DEC 2010
China
Swedish Style in Chinese Homes ScandAsia.dk
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Coming Events Hong Kong Fashion Week for Fall / Winter Date: 17-20 January 2011 Location: Hong Kong Convention and Exhibition Centre
Your FREE ScandAsia Magazine in China
World’s second largest and Asia’s largest fashion event organized by the HKTDC and held at the HKCEC, the Hong Kong Fashion Week for Fall / Winter offers a fantastic spread of the very latest in apparel, accessories and fashion-related products from high-end fashion to mass merchandise, to buyers from all over the world. If you love fashion, don’t miss the event. You can visit official website at www.hktdc.com/hkfashionweekfw.
ScandAsia is the only magazine that covers all the Danish, Finnish, Norwegian, and Swedish residents in China. We also publish a ScandAsia magazine in Thailand, Singapore and the rest of South East Asia.
Please sign up for your own FREE copy: www.scandasia.com Publisher: Scandinavian Publishing Co., Ltd. 4/41-2 Ramintra Soi 14, Bangkok 10230, Thailand Tel. +66 2 943 7166-8, Fax: +66 2 943 7169 E-mail: news@scandasia.com Editor-in-Chief: Gregers A.W. Møller gregers@scandmedia.com Advertising: Finn Balslev finn@scandmedia.com Piyanan Kalikanon piyanan@scandmedia.com Nattapat Maesang nattapat@scandmedia.com Graphic Designer: Supphathada Numamnuay supphathada@scandmedia.com Distribution: Pimjai Chaimongkol pimjai@scandmedia.com Printing: Advanced Printing Services Co., Ltd.
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The 37th China Fur & Leather Products Fair Date: 11-14 January 2011 Location: China National Convention Center Approved by Ministry of Commerce of the People’s Republic of China, the fair is organized by China National Native Produce and Animal By-Products Imp. & Exp. Corp. and Sunry Advertising & Exhibition Co., Ltd with the support from International Fur Trade Federation (IFTF) and China Chamber of Commerce for Import and Export of Foodstuffs, Native Produce and Animal By-Products. With increasing international influence, it attracts more participation and attention from the fur industry and has become one of most influential professional fair in the world. Please contact Jay.Ma by email at majiechao@cofco.com / jay@fushionbj.com or visit www.fur-fair.com.
Fashionable American The Haygoods Dazzling Dancing Night Date: 13-14 January 2011 Location: Beijing Exhibition Theater If you are looking for a high energy, very entertaining show, you must go see the Haygoods! They are incredibly talented! You will not be disappointed. The Haygoods are an extraordinary performing family of 7 brothers and 1 sister who own and operate their own theatre jin Branson, Missouri. The Haygoods is a show that will appeal to the whole family, from the youngest member to the oldest. Tickets are available now at http://en.piao.com.cn/beijing/ticket_3634.html For enquiries, please contact ponypiaoen@hotmail.com.
9th Red Bull Nanshan Open Date: 22-23 January 2011 Location: Beijing, Nanshan Ski Resort The world’s best snowboarders compete at the Red Bull Nanshan Open Snowboard Contest. The event at Nanshan’s Mellow Park is the biggest Asian competition of the Swatch TTR World tour and has put China firmly on the snowboarding map. In its ninth year in 2010, the combination of a great snow park and big prize money helps draw famous world snowboarders who pull out all the stops to win. Watch them soar through the air as they pull off some of the sport’s most extreme tricks, then join them at the after parties which are known to be equally wild. Enter www.ttrworldtour.com for more information.
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DCCC Business Person and Entrepreneur of the Year 2010
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ctober 30 was an eventful and festive gala evening for Danish Chamber of Commerce (DCCC) Shanghai and 165 guests at Hyatt on the Bund. The Danish Chamber hosted the award ceremony for the fourth year in a row and this year included a special business delegation from Denmark headed by Minister for Foreign Affairs, Lene Espersen. All three DCCC Chapters in China (Beijing, Shanghai, and Guangzhou) have worked together to make this a Pan China event and members throughout China had contributed during the nomination process. The ceremony celebrates outstanding Business Persons and Entrepreneurs who do remarkable work in the Danish/Chinese world of business. All six candidates were present on Saturday and were introduced by Flash Point Presentations covering their life and business background. It was 10 pm before chairman of DCCC Shanghai, Christian Overgaard asked the candidates to come to stage and Minister Lene Espersen could open the envelope and declare the winners. The 2010 Business Person of the Year Award has been presented to Hans Michael Jebsen from Jebsen & Co. The 2010 Entrepreneur of the Year Award has been presented to Niels Krogsgaard Eskildsen from Chinasoft. DCCC had invited the great party band Crowdpleaser from Denmark to get everyone on the dance floor. When the 6 dynamic musicians hit the stage, the dance floor quickly filled and participants had 2.5 hours of great Danish music as well smash hits from Stevie Wonder, Robbie Williams, Rolling Stones and lots of other stars! Crowdpleaser and Rasmus Hoff made sure guests were all hopping and very pleased! About the Winners: Business Person of the Year - Hans Michael Jebsen Hans Michael Jebsen became chairman of Jebsen & Co. in 2000 to head the 4 generation family company. The core business in China focuses on the consumer, industrial, beverage and luxury sectors. The commitment to introduce China to leading-edge technologies in the development of sustainable energy and environmental protection has for example materialized into a power plant based on chicken manure at a large scale farm north of Beijing. Hoping to be a role model of Danish green solutions, Jebsen’s presence in China includes charity work with WWF and Red Cross. Entrepreneur of the Year - Niels Krogsgaard Eskildsen Niels Krogsgaard Eskildsen is the young founder and co-owner of Chinasoft, a fast growing software and IT sourcing company based in Beijing. Here he blends a unique open Scandinavian work culture with Chinese influence to foster an inspiring work place. In 1.5 years, Niels has seen incredible growth in projects, staff and revenue! Watch out Bill Gates!
1. Business Person of the Year Award (from left to right): Runner Up John Christensen, Danish Foreigner Minister Lene Espersen, Winner Hans Michael Jebsen, Runner Up Wayne Liu. 2. Entrepreneur of the Year Award (from left to right): Runner Up Casper Tollerud, Winner Niels Krogsgaard Eskildsen, Danish Foreigner Minister Lene Espersen, and Runner Up Pernille Leschly Halle. 3. Crowdpleaser Band from Denmark got all participant on the dance floor.
6 ScandAsia.China • December 2010
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Swedish Style
8 ScandAsia.China • December 2010
e in Chinese Homes 15 years ago Eva Molina Biorck phoned home to Sweden crying tears of joy. She had landed her dream job in the sales and marketing department for Scandinavian Airlines (SAS) in Beijing, having only recently arriving in the city. By Alexandra Leyton Espinoza
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was confused, happy and sad. I didn’t know if I was going to enjoy living in Beijing. Everything was so different from the life I had back in Sweden,” Eva Molina Birock recalls. Biorck is today the co-owner of Chang&Biorck, business partner in Mosto and Modo restaurants and mother of her five months old daughter, Edda. A true career woman and entrepreneur in the city. “Beijing is such an international city and rich on different cultures. It has an energy that doesn’t appear in many places. That’s one of the reasons why I decided to stay and build my life here,” she says. Her first impression of the middle kingdom came when she read the book “butterfly girl”. Biorck used to fantasize of the landscapes, brightly colored gazebo houses and dazzling sunsets. It was the picture of a romantic city that was exciting and different. After graduating from East Asian studies program in Stockholm. She moved to Beijing in 1996 and her romantic dream was not the reality. “Beijing was not the inspiration behind who ever wrote that book,” she says with a smile. ”I had never imagined it so big, with millions of people riding their bikes on the streets. The city was so grey,” she says. During her time at SAS, she got the opportunity to travel a lot, mostly to Thailand where the company had it’s regional office. Her interest in Asian decor grew and after 7, 5 years at SAS she decided to resign and start her own business with one of her oldest friend, India Chang from Denmark.
“I noticed how fast things were changing in China. It was such an inspirational environment and I knew many others that had their own companies. My interest in starting something on my own had grown bigger and I felt it was now or never,” she says. Together with her business partner Chang they visited different interior stores both in Sweden and Denmark, and fabric manufacturers in China. “We both liked the Scandinavian simplicity and form. But this can sometimes turn out to be a bit boring. So we decided to have a twist and add Asian elements and vibrant colors to our products,” she says. The brand was created, Chang&Biorck, and the design, made by a creative trio of well respected designers in Sweden. Gunilla Lagerhem Ullberg, who creates the fabrics, and patterns in most of the designs. Marie Louise Hellgren who gives Chang&Biorcks ceramic products its forms and design and Sara Ödman, who is a young and dynamic designer and the creative mind behind Chang&Biorck Kids collection. In 2003 they signed up for the Stockholm Design Fair and won the prize for best textile. A media boom followed and today Chang&Biorck is an up market home furnishing company on its rise with its first retail store in Beijing and exports to Europe “It fitted the Swedish market. Clean lines with an Asian touch,” she says. The brand have gained notoriety in the city and is also getting more popular among Chinese cli-
ents, with a growing middle class that can afford their products. Many of Chang & Biorck’s home furnishing are crafted in environmental friendly materials. They use for example organic cotton to make children’s clothes and low-impact dye in their product prints. In a country with a one child policy, were children get extremely groomed, children’s interior furnishing and clothes have become big business. According to Biorck, the biggest challenge as a smaller company compared to giants like H&M and Ikea is to produce smaller quantities making sure they deliver to high standards. “It can be an incredible challenge to produce orders in a small amount. If you don’t get what you asked for, they will try to convince you to still have it,” she says. Biorck thanks her experience of dealing with Chinese custumers for SAS and with Chang&Biorck as well as Mosto and Modo, getting closer to understand the Chinese business
culture. For her it means to be patience. Whilst Scandinavian’s like efficiency, the whole business process becomes streamlined and effective. In China you take customers for dinners multiple times before you actually talk about business. For her Guanxi, that means relationships in Chinese has never been more important since she opened the restaurants Mosto and Modo. *With the restaurants, it was the first time I really understood the value of Guanxi and what it means to do business here. You cant learn it until you experience it yourself,” she says. She definitely believes that China is the place to be if you are an entrepreneur with something unique on the market. ”I remember when I was studying at university and I had a scrapbook were I collected news from China that I found, which was not very often. Today, you are flooded with it,” she says.
December 2010 • ScandAsia.China 9
Giving Beijingers a Ne A tanning studio in Beijing – are you crazy?
For many Chinese, beauty - especially for women - implies pale white skin. So Phillip Wenzel Kyhl from Denmark took a big risk when he decided to open a tanning studio in one of Beijing’s oldest Hutong areas. By Alexandra Leyton Espinoza
i Nu ävenika! er Nordam
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believe that the growing middle class in China will soon change their attitude to dark skin and realize you look much healthier with a tan,” Kyhl says. He also believes that one of the reasons why Chinese women use whitening products is because the lack of knowledge of how to protect their skin from sunburn. Many of them don’t know about the dangers and worry about getting a tan rather than how to protect their skin. And don’t know that moderate sunbathing is good for you.
“We have to explain that vitamin D is good for their skin and health. And if they have skin problems it can actually be because of the lack of sun,” Kyhl said. Most Chinese, however, still associate dark skin with menial labor, where migrant workers in China often have the darkest skin. A lighter skin, on the other hand, is a sign of affluence. A reason why the shelves in the Department stores in China are loaded with lotions and creams which will whiten your skin. “Chinese girls will put whiten-
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10 ScandAsia.China • December 2010
ew Color Chinese girls will put whitening creams or other protection on their skin as soon as they leave their homes, trying to avoid every sun ray they can come in contact with. You will notice a white mark from their neck up
ing creams or other protection on their skin as soon as they leave their homes, trying to avoid every sun ray they can come in contact with. You will notice a white mark from their neck up,” Kyhl says.
Sunkissed location When Phillip Wenzel Kyhl together with his Chinese girlfriend Yuki decided to open their first tanning studio in a Hutong area, Sunkissed Tanning Studio, they therefore initially targeted the expats living in Beijing. The Hutong has been pinpointed by
the Chinese government as an official development area and is thanks to that getting a lot of attention and good media publicity. The full address is 65 Wudaoying Hutong between the Lama Temple and Andingmen. This is the same hutong as the Vineyard Cafe, the Greek restaurant Argo and the Spanish restaurant Saffron. “We didn’t wanna end up in a big department store as many others. This area has many small restaurant, boutiques that attract westerners but also Chinese customers,”
Kyhl says. The stand-up sun bed in their tanning studio is from Germany, as many of his tanning products. And you pay for every minute you get tanned, unless you don’t buy a weekly or monthly card (4,99rmb per minute). Chinese people are getting curious, trying to understand the concept of sunbathing. ”You have to explain to them how sunbathing works. Many don’t know, they never sunbathe out, let alone in a solarium,” Kyhl says. Today most of their Chinese clients are men, that with a help of a tan can make their muscles look more defined. He hopes that during winter time people will go to the tanning salon to get in a better mood. According to him the attitude to sunbathing is changing, especially when Chinese are getting wealthier, they can afford to travel more, returning bronzed. “It is like for us in the West, we want to look like we just arrived from a vacation,” Kyhl says.
The website of Sunklssed studio shows the prices and the time for different treatments. December 2010 • ScandAsia.China 11
Unique Company in A Copy and paste of international marketing work in China will most likely lead to failure. With this belief Dynamic Marketing Group has reached a unique position on the country’s film and advertising market. By Jojje Olsson
t its brand new 2,800 square meter head office in downtown Beijing, DMG’s belief also reflects the interior, as old Chinese wooden doors with bronze coloured handles floats together with futuristic conference rooms and a roof top basketball court on floor 27. But even more apparent is the positive atmosphere at this “fusion company,” pioneering in film and advertising, two industries with a very bright outlook in China to say the least: Today, China holds just short of 5,000 cinemas – in four years there will be over 30,000. This because China is getting wealthy, also making scores of foreign companies eager to advertise for reaching its consumers. But naturally, the Chinese market differs from that of the West, and DMG’s Chief Executive Dan
Ali Nosrati was in many ways an outsider. Without contacts, language skills or even a business idea. That was in 2007 when Ali first arrived Beijing.
12 ScandAsia.China • December 2010
Mintz often talks about China’s culture and tradition as gateways for reaching its audience. But at the same time, branding is a western concept, and without knowledge and good ideas, the contacts and cultural understanding alone will lead nowhere. So, the optimal solution to attract Chinese consumers must be a mix: ”Rather than copy an American business model, I partnered up with two exceptional individuals, Wu Bing and Peter Xiao, and set about building a company based on an original set of values – neither Western nor Chinese,” Dan Mintz said to Campaign Magazine after it recognized DMG as one of the world’s leading independent agencies 2009 and 2010.
Twenty year old DMG was founded almost two decades ago – a lifetime when mea-
sured in terms of Chinese development. Back then, Beijing was a mangy city without skyscrapers, with few foreigners at all, and awkward vibes of the Tiananmen massacre still being felt. It was a bald landscape for a foreigner in which to form an advertising bureau, but the move proved to pay off well: With its long presence in China, DMG now has the experience, confidence and contacts to offer what other agencies can’t. When advertising Nike in China, DMG arranged a basketball tournament based on rivalry between nine historical neighbourhoods of Beijing, with the final game taking place inside the walls of the Forbidden City. And when recently finishing off an advertisement video for Volkswagen, one of the most heavily trafficked parts of Beijing’s many ring roads was shut off, so that cars
Expanding Market could race in high speed to the famous backdrop of the downtown business district skyline.
Looking for talent As foreign companies are pouring into the Chinese market, they also lack understanding of it, and cooperation with an agency is almost essential for success, no matter size or popularity abroad: DMG’s clients also include Sony, NBA and Mercedes-Benz. In fact, the industry is growing so fast it’s hard for companies to find enough employees. Ali Nosrati, Human Relations Manager at DMG, recalls how he earlier this year attended a regional forum in Shanghai, together with some 20 companies in the same industry: “When talking about problems we were facing, representatives from every single bureau would mention the lack of qualified and competent staff to em-
China Inside Out He first arrived to China without a business idea, ending up forming a company designing and selling clothes. Now, Ali Nosrati, 27, uses his experience on the Chinese market to help Western companies establish themselves here. Ali works on with DMG - one of the fastest growing companies in advertising and film - in down town Beijing. He is directly involved with productions for Volkswagen and Nike. He operates from inside China, offering guidance for outsiders knocking on the door. That was not always the case. When first arriving here in 2007, Ali Nosrati was in many ways an outsider himself, without contacts, language skills or even a business idea. What he did have was two friends following him from Sweden, and a strong ambition to succeed on the Chinese market. “We came here to start a business, and after research decided to produce high-end fashion accessories,” Ali recalls. With no experience of neither fashion nor China, the journey came to be an adventurous one, with factory visits and selling trips to different corners of the world. The all out effort led to a handful of collections in some ten countries, but even more important: A solid and experience based knowledge of the world’s most sought-after market. The three friends found themselves attractive on the labour market, and today they are all still in China, working with multinational companies.
Responsibility Since January this year, Ali is working as International Human Relations Manager with Dynamic Marketing Group; an independent bureau for entertainment and advertising, also featured in this issue of Scandasia. “It’s a new challenge to work side by side with the Chinese, instead of against them as before. Given the expansive nature of this industry in China, I develop a lot faster, and get experiences hard to obtain anywhere else,” Ali says on his new job. DMG’s position in China attracts high-end Western brands, wanting its help to reach the Chinese customers. Events and resources are abundant, and just after six months at DMG, Ali found himself in charge of three camera crews, about 500 extras and live interviews on a red carpet during an event with Volkswagen. Office hours might exceed 10 per day, and holidays are significantly less than in Scandinavia. But without a doubt, Ali says it’s worth it, given all the activities and opportunities, in office as well as daily life: “I feel my life here is more about experiences, instead of working nine-to-five so I can buy stuff I do not need,” he says, and gives the advice to people to get established here now, before China’s growth loses pace. The present Chinese market explosion in the creative industry might be hard to find anywhere else in the world. It’s also hard to separate from it, as shows when Ali is pondering about the future: “When I first came here, I evaluated my stay every year. Now I do the same in two-year periods. Obviously, I will be here for a while still.” December 2010 • ScandAsia.China 13
ploy.” The concept of fusion also strengthens DMG’s position; it works hard to integrate entertainment and advertising, leading to a broader net of contacts and possibilities such as product placement. DMG produced the biggest Chinese language movie of last year, “The Founding of a Republic,” starring actors such as Jackie Chan and Jet Li. During next year it will release more Hollywood movies in China, starring Bruce Willis and Morgan Freeman. Needless to say, distributing and marketing of those films run without problems. The industry’s rapid expansion is obviously in stark contrast to the
West, where lay offs and cut backs have been reality in the past couple of years. Ali Nosrati therefore welcomes Europeans to apply for internship or job at DMG, adding that Scandinavians are sought after due to their reputation of creativeness. “We are interested in anyone with relevant talent or the right background,” he adds. The Beijing office currently employs some 350 people, with a couple of dozens of foreigners, and two Scandinavians. Ali Nosrati also says foreign staffs can potentially reach high position in creative industries like this, since the habit of thinking outside the box and act on own initiative is common in Western company culture.
Dynamic Marketing Group • • • • •
Founded: 1993 Management: Dan Mintz (Chief executive, Chief creative officer), Peter Xiao (Chairman), Wu Bing (President) Employees: About 500 Locations: Los Angeles, Beijing, Shanghai, and a handful local offices in Greater China Web: www.dmgmedia.com
Career Boom
After less than six months, Oscar Edström has more responsibility in his job in China’s growing entertainment and advertising industry than he would ever have in the same flattening sector back in Scandinavia.
Oscar sounds a decade younger than his age 27, when talking about all the “cool” and “awesome” stuff that is going on at Dynamic Marketing Group’s Beijing office. Having been in China on and off for four years, his excitement is righteous, and that of someone being at the right place at the right time. He compares the creativity and dynamics at the DMG office with his internship earlier this year at the Swedish Trade Council in Beijing: “Things are simply really being done here at DMG. Projects will not be shelved for completion in a couple of weeks.” Oscar says even the process of hiring him was an example of the efficiency that marks this expanding industry in China as a whole today: “I had five interviews and a copy test within a week, and the decision was taken on the last interview day,” he says, adding that the procedure of getting an internship at the trade council took several months. As Executive Assistant, Oscar is a link between the CEO and the 350 employees in Beijing, saying he got more responsibility and insight than he could ever imagine at a Swedish company: “It’s easier to get responsibility here if you show your competence. After just a month I was negotiating prices for purchase and advertising.” This shows a company flexibility that Oscar says motivates and develops him faster than ever before. By large, the working mentality is different than he experienced before: “I can set deadlines here that would never be accepted in Sweden,” he says, adding that also his own workload is heavier than it would be in a Scandinavian company. But he likes it this way, pointing out that at a big office here, work and private life is integrated: “Instead of waiting to get off work to see my friends, I work alongside them all day. We can go for spontaneous dinner every day, without having to plan in beforehand, which is also helpful for brainstorming and developing new ideas.”
Growing film industry As the advertising industry in China is growing very fast indeed, Oscar sees an even bigger potential for the film industry. China is today the fourth largest cinema box office in the world, and is believed to surpass Japan and become number two in five years, as revenues are currently increasing with about a third every year. When talking to Oscar, he just came back from Los Angeles where he collected the copy of Resident Evil: Afterlife, which will be screened on more than 1,000 3D cinemas in China from Nov. 16 and on. He was also in charge for the China digital marketing process of the same movie, finding channels for advertisement and negotiating its prices, as the movie in China is entirely distributed by DMG. “There is no other company in China with the same contacts and experience in this field as DMG,” says Oscar, pointing out that it will most likely work as a link between Hollywood’s film industry and the Chinese audience. 14 ScandAsia.China • December 2010
Adventuring into China’s Equity Market There can be several advantages of investing in Chinese equities but investors should be aware of the risk involved.
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s a result of high economic growth in China and the prospect of an appreciation in the Chinese currency, investing in Chinese equities can offer several advantages. But no rose without a thorn. In general fluctuations in Chinese equity prices are considerably greater than fluctuations in US and European equity prices and this means that investments in China require a large risk appetite. In addition there is no guarantee that China will allow its currency to appreciate in the future, which also represents a risk for investors.
Cooling impacts equities When seeking to invest in Chinese equities, the most obvious choice is to invest through an investment fund, says Senior Vice President Allan Hvii at Sydbank (Schweiz) AG. Photo: Sydbank
“When the financial crisis hit in autumn 2008, the Chinese authorities were quick to respond and introduced an extensive bailout package of then EUR 450bn. This meant that China was able to maintain a high economic growth rate,” says Senior Vice President Allan Hvii at Sydbank (Schweiz) AG. The economic stimulus package was accompanied by a sharp rise in bank lending and even though this money was intended for investments in the real economy, part of it was spent on speculation in for instance the housing market and the equity market. This prompted sharp price increases in the Chinese equity market in early 2009 while equity indices in several other countries continued to close in the red. In recent months the Chinese authorities have sought to curb price developments in the housing market, for instance by means of bank lending restrictions and stricter requirements when buying property. “These measures have had a cooling effect on the economy and put a damper on the Chinese equity market even though economic growth remains above 8%,” says Allan Hvii.
Prospect of currency strengthening China officially abandoned its fixedrate policy against the US dollar on 19 June 2010. The decision inspired hope among investors all over the world that China would allow the yuan (CNY) to strengthen against the dollar again. During the first weeks of China’s new exchange rate regime, investors noted a cautious CNY appreciation against USD but since then the cross has drifted back towards its starting point. However in terms of DKK the situation is quite different and there are large fluctuations in the exchange rate between DKK and CNY. One consequence of a yuan strengthening will be greater spending power among the growing middle class. Enterprises exposed to the Chinese domestic market may therefore grow more attractive in the years to come. On the other hand enterprises exposed to international markets may face difficulties due to for instance stronger exchange rates and prospects of a weak and uneven global economic recovery.
Swings and roundabouts “The Chinese market offers potential to gain on the swings as well as the roundabouts in the years to come – in other words to profit from currency strengthening as well as rising equity prices. However the risk is substantial and therefore only investors with a large risk appetite should make investments in the Chinese market,” remarks Senior Vice President Allan Hvii at Sydbank (Schweiz) AG. When seeking to invest in Chinese equities, the most obvious choice is to invest through an investment fund which possesses the expertise and experience in investing in Chinese equities and ensures risk diversification. The Chinese share market is very difficult to access but if you wish to give it a try, several Chinese enterprises are listed on the exchange in for instance Hong Kong. If you would like more details, you are welcome to contact Senior Vice President Allan Hvii at Sydbank (Schweiz) AG on tel + 41 71 227 81 60.
December 2010 • ScandAsia.China 15
Chinese Leaders Inspired
Visionary Chinese leaders, who have managed to satisfy the growing middle class, are the main reason for the rapid economic growth in China. Now China is about to take the next step in developing its common wealth, and the Chinese top leaders are looking towards the Danish welfare model to find inspiration. Says Professor Kjeld Erik Brødsgaard from Copenhagen Business School who knows China and its leaders. By Toke Christensen, Shanghai 16 ScandAsia.China • December 2010
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jeld Erik Brødsgaard orders two cups of cappuccino in effortless Chinese, when ScandAsia’s journalist meets him in the cafe at his hotel in Shanghai “Qing lai liang bei cappuccino.” Behind the small round glasses is a man with more than 30 years of China experience. Neither the language nor the complicated Chinese characters troubles the professor who came to China for the first time already in 1978 as an exchange student. Today he is Professor at Asia Research Centre in Copenhagen Business School (CBS) – one of the biggest educational institutions in Denmark.
“When I came to China in 1978 the ‘Open Door Policy’ had not started yet. It was the old rationed China. If you wanted to buy clothes, you would need ration coupons from the government stores, also as a foreigner. The government managed everything.There were no hotels, and in the evening the restaurants would close at 7.30 pm. After that all the lights were turned off in Beijing, and it became totally dark,” says Kjeld Erik Brødsgaard and smiles as he thinks back on the old China.
Strong leadership A lot has happened since Kjeld Erik Brødsgaard visited China in 1978.
by Denmark OUR SERVICES IN SOUTHERN THAILAND Tailor-MadeÊHolidays Today the country is the second largest economy in the world, and according to Kjeld Erik Brødsgaard strong leadership is the main reason for Chinas newfound status. ”Different factors have influenced. China has been through a peaceful period in their foreign policies during Pax Americana, which has been good for them. They also have an initiative and quite well educated labour force. And then there is one thing that people tend to forget, which is the quality of the leadership. It is important to note that the development we have seen has been led by the Communist Party. Contrary to the Soviet Union, where everything broke down and was privatised in one night, the Chinese Communist Party has a great part of the honour, when we talk about the development in China.The have managed to create a continuous development, where the private economy has grown and become very comprehensive. Still they have kept the state economy in the key sectors, so the state economy still means a lot,” says the Danish professor. Could China have achieved the same economical development without a tight top-down control? “Maybe so, but I believe that Western countries underestimate the quality of Chinas leadership. Many of the top politicians are engineers and thus trouble-shooters. After the massacre at the Square of Heavenly Peace in 1989 we all expected that the Chinese system would collapse - we were certain it would. But it did not happen. Instead China suddenly showed up with enormous growth rates, and you could see how much things had changed without a change of political system. The leaders have managed to re-establish the social contact with the middle class in the cities, and they have been able to do that, because they have delivered economic progress. Even though there is still a big difference between rich and poor in China, the population in general has received a raise of income, and people are aware of
that.That is why most Chinese do not wish for another regime or system, because they have benefitted from it.”
Close Chinese cooperation In the occasion of the World Expo in Shanghai, Kjeld Erik Brødsgaard has just visited China to tell about the ’China Executive Leadership Programme’. This is a research programme that CBS and Cambridge University has made with leaders from the absolute political and occupational Chinese top. It contains a course programme, where the Chinese leaders first travel 14 days to Cambridge and then finishes off with one week at CBS. In Denmark they will be teached in the structures of the Danish society, and they will visit ministers and top companies in the Danish business world. In spite of Chinas rapid development the leaders realise that there is still a lot to learn from the West – not least from the Nordic countries, where the welfare societies are of great interest to China. “The Chinese ask themselves how it can be that the Nordic countries are always in top of the international rankings, for example when it comes to global competiveness reports. The Chinese are extremely aware of rankings.The first thing they tell you if you visit a university is how they are placed in the ranking list. Nordic countries are always in top when it comes to innovation and lack of corruption, and at the same time we have a high educational level and good social conditions. The Chinese want to learn from that. They also think the Nordic model is interesting, because it is an alternative to the American model as they believe has failed simultaneously with the financial crisis. So they send their CEO’s and the Central Party School to us at CBS to discuss these ideas with Danish scientists. Right now we are establishing a China-Denmark development forum that holds great perspectives for a closer cooperation with China.”
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Danish Butcher in Bei Kenneth Arrild from Ishoj needed a change in his life. He was tired of working as a production manager at Copenhagen University Hospital. By Alexandra Leyton Espinoza
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needed some challenge in my life. I was managing the kitchen of Copenhegen University Hospital from an office for 1 year. Not what a signed up for when I became a butcher,” says Kenneth Arrild. Then he moved to China Kenneth started studying butchery when he was 15 and he has been a proprietor of a butchery since the early 80’s. Two years ago a Danish businessman living in Shanghai invited him to China, asking for his help to start a butcher shop and an accompanying restaurant called Yasmine’s. Most importantly, he needed someone with high skills as an educated butcher.
“Denmark was facing high underemployment levels and the taxes were rising, the situation made me think outside the box,” Kenneth recalls. “I needed to try something different, so I said yes!”
Overstay on his visa Kenneth Arrild moved in January 2009 without knowing anything about China. Like many before him, nothing turned out as he expected. He started at Yasmine’s from scratch, from day one he was decorating the restaurant, training the staff and running the restaurant. During the first couple of months he lost over 22 kilos thanks to the workload and
stress. If that was not bad enough, on top of this his visa expired and he got kicked out of China! “I got a black stamp in my passport and wasn’t allowed to return for a year,” he says. But two weeks later he was back in Shanghai. All I can say is, that we butchers are a little bit crazy. I wanted to come back to China, so I did,” he says.
Yasmine’s a success With a proper working visa, restaurant licenses, and other official documents in order he set about continuing his task. The restaurant had great success in Shanghai. Food
reviews from local magazines and newspapers praised his steaks as being the best in town. Even for a city as Western as Shanghai, good steaks can still be hard to find, good quality meat and western butchering methods are a rare commodity. Arrild is fastidious about the quality and craftmanship involved in Butchery. A skill that is hard to find among Chinese butchers. According to Arrild many Chinese don’t understand the difference in something as simple as a sirlion cut or a rump cut of meat. Chinese people just eat, they don’t care. I have to train my staff to understand the difference. To taste
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18 ScandAsia.China • December 2010
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ijing
the meat and see it for themselves, otherwise they don’t get it, he said. And of course to never compromise the quality of meat.
Moved to Beijing This autumn, Kenneth Arrild and his family relocated from Shanghai to open The Butcher’s Steakhouse on Dongzhimenwai in Beijing dedicated to the art of Butchery. The steaks that he serves at The Butcher’s Steakhouse is imported from Brazil, Australia, Argentina and Inner Mongolia. But it has not always been delivered according to Arrild’s standards and he has rejected a shipment more than once because of poor hygiene. No delivery is ap-
proved until Arrild or the second in command at the Danish butchers reviews it first. “They think I am crazy when I turn them down for something that they don’t see as a problem. The suppliers will offer discounts, but I still say no,” he said. According to Arrild, his guests don’t want meat that has been injected with water and carbon dioxide to keep it from changing colors or being infected by fever. “I talked to some Chinese doctors, after seeing some of the conditions in which some people preserve the meat in this country and he told me the foot and mouth disease is quite common among Chinese children during summer time. That for
me is just unbelievable!” he said.
Curious Chinese customers Dongzhimenwai in Beijing where The Butcher’s Steakhouse is located is one of the most popular areas for expats. Today, more than 70 percent of his customers are Westerners, but Arrild believes that the Chinese market will soon grow extensively, especially after noticing how the Chinese are aiming for a more American market. “Many Chinese want to be like Americans, and they want to eat like them as well. There are not many butchers in Beijing and that makes us unique. Chinese people are very
Guan Gong
curious, they want to learn how to eat a good steak. How to cut, eat, dip, - they want to learn it all! That’s a very interesting process,” he said. Arrild welcomes more Butchers in the city, believing that it only makes the general hygiene and quality increase. He believes the opportunities are endless in China, and ten years from now he is planning on having butchers shops all around China. “China is like America was 100 years ago, there are lots of opportunities. Time goes fast, but I don’t regret for a second that I moved here,” he said.
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Looking into the Wo
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hen trying to comprehend the essence of the Amanresort brand, who could be more appropriate as our concierge than Liv Gussing who has been with the company since 1996? And where could be a more fitting place than the lovely wonder world of Amandari, the company’s second property and the first upscale luxury resort in Ubud on the island of Bali? Amandari - where this General Manager of Swedish-Indian origin talks to ScandAsia - celebrated its 20th anniversary last year and is an apt reflection of the company’s central tenets: discretion, high level of service, luxury, beautiful natural surroundings, warm and elegant hospitality.
200 staff to 30 rooms On a small typical Aman property like this the staff exceeds the number of guests multiple times. “One of the unique things about Aman is the very high staff-to-guest ratio,” Liv Gussing explains. “We have a lot of staff - 200 staff on 30 rooms - looking after our guests, so there are lots of people around. And we’ve been able to create a wonderful sense of com-
When Amanpuri opened on Phuket in 1988, tourism to the island was just a trickle and the new Aman brand was unknown. Today, twenty plus years later, while mass tourism has come to the island, this elite property is still its most luxurious, part of a worldrenowned portfolio of resorts worldwide. Amanpuri continues to be a draw for the rich and famous, including royalty, from far and near. The unique vision of Amanresorts, a pioneering boutique luxury resort company, introduced many firsts to the industry and has continued to expand, inspiring scores of others who look to the brand for inspiration. By Joakim Persson
20 ScandAsia.China • December 2010
orld of Aman Resorts munity because seventy per cent of them live within one kilometre of the resort.” Some in the hospitality industry will certainly envy being able to keep staff for 15+ years, but such is the case when the resort bears the Aman brand and is situated in the middle of such a strong local culture like the one in Ubud.
Like having friends visiting “Basically our job is guest focused; it’s really like having guests and friends coming to visit you,” Liv continues. “We spend a lot of time with our guests who also want to know my opinion on what they can do, where they can go. Part of my role is to have an in-depth knowledge of what is special so I can recommend unique places, unusual shops, special ceremonies and activities to guests depending and what their interests are.” “Typically our resorts are between 30 and 40 rooms and they’re quite simple in design. Adrian Zecha [the founder] wanted to create a place where you could completely get away from the stress and the business of any busy city, find absolute peace, and no clutter, so to speak. So the resorts are designed with that in mind, with both interiors and exteriors being very calming.”
Aman properties are places for guests who are really inspired by lifestyle and adventure and eager to explore exciting destinations or simply relax. The company has recently even developed resorts in urban settings – of course on unique locations such as adjacent to the Summer Palace in Beijing. “Amanresorts is a portfolio of very different properties.” “Mr. Zecha has certainly had an impact both on how resorts are designed and the type of experiences that guests can have. The company was really one of the first to offer relaxed settings within the context of the luxury leisure hospitality experience. I think that has had a big impact on the industry.” Reflective of the place they’re located each property is different and unique to its location, explains Liv who also has had the privilege of being part of the footprint teams that oversaw the creation and opening of several Aman resorts.
Creating the brand “One aspect which I have enjoyed tremendously which was true then and as well as now is how each of us would play a big part in creating the brand. Each opening we do is very different. We try to find local experiences, give a taste of the place
we’re in and bring nature into our resorts. All the amenities, furnishings and accessories are designed for that particular resort.” She has been with the company for the last fourteen years and was part of openings on Java, in Wyoming as well as in Marrakech, Morocco. “One of my favourite roles during an opening was to explore potential guest excursions with a local guide to help create something that is quite unique to Amanresorts.” Taking a step further back, Liv actually first came to Thailand and worked with the Dusit brand, having been keen on working in Asia because of its legendary reputation of hospitality service. So she came over here, at 23, after hotel studies in the U.S and working at St. Regis in New York as a butler. Liv began her career with Amanresorts by assisting with three property openings and spending three years at Amanpuri, the company’s flagship. “It is a very well-known resort. The design is absolutely stunning; with architecture that mirrors traditional Thai style.” While certain elements and themes can be found in all properties, the overarching style of the aesthetic is simple, elegant and clean. At Amandari, the resort is architecturally quite unique in that it takes several aspects of traditional Balinese design and incorporates them into a new and luxurious construct.
Bali up close “We really want guests to experience daily life in Bali. That’s the experience we’re offering. So even while you are in the resort, you’ve got the villagers coming through and various excursions beyond the property. For example, we offer a cooking class where we take guests to the market followed by a cooking lesson in a Balinese home. If there’s a ceremony in a village of one of the staff, we tell guests and can take them there to have a more intimate experience of what really happens on the island.” Amanresorts has developed many loyal guests, affectionally known as Aman Junkies. “We do have a lot of regular guests. A number of guests do go
back and visit the same place every year and then also explore our new properties.” “What has amazed me over the years is the incredible guest mix, actually. There are obviously some older guests who have the means to visit. But we also get honeymooners, such as a couple who checked out recently who were 23 years old. We have also seen a change reflecting the economy where we had the IT boom which brought successful young people with disposable income. So we have the whole range.”
The culture is alive In selling Bali to newcomers, Liv points out the “magical thing” that the island’s culture and traditions are still alive. “Very few places in the world that receive so many visitors are also able to maintain a rich and deep local culture. Tourism started coming to Bali in the 1930’s and I think it is still fabulous that you can come here and see ceremonies, offerings, agriculture with its traditional terraced rice fields and more.” “Another thing that I think is fabulous with Bali is that it offers so many different experiences; you can relax on the beach, climb a mountain, visit a painter, go for a trek in the rice fields or do rafting etc. It offers an incredible range and the nice thing is that you can drive from the beach to the mountains. Many places you have to go by plane to get both experiences.” “People are so friendly,” she adds. “They’re lovely, very welcoming and open. The Balinese I find have been tolerant towards all people that come here over periods of time.”
December 2010 • ScandAsia.China 21
Medium
Othello Cake Othello Cake is a fabulously delicious layered cake. It is named after Verdi’s opera ‘Othello’. And I haven’t got the faintest idea why.
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rla, the large Danish-Swedish dairy company, has a recipe on its website, which is worth sharing. The baked layers are quite difficult to find and a bit cumbersome to produce yourself, but you can buy them at Scandshoppe in Singapore or you can buy them online on one of the webshops for Scandinavians abroad. A warning though, while this is definitely a treat and something very good, your waistline might expand if overindulging. Ingredients:
Are you done?
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hen you have completed the above puzzles, please send your solution by fax to +66 2 943 7169 or scan and email to puzzles@scandasia.com. We will make a lucky draw among the correct answers. Five lucky winners will receive a high quality ScandAsia polo shirt. Deadline for submit your solution is 15 February 2011 Name:
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22 ScandAsia.China • December 2010
crème filling: - 2 large eggs - 4 tbsps sugar - 3 tbsps flour - 500 mL milk - the vanilla seeds from half a pod - 250 mL double/whipping cream icing: - 100g icing sugar - 2 tsps cocoa powder - 2 tbsps boiling water - 100g pure ‘raw’ marzipan - 3 tbsps icing sugar
layer cake: - 3 layer cakes (If you want to do them yourself, they essentially large flat angel cakes, about 25 cm diameter, 1 cm high) jam: - j glass of raspberry jam or strawberry jam Beat eggs and sugar together in a heavy pan. Add flour and mix in till smooth. Add milk and vanilla and slowly heat while stirring. Cook until thick for 1-2 minutes. Stir continuously to avoid burning. Cool. Whip cream. Unite cold cooked crème and cold whipped cream to crème filling. Smear a thick layer of raspberry jam on the top of two layer cakes and on the bottom of the third (the top one). Stack the layer cakes by putting half filling crème on the bottom layer and half on the middle layer. Sift the icing sugar together with the cocoa and mix to an icing with the boiling water. Apply to top of the cake. Knead the marzipan with the icing sugar and roll into a broad band the width of the cakes height and so long it fits around. Fit it around the cake. Cool for several hours - if possible overnight - before serving.
You were warned. This is NOT diet food.