Point Magazine 11-12 2015

POINTONLY Corporate Trade Magazine November - December 2015

Time of Reflection and spiritual recollection

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EDITOR’S LETTER

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n China, only about one percent of people are Christians, so most people only know a few things about Christmas.

Because of this, Christmas is only often celebrated in major cities. In these big cities there are Christmas Trees, lights and other decorations on the streets and in department stores. Santa Claus is called ‘Shen Dan Lao Ren’ and has grottos in shops like in Europe and America.

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nly a few people have a Christmas Tree (or celebrate Christmas at all!).

If people do have a tree it is normally a plastic one and might be decorated with paper chains, paper flowers, and paper lanterns (they might also call it a tree of light). The Christmas Trees that most people would see would be in shopping malls!

Christmas isn’t that widely celebrated in the rural areas

Yours Christian Sekula

of China, but it’s becoming more well known.

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tradition that’s becoming popular, on Christmas Eve, is giving apples.

Many stores have apples wrapped up in colored paper for sale. People give apples on Christmas Eve because in Chinese Christmas Eve is called ‘Ping An Ye’ (which means quiet or silent night) and the word for apple in Chinese is ‘Ping Guo’ which sounds similar.

MAGAZINE Editorial Team Europe Christian Sekula Editor Lars Kellner Deputy Editor berlin@pointonly.de

Editorial Team Asia Aileen Si Chen Editor Jenny Yao Deputy Editor shanghai@pointonly.de

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ome people go Carol singing, although not many people understand them or know about the Christmas Story. Jingle Bells is the most popular Carol in China!

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njoy the Christmas with your Family, Relatives and Friends.

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Distributed by Point Group - E-Point Electronics GmbH Unter den Linden 21, 10117 Berlin Germany +493020924123 www.pointonly.cn - www.pointonly.de

Contents

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Consumer Paradise China

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Finest Chocolate from the Lausitz

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Economic Forecast Summary

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BMWi Trip to China 2016

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Food Safety China

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8Pandas

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New Milk scandal raises questions over China’s new food safety law

ECO Designed Products. Good for Nature - Good for us !

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Bio Washing Detergents

Dental Kosmetik

over 100 years research and service for dental care

Trade News

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e o fo r m o r g , y n a m r z, G e A g d esig ns m C obl en n o i r f y r n a e v m h w it u ng ts t c ol ou r s , , t h re e yo h x g u i r B a b ate w i t h i r n n b i U e s l l t e e r c b o l a l l h i r er s sw e el With thei Men’s b ox a i r of j e a n n e e d s to f : p e e r r n e u o h o t o y n , n y and d ow t wa re sh n e s s i on s . T h a n e f abr i c s i t f a n h i t i b w m o d p oi l e om e c cks gets s nd hands o t t u b e h re. l o dger, t m a ny m o o o r c ol ou r f u l mor ning in g n y i a g d r n a u t h a c S :A in the f t he f necessity o ashame d t u o t he bir t h o n r d e o k b r s a a m w his ux b ox e r s – t e as, UnaB f id o t n ir a a li p il t r n dece a ny b siona rc h f or a Just like m e s g n an d p a s in t u a a r t D s l u r ie f n t he d Da d om C oblenz, l K laus an volution. e ie r n r a a d t h e b ore D e n , w o r r y e e e b d b e n – W u s s u r e t h at t B astian o f b ox e r colour f ul h y t ir g t a u e p r o t p h t c e e r f ,” e we e p er elf have pr ints. “W ide a of t h t heir o n r “S elf do, s w e o h r y e r p e su emb er ing f ir v m e o e h t r t n , e r d e e m r b s o e W ras ately t ail ore,“ s ays t h e e mb ar r m o r o e f it h m w o o nd e’s r of black a we ar, t her r e d n u o t mes , tionar ies. lu o v e xe r s h or t s w hen it co r o r b e k ic s ic s n la k c t he e nt s a s p a r t f rom All A f irst mom : s t c u d Bux lab el. pro a f n o U e e g h n t a r uality fab nded its o cks wit h q e s t h x d e ig n a s h a s f h a o ade yjam na Bu x iety and m olour f ul p r c a By now, U , v s f ie in r h b r ned, r ic r e b ox e t a n d a rd s . ig a s s e e r h d e ig h y t h ll u o w t if no e au t itted u c t s a re b a re c om m d s o r r u p e x n u e r B Una a b ov e t h e g e nt r e p w n o u h o s y t r e a h e t us e iny h r ics. B eca wit h t he t l e b la x u naB ss eing t he U e s o t r, f irst-cla d ia e il s u m t a f e g e l h wil nd t t he S o on y ou signs b e yo e d e s ec tion of iv y t r a e e v r e c f in o . r tion pula waistband e combina p r ov e s p o h t t a : h s s T e . c ls c u s ater ia Recip e for quality m h ig h d n ship a w or k m an n. p opulatio l. e all equa ’r e w , e r e If you want to know more, please sent us your inquiry ow n t h B e c au s e d NSTAI P P Y D OW

RS!

to berlin@pointonly.de or shanghai@pointonly.de

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Consumer paradise China

Dr. Oskar Andesner

In the next five years China will overtake the US as the largest retail market in the world

The times when China was solely a production base for export to the West are overd. Thanks to progressive urbanization and rising incomes of Chinese domestic consumption plays a priority role.

The consumer goods sales is an interesting indicator: Already in the next five years China will overtake the US as the largest retail market in the world. With a constant growth of last year 13.1% 3.84 trillion US dollars are generated in retail. By 2015, according to experts opinion, 40% of worldwide turnover in the field of luxury goods in China achieved, but also other sectors such as the food market to grow steadily. It no longer play only the economically developed centers around Beijing, Shanghai and Guangzhou a role, but also in more western parts of the country conurbations develop with high purchasing power, such as Chengdu and Chongqing.

Also the generation aged 35 and 59 years is an important pillar of the consumer goods industry, it pays particular attention to quality and asks high-priced cars and luxury products after.

In addition to the traditional retail business, the importance of e-commerce, so the shopping on the Internet, constantly. Already 150 million Chinese people, ie 35% of all Internet users in the country, buy a online - this number will vigorously down in the coming years. But in 2014 it anticipates a growth rate of online sales of around 65% in consumer purchases.

Foreign investors rely mainly by high quality accents, such as in food safety. Especially when buying food, many Chinese people have little confidence in local companies and brands. Thus, there are major opportunities for international food producers and their brands that should be exploited.

Particularly successful in the Chinese market are currently foreign luxury products - this ranges from designer clothes to cars to fine wine -.

And foreign food and cosmetics, but also highquality services such as medical care or pensions are increasingly in demand. The large demand for imported products is not currently saturated - especially in the north and west of the country, there is great potential.

The main consumer group is born in the 80s and 90s of buyers. She pays heavily on product design, jumps quickly to new trends and one of the strongest buyers of modern media.

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Our chocolatiers will seduce you with the finest, fresh chocolates, personalized cards, and a variety of figures and tables.

The specialty is the production of exclusive chocolates and individually labeled chocolate cards by hand.

For every occasion and for every taste Confiserie Felicitas create small works of art from Belgian raw chocolate best.

The creativity and the detailed production give the individual pieces a personal touch.

About 20 years ago it took the Owner from Nigeria back to Europe. And what happens when two Belgians discover the Brandenburg Lausitz ? In a short time arises in the idyllic Hornow the chocolate side of the Lausitz - the Confiserie Felicitas.

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China - Economic forecast summary

Growth is projected to continue to edge down, to 6.7% by 2016. Slowing real estate and business investment will be countered to some extent by stepped-up infrastructure investment.

Consumption is set to remain robust. Urbanisation and the rapid expansion of service industries will generate employment and keep unemployment low. Enduring overcapacity in some heavy industries should keep producer price inflation negative and consumer price inflation low.

Monetary policy should be eased further to stabilise growth and contain deflationary pressures. Financing costs need to be brought down as real interest rates are high and slowing growth heightens credit risks.

Fiscal policy should also ease, as planned, to support activity. Accelerating debt-for-bond swaps at the sub-national government level would mitigate fiscal risks, but unconditional rollover of debt works in the opposite direction. Pension reform should accelerate to ensure fiscal sustainability in the long term.

Investment has been slowing for some years, and is now a smaller fraction of GDP than consumption. Investment efficiency has fallen in recent years on the back of growing excess capacity in real estate and several manufacturing industries. Market forces should be allowed to play a greater role in allocating resources, in particular capital. To that end, a level playing field for all firms needs to be established by gradually removing implicit guarantees to state-owned enterprises. Rural land reform should extend land tenure and encourage land consolidation. Urbanisation will continue to drive investment and growth, as will the expansion of the service sector, which will be spurred by liberalisation measures.

oecd.org If you want to know more, please sent us your inquiry

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Potentials for high-quality consumer goods in China

BMWi starts Market exploratory trip from 13 to 18 March 2016

The Chamber of Commerce Abroad (AHK) Greater China organized a market consultation trip to Beijing and Guangzhou for German companies in the field of high-quality consumer goods. It is a project-based funding program, which is funded based on a decision of the German Bundestag by the Federal Ministry for Economic Affairs and Energy (BMWi).

Participants will have the opportunity to produce, contacts during the journey through visits and discussions of businesses, government agencies and other institutions.

The internal portion of participants is depending on the company size between 500 and 1,000 euros (gross). Individual consulting services in application of the de minimis regulation of the EU. Participating companies pay the individual travel, accommodation and subsistence costs.

The continuing urbanization of more than 50%, the growing upper middle class and rising incomes allow a further increase of consumption of high-quality products expected. The users are young, technologically adept, sophisticated and knowledgeable with high product requirements. For German SMEs especially in the area of lifestyle and interior design with products “Made in Germany” great potential is seen.

Latest deadline for applications is January 15th 2016.

w w w . b m w i . d e

The AHK Greater China allows participating companies through advice on industrydriven companies to “Doing Business in China” to assess visits to flagship stores and government visits, opportunities and risks of an investment in this rapidly growing market, and facilitating and promoting market access in China. In addition, participation in the opening program of the 36th China International Furniture Fair and a visit to this international fair part of the technical program. Each participant will receive to prepare target market information to the Chinese market in general and specifically tailored to the market for quality consumer information. Participants will have the opportu20

110 years of experience

The ultimate goal of PENATEN is to ensure a particularly good skin compatibility. The latest state of research and science as well as the experiences and requirements of business users (doctors, pediatric nurses and midwives) are always crucial in the development of PENATEN products.

The Scientific Advisory Board has for PENATEN an important advisory role. As a brand, the world’s largest manufacturer of baby care products Johnson & Johnson, they aim also to have a high responsibility for product Quality.

The PENATEN products are made exclusively from selected ingredients and are subject to stringent purity checks. The quality control in the production are comparable with those in the pharmaceutical field.

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New Milk scandal raises questions over China’s new food safety law Revised Food Safety Law In China

Another dairy scandal has raged across Chinese media over the last month, overshadowing the introduction of China’s much-touted new food safety law and casting further doubts over the government’s ability to bring the country’s chaotic food supply chain under control.

Food safety officials in Hebei Province, north China initially received widespread acclaim for their quick action in ordering a recall on dairy products from high-

profile manufacturer Huishan Dairy on September 18 after a batch of its products had been found to contain illegally high levels of sodium sulfocyanate, a substance that is toxic to humans in high oses. But what appeared to be a routine food safety scare quickly descended into a farce as it emerged hat the Hebei officials had made a series of mistakes in their investigation and their findings were ontradicted by separate tests by officials in Liaoning

WRITTEN BY Dominic Morgan, CCM, 26-Oct-2015 Huishan Dairy sold only 56 cans of its flagship infant formula product in a week in the wake of the scandal

Province and the China National Food Quality and Safety Supervision and Inspection Centre (CFQS).

The Hebei Food & Drug Administration (HBFDA) retracted its accusations against Huishan Dairy on September 29 but refused to reveal the results of its original tests, leaving a number of questions unanswered and fuelling further media and public outrage.

“Did HBFDA keep a sample? ” posted one commenter on Sina News. “Why not make a reinspection?” asked another.

that they were put off buying Huishan Dairy’s products in the future. There are also fears inside China’s dairy industry that the scandal will trigger a wider backlash against domestic brands in favour of imported products.

“This incident will impact not only the company [Huishan Dairy], but also the industry”, said Song Liang, special economic Analyst at Xinhua News. “In consumers’ eyes, locally-made dairy products are full of problems. This farce will set a barrier for the development of the industry.”

The government has also

HBFDA is yet to respond to such calls.

The scandal has already done huge damage to a number of parties, not least Huishan Dairy itself, whose Hong Kong-listed shares fell 7% in just twelve days following HBFDA’s original statement.

Though its stock price has now recovered, the company sold only 56 cans of its flagship infant formula product, Huishan 5A (Stage 3, 900 g/ can), during China’s Golden Week holiday (October 1-7), and in a September 30 poll conducted by Sina, 55% of the 2,480 respondents stated

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lost a sizeable amount of public confidence at just the moment when it had hoped things would turn a corner thanks to the food safety law coming into force on October 1. “Consumers’ confidence in the government will also be hit. Whatever results the government departments release, consumers will be dubious”, said Wang Dingmian, director of the Guangzhou Dairy Association.

“There are no winners in this issue,” an article on Sohu. com concluded.

A lesson in crisis management For government and dairy professionals, another concern is the way the crisis has been allowed to escalate due to the way it has been handled, which has caused even more damage than wasnecessary.

The reporting of the scandal on Chinese news platforms such as Sina.com , Sohu.com, Netease.com , iFeng.com and QQ.com turned sharply against HBFDA at this point, accusing the officials of endangering the future of China’s dairy industry with their actions.

“Government departments should enhance cooperation with experts and invite more experts to nterpret food safety incidents,” said Chen Junshi, a researcher at the China National Centre forFood Safety Risk Assessment and member of the Chinese Academy of Engineering.

“This will help consumers to understand the issues and ease their fears, and will also help government departments increase the precision of the information they release to the public.”

After a month in which the Chinese government hoped it had finally found the answers to the country’s food safety problems, it has been left with a whole new set of questions.

w w w. f o o d n a v i g a t o r - a s i a . c o m

In our January/February Issue we will focus on Cosmetics and the new Chinese Cosmetic Law

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Imported and Trade Data Potential for China’s EconomyFood lies Safety in improved efficiency

The AQSIQ released the “The H1 2015 Imported Food Safety Report.” In the past six months, 552 thousand batches of imported food originating from 179 countries were received by provincial CIQs, representing year-on-year growth in imports of 11.9% by batch and 21.2% by weight.

Interestingly the total value of imports has fallen by 10.8% due to price cutting, increased competition and a change in Chinese tariff policies.

The top ten exporters by value are: 1.

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EU ASEAN USA New Zealand Brazil Australia Russia Canada Ukraine Korea

The top ten imported food categories by value are: Oils and fats Dairy Aquatic products Meat Grain Alcoholic products Sugar Beverages Other processed food Dried nuts Due to stricter supervision of imported foods by Chinese authorities and the implementation of more advanced regulatory measures there were no major food issue during the first half of 2015. According to the data, 1225 batches of imported food from 57 countries and regions were subject to regulatory rectifications which represent a decrease of 12.3% in comparison to H1 2014 data. Top non-compliant food categories include beverages, pastry & biscuits, grain and grain based products.

www.aqisq.gov.cn

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DAKOTA

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Made in AUSTRIA

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BY Lars Kellner

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Potential forEconomy China’slies economy lies in improved Potential for China’s in improved efficiency efficiency

China’s gross domestic product (GDP) grew 6.9 percent in the first three quarters, down 0.1 percentage point from the first half of this year, and 0.4 percentage point over annual growth last year.

Such a decline is de facto modest and normal.

However, given the size of China’s economy the decline couldn’t be further from normal as the country undergoes profound structural adjustment and upgrading, with shifting growth momentum. The deceleration of China’s economy and the future development of China have always been at the center of controversies.

China’s economy is slowing down, but still within a reasonable range. First, the traditional economy is faced with mounting downward pressure and international economic growth falls short of expectations. The government has taken positive steps to strengthen targeted control, deepen reforms and boost structural adjustment, in a bid to keep overall growth within a reasonable range.

Downward pressure mainly originates from the decline in exports, investments and industries.

Between January and September, exports fell 1.9 percent, significantly lower than expected.

The decline is understandable as the world economy is still undergoing deep re-adjustment, and it takes time for new growth engines to take off. The foundation for global recovery is shaky.

Fixed-asset investment grew 10.3 percent during the same period, down 5.8 percentage points from a year earlier. Among that, real estate investment increased just 2.6 percent, down 9.9 percentage points from last year. Meanwhile, industrial added value increased 6.2 percent, down 2.3 percentage points over the same period last year.

Despite that, the country’s economy is stabilizing.

On the one hand, economic growth and employment remain steady. The first three quarters witnessed GDP growth of 7 percent, 7 percent and 6.9 percent respectively, consistent with the annual target set at the beginning of this year. More than 10 million urban jobs were created during the same period, meeting the annual target ahead of time. A survey shows the monthly unemployment rate mostly stood between 5.1-5.2 percent.

On the other hand, consumer prices remained sound in the first three quarters. The CPI was accelerating but came in at 1.4 percent on average from January to September. There is no inflation or deflation that many are worried about. At the same time, consumption, home sales and income are also growing steadily Second, China’s economic growth, standing at around 7 percent, is still more than twice the world average, and tops all emerging economies. More importantly, it is one of the world’s most dynamic countries underpinned by its reform and opening up, “Internet Plus” strategy, and entrepreneurial endeavors. A group of Internet companies, including Alibaba, Tencent and Jingdong, have joined the ranks of world elites. The country’s slowdown is not only the result of its internal mechanism, but also the gloomy world economy.

China’s economy is undergoing structural optimi-

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By Wang Xiaoguang zation and upgrading while maintaining steady, albeit decelerated, growth. Its development mode is shifting rapidly, partly driven by growing enthusiasm of innovation and entrepreneurship as well as breakthroughs in international capacity cooperation.

Over time, these positive changes will transform into new growth engines and new growth points. On the one hand, some of the heavy and chemical industries are at a critical stage to transform themselves by adjusting product structure, eliminating outdated capacity, reducing investments, adjusting and accelerating industrial restructuring, which have achieved some success.

It is worth noting that the government has decided to accelerate industrial restructuring with a global vision. This year, it will make new strides in exporting equipment manufacturing and strengthening international capacity cooperation. It will be of profound strategic significance to ease overcapacity, accelerate industrial restructuring and cultivate international competitive advantages.

On the other hand, new industries, new formats, and new models are emerging and gaining momentum. First, the service sector has witnessed steady growth, playing an increasingly important role in boosting employment and GDP. In the first three quarters of this year, the service sector grew 8.4 percent, 2.4 percentage points faster than the secondary industry. Its added value accounted for 51.4 percent of the total.

These new changes suggest a promising future for the economy. A huge gap remains between urban and rural areas. Narrowing these will unleash tremendous potential for development. The country’s new administration is working hard to speed up the urbanization process, promote balanced regional development and unearth the tremendous underlying potential.

In the meantime, there is substantial room for improving both quality and efficiency of economic development. In the past, China’s economic growth depended more on resource investments and cheap labor. In the future, however, it will rely more on human resources, innovation, consumption restructuring and industrial upgrading.

One feature of inefficient growth in the past is that growth and profits are consistent. When GDP grows 1 percent, business profits will increase 1 percent, hence the 1:1 ratio. While in the future, when GDP grows 1 percent, profits will increase 1.5 or 2 percent. Therefore, with 6-7 percent of GDP growth, the profit growth is expected to exceed 10 percent. As a result, quality and efficiency will improve amid economic restructuring and upgrading. This is where the greatest potential of China’s economy lies.

By Wang Xiaoguang

The author is a researcher at and deputy director of the Department of Policymaking Consultation of the Chinese Academy of Governance.

Second, high-tech industries are gaining momentum. For instance, new energy vehicles and industrial robots have seen explosive growth. Third, new types of business are taking shape. The government has cut the red tape to encourage people to start their own businesses with more innovation.

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The next Issue get released in the End of December 2015