so much time and Latin was the language of the learned in Euenergy learning them? They were useless relics rope; everyone who had attended school had from a bygone world. It takes many more years studied the language and could communicate for Chinese children to read and write than with their peers, regardless of their nationality children in the West, and that’s solely the fault and mother tongue. Science books and literary of the characters. For the sake of China’s future, compositions were written in Latin, which was they said, we have to ditch all the ancient junk also the language of international diplomacy and open up to other countries and cultures. and ecclesiastical rituals.

Let’s start using the alphabetic systems used in I once had an eye-opening experience myself. the West. We have to adapt to what the rest of In the mid-1950s, I travelled to Ravenna in Italy the world is doing. to see some remarkable mosaics in a fifth century Not in a million years, I replied. If you ditch monastery there. The monk who welcomed me your characters, you’ll lose all contact with your asked me if I could speak Italian. I said, no, unown history and culture. Who would be able to 6 DRAGONNEWS • NO.02/2014

八

Photo: Ulla Montan

70

Without the characters, most of what has been written in China over the past two or three millennia would be unintelligible.” fortunately I couldn’t. I asked him if he knew any German, English or French, but he didn’t. “But signorina surely you studied Latin at school?” he asked, and when I, surprisingly, answered, yes, I had – for four years – he started to tell me in Latin about the many mosaics that adorned the building. And I – who had only learnt how to read and translate Latin and had never heard it spoken – understood almost every word he said.

After World War II, Latin gradually lost its status in the universities and schools of Europe, and in most countries the tradition of requiring students of history, art history and law to be familiar with the language was abolished. The deeply regrettable outcome is that almost 2,000 years of research and writing has since become inaccessible for everyone who has not studied Latin. And while basic knowledge of Latin is still essential in understanding European history and languages, only a handful of specialists able to make sense of a Latin text remain. The same fate would befall China if the characters were abandoned. It would be a disaster, I told the young men I was in discussion with many years later in China.

I was backed up by a group of middleaged and elderly people in the audience and the debate grew quite heated. We must preserve our cultural heritage, they said. Chinese characters have the longest uninterrupted tradition in the world and are infused with the echoes of 3,000 years of human thoughts and emotions. We represent the future, the younger generation argued. We don’t want to drag around the dry bones of a hopelessly ancient writing system.

Much has happened in the six years that have passed since that discussion. China has become digitalised and the call to replace characters with letters is seldom heard. People happily use characters on their computers and mobile devices, and if they forget how a certain character is written, the software is there to help them. It has now become so easy to write a text, that many people are even recommending a return to the un-simplified characters, which are much more beautiful and richly nuanced than most of the new characters introduced in the 1950s. Young people are being encouraged to study the classics San Zi Jing (The Three-Character Classic) and Qian Zi Wen (The Thousand-Character Classic), and the old characters are appearing in adverts and on the net in new, playful guises. Take 囧, which resembles a scrunched up face; this character is now commonly used as a smiley to indicate that something is crazy or embarrassing.

As China modernises and grows in international stature, all talk of it abandoning its writing system in order to become a vibrant global player is becoming increasingly irrelevant; rather, it’s the rest of us who are realising that we have to start learning Chinese. Classes in the language are gaining momentum in universities and schools around the world, and with that comes knowledge of the characters, and the admiration of their beauty and close association with Chinese life, literature and art. It is a unique cultural heritage, well worth loving, protecting and preserving. b

From 1952 to 1960, Cecilia Lindqvist studied the history of literature, the history of art, Nordic languages and history at Stockholm University, and renaissance lute in Germany and Italy. She made her first trip to China in January 1961, spending two years studying Chinese at Peking University, and music at the Qin Research Institute and at the Beijing Academy of Music. She travelled extensively in Asia and Latin America with her former husband over a five-year period from 1963, which also inspired several books. In 1970, she began a trial period teaching Chinese as a third language in Swedish upper secondary schools, which the government finally sanctioned in 1982. Since 1973, she has made annual visits to China, and discussed Chinese culture, history and society in interviews, articles and books. She has also been working as an upper-secondary schoolteacher. Her most recent books, China: Empire of Living Symbols (1989) and Qin (2006), which both won the August Prize, have enjoyed a wide readership the world over. She was awarded a professor’s title in 1989, and made an honorary doctor of Stockholm University in 2010.

DRAGONNEWS • NO.02/2014 7

E - c o m m e r c e S n i p p ets Clothes most popular items online at 12 and 11 per cent respectively.

The study suggests that e-tailing, or electronic retailing has had its major impact on China’s smalland medium-sized cities. While incomes in these cities are lower, their online shoppers spend almost as much money online as residents of some of China’s larger, more prosperous cities. They also spend a larger portion of their disposable income online.

The study also concluded that e-tailing has cut consumer prices. Depending on the category of the purchase, prices, on average, are 6 to 16 per cent lower online than in China’s physical stores.

n Apparel, recreation and education, and household products are the three largest online retail segments in China, according to a study by the McKinsey Global Institute, which analysed consumption patterns in 266 Chinese cities.

Apparel topped the list with a 35 per cent share of online consumption. Recreation and education, which includes consumer electronics, books and tickets, came second at 20 per cent. Household products such as appliances and furniture were the third largest segment at 15 per cent, followed by transportation/ communications and healthcare/personal products

Hongkongers still prefer physical stores n Nobody can deny that the people of Hong Kong love shopping. However, Hongkongers have not embraced e-commerce as the mainland Chinese have.

“For e-commerce or online retailing, Hong Kong is not well-developed,” Baniel Cheung, an online marketing specialist and lecturer at the University of Hong Kong’s School of Business, told CNN Travel some years ago.

One of the reasons is that consumers are still sceptical about online payments.

Cheung added that people in Hong Kong also have a deeply ingrained cultural preference for buying things in real life. “Hong Kong is so convenient, people just need to walk outdoors for a minute to buy a whole bunch of things,” he says. “If I go out in the evening, I can take my son, we can buy a few things and it’s a very cheerful experience.”

John Metcalf, an online marketing entrepreneur, agrees. “People here are conditioned to just walking out to shop. Retail is so much more accessible here than it is in other countries,” he said.

QUOTE

“eBay may be a shark in the ocean, but I am a crocodile in the Yangtze. If we fight in the ocean, we [Alibaba] lose, but if we fight in the river, we win.”

Alibaba’s founder and main shareholder Jack Ma on the early competition in China between Alibaba and eBay.

Did you know … n … that almost all Chinese e-commerce platforms rely on e-payment systems rather than asking shoppers to input details from their credit cards online? This is due to the fact that credit cards are not widespread or popular in China, even though they are accepted at most ATMs. There are dozens of e-payment systems, but Alibaba’s Alipay is far and away the most popular. Alipay is similar to PayPal. It can be used to send and receive money, and it can be connected to users’ bank accounts to facilitate transfers. Cash on delivery is also common in China.

China and South Korea have the most active mobile shoppers n A study of over 152,000 internet users in 31 markets, conducted by GlobalWebIndex, found that 55 per cent of internet users in China made a purchase via a mobile phone in the fourth quarter 2012, making China the country with the world’s highest mobile purchase penetration rate, reports the eMarketer website.

In North America, for example, the mobilepurchase penetration rate is much lower, at 19 per cent in the US and 13 per cent in Canada.

Shoppers in South Korea are also active with their smartphones, with 37 per cent of internet users making a mobile purchase. Internet users in India, Indonesia, Vietnam, Malaysia and Thailand

8 DRAGONNEWS • NO.02/2014

were all more likely than those in the US to rely on mobile purchasing.

A separate study of smartphone users worldwide, conducted by Nielsen, confirmed the Chinese and Korean’s shopping habits.

From mobile shopping to mobile banking to mobile wallets, Nielsen found that smartphone users in China and South Korea were significantly more likely to engage in a variety of mobile commerce activities than smartphone users in any other country it studied in 2012.

According to the Nielsen study, 43 per cent of smartphone users in China and South Korea were mobile shoppers.

Internet users in selected AsiaPacific countries that have made a purchase via their mobile phone (% of respondents, Q4 2012)

China

55%

South Korea

37%

India

26%

Indonesia

26%

Vietnam

24%

Malaysia

23%

Thailand

22%

Australia

17%

Philippines

15%

Source: GlobalWebIndex

O

n 11 November last year, dubbed in China as “Singles Day” since all the numbers in the date are ones, more people than the entire population of Brazil logged onto Alibaba’s two shopping platforms, Tmall and Taobao Marketplace.

This day, similar to Black Friday and Cyber Monday in the US, is a huge digital retail event in China, in which shoppers are offered up to 50 per cent discounts on most products.

By the end of the day last year, 213 million unique visitors had logged on, and Alibaba, China’s top e-retailer, saw record sales of 35 billion yuan – almost the same amount as the estimated total value of the Swedish e-commerce market for 2013.

The development of e-commerce in China has been rapid over the past decade and has become a new engine of economic development for the entire country, boosting consumption and expanding domestic demand.

E-commerce in China also differs from the Western world. In the US and Europe, the dominant model involves

retailers (such as Wal-Mart, Best Buy or Carrefour) or online merchants (such as Amazon), which run their own sites. In China, according to the McKinsey Global Institute, independent merchants account for only 10 per cent of electronic retail sales, while 90 per cent of the online business take place on virtual marketplaces – that is e-commerce platforms where manufacturers – retailers and individuals offer products and services to consumers.

This has also created a whole new industry full of third-party service providers that offer marketing and design services, payment fulfilment, delivery and logistics, customer service, and IT support.

Such a provider is Direct Link, owned

by PostNord (the postal companies in Sweden and Denmark), which has seen its Hong Kong and China logistics business

grow substantially through e-commerce.

“One year ago, we were shipping around 5,000 parcels a day out of China, but today we process 35,000 parcels daily originating from China,” says Ulrica Andersson, country manager for Hong Kong and China at Direct Link (see separate article).

Since Chinese e-commerce differs substantially from electronic retailing in the West, companies such as SCA, a leading global hygiene and forest products company, is now looking at its China operations as a lead market for the whole group when it comes to e-commerce.

“The growth rate is so much faster here and the volume is much higher. While Europe has a more traditional approach to marketing – for example by using advertisements and customer relationship management (CRM) systems – China has a

E-commerce

– a lifestyle in China China’s digital retail market is now the largest in the world and online shopping has become a lifestyle, creating new behaviour patterns among both consumers and businesses.

Text: Jan Hökerberg, Bamboo, jan.hokerberg@bambooinasia.com

10 DRAGONNEWS • NO.02/2014

clear focus on integrating digital marketing, CRM and e-commerce. As an example, Tmall is not only a sales platform, it is a platform for positioning and experiencing your brand, and building loyalty,” says Beatrice Chan, vice president for Greater China at SCA China (see separate article).

In 2000, China had yet to develop any e-commerce applications, and had only 2.1 million internet users in a country of 1.3 billion people. Payment systems and

physical delivery mechanisms to facilitate the development of e-commerce transactions were lacking.

However, today, China has surpassed the US to become the world’s largest digital retail market.

Last year, Chinese e-commerce shoppers spent RMB1.3 trillion online, a sum that has grown more than 70 per cent annually since 2009 and is expected to continue, reaching RMB 3.3 trillion by 2015, according to the management-consulting firm Bain & Company.

By 2020, China’s e-commerce market is forecasted to be larger than those of the US, Britain, Japan,

Germany, and France combined.

As Jack Ma, founder of Alibaba, puts it, “In other countries, e-commerce is a way to shop, in China it is a lifestyle.”

Online shopping has become an essential part of people’s lives and has created new social patterns among consumers, who discuss what they have bought and what they want to buy both on social media and in offices and cafés.

For Jacqueline Fang, administration manager and accountant at Bamboo, a communications agency in Shanghai, shopping online has been part of her regular habits for almost 10 years.

“My first purchase was when I was looking for a history book and couldn’t find it in the bookstores. So I went to Amazon on

Four Chinese virtues (2) Over thousands of years of history, the Chinese have formed a moral code that has played an important role in social development and progress.

These traditional virtues still have a great significance today, so for this year’s issues of Dragon News, the Swedish Chamber of Commerce has picked four of the virtues to serve as guiding stars for the cover stories: l (proper behaviour), xiào (filial piety), rén (benevolence) and dé (a power that shows the way).

In this issue we have taken a look at filial piety, which in Confucian philosophy is the virtue of respect for one’s parents and ancestors. We have chosen to focus on e-commerce, which is not only a way for easy online shopping but also a way for people to help their elderly parents to get the things they need.

DRAGONNEWS • NO.02/2014 11

In other countries, e-commerce is a way to shop; in China it is a lifestyle.”

Jack Ma, founder of Alibaba

my computer and there it was and I was very you don’t have to pay rents or salaries for happy,” says Fang. staff in physical stores.

Then, she started to buy other items In a recent survey of more than 1,300 such as electronic appliances, clothes, Chinese online shoppers across all city foods, cosmetics, concert tickets, and so tiers, incomes, ages and education levels, on. She uses several online stores, mostly Bain & Company found that Chinese Taobao or Tmall, but also Dangdang for shoppers are more willing than shoppers books and JD.com, in other markets to use previously called their smartphones to Jingdong 360buy.com. make purchases. They Today, she shops are also comfortable online, spending up to with third-party RMB1,000 per month. payments and online The main reason she banking and are shops online is that it is happy to rely on third both cheaper and saves a parties for deliveries, as lot of time. opposed to picking up “I normally get 10 products in stores. per cent and sometimes More than half of The value of sales at Taobao up to a 50 per cent those surveyed said and Tmall for just one day, 11 cheaper price compared that, regardless of November, last year, almost the with physical stores,” where they end up same amount as the estimated she says, adding that making the purchase total value of the Swedish she also buys for friends – online or in the e-commerce market for 2013. and family. physical store – they “I buy online for my browse websites and mother – mostly clothes. She browses the make price comparisons before they buy. internet and decides what she wants. Then I find the cheapest price and order it for her,” China’s digital retail market is also Fang says. shifting from consumer-to-consumer (C2C) sites such as Alibaba’s Taobao and Tencent’s PaiPai to businessThe change in shopping behaviour among the Chinese consumers is opening up to-consumer (B2C) sites like big opportunities for retailers to launch their Tmall, which shoppers tend to brands in new ways. Through e-commerce trust more than the more pure you are not limited to the big cities – you consumer sites. can reach the whole country. In addition, “A company can open its

RMB 35 billion

own, stand-alone, online store to launch a brand, but 90 per cent of the e-commerce activity in China is taking place on the marketplace sites,” says Jung Goh, head of strategy at Web2Asia in Shanghai, a digital marketing agency that specialises in e-commerce for the China market helping foreign clients to launch online stores.

“Taobao is the easiest way for small businesses in China to start selling online – it doesn’t require registration fees, and is set up against personal credentials. Even as a foreigner, you need only a passport, a Chinese visa and local bank account – compared to requirements for a registered company to set up on Tmall. Once you’re set up you can effectively sell right across China – however, the downside of a C2C platform is that there are less controls over things like fake products and copyright,” says Goh. The simplicity of Taobao and the fact that it doesn’t charge commissions have made it the undisputed C2C leader in e-commerce in China. However, just 10 years ago, EachNet was China’s top e-commerce site. It was acquired by USbased eBay, which invested more than US$250 million.

But eBay couldn’t fight the tough competition from Taobao, which had just been launched.

After three years, in 2006, eBay gave up and folded eBay EachNet into a

Taobao is the easiest way for small businesses in China to start selling online.”

Jung Goh, Web2Asia, Shanghai

12 DRAGONNEWS • NO.02/2014

DRAGONNEWS • NO.02/2014 13

An online store with exciting gadgets Ville Majanen started to buy electronics in Hong Kong and sell online to Finland when he needed to pay the rent for his flat. Then he started his own online store. Today, half of the population of Finland have visited his e-shop, e-ville.com In 2006, Ville Majanen came to Hong Kong for an exchange semester as part of his business studies in Finland. He had a one-way ticket, a limited budget and had difficulties to cover the rent for his small flat in Tsimshatsui.

He had bought a web camera in the Mongkok Computer Centre for HK$80 and then realised he could get many times more if he sold it in Finland. He put it up on a Finnish auction site and managed to sell it for 24 euros (around HK$250). Then he bought more web cameras, but also mp3 players and digital cameras.

“The first month, I sold 27 pieces, the second month 300 and the third month 1,000. I decided that this would be my business, applied for a visa and started a Hong Kong company,” says Majanen.

He launched a website called e-ville. com and started to hire people. Today, his company Digi Electronics has 16 employees and offices in Hong Kong and Shenzhen. The staff takes care of programming, sourcing, warehousing, customer service and marketing. The annual turnover is around 1.5 million euros.

The online store specialises in electronic appliances and gadgets, and car items, “exciting products that you don’t find in other shops.” It has some 250,000 customers, mostly from Finland but also from Sweden.

“Our website has had 3 million visitors in Finland, which is half of the country’s population. We have 5,000 different products, 45,000 subscribers to our e-newsletter and 18,000 Facebook friends,” says Majanen.

The company started to ship from Hong Kong to Europe but soon discovered that it was better to ship from China, where all the suppliers are located.

“It takes eight working days via airmail delivery from China to Finland and the postage is cheaper than to ship from Helsinki to Tampere [Finland’s two biggest cities],” says Majanen.

He has many Chinese competitors but when it comes to payment he has an advantage. The online shop has contracts with several banks, for example in Finland, for making online payments easier for the customers.

“The Chinese competitors haven’t got that far. On their sites, it is mostly only credit cards and PayPal that are available,” he says.

He admits that the competition is tough and says that “if I were starting today, I would have to be much more careful because of the local competition in Finland and the international Chinese online shops here”.

He is also prepared to start managing online sales on Taobao and Tmall for Scandinavian brands by importing goods from Europe to Shenzhen.

Another idea is to open physical e-Ville stores in Finland and stock the products in warehouses there, but he adds, “to do that we would need capital from an investor”.

Since he has been an intern himself, he is open to hiring between three and five interns per year in the Hong Kong and Shenzhen offices. He is also interested in expanding his Swedish business and is now looking for a Swedish-speaking person, either an intern or a full-time employee. “If anyone is interested out there, just contact me,” says Majanen.

If I were starting today, I would have to be much more careful because of the local competition in Finland and the international Chinese online shops here.”

Ville Majanen, e-ville.com

joint venture with Tom Online.

“When eBay bought EachNet it had close to 80 per cent of the market and Taobao had around 8 per cent. Now, Taobao has close to 90 per cent of the C2C market,” says Goh. In 2008, Alibaba opened the B2C site Tmall to reach people who like shopping

14 DRAGONNEWS • NO.02/2014

in department stores rather than local markets. Tmall is similar to the USbased Amazon, which also has a presence in China.

“Tmall is positioned as a trusted platform for legitimate brands,” says Goh, “so you need to own the trademark in China, or be an authorised distributor, to

open a store there. Tmall has worked hard to drive pro-brand measures, for example brand owners have the right to stop unauthorised sellers of the brand on Tmall and as a result, we have started to see image-conscious brands like Apple and Burberry open flagship stores on Tmall.”

Tmall is able to provide a unique “mall

A clear focus on digital marketing SCA uses e-commerce channels for marketing its products in China. The headquarters are now looking at its operations in China as a lead market for the whole group when it comes to e-commerce.

I buy online for my mother, mostly clothes.

She browses the internet and decides what she wants.

Then I find the cheapest price and order it for her.”

SCA, a leading global hygiene and forest products company, has set its online sales target in China to reach 25 per cent of all retail sales in three years time. For some of SCA’s products – for example its Libero diapers – half of the business already goes through online sites.

“We position Libero as a premium brand and have so far a controlled distribution in 11 big Chinese cities. This year, we expect 60-70 per cent of our Libero sales to come from e-commerce channels,” says Beatrice Chan, vice president for Greater China at SCA China and based in Shanghai.

Besides Libero, SCA China also uses e-commerce to market its other products in China, such as Tempo handkerchiefs and paper napkins and TENA incontinence care pads and pants.

“We market them at multiple sites,

such as Taobao, Tmall, Jingdong, Yihaodian (the No 1 store) and Amazon. Tempo is the most sold ‘hanky’ both in the Taobao system and on No 1,” says Chan.

Since Chinese e-commerce differs substantially from electronic retailing in the West, the SCA Group is now looking at China as a lead market for global development.

“The growth rate is so much faster here and the volume is much higher.

While Europe has a more classical approach to marketing – for example by using advertisements and customer relationship management (CRM) systems – China has a clear focus on integrating digital marketing, CRM and e-commerce.

As an example, Tmall is not only a sales platform, it is a platform for positioning and experiencing your brand, and building loyalty,” says Chan.

Jacqueline Fang, Bamboo, Shanghai

experience” for brands to set up their own mall website. The Tmall model has proven tremendously successful. In 2012, Tmall accounted for around 51 per cent of China’s B2C online sales.

In 2016, Alibaba Group Holding Ltd, which operates both the Taobao and Tmall platforms as well as the Alipay online payment system, is expected to surpass Wal-Mart of the US as the world’s number one retail network.

16 DRAGONNEWS • NO.02/2014

This year, we expect 60-70 per cent of our Libero diaper sales to come from e-commerce channels.”

Beatrice Chan, SCA China

E-commerce a major business for Direct Link The Swedish and Danish postal companies’ subsidiary has taken advantage of the e-commerce boom in China.

In 2004, Direct Link, which is owned

by PostNord (the postal companies in Sweden and Denmark), set up operations in Hong Kong for using its postal networks for sending letters and other postal products to Scandinavia for corporate clients.

But with the rapid development of electronic retailing in China and other parts of Asia, providing service for ecommerce clients has become a major business for Direct Link.

“Hong Kong and China are growing extremely fast when it comes to e-commerce. One year ago, we were shipping around 5,000 parcels a day out of China; today we process 35,000 parcels daily originating from China,” says Ulrica Andersson, country manager for Hong Kong and China at Direct Link.

The company competes directly with Hongkong Post and China Post, but Andersson says that Direct Link offers better services.

“For example, we can help our customers with tailor-made solutions and customs clearance. We also have a unique worldwide tracking system which is more advanced than our competitors’,” says Andersson.

Alibaba is expected to raise more than US$15 billion in its planned initial public offering (IPO) on either the New York Stock Exchange or Nasdaq, and could top the US$16 billion pulled in by Facebook Inc when it was listed in 2012.

The other giant in China’s e-commerce world is Tencent Holdings Ltd, which is Asia’s largest internet company and recently was ranked in the BrandZ Global Top 100 as Asia’s top brand and the world’s 14th most valuable brand. Its WeChat (Weixin) app dominates China’s smartphones, with 600 million subscribers.

18 DRAGONNEWS • NO.02/2014

C

M

Y

CM

MY

We can help our customers with tailor-made solutions and customs clearance and we have a unique worldwide tracking system.”

Ulrica Andersson, Direct Link, Hong Kong

Social media platforms in China, such as WeChat and Sina Weibo, have become important facilitators of e-commerce activity. Consumers use the apps to get advice from friends before they buy and to post product reviews.

Besides WeChat, Tencent operates the instant messaging platform QQ, with around 800 million accounts, the C2C marketplace PaiPai, and the online payment service Tenpay.

In March this year, Tencent acquired a 15 per cent stake in China’s No 2 online B2C retailer JD.com to build a stronger competitor to Alibaba.

JD.com started off focusing on

electronic items such as computers and consumer electronics, in which it is the e-commerce market leader in China, but it is now quickly diversifying into other categories. Recently, JD also made its debut on the Nasdaq stock exchange raising $US1.78 billion.

Besides the two giants, Alibaba and Tencent, there are several other big Chinese e-commerce players.

One of them is Yihaodian (the No 1 store) a B2C platform to shop groceries online. The world’s largest retailer Wal-Mart first invested in Yihaodian in 2011 and today it controls 51 per cent of the company.

US-owned Amazon were more

CY

CMY

K

successful than eBay in its Chinese acquisition, when it bought Joyo.com in 2004. Today, Joyo Amazon is among the leading B2C platforms.

As the Chinese e-commerce market war intensifies, a new trend has emerged among the market leaders, that is to operate both online and offline and offer a mix of both digital and physical retail.

In March this year, Alibaba bought a 25 per cent stake in the Hong Kong-listed Chinese department store operator Intime Retail for HK$5.37 billion. Intime operates stores, shopping centres and the online store Yintai.com. The two companies will share their membership resources and logistics network. It will also be possible to use the Alipay system for payment in Intime’s physical stores.

Tencent is looking for similar acquisitions and JD.com has said, according to the South China Morning Post, that it will cooperate with more than 10,000 convenience stores in Shanghai, Beijing, Guangzhou and Dongguan, to enable shoppers to place orders on its website and receive the products from the stores.

The battle goes on … b

Taxi, please!

Suddenly it became difficult to hail a taxi on the streets in China’s big cities. Don’t blame the drivers, blame e-commerce ...

Taxi fares are regulated by government, so there is no room for taxi companies to compete on prices.

However, in January this year, the two leading mobile and e-commerce firms in China, Tencent and Alibaba, launched taxi apps that both give passengers a discount and drivers a tip.

The Tencent-backed Didi Dache paid 10 yuan to passengers for each ride and the same amount to the driver.

Alibaba’s Kuaidi Dache paid 10 yuan to the passenger and 15 to the driver.

Tencent added payment and functionality for Didi on WeChat, China’s

most popular chat app, while Alibaba integrated Kuaidi into Alipay Wallet, its mobile payments app.

The idea from the e-commerce giants was to attract customers to do online shopping while in a taxi. To use the apps and get a rebate, customers must connect to the companies’ mobile payment platforms.

The taxi apps became extremely popular overnight but they also created huge frustration among customers that did not use the apps and had to watch long rows of apparently vacant taxis passing by on their way to pick up an app user.

Today, the subsidies have dropped and taxi apps have been banned in rush hours in cities such as Shanghai.

We call our long-term responsibility the Greencarrier Spirit International transportation the Greencarrier way www.greencarrier.com

20 DRAGONNEWS • NO.02/2014 Ad Dragon News June 2014.indd 1

2014-05-28 09:39:45

Helping to build a better China

I believe strongly in the future of China.” organisation gets a chance to develop their competencies and that they understand our code of conduct.”

She sees herself as a leader who strives to be fair and transparent, while making people feel that their opinions count and that they are all contributing to make Atlas Copco a better company. “I get disappointed if people don’t engage or show that they are interested. I have high demands and expectations when it comes to other people and also to myself.”

Duthu is happy to see many female engineers in China. She compares the situation in Europe, where around 15 per cent of engineers are women, with China where the rate is 40 per cent and says that this is in keeping with Atlas Copco’s aim to be a more gender balanced company in China. “We have several female general managers here in China, both expats and locals.”

With 27 years experience at Atlas Copco, Liselotte Duthu is now coordinating the company’s many operations in China, where it has grown rapidly. “China needs better air, cleaner water, food that is safe to eat, and so on. We have great products and solutions to fit all these needs,” she says.

Text: Jan Hökerberg, Bamboo, jan.hokerberg@bambooinasia.com

It

took two years for Liselotte Duthu to realise that the job she wanted was in the manufacturing industry and not in the financial sector as an economist.

Duthu was born in 1960 in Stockholm, and Törnblom was her maiden name. She graduated in 1985 with a degree in business administration from Uppsala University in Sweden.

Besides her studies, she was a tabletennis trainer for younger girls in Stockholm.

She undertook an internship in Canada after her graduation, before being accepted as a trainee at Atlas Copco’s global headquarters in Sickla, Stockholm.

After the two-year trainee period, she decided it was time for a change and took a position with a financial company in Sweden and stayed there for two years.

“But I realised that the corporate culture there was very different from the Atlas Copco culture, so I applied again for a position with Atlas Copco and got the job. I had learned many languages during my education and I had a strong willingness to work abroad,” says Duthu.

Today, Duthu has been with the Atlas Copco Group for 27 years, spending most of her time with the company outside Sweden.

She has held several senior international positions within the group in France, Sweden and Belgium, each with increasing responsibilities. Her previous job before coming to China was vice president and controller for the Compressor Technique business area in Antwerp, Belgium.

22 DRAGONNEWS • NO.02/2014

I have high demands and expectations when it comes to other people and also to myself.”

“I have worked in all our business areas husband Charles, who is retired after a long and I have always been interested in all our academic career. Their three children Mikael, applications. As an economist, I have had imKristoffer and Elin are studying at universities portant advisory roles, and that has helped me in Holland and Sweden. The family regularly to understand the company’s overall business,” gets together when they visit their home in she says.

Spain, between Alicante and Valencia, or at Being a business area controller meant their cottage in Orsa, Sweden, where the famthat she travelled frequently around the world ily’s Christmas holidays are celebrated. and was deeply involved in many strategic de“Working for a holding company is very cisions. “I had a lot of work different from the jobs to do in India, China and I’ve previously had,” she Southeast Asia, and visited explains. “You are still the region around five times involved in many things, per year,” she recalls. especially in relation to legal The number of people that However, after 11 years and structural questions as Atlas Copco employs in China in Belgium, Duthu felt that well as creating a solid platshe needed a new challenge. form for our businesses to When the company announced a vacancy of develop from, but you don’t have an operative the vice president position at Atlas Copco’s role, you are more like a coordinator and enaholding company in China, she applied for it bler. But at Atlas Copco you have the freedom and got the job. to form your job within certain frames and we “I was very excited because China today always think there is a better way.” has such a huge influence on the world’s This is probably one of the reasons why so development,” says Duthu. many employees, like Duthu, stay for such a long time with Atlas Copco. “Even in China, we’re a company where people stay. Our She moved to Shanghai in April 2012 together with her French-born but now Swedish employee turnover rate is as low as 6 per cent

6,700

per year compared to the industrial average voluntary turnover of 14 per cent.”

The Atlas Copco gold brooch on her jacket, which she wears during the interview, signals that Duthu is an Atlas Copco Gold Club member – a mark of distinction for employees who have worked for Atlas Copco for 25 years or more.

Atlas Copco has seen steady growth in China since it launched there in the early

1980s. Today, the company employs 6,700 people and has 28 wholly owned companies in China, of which 17 are production plants. Its strategy is to grow both organically and through acquisitions. Over the past six years, the company has almost doubled the number of its employees and subsidiaries in China.

With such rapid growth, Duthu emphasises the importance of internal training: “We must make sure that everyone in our

Atlas Copco’s four business areas – Compressor Technique, Industrial Technique, Mining and Rock Excavation Technique and Construction Technique – have all played a role in industries that have contributed heavily to China’s enormous growth over the past decades. Today, China is focusing on being less dependent on exports and infrastructure investments in order to shift the economy to a greater reliance on domestic consumption.

Duthu is not worried that this will affect Atlas Copco in China negatively.

“To a large extent, we’re also involved in the consumer industry. For example, compressors are needed in all industries. And if consumption increases, companies have to invest in new, efficient and reliable equipment. The on-going consolidation process in China to reduce overcapacity can also work in our favour. Atlas Copco always strives to increase its customers’ productivity through innovative solutions. There is, for example, now a strong focus on increasing safety in China’s mines, and fully mechanised, energy-efficient equipment is needed to do that.

“China needs better air, cleaner water, food that is safe to eat, and so on. Sustainable productivity is a byword at Atlas Copco, and we have great products and solutions to fit all these needs. I believe strongly in China’s future,” concludes Duthu. b DRAGONNEWS • NO.02/2014 23

A gold mine for a costume designer Anna Kjellsdotter, head of wardrobe at the Hong Kong Ballet, sees many advantages to working in costume making in Hong Kong since the city has great fabrics markets and is close to Guangdong province.

Text: Felix Nordlind, felix.nordlind@gmail.com

In

Hong Kong, there are bankers, bankers and yet more bankers. The whole city is centred on its financial industry and the jobs that come with it. However, people in Hong Kong do other things than banking, and one of these people is Anna Kjellsdotter, head of wardrobe at the Hong Kong Ballet.

In high school, Kjellsdotter took a course in photography, thinking she would become a photographer. After a while, she discovered that her true passion was fashion and clothes, not photography. After high school, she went to the textile capital of Sweden, Borås, to study men’s tailoring, but soon realised that fashion and contemporary clothes wasn’t as fun and challenging as the elaborate costumes that are made for theatre, opera and ballet. Her skills in tailoring led to a job at the prestigious Royal Dramatic Theatre in Stockholm, and later she joined the Royal Swedish Opera full time before taking on her current position at the Hong Kong Ballet.

“Madeleine Onne, who is the artistic director of the Hong Kong Ballet, needed a supervisor for their wardrobe and my old boss recommended me. I first came in 2012 and I was then hired as head of wardrobe in 2013, and that’s when I moved here full time,” says Kjellsdotter.

The interview takes place in a noisy Vietnamese restaurant so crowded that the owner has to set up extra tables in the back kitchen. When I ask Kjellsdotter what is the biggest difference between working and living in Sweden compared to Hong Kong, she laughs and says, “Just look at this place!”

She is referring to the chaos of the restaurant and the hierarchical structure the staff obeys. Our lunch has been delayed, as we keep getting the wrong dishes, but our waiter doesn’t have the authority to change the wrong plates we are being served.

“As you know, the city of Hong Kong is very hectic and crazy, and so is working here. When I first got here, my team members couldn’t make any decisions of their 24 DRAGONNEWS • NO.02/2014

All the fabrics that are available is a dream for any designer or tailor.”

Back in 1996, when mobile phones were the size of bricks; before tablets, before 3G, before Google even, Microsoft co-founder Bill Gates wrote an article in which he foresaw the importance of content on the Internet.

“Content is where I expect much of the real money will be made on the Internet, just as it was in broadcasting … Those who succeed will propel the Internet forward as a marketplace of ideas, experiences, and products – a marketplace of content,” he wrote.

Photo: Conrad Dy-Liacco

Bill Gates was right. Today, 17 years later, content marketing has become the art of communicating with customers and prospects without the hard sell. If you, as a company, can deliver consistent, ongoing, valuable content to buyers, ultimately they will reward you with their business and loyalty.

400

own, and I had to work all the time, not being able to The wardrobe at the Hong Kong Ballet has 5 fulltime tailors and 10 working part-time to help Kjellsdotter. delegate in the same way I would in Sweden. But things During performances it also has dressers and make-up staff. have gotten better and now I can delegate tasks and they She sees many advantages working with costume work more as a team,” says Kjellsdotter. making in Hong Kong: Are there any particular differences being head of The number of costumes “All the fabrics that are available is a dream for wardrobe in Hong Kong compared to Europe? that Anna Kjellsdotter any designer or tailor. Being so close to a place like “In Europe, they understand the importance of the and her 15 full-time and Guangdong province, where you can get literally wardrobe better because there is a longer tradition of part-time tailors at the anything, is amazing. And since Hong Kong is so close ballet there. For example, the studio where everything is Hong Kong Ballet’s wardto Guangdong, the fabrics market in Sham Shui Po has made is usually located in the same building as the ballet robe will make this year. a great range of fabrics to choose from. This place is a itself, because there are so many fittings for the dancers. true gold mine for me as a designer.”

Here in Hong Kong, however, my team and myself have Ballet in Hong Kong is not as popular as it is in Europe. “When to go back and forth between the studio in Happy Valley and the ballet I took the job I expected more interest, but most people don’t even in Tsimshatsui, and all the garments have to be sent by courier. It’s a know there is ballet in Hong Kong. But I’m positive. Just look at all logistic nightmare,” she says. the investments in culture by private institutions and the Hong Kong government. For example, the West Kowloon Cultural District will Being somewhat of a novice when it comes to ballet, I ask her have some amazing facilities that will most definitely attract loads of how hard it is to make a puffy skirt. She laughs and says: “That puffy people and make people more aware of different art forms available in skirt you are referring to is called a tutu. And it’s a very complicated Hong Kong,” says Kjellsdotter. piece to make, in contrast to what people might think. One tutu takes She adds with a smile, “And you know, if we’re lucky, there will be about 40 hours. It’s a very intricate piece that requires a high-level of a ballet theatre with a wardrobe studio in the same building, just like craftsmanship and technique. it’s supposed to. Wouldn’t that be great?” b “When I joined the Hong Kong Ballet, the quality of the costumes was not up to standard. Don’t get me wrong, the people I work with have extremely good technique and they are much better than me at Anna Kjellsdotter in brief making traditional Chinese clothes, but when it comes to Westernstyled pieces, such as the tutu, they lack the skill and experience. They Age: 34. used the wrong technique, the wrong material and so on. I’m very Job: Head of wardrobe at the Hong meticulous and have high standards. But now, after months of practice, Kong Ballet. the locals I work with have really improved. And I have learnt many Lives: Hong Kong Island. new things from them,” says Kjellsdotter.

Time in Hong Kong: One year.

She says that the number of pieces that she and her team make per Best thing about Hong Kong: “All the year depends on what shows the Hong Kong Ballet is running. This amazing fabrics available in Hong Kong August, for instance, they will perform Don Quixote. That alone will and just across the border in Shenzhen.” require 200 new costumes. In total, Kjellsdotter estimates that they will Worst thing about Hong Kong: “The hot make 400 costumes this year. “In addition to that, we have to repair and humid weather in the summer.” and remake costumes as new dancers join. It’s a lot of work,” she says.

26 DRAGONNEWS • NO.02/2014

Bamboo has been creating content in Hong Kong and overseas from 1996 and in China from 2002 as a one-stop shop for its customers. Here is what we can do: Customer magazines and newsletters, internal magazines and newsletters, apps for iPad and Android tablets, e-newsletters and websites, corporate video, marketing materials for trade fairs, article assignments and photography, interactive sales presentations, reader surveys, advertisements, etc.

We can do it in Simplified or Traditional Chinese and other Asian languages, as well as in English.

Feel free to contact us to know more or to set up a meeting.

Jan Hökerberg, managing director jan.hokerberg@bambooinasia.com Johan Olausson, sales and marketing manager johan.olausson@bambooinasia.com

Bamboo Business Communications Ltd (Hong Kong) +852 2838 4553 Bamboo Business Consulting (Shanghai) Co, Ltd +86 21 6472 9173

We make your company’s best stories come alive www.bambooinasia.com

The diplomat

After more than 40 years as a diplomat, former ambassador Mikael Lindström is now a part-time consultant helping, among others, China’s telecommunication giant Huawei with advice on adjusting to global markets.

Text: Jan Hökerberg, Bamboo, jan.hokerberg@bambooinasia.com

Mikael Lindström (third from left) with Swedish Prime Minister Fredrik Reinfeldt (third from right) during a visit to China.

The company [Huawei] is far ahead of other Chinese companies and they want to learn the game rules from other countries.”

For a diplomat, it is always extra interesting to be at the world’s political power centre.”

Still active after all these years It

will be run by trade unions. I explained to has been two-and-a-half years and marketing or networking on their behalf; them that if they act as a good employer since Mikael Lindström retired I’m just giving them advice on how to run they will get many benefits from the labour from Sweden’s Ministry for their operations in Sweden more smoothly,” market,” Lindström says.

Foreign Affairs, after serving says Lindström.

Recently, he joined a conference with the ministry for more than 40 years in many “I’m a strong believer in promoting Huawei’s entire executive management team different positions, including ambassador to investment, and Huawei can help to develop and nine other advisors from different countries.

Indonesia, Japan and China. the whole telecom industry in Sweden. Kista “The company is far ahead of other Chinese However, shortly after he retired Science City wouldn’t be a world-class mobile companies and they want to learn the rules of he was contacted by China’s global telecom cluster with only Swedish companies the game from external advisors. That kind of telecommunications equipment and services there. Swedish companies have been successful openness makes them stand out,” he says. provider Huawei, which offered him a role as in investing abroad, so we should also make a senior advisor.

“They needed someone who can Apart from Huawei, Lindström is also an advisor with the Swedish explain for them how Swedish society business development agency, Six Year works. Sweden was one of the first Plan, which focuses on China and markets they entered some 14 years ago The years when Mikael Lindström served as Sweden’s India, and he has also started his own and, today, they have 600 employees ambassador to China. firm, Sweden Asia Consulting. in Sweden with two-thirds of them He receives many invitations working in research and development,” to participate in seminars in Sweden about says Lindström. it easier for foreign companies to establish China. When Dragon News talked to him themselves in our country,” he says. he was preparing to participate in a panel at For example, Huawei asked Lindström He did not see a conflict in taking on Swedbank’s conference Tillväxtdagarna (the this part-time job, even if Huawei’s main for advice on whether they should sign a Growth Days) to talk about how China will competitor is Sweden’s telecommunications collective labour agreement in Sweden. He affect Sweden’s economic future. flagship Ericsson. managed to convince them to sign, which “Over the past 15 years, China has “I spoke with Michael Treschow, then they haven’t done anywhere else in the world. substantially influenced the Swedish economy. chairman of Ericsson, and asked his opinion “In China, most companies don’t Products that are made in China have lowered and he said that if I accepted the job he would understand why they should have such our inflation rate, and businesses such as the understand. I’m not active in Huawei’s sales agreements. They think it means the company

2006-2010

28 DRAGONNEWS • NO.02/2014

mining company LKAB have benefitted from the high market price of iron ore that Chinese demand triggered. An important question today is whether Chinese companies will follow in the footsteps of Japan and South Korea and establish global brands and become world market leaders in new products,” says Lindström.

When he looks back at the years as a diplomat, he highlights four periods in his life as especially memorable ones.

In 1983, Lindström was assigned to be first secretary at the Swedish embassy in Washington DC when the Reagan administration had just initiated a deregulations policy. “For a diplomat, it is always extra interesting to be at the world’s political power centre and I met a huge number of interesting and knowledgeable people.”

In the early 1990s, Lindström was stationed in Geneva and participated in many exciting negotiations – for example chairing negotiations on subsidies in the aviation industry. He was also the Swedish government’s representative in negotiations on China’s accession to the World Trade Organisation (WTO).

From 1994 to 1998, Lindström was Sweden’s ambassador to Indonesia. “It was exotic, hot and there were fascinating layers

of old culture. The country had three years of economic boom and then suddenly the whole economy collapsed. When the regime fell and mobs ruled Jakarta it was breaking news on CNN for more than a week.”

The years as ambassador in Beijing, from 2006 to 2010, were also a highlight in Lindström’s long career. “Again, I was stationed in a place where things happen that are of global importance.”

He accompanied China’s president Hu Jintao to Sweden in June 2007, the first state visit by a Chinese president ever, and he welcomed Sweden’s prime minister Fredrik Reinfeldt to China three times – the first time, in 2007, was the first time in 12 years that a Swedish prime minister had visited China.

Lindström is proud of having initiated, together with the embassy’s commercial counsellor Tony Clark, the Swedish environmental technology centre CENTEC and a similar centre for corporate social responsibility, both in Beijing.

“China has huge environmental problems and to position Sweden as a role model in this field is not only commercially motivated but also politically valuable, not only for the country of Sweden but also for all Swedish

companies that do business in China,” Lindström says.

After his retirement, he has settled in Danderyd, a suburb of Stockholm, and visits China when a job requires it. He will turn 70 this year and is enjoying life as a consultant.

“As long as I have fun things to do, I will do them,” he says. b Mikael Lindström on … … innovation in China: “Innovation has been prioritised by the government for many years in China. The country needs to go from being a supplier to developing its own innovative products.

I don’t see why China shouldn’t succeed.

Look, for example, at the development of electric cars.” … corruption in China: “The central government has good ambitions to deal with these issues, but to effectively combat corruption you need to have a more democratic and transparent system. You can’t do it only in an administrative way with statecontrolled regulations.”

DRAGONNEWS • NO.02/2014 29

Hong Kong An evening with Lars Nittve n On 8 May, SwedCham invited members and guests to an inspiring event with Lars Nittve, executive director at M+ Museum, where, to a full house, he gave an update on the current status of the M+ Museum and also shared some experiences from his impressive career in the modern art world.

Besides a very prolific career as a curator, with some 50 exhibitions behind him, including both thematic and monographic exhibitions of 20th and 21st century art, Nittve has had great success in developing audiences and raising funds for the museums he has directed. As a curator and writer, he has published numerous essays and books on art, has served on the juries for numerous international prizes, and has also been a board member of a large number of arts organisations.

He started his career as curator and later museum director at Moderna Museet, Stockholm, and has been the director of the Rooseum Centre for Contemporary Art in Malmö, Sweden, the Louisiana Museum of Modern Art in Humlebaek, Denmark, and Tate Modern in London. He moved to Hong Kong in 2011.

Valborg Luncheon n Members gathered at Eat Right in Soho on 30 April for a pleasant Valborg (Walpurgis) lunch to celebrate the arrival of spring. The menu was created by Martin Lorentsson, and everyone enjoyed the asparagus soup, the poached salmon, the cheesecake, and, of course, the company.

Successful beach clean up n On Saturday 17 May, SwedCham Hong Kong teamed up with Greencarrier for a good cause – namely to clean one of Hong Kong’s many beautiful beaches.

SwedCham Hong Kong’s Environmental Committee has arranged beach clean ups for a number of years now in order to raise awareness about the escalating issue of waste and trash not being taken care of in a sustainable manner. This year the clean up took place on the island of Po Toi, where 40 volunteers helped to clean the beach. More than one tonne of trash, such as plastic bags, glass bottles and food containers was collected.

Although there were thunderstorms and rain in the morning, it turned out to be a beautiful day and the excursion would not have been possible without Greencarrier, which sponsored the boat and a delicious seafood lunch next to the cleaned-up beach.

30 DRAGONNEWS • NO.02/2014

Beijing Swedish history in Shanghai n On 27 March, the chamber’s Beijing Chapter arranged a meeting at which Bengt Johansson, Sweden’s former consul-general in Shanghai, introduced his new digital database www.vhkp.se, which features photos and texts on Swedish history in old Shanghai. After the launch of his two books (Shanghai.

Svenskars liv & öden 1847-2012 and Bland direktörer och sjömän i det gamla Shanghai, both available at the chamber’s Beijing office) Johansson has received many letters from families in Sweden that kept photos and letters in their family archives. The new website will gradually be expanded to include all information that has surfaced since the publishing of the two books.

Bengt Johansson has documented Swedish history in Shanghai in two books and now on a digital database.

Optimism is in the air n Under the topic “Optimism is in the air - Balancing act in a shaky world”, Robert Bergqvist, chief economist at SEB in Sweden, gave an interesting presentation on current developments in the global markets. The event, which was held in Beijing on 4 April, attracted an active audience interested in the dilemma facing central banks following the slowdown in the economies around the world.

With interest rates close to zero, lacklustre growth, increasing asset prices and further monetary stimulus, opinions differ a lot on the best way forward for the world economy. In addition, factors such as the elections to the EU parliament and increased tensions in eastern Europe make forecasting even more difficult.

Bergqvist concluded that there will be continued heavy dependence on central banks, especially the Federal Reserve and the European Central Bank (ECB), and that there will not be any interest rate hikes until, at the earliest, 2015. He also expressed some concern about the long term prospects for the euro given increased support for EU-sceptic parties ahead of the elections.

Robert Bergqvist does not foresee any interest rate hikes this year.

32 DRAGONNEWS • NO.02/2014

Gilbert Van Kerckhove is convinced that we need to change our lifestyle.

Quality: The dilemma for the world n On 17 April, the Beijing-based Belgian strategy consultant Gilbert Van Kerckhove made an interesting presentation at the Swedish Chamber of Commerce in Beijing. Environmental issues make headlines today: air, water and soil pollution. Waste is a problem planet-wide, including the oceans, and it is trickling into the food chain. Meanwhile, climate change and global warming have been revealed to be a real threat in recent reports.

But the underlying cause, according to Van Kerckhove, is the maddening rush to consume, driven by big business and the world of finance all focusing on the short term. Today, we live in a constant and high-speed cycle of buy-throw-buy.

To stop the degradation of our planet and to limit the questionable search for more energy and raw materials, we need to change our lifestyle, by consuming with moderation and demanding products with high quality and durability.

While production volumes would decrease, more investment would be required in research and development, engineering, manufacturing and quality control. It would also require optimised energy use, respect for the environment and respect for labour laws. But unless governments fulfil their role as efficient and accountable service providers as well as enforcers of quality and durability, the weak consumer will still go for the cheap and poor-quality products and services that flood our markets.

“A too simple and utopian idea? Perhaps, but what is the alternative?” asked Van Kerckhove.

Experience leads to excellence Vinge opened its office in Hong Kong as early as 1985. In 1999, Vinge became the first Swedish and Scandinavian law firm to obtain a licence to open an office in China, located in Shanghai. Vinge has led the way and assisted clients in Sweden-China related trade and investment matters for more than 20 years. Practice makes perfect.

STOCKHOLM

GOTHENBURG

MALMO

HELSINGBORG

BRUSSELS

HONG KONG

SHANGHAI

Shanghai The fight against corruption in China

Flexible

n On 10 April, 25 members gathered at the Swedish consul-general Viktoria Li’s residence to learn about what measures are being taken politically and economically to fight corruption in China. Li held a very informative introduction, followed by Katarina Nilsson, resident partner at Vinge, who discussed the legal framework of the issue. Peter Idsäter, resident partner at Mannheimer Swartling, and Lars-Åke Severin, CEO of PSU, disclosed practical tips and shared examples from actual cases.

Lars-Åke Severin speaks to the audience.

From left, Johan Björkstén, Fredrik Hähnel, Sherry Zhao, Peter Idsäter and Lusha Niu.

Discussion about the Free Trade Zone n On 8 May, the Swedish Chamber of Commerce in China held a panel discussion on the topic of the so-called China (Shanghai) Pilot Free Trade Zone, which was launched in September last year.

Johan Björkstén from the MSL Group moderated the panel, which consisted of Peter Idsäter, Mannheimer Swartling, Fredrik Hähnel, SEB, Lusha Niu, MSL Group and Sherry Zhao, SKF. What can we expect in terms of big changes in the FTZ? How can the FTZ benefit my company? What are the reasons for registering in the FTZ compared to the rest of China? Which policy changes should companies registered in the zone lobby for? Is it true that government officials are open to ideas and suggestions from foreign companies in the zone? These questions and many more were asked and answered as the 50 participants enjoyed a grand breakfast buffet at the Four Seasons Hotel in Puxi.

After Work at Mayita n The Shanghai Chapter arranges monthly After Work sessions for its members.

The most recent was held on 8 May at the newly opened and Swedish-owned Mayita, a cosy Mexican restaurant and bar with a lovely terrace that was reserved for us.

Forty enthusiastic members mingled and enjoyed Mexican canapés and wine.

Relaxing at the terrace.

34 DRAGONNEWS • NO.02/2014

We are truly service minded and always on our toes, never assuming a standard solution is enough. We look to make the impossible possible in logistics.

www.apclogistics.com

Taipei Sweden-Taiwan business breakfast

Photo: Cecilia Larsson/imagebank.sweden.se

that have recently come to Swedish n On 29 April, the economic director of the Taipei Mission to Stockholm, CY Ling, visited the Swedish Chamber of companies in Taiwan, sharing the Commerce Taipei for a breakfast meeting. The objective examples of 4G and Ericsson. of the breakfast meeting was to have an open dialogue We had a great breakfast, between members of the chamber and director Ling, exchanging ideas, experience, and share experience and ideas for furthering economic and talking about how thinking ties between the two countries. Together with outside the box and making the Swedcham members from IKEA, Electrolux, Höganäs, most of the brand Sweden as a Ericsson and others, including Business Sweden’s marketing tool, we can continue to representative Henrik Persson, we enjoyed a sumptuous deepen economic ties between our breakfast at the Landis Hotel. two markets. Sweden has a long list of Louise Byström of the Swedish It was a great opportunity to share past experience, and household names in traditional industries Chamber of Commerce Taipei together with CY Ling. learn from director Ling’s two-year tenure working in Stockholm. such as fashion and pharmaceuticals, and We discussed some cultural differences, which naturally can be today this trend is continuing in newer industries seen as an obstacle. We do know, however, that national branding has such as media, IT, tourism and music. benefitted Swedish companies in Asia. The obvious examples include Given Swedish business’s longstanding reputation of being reliable, IKEA and Electrolux, and in the past decade Sweden’s strong track honest and delivering high quality, we have a strong foundation to build record in terms of quality and technology have brought us to the on. Cultural differences aside, Sweden and Taiwan also have values and forefront of IT exporters. Persson spoke of some business opportunities perspectives in common, when it comes to doing business.

Crayfish Party in September n Reserve Friday evening on 26 September for the annual crayfish party!

Once again we are going to have a great party to celebrate that we all are back in town and well settled back into our routines. Business people – new and old in Taiwan – will have long been back, after some vacation, and along with them, many new students as well, with most of them new to the city.

For the third consecutive year, we will have the party outside at the lovely 1967 Bistro & Café with students from Chalmers Asia, who will entertain us throughout this fun event.

And once again we are going to arrange an artistic “crayfish hatmaking contest”.

Don’t miss out on this exciting evening. A registration is a must.

Promoting Sweden in Taiwan

Sweden Day in November

n On 1 September, Annette Magnusson, secretary general of the Arbitration Institute in the Stockholm Chamber of Commerce, and Nils Eliasson, partner and head of dispute resolution for Asia at Mannheimer Swartling law firm in Hong Kong, will be the guest speakers at a lunch seminar focusing on arbitration under the title: “Effective Risk Management and Commercial Disputes”.

Efficient risk management requires legal services aligned with your corporation’s business objectives. This lunch seminar is an event entirely devoted to commercial perspectives on dispute resolution, with a particular focus on pro-active dispute management and dispute avoidance. It is designed to give you the correct tools for pro-active risk management in a commercial context.

For more information, please see our website, www.swedchamtw.org, or email louise@swedchamtw.org

n “Sweden Day” will be on Wednesday, 12 November, at the Huashan Creative Park in Taipei.

The Swedish Chamber of Commerce Taipei, in collaboration with Business Sweden in Taipei, is arranging this promotional event for Swedish business.

The event will coincide with a visit by a Swedish state secretary, who will be coming together with a business delegation to Taipei for the 30th Joint Business Council meeting (JBC).

We are inviting our Swedish company members to be part of the event.

As a participating host, you will have the privilege of having a booth at the venue and inviting 40 guests to the event. The chamber and Business Sweden will invite officials and the delegation from Sweden, meaning about 500 people will be in attendance.

36 DRAGONNEWS • NO.02/2014

Spotlight on the board: Hong Kong and Sweden need a tax treaty The Swedish Chamber of Commerce in Hong Kong has been lobbying on many frontiers to get Sweden interested to negotiate a tax treaty with Hong Kong as opposed to only a standalone information exchange agreement. The chamber’s efforts are generously supported by the boards of the Swedish chamber in China and the Sweden China Trade Council.

Below please find a joint statement from our three organisations which have been circulated where we hope it will have effect.

Recently, Swedish business daily Dagens Industri ran two articles about the successes of the Swedish Tax Agency in obtaining taxes from tax havens – both directly and indirectly – through tax-information exchange agreements.

We congratulate the agency on this success. However, both articles also mentioned Hong Kong as one of few remaining jurisdictions that the agency wants to sign a tax-information exchange agreement with.

This is an issue that deserves to be addressed.

Hong Kong is the world’s third largest financial centre and has a well developed economy and service industry. Hong Kong wants to enter into a tax treaty with Sweden, and has expressed as much to representatives of the Swedish government. However, Sweden has so far refused to discuss anything other than a tax-information exchange agreement.

The Hong Kong government has written to the Swedish Chamber of Commerce in Hong Kong, expressing what has been interpreted as disappointment about Sweden’s position. This disappointment is understandable, particularly given that Sweden has signed a tax treaty with China, and has a similar arrangement with Taipei.

Hong Kong has low taxes but the corporate tax rate is a relatively high 16.5 per cent. The tax system is, in all essentials, similar to that of Singapore. In the event Hong Kong had a tax treaty with Sweden, in the case of low incomes that are tax-exempt, the treaty would make it possible for Sweden to impose taxes according to the rules governing CFCs (controlled foreign companies). Meanwhile, a tax treaty would eradicate taxation loopholes but at least companies would know what to refer to in their respective jurisdictions.

In November 2013, Hong Kong passed the Phase 2 peer review by the Global Forum on Transparency and Exchange of Information for Tax Purposes, which means that Hong Kong is regarded as possessing an efficient regulatory framework, making it an efficient and cooperative

JOHNNY’S PHOTO & VIDEO SUPPLY LTD Photographic Equipment Equipment •• Photographic Video/Audio Hi-Fi Hi-Fi Equipment Equipment •• Video/Audio Home Appliances Appliances •• Home Colour Film Film Processing/Enlargement Processing/Enlargement •• Colour Audio/Video Dubbing Dubbing Services Services •• Audio/Video Communication Equipment Equipment •• Communication Electronic Equipment Equipment •• Electronic Repairing Services Services •• Repairing •• Mail Mail Order Order Acceptable Acceptable Shop No.65, 1/F, Admiralty Centre, 18 Harcourt Road, Hong Kong Shop No.65, 1/F, Admiralty Centre, 18 Harcourt Road, Hong Kong Tel: 852-2877-2227 Fax: 852-2877-2120 Tel: 852-2877-2227 Fax: 852-2877-2120 Mobile: 9051-9499 E-mail: johnnysphoto@live.hk Mobile: 9051-9499 E-mail: johnnysphoto@live.hk Opening Hour: Mon – Sat 9:00am – 7:00pm Opening Hour: Mon – Sat 9:00am – 7:00pm Sunday 2:00pm – 6:00pm Sunday 2:00pm – 6:00pm

Photo: Ola Ericson/ imagebank.sweden.se

SwedCham is hoping to make an impact both on the Swedish government at Rosenbad, Stockholm (left) and the HKSAR government in Tamar (right).

partner in terms of taxation transparency. Meanwhile, last year Hong Kong entered into 29 tax treaties worldwide. A further 10 treaties are currently under negotiation. Besides offering protection against double taxation, comprehensive exchanges of taxation information between countries are the basis of taxation security and predictability, which is important for the healthy development of business between all the taxation jurisdictions concerned.

The Swedish Chamber of Commerce in Hong Kong has for many years promoted the idea of a tax treaty between Sweden and Hong Kong.

But, as late as December last year, the Swedish Ministry of Finance responded negatively, citing a lack of resources and maintaining it needed to prioritise and renegotiate other agreements first. This is not a convincing argument.

In terms of a tax treaty, existing agreements between Hong Kong and Belgium, Luxembourg, the Netherlands, Austria, England, Ireland, Portugal, Spain, Italy and Switzerland could all serve as models. Sweden could also follow the lead of Finland, which is in advanced negotiations to enter into a tax treaty with Hong Kong.

What is it that Britain, Finland, Switzerland and Holland, among other European countries, have realised and Sweden has seemed to miss? It appears that Sweden has a narrow fiscal focus in only wanting to discuss a tax-information exchange agreement, lacking the vision to put Hong Kong in a wider context. Hong Kong is part of China, and it is still in many ways the gateway both to China and from China. In other words, Hong Kong plays an important role as the place where Chinese enterprises interact with the rest of the world.

The question of a tax treaty is significant in terms of Sweden’s competitiveness. It is difficult to guess Swedish government thinking on this issue, but Prime Minister Fredrik Reinfeldt would be well advised to raise the issue with British Prime Minister David Cameron. Such a discussion might prompt a change of heart, leading to negotiations on a much-needed tax treaty with Hong Kong.

By the Boards of Directors of the Swedish Chamber of Commerce in Hong Kong, the Swedish Chamber of Commerce in China and the Sweden-China Trade Council DRAGONNEWS • NO.02/2014 37

HONG KONG ORDINARY MEMBERS >>>

Dragon Sourcing Ltd 7/F Hong Kong Trade Centre 161-167 Des Voeux Road Central Hong Kong Tel: +852 9180 4057, +86 137 6182 9493 Email: olivier.levy@dragonsourcing.com Web: www.dragonsourcing.com About us Dragon Sourcing is a procurement service provider focused on delivering sustainable value from emerging global markets for our clients.

We offer a complete sourcing service for companies looking to procure effectively from low-cost countries. We understand the challenges involved and work in partnership to address the risks and deliver results to the bottom line.

Chamber representative Olivier Levy, Managing Director

1

2

Control Risks Pacific Ltd Unit 1601-03 Lyndhurst Tower 1 Lyndhurst Terrace Central, Hong Kong Tel: +852 6963 0040 Email: jake.boswell@controlrisks.com Web: www.controlrisks.com

About us Control Risks is an independent, global risk consultancy specialising in helping organisations manage political, integrity and security risks in complex and hostile environments. We support clients by providing strategic consultancy, expert analysis and in-depth investigations, handling sensitive political issues and providing practical onthe-ground protection and support. Our unique combination of services, geographical reach and the trust our clients place in us ensure we can help them to effectively solve their problems and realise new opportunities across the world.

Chamber representatives Jake Boswell, Senior Account Director Ben Wootliff, General Manager - HK

1 2

HONG KONG OVERSEAS MEMBERS >>>

Air Revival Ltd C9 L/4 Repulse Bay Apartments 101 Repulse Bay Road Hong Kong Tel: +852 6712 3270 Email: info@airrevival.com Web: www.airrevival.com

Kairos Future Vasagatan 40 SE-111 20 Stockholm Sweden Tel: +46 8 545 225 00 +86 185 0170 3546 Email: tomas.larsson@kairosfuture.com Web: www.kairosfuture.com

About us Air Revival Ltd is a small family-driven business that offers a patented air-purification technology specifically developed with ultrafine particles in mind. The technology is currently used in day-care centres and schools in Sweden, as well as other environments heavily affected by bioload. The AirRevival system is very versatile and can be used in the home or office as well as in the car to provide a safe environment throughout the day.

About us Kairos Future is an international research and managementconsulting firm that helps companies understand and shape their futures. With a unique holistic approach to futures analysis, strategy and change, we are the leading organisation in Europe in our niche. Our China services focus on strategy and innovation consulting based on complete mapping of China’s innovation and patent landscape, as well as social-media mapping.

Chamber representative Petra Rosen, Director

Chamber representative Tomas Larsson, Managing Director Kairos Future China

38 DRAGONNEWS • NO.02/2014

HONG KONG INDIVIDUAL MEMBER >>> Nina Magnusson Giustiniani Tel: +852 6712 5828 Email: ninag.ninag@gmail.com Swedavia Dept AC & M SE-190 45 Stockholm-Arlanda Sweden Tel: +46 768 91 86 13 Email: bjorn.ragnebrink@swedavia.se Web: www.swedavia.se About us Swedavia is a state-owned group that owns, operates and develops 10 airports across Sweden, the largest airports being Stockholm-Arlanda Airport, Gothenburg-Landvetter Airport and Malmö Airport.

Our role is to create the access Sweden needs to facilitate travel, business and meetings – in Sweden, Europe and around the world. A focus on customers, sustainable development, safety and security are the basis of our daily operations.

Swedavia is a world leader in developing airports with the least possible environmental impact.

The Group has revenues of more than SEK5.2 billion and 2,400 employees. A total of 33.5 million passengers flew via Swedavia’s airports in 2013, an increase of 3.5 per cent compared to 2012. Swedavia also owns the property Göteborg City Airport and is a minority shareholder in the company that operates the airport.

Chamber representative Björn Ragnebrink, Director Business Development IC Routes

K-FAB Norra vägen 12 856 50 Sundsvall Sweden Tel: +46 60 570356 Email: tommy@k-fab.eu Web: www.k-fab.eu About us We import and sell lamps that are commissioned by us and then made in China. Thanks to excellent cooperation with our suppliers, good logistics and our own on-site staff, we are able to offer a wide range of modern lamps and good prices. Our aim is simply to make it easy for everyone to create a pleasant, well lit home.

Chamber representative Tommy Granström, CEO

40 DRAGONNEWS • NO.02/2014

CHINA ORDINARY MEMBERS >>>

Jade Invest Two IFC, Level 48, Suite 4809 8 Century Avenue Pudong, Shanghai 200120 PR China Tel: +86 21 6091 4400 Web: www.jadeinvest.com.cn About us Jade Invest is an investment management firm focused on private equity investments in China.

Chamber representative Jonas Alsén Email: jonas.alsen@jadeinvest.com.cn

Edward Lynx China (Shanghai) Co, Ltd Room 1522, 15F, BEA Tower No 66 Huayuan Shi Qiao Rd, Pudong, Shanghai 200120 PR China Tel: +86 21 2080 3025 Web: www.edwardlynx.com About us We provide leadership development, leadership training programmes, assessments and executive coaching.

Chamber representative Mattias Thorsson, Managing Director Email: thorsson@edwardlynx.com Mobile: +86 185 0166 3276

Swedish banking in China We feel at home in the Chinese market and want you to feel the same. It’s a large and fastgrowing market. As a result, more and more Scandinavian companies need banking solutions, such as cash management, financing in local and foreign currencies, trade finance and treasury solutions in China.

We’ll help you – bringing our 20 years of experience of business in China. If you have the opportunity, please visit us in Shanghai where we’ve been located since 2001.

Swedbank Shanghai Citigroup Tower 601, 33 Huayuanshiqiao Rd. Shanghai, China + 86 21 386 126 00

Julian Ltd Office 616A, 68 Changping Road Shanghai 200041 PR China Tel: +86 159 0174 2827 Web: www.julian.se

Bird & Bird Law Firm Beijing Representative Office Room 0828 China World Office 1 1 Jianguomenwai Avenue Beijing 100004, PR China Tel: +86 10 5933 5688 Web: www.twobirds.com

About us Julian Communication is a design and web development company serving international clients in China. We use modern technology to create simple yet clever solutions.

Our mission is to provide our clients with a wide range of services, from graphic design, branding and visual identity, to web production, e-commerce and mobile applications.

We like to think of ourselves as a design and web technology company. Some companies are either one of the two. We aspire to be both.

Chamber representative Jesper Hedner, Managing Director Email: jesper@julian.se Mobile: +86 159 0174 2827

About us With over 150 years of experience and more than 1,100 lawyers and legal practitioners in 26 offices across Asia, Europe and the Middle East, we are strategically well placed to offer local expertise within an international context.

We use our extensive experience to help clients navigate the complexities of China’s business and regulatory environment. We advise on business structures, corporate establishment and financing, M&As, commercial arrangements, technology licensing and transfers, information technology and communications services and infrastructure, the protection and exploitation of intellectual property rights, regulatory compliance, energy and utilities, environmental, and all forms of dispute resolution.

Bird & Bird’s association with a prominent local Chinese law firm has enabled us to further assist our clients in contentious matters in mainland China through litigation in Chinese courts.

Chamber representative Ai-Leen Lim Email: ai-leen.lim@twobirds.com Mobile: +852 6121 7911 / +86 13701369967

1

2

Lyckeby Culinar Shanghai Co, Ltd Unit B 11/F, 9 Joy Tower No 9 Zhenning Road Shanghai 200050 PR China Tel: +86 21 5255 0260 Web: www.culinar.se Human Entrance AB 12/F, Sail Tower 266, Hankou Road Shanghai 200002, PR China Tel: +86 21 6267 5955 +46 10 708 11 00 Web: www.humanentrance.com

About us Lyckeby Culinar Shanghai Co, Ltd is a subsidiary of the Lyckeby Group in Sweden. Our business activities cover the entire China market and focus on sales, and the application and renovation in various types of modified starch in food industry.

Chamber representatives Lily Feng, Managing Director Email: lily.feng@culinar.se Mobile: +86 138 0161 4248 Caro Bao, Assistant to Managing Director Email: caro.bao@culinar.se Mobile: +86 158 2179 9157

42 DRAGONNEWS • NO.02/2014

1

2

About us We are developing a centre for global mobility services for China and the Asia-Pacific region.

Chamber representative Fredrik Bendroth Email: fredrik.bendroth@humanentrance.com Mobile: +46 70 771 13 35

Nepa 6F, Hai Xing Plaza, No 1 Ruijin (S) Road Shanghai 200023 PR China Tel: +86 136 1164 0670 Web: www.nepaglobal.cn www.nepa.se About us Nepa is a young, data-driven company providing innovative market research solutions globally. Our goal is to deliver clear, actionable insights into branding, marketing strategy, product design and assortment and other areas. In China, we partner with large media owners such as Youku/Tudou and the Shanghai Media Group to solicit consumer opinions, and we have served local and international clients in a range of industries, including food & beverages, apparel, electronics, telecommunications and more.

Chamber representative Mattias Erlandsson, Managing Director China Email: mattias.erlandsson@nepaglobal.com Mobile: +86-136 1164 0670

1

2

Wallenius Water AB Franzéngatan 3 SE-112 51 Stockholm Sweden Tel: +46 8 120 138 00 Web: www.walleniuswater.com

About us Wallenius Water has been developing a solid presence in China for more than a decade.

We currently offer two systems that are adapted for Chinese conditions. The Wallenius RAS System for sustainable fish farming and the Wallenius Property System for chemicalfree legionella control in buildings. What our solutions have in common is high capacity, environmental friendliness and the security of always having access to support.

Wallenius Water is a Swedish leading environmental technology company developing up-stream solutions for purifying industrial process fluids. Our systems are used for ballast water treatment on vessels, recirculating aquaculture systems developed for fish farming and for fluid control in the metalworking industry. The solutions are sold and distributed throughout Europe and Asia. For more information, please visit our website at www.walleniuswater.com.

Chamber representatives Annika Andersson, Vice President Email: annika.andersson@walleniuswater.com Mobile: +46 73 942 22 24 Torkel Elgh, President Email: torkel.elgh@walleniuswater.com Mobile: +46 73 942 22 17

1

2

Se till att ha en duktig rådgivare som har tillgång till många specialister

CHINA ASSOCIATE MEMBERS >>>

UU Innovation Uppsala University Uppsala Science Park 751 83 Uppsala Tel: +86 46 18 471 00 00 Web: www.uuinnovation.uu.se About us Technology transfer.

Chamber representative Su Yingtao, Representative China Email: suyingtao@vip.sina.com Mobile: +86 159 0115 8732

44 DRAGONNEWS • NO.02/2014

Anna Öst No 1028 Yunqiao Road Pudong area, Shanghai, 201206 PR China Email: Annaoest@hotmail.com Mobile: +86-137 6168 9219

Förmögenhetsrådgivning, när den är som bäst, inkluderar med andra ord allt som kan påverka din personliga förmögenhet, nu och i framtiden. Vi har kompetensen och de tekniska systemen för att kunna ge dig den bästa servicen som finns att få. Och framförallt – genom att vara en stor bank har vi möjlighet att erbjuda dig de bästa specialisterna. En personlig rådgivare, många specialister – gör det möjligt.

Eric Pedersen, Private Banker

Per Esbjörnsson Rådmansgatan 56 SE-442 30 Kungälv Sweden Email: per.esbjornsson@swedishwood.com Mobile: +86 186 2902 3741

Besök oss på www.nordeaprivatebanking.com eller ring kontoret i Singapore på +65 6597 1082, så bokar vi ett möte.

Jonas Bergqvist, Private Banker

Nordea Bank S.A:s Singapore-kontor ingår i Nordea, den ledande finanskoncernen i Norden och Östersjöregionen. Vissa tjänster och produkter som beskrivs i detta material är eventuellt inte godkända för försäljning i vissa länder. Huruvida du kan eller bör köpa en produkt kan bland annat bero på din riskprofil och lagen i det land där du är bosatt. Detta material ska inte betraktas som ett erbjudande om att köpa eller sälja någon placeringsprodukt eller att göra någon annan affär. Det ska inte heller betraktas som ett erbjudande att tillhandahålla banktjänster i något land där Nordea Bank S.A:s Singapore-kontor eller något av dess närstående bolag inte har tillstånd att bedriva bankrörelse. Publicerad av Nordea Bank S.A., R.C.S. Luxembourg no. B 14.157 för Nordea Bank S.A., Singapore-kontoret, 3 Anson Rd #20-01, Springleaf Tower, Singapore 079909. www.nordeaprivatebanking.com AD_Dragonnews_210x140_swe_Jonas_2014.indd 1

25/02/2014 11:21

Swedish Chamber of Commerce in Hong Kong

The new SwedCham board (from left): Pontus Karlsson, Jimmy Bjennmyr, Karine Hirn, Walter Jennings, Ulf Ohrling, Eva Henriksson, Per Ågren and Carl Christensson, SEB. Absent: Staffan Löfgren.

Katarina Ivarsson of Boris Design Studio receives the SwedCham Annual Award from chairman Ulf Ohrling.

C

M

Y

CM

MY

CY

K

CMY

Annual General Meeting in Hong Kong 2014

Rubber Products Plastic Products Flexible hoses Assembly

Photo: Jayne Russell

n At SwedCham Hong Kong’s Annual General Meeting on Friday 16 May, Ulf Ohrling was re-elected as chairman for three years. Twelve very competent candidates were nominated for three vacant posts as director.

Three new directors were elected: Carl Christensson, SEB (reelected), Karine Hirn, East Capital, and Pontus Karlsson, Happy Rabbit.

We welcome the new directors and look forward to a fruitful collaboration in the coming year. At the same time, we would also like to thank all the other nominated candidates, and we hope to be able to work together in chamber committees, work groups and forums in the future.

Our thanks also go out to Laurence McDonald and Kristian Odebjer for the time and effort they have put into the chambers’ work, and at the same time wish them all the best in their future endeavours.

We are thrilled that so many members attended this year’s AGM, and we would like to thank Jaakko Sorsa at FINDS for treating us to a fantastic spring-inspired lunch during the meeting.

Moreover, this year was the first time that the SwedCham Hong Kong board – together with the Membership Committee – decided to give out a SwedCham Annual Award. It was awarded to an entrepreneur in the sector of creative industries/design, since Sweden is partner country for the Business of Design Week in December 2014.

The award went to Katarina Ivarsson and Anna Karlsson, founders of Boris Design Studio. Anna Karlsson was out of town when the AGM was being held, so Katarina Ivarsson collected the prize on behalf of both winners. The chamber sends them our warm congratulations.

Block C5, Suhong Industrial Square, 81 Suhong West Road SIP, 215021 Suzhou, P.R. China usz@unimer.se, www.unimer.cn

Phone: +86 152 5009 5190 Phone: +86 189 3459 9953

Swedish Chamber of Commerce in Hong Kong DIRECTORS OF THE BOARD Ulf Ohrling, Chairman [Mannheimer Swartling] Jimmy Bjennmyr [Handelsbanken] Carl Christensson [SEB] Eva Henriksson [Henriksson Consulting] Karine Hirn [East Capital] Walter Jennings [Kreab Gavin Anderson] Pontus Karlsson [Happy Rabbit] Staffan Löfgren [ScanAsia Consulting] Per Ågren [APC Asia Pacific Cargo]

46 DRAGONNEWS • NO.02/2014

Josefine M. Mosse josefine@executivehomes.hk

Swedish Chamber of Commerce in China

Doing business in Sweden?

Jan Wolfhagen as King Carl XVI Gustaf.

The new main board (from left): Peter Idsäter, Ulf Söderström, Katarina Nilsson, Lars-Åke Severin, Fredrik Ektander, Birgitta Ed, Martin Pei, Liselotte Duthu and Karine Hirn. Absent: Chunyuan Gu, Daniel Karlsson and Peter Sandberg.

The Oförskräckt Group entertains on stage.

banking and finance company law and corporate finance distribution and agency law property lease law china desk environmental law corporate reconstructuring eu and competition law maritime and transportation law real estate and construction law employment law mergers and acquisitions insurance intellectual property marketing and media law international law energy and investment law it and telecom litigation and arbitration private equity

Lawyers you want on your side

Annual General Meeting in Beijing 2014 th n For the 17 time, the Swedish Chamber of Commerce in China held its Annual General Meeting (AGM).

Chairman Katarina Nilsson opened the meeting together with vice chairman Lars-Åke Severin. A vote was held on new suggested membership fees and two new directors were elected to the main board: Liselotte Duthu from Atlas Copco, and Chunyuan Gu from ABB. Tom Nygren, Ericsson, was thanked for his contributions to the chamber as he now is moving on with Ericsson to Turkey.

Right after the AGM, the Spring Party took place, starting off with welcome drinks and conversion starters. A selfie competition was announced for the guests. The aim was to picture yourself with as many board members as possible, or with as many guests as possible, but with at least one board member, and to be as funny as possible.

The guests where welcomed by the Swedish King Carl XVI Gustaf, alias Jan Wolfhagen, and the resemblance was stunning. Later in the evening, Wolfhagen gave us a fantastic show, with some amazing stage magic, including transforming himself – in the space of seconds, courtesy of a wig and a false nose – into Mr Bean.

During the evening, the Swedish Chamber of Commerce’s yearly Honorary Award was awarded to Anders Wall for his extraordinary contributions to Sino-Swedish business relations. Unfortunately, Wall could not be present to receive the prize. Instead he sent a short video clip with a thank you to the Swedish Chamber of Commerce in China saying he was very proud to be the recipient of the prize. Magnus Andersson from Lesjöfors was present to receive the prize for Wall.

After an excellent dinner with good wine, the party continued until late in the lounge bar of Radisson Blu Hotel.

We would like to extend a special thank you to our generous sponsors: Business Sweden, Handelsbanken, Mannheimer Swartling, PartnerTech, SEB and Wine Republic.

48 DRAGONNEWS • NO.02/2014

Clean Healthy Air 24/7

= Life insurance and Higher Performance

The winners of the selfie competition.

Anders Wall, the receiver of the chamber’s Honorary Award.

Swedish Chamber of Commerce in China DIRECTORS OF THE BOARD Katarina Nilsson, Chairman [Advokatfirman Vinge] Lars-Åke Severin, Vice Chairman and Chairman of the Beijing Chapter [PSU] Ulf Söderström, Vice Chairman and Chairman of the Shanghai Chapter [SCA] Fredrik Ektander, Treasurer [SEB] Liselotte Duthu [Atlas Copco] Birgitta Ed [Six Year Plan] Karine Hirn [East Capital] Chunyuan Gu [ABB] Peter Idsäter [Mannheimer Swartling] Daniel Karlsson [Asia Perspective] Martin Pei [SSAB] Peter Sandberg [Tobii]

At Home • Kindergarten/School/High School/University • At Work

EAS Beijing Office, China, Mr Shangyou Dong, Manager, Ph: 0086 10 85322147,Cell: 0086 135 2199 5330, Mail: shangyou.dong@easab.com

SWEDEN HQ Environmental Air of Sweden AB. Mr Göran Hertzberg, M D, Ph: 0046 761 048 350, Mail: info@easab.com

www.easab.com

T he c ha m be r and I Nine members on their online shopping habits The theme for this issue’s cover story is e-commerce, so Dragon News asked some members about their online shopping habits.

These were the questions: 1. Do you shop online?

2. If yes, what do you shop and where do you buy it?

3. If no, why not?

And here are the answers.

Fredrik Emilson Höganäs, Shanghai 1. “Yes, I do.”

2. “Taobao and Made in China are my main Chinese sources for online shopping. I had to have some initial help from my Chinese friends to set up the accounts but now it is mostly smooth sailing.

I have purchased everything from toys for my children’s birthdays to a fish tank for our house. So far I have not been able to buy any clothes online in China – size does matter, and I’m simply too tall.”

Linda Karlsson

Heather Yang

Happy Rabbit, Hong Kong

Greencarrier, Shanghai

1. “Yes.” 2. “I buy clothes from Net-A-Porter and ASOS, groceries from ParknShop, Nespresso and Homegrown Foods, gifts from Amazon, ASOS and a lot of various online shops. I also buy event tickets, flight tickets and book hotel rooms online.”

1. “Yes, I do.”

2. “A lot of places, such as Amazon, Taobao, Yihaodian, Yiguo and JD.com.”

Eva Kong

Joakim Diamant

Pripac, Hong Kong

Scania, Beijing

1. “Yes.” 2. “I buy some apps and e-books on my iPhone through Apple’s AppStore.”

1. “Yes, but only food.”

2. “Pizza Hut. For Chinese food, I order online from Meizhou Dongpo.”

Urban Dahlén

Josefin Bennet Fredriksson

Connect2China, Hong Kong

CCR CSR, Beijing

1. “Yes.” 2. “In China, I buy from Taobao – everything from clothing to soldering irons to furniture. Overseas, I use Thomann for music equipment, or Amazon and eBay for all kinds of stuff.”

1. “Yes, well, indirectly.”

2. “I ask my colleague to help me buy things on Taobao every now and then. I also order food online from restaurants in Beijing. For food, I use the sites Sherpa’s and Jinshisong, and from Taobao I’ve bought everything from a blender to carbonators for my SodaStream, as well as chia seeds. It’s magic.”

3. “Since my reading skills in Chinese are, let’s say, limited, I need assistance from someone, so I don’t shop online as often as I maybe would like to, but for that my wallet feels blessed.”

Kristoffer Lindqvist The Swedish Club, Hong Kong 1. “Very seldom.”

2. “Music and, in few instances, items that I cannot get hold of locally.”

3. “I guess that I’m ‘old school’.”

Tianhao Liu Business Sweden, Beijing 1. “Yes, absolutely!”

2. “I buy flights and hotel rooms regularly on C-trip and I also buy things on Taobao that are otherwise hard to find.”

50 DRAGONNEWS • NO.02/2014

Jimmy Bjennmyr Head of Corporate Banking Hong Kong Branch

Mikael Westerback Head of Greater China and General Manager Shanghai branch

Florence Chan Senior Account Manager Hong Kong Branch

Johan AndrĂŠn Deputy Head of Greater China and General Manager Hong Kong branch