DEC 2012
China
Casper shows the hidden treasures of China ScandAsia.dk
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Coming Events
Seminar on China’s fifth generation leaders Date: 12 December 2012 Location: JW Marriot Hotel Tomorrow Square Shanghai 399 Nanjing West Road (Cnr. North Huangpi Road) Time: 11:30-13:30 Price: Members: RMB250 Non-members: RMB400
Your FREE ScandAsia Magazine in China
Together with the American Chamber of Commerce in China, the Swedish Chamber of Commerce in China is organising a seminar to help provide understanding of China’s fifth generation leaders and what they mean for your China business. W. John Hoffmann, co-founder & principal of Exceptional Resources Group (XRG) and co-founder of China Dialogues Network (CDN) will be the speaker at the event. For more information, visit www.swedishchamber.com.cn
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.
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Sanya International Boat Show
The 10th HK Mega Showcase
Location: Serenity Marina, Sanya, China Date: 14 – 17 December 2012
Location: Hong Kong Convention & Exhibition Centre (HKCEC) Hall 1 Date: 23 – 26 December 2012
Sanya International Boat Show is taking place for four days in Sanya, China. It is a unique show which will encompass anything and everything related to boat and boating accessories. There are over 100 exhibitors participating. The show will feature luxury boats, sailboats, cruise boats, inflatable boats, and mega yachts and several other things related to boating. Also, it will showcase the latest innovations in the field of boating and latest boating technologies. For more information, contact +8689 8882 15893
Here’s an event that Christmas shoppers should not miss! The HK Mega Showcase is an annual shoppers’ highlight event that attracts a large number of visitors every year. The 10th HK Mega Showcase covers five fantastic zones to meet all kinds of demands of visitors including Electrical Appliances & Domestic Products Expo, Hong Kong HOMEX, Motor Super X, Trendy Zone and Hong Kong Food Festival. For more information, contact +852 2591 9823
Emerging Leaders - a six Module Leadership program Location: Radisson Blu Hotel Shanghai New World ( 88 Nanjing Road (W) Shanghai / Hotel Tel: +86 21 6359 9999) Date: 28 January 2013 The Swedish Chamber of Commerce in China (SCCC) is organising the leadership development program together with the leading companies within talent management and people development.The goal is for participants to obtain the skills needed to work and lead effectively within an organization operating with both Chinese and Swedish influence. The focus is on Personal Leadership and one important end result of the program is a strong network. The course is targeting Chinese middle management leaders. There will be 3 full days of training, each day including 2 modules, coffee breaks and lunch. The first full day of training is on 28 January 2013, the next one is in February and the last one is in March. After completing at least 5 of the 6 modules the participants will receive a certificate issued by the Swedish Chamber of Commerce in China. For more information, visit www.swedishchamber.com.cn
Past Events
Finnish Minister discusses Economic Situation
O
n 1 November 2012, the Finnish Business Council in Shanghai held a meeting with Mr. Jyri Häkämies, the Minister of Economic Affairs of Finland, to discuss the economic situation in Finland and the government measures to promote the internationalization and export. Furthermore, Minister Häkämies shared some insights into the investment strategy of Finland and the Clean Energy program. Especially, he emphasized the need for entrepreneurship, innovation and growth. He is confident that there are many opportunities for Finnish companies amidst the turmoil global economic situation. Finally, he elaborated the new concept of ‘Team Finland’. More than 30 participants enjoyed the insightful presentation and a discussion.
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December 2012 • ScandAsia.China 5
Past Events
Pool Party for YP and Students in Hong Kong By Mette Hald Mikkelsen
O
n 22 September 2012, the big pool party was held for new students and young professionals at Mariner’s Club in Hong Kong, gathering over 120 international participants from many countries such as Denmark, Sweden, Estonia, Korea and Croatia. At the event, welcome drinks were served and people quickly started to chat with each other and making new friends. Names and numbers were exchanged around the tables in the pool area. Lunch buffet featured burgers, French fries and hotdogs, and even though the old saying warns that you shouldn’t swim right after eating, people jumped in the pool after they finished their food. Those who had been in Hong Kong for a while were surprised. One said that she hadn’t brought her bathing suit, because at all the pool parties she had ever been to in Hong Kong no one ever actually got in the pool. But the Danes and Swedes could not careless. They swam around and enjoyed cooling down from the warm weather, which most weren’t yet used to. Earlier it was the responsibility of the Danish General Consulate and the Danish Seamen’s Church to prepare these events, but after the Danish General Consulate was recently closed a new cooperation structure had to be made. Since the Danish and Swedish Chambers of Commerce were already planning similar events it seemed ideal to combine them. This is how this Scandinavian event came to be and it surely was a success.
Georg Jensen gives presentation to members of DCC, Hong Kong
D
anish Georg Jensen hosted a private presentation for members of Danish Chamber of Commerce (DCC) in Hong Kong about the Exclusive Sterling Silver Ambassador Collection that was being exhibited at the International Finance Centre (IFC Mall) on 12 October 2012. Surrounded by countless bowls, goblets, trays and pieces of cutlery, all made of solid silver and painstakingly made by hand in Copenhagen, the global ambassador Anne Mette Müller-Krogstrup presented the impressive collection and the history behind. Georg Jensen has been around since 1904. Through a presentation of the product timeline, Anne Mette MüllerKrogstrup brought the history to life as she spoke passionately about the craftsmanship of a brand where only exceptional quality is good enough.
Danish Silver Smith demonstrating techniques. 6 ScandAsia.China • December 2012
Danish Business Person and Entrepreneur of the Year 2012
Past Events
O
n 27 October 2012, the Danish Chamber of Commerce Shanghai (DCCC Shanghai) hosted the 6th Business Person of the Year and Entrepreneur of the Year 2012 award ceremony and gale ball on behalf of the Danish Chambers in Beijing, Shanghai and China South. Dodo & the Dodo’s appeared for after dinner dance, playing both wellknown hits and new material. Like every year, a winner of Business Person of the year and a winner of Entrepreneur of the year were chosen.
Winner of Business Person of the Year 2012: Steffen Schiottz-Christensen - NTS, Part of DAMCO and the A.P. Moller Group Steffen has worked for the A.P. Moller Group 25 years, last 12 years in China. During Steffen’s time in China he has been responsible for DAMCO’s impressive expansion in the country, including being involved in establishing no less than seven successful joint ventures over the years, creating more than 2,000 new jobs. Steffen was directly responsible for the establishment of DAMCO Chengdu Customer Resource Center in December 2009 hiring more than 1,000 people within only 3 months. Recently he has been directly responsible for the A.P. Moller Mares acquisition of NTS, a major airfreight provider with 1,000 employees and ranked number 5 in Chinese air freight. In 2011 Steffen received the Magnolia Award by the Shanghai Government, being only the third Dane ever to receive this prestigious award. Business Person of the Year finalists were: Peter Trampe, DEIF and Steen Teisen, Widex Hearing Aid (Shanghai) Ltd.
Winner of Entrepreneur of the Year 2012: Casper Tollerud - Genuine China Tours Having lived in China for more than 10 years, Casper established his own travel agency Genuine China Tours in Xi’an in 2008, first focusing on delivering quality oriented travel experiences in China for foreigners. Casper was the first foreigner ever to pass the exam as Tourism Manager at the Xi’an Tourism Academy. Casper’s business philosophy is to offer innovative experience to the visitors in terms of destinations and travel experience. Over the past 4 years, Genuine China Tours has shown a steady high growth in its business and has expanded the scope of the business, now also bringing Chinese tourist to Denmark. Entrepreneur of the Year’s finalists were: Erik Messerschmidt, The Danish Cultural Institute and Jesper Birk Andersen, Safe and Care Co. Ltd.
December 2012 • ScandAsia.China 7
News Brief
Swedish State Secretary’s visit to China
M
r. Gunnar Oom, the Swedish State Secretary for Trade, paid an official visit to China and Mongolia on 2-6 November. The focus of his visit was on mining industry. On the day he arrived –2 November, he attended the inauguration of the Innovative Sweden Exhibition at Tongji University in Shanghai. The following day, Mr. Oom attended a seminar in Ulaanbaatar, Mongolia, on the topic of “Innovative Efficient and Safe Mining” where he made an opening speech. On 4 November, he attended bilateral meetings with the Mongolian Vice Minister of Foreign Affairs, Mr. Gankhuyag and the Minister of Construction and Urban Development, Ms. Baigalmaa. After that he visited the Boroo gold mine. Mr. Oom was back in China on 5 November to attend the “China Mining Conference and Exhibition 2012” in Tianjin, where mining ministers, directors, representatives from world leading mining companies and financial experts discussed global mining development trends and strategies. Mr. Oom then opened a seminar on Swedish mining solutions “Innovative Efficient and Safe Mining – Solutions from Leading Swedish Mining Companies”.
Swedish companies to invest over USD 200 million in Taiwan
F Picosun the first Finnish company joins China-Finland Nano Innovation Center
F
inland’s leading Atomic Layer Deposition equipment manufacturer ‘Picosun’ joins the new China-Finland Nano Innovation Center in China which opened on 2 November. The honorable guests at the launching event included H.E. Mr. Wan Gang, China’s Minister of Science and Technology, and H.E. Mr. Jyri Häkämies, Finland’s Minister of Economic Affairs. The center is located in Jiangsu Province and was a product of a joint collaboration between Ministry of Science and Technology (MOST) of China and Ministry of Employment and the Economy (TEM) of Finland. “Picosun is the first Finnish company to enter the Nano Innovation Center. The Center will be a window for China’s fast growing ALD community to access the most advanced ALD technology which will further strengthen Picosun’s technology leadership,” says Dr. Wei-Min Li, Applications Director of Picosun and CEO of Picosun Asia Pte. Ltd. Picosun Oy is a Finland-based, worldwide operating manufacturer of state-of-the-art ALD systems. The ALD reactor design and manufacturing pioneer has been running for four decades. Its global headquarters are located in Espoo, Finland. 8 ScandAsia.China • December 2012
our Swedish companies will invest more than USD 200 million in Taiwan over the next three years, the Ministry of Economic Affairs said on Friday 26 October. According to the Ministry’s statement, the companies are industrial tool and equipment maker Atlas Copco, mobile telecommunications equipment maker Ericsson, SCA Hygiene Products and Siemens Industrial Turbomachinery. The reports were achieved by a Northern Europe Investment Promotion Mission headed by Vice Economics Minister Cho Shih-chao who visited Finland and Sweden on 20-28 October as part of the government’s ongoing efforts to boost investment from overseas. Taiwan External Trade Development Council (TAITRA) reports that the Ministry has also organised for another trade promotion mission to visit Central and Eastern Europe on 27 October to 11 November.
Norwegian choir wins international competition in Guangzhou
O Ambassador Petersen (left) and Vice Governor Mao exchanging gifts
China opens for Danish ‘green’ companies
n 11 November 2012, the Norwegian choir Cantus from Trondheim won the award for best female choir during “The 1st Xinghai Prize International Choir Championship” in Guangzhou. The competition is a so-called ‘Champions Competition’ or a world championship for choirs if you will. The Norwegian conductor, Tove RamloYstad, was impressed by the high level of all participants as well as very pleased with her choir’s near optimal performance. Members of the jury also praised the Norwegian singers, saying their performance was “great art”. As Cantus was proclaimed the winner, the 30 members entered the stage in Norwegian national costumes, accompanied by the sound of Norway’s national anthem and a cheering audience. “This is the first time the national anthem has been played for us after winning a competition. It was a great feeling entering the stage in the national costumes, and we truly felt that we represented Norway”, says Ramlo-Ystad.
T
he Trade Council in China arranged a promotion trip for the six Danish companies COWI, AVK, Novozymes, Grundfos, Halse and Haldor Topsoe to Zhejiang from 12 to 14 November 2012. The Danish ambassador to China, Mr. Friis Arne Petersen, participated in the trip that started off with a meeting with the Vice Governor of Zhejiang province, Mr. Mao Guanglie on the 12th. According to the Chinese government’s 12th Five Year Plan, the future Chinese economic development will have a focus on sustainable growth and prioritisation of energy optimization. Zhejiang is one of the richest and most developed provinces in China and is expected to take a leading role in the Chinese transition to a greener economy. “The Danish companies here today represent state of the art technologies in the fields of energy and environment. It is my wish that the Danish companies will contribute to the green economic miracle of Zhejiang province also in the future”, Ambassador Petersen said at the opening of the seminar on the 13th. At the seminar, where the Zhejiang government participated, the Danish companies presented their views on how to create a sustainable production through a focus on energy production and energy efficient industries. It was followed by a presentation on sustainable urbanisation with a focus on district energy, building energy efficiency and water infrastructure. On the 14th, Ningbo-Denmark Clean-Tech Match Making seminar took place. The seminar focused on the latest development strategies, plans and policies towards energy efficiency and environmental protection in Ningbo in order to meet local business partners and identify new business opportunities. Danish and Chinese companies participated as well as the Ningbo municipal government. The seminars promoted Danish clean and green technologies as well as established network with the Ningbo and the Zhejiang government which set ground for further collaboration in the future.
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December 2012 • ScandAsia.China 9
News Brief
Danish Ambassador is pleased with China-Denmark relationship
F
riis Arne Petersen, the Danish Ambassador to China, has expressed his delight with the relationship between China and Denmark. Here is what the Danish ambassador said to China Daily in the end of October: Denmark has been very fortunate to have very close, high level cooperation with China. The last two or three months we’ve had both your president and a very prominent, high level Chinese delegation in Denmark on a state visit to meet our queen, prime minister and our whole government. We’ve signed a lot of deals. We had our prime minister here a few weeks ago to meet again with the Chinese leaders. We are very impressed by the fact that we can cooperate continuously with the Chinese leaders while they are still undergoing such important changes. I think what we expect to come out of this is increased continuity, stability. And I think that is actually what the world needs in these years to decrease volatility and uncertainty in order to try to improve the economic conditions for world economy, for countries like China, like Denmark. The more predictable, the more stable, I think, the easier it is for our countries to overcome the economic challenges.
Greenlandic Minister meets Chinese leather and fur companies
China’s largest science and technology park to open in Finland
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n 31 October 2012, Greenlandic Minister for Industry and Mineral Resources Mr. Ove Karl Berthelsen together with Consul General in Shanghai Mr. Karsten Ankjær Jensen met with representatives from leather and fur companies from Haining and Zhejiang. The meeting was held in order to share knowledge and ideas on the future collaboration between Greenland and China on fur and leather trade. The possibilities of Greenlandic export of fur and leather to China was discussed in the meeting. “We had a very productive meeting, which I think for everyone present underlined the great potential of increasing collaboration and trade between Greenland and China in the fur market,” said the Consul General. “My hope is that this meeting will form the basis of a stronger relationship between China and Greenland and make way for increased trading between the two countries.” The Minister also visited the Polar Research Institute of China, Shanghai Zhenhua Heavy Industries and the Danish Innovation Centre in Shanghai while he was in Shanghai. 10 ScandAsia.China • December 2012
Z
Park Software Park, China’s largest science park is coming to Espoo, in Finland. According to Marko Vanska, CEO of China-Finland Golden Bridge, the aim of the new ZPark Software Park is to help Chinese companies establish business, research cooperation and development units in Finland as well as recruit Finnish experts. The planned ZPark Software Park will be located in Otaniemi, and includes ICT and other technology sectors. It is established with the help of Zhongguancun ZPark Software Park in Beijing, the FinChi Innovation Center which is managed by Finpro, and China-Finland Golden Bridge. The parties have signed a memorandum of understanding concerning cooperation. “Finland’s geographical location makes it a gateway for companies entering the Nordic, Russian and even the whole European market,” said Fang Zhou Chairperson of Zhongguancun ZPark Software Park. As for the Finnish government, the cooperation is a means allowing Finnish companies to better and more rapidly utilize the opportunities for commercial and technology cooperation that exist in the Beijing region, explains Kari Häyrinen, President and CEO of Finpro.
How do you celebrate in Asia?
ScandAsia has asked prominent Scandinavians living in Asia how they plan to celebrate Christmas this year - and how they usually celebrate Christmas in Asia.
I
t is common for Nordic expats to have bad memories of their first Christmas in Asia. The special Christmas mood was not there. The calendar said 24 December, but the temperature and everything screams anything but Christmas. As time goes, most find ways to adjust their Christmas expectations to Asia and actually create new Christmas mood triggers. ScandAsia has asked prominent Scandinavians living in Asia how they plan to celebrate Christmas this year - and how they usually celebrate Christmas in Asia. Enjoy the reading. “God Jul!”
Christmas
Multicultural Christmas – Divide and Conquer
Christian Overgaard is Chairman of Danish Chamber of Commerce in China (DCCC) Shanghai & SVP and Global Head of Heat Exchanger Business Danfoss. He has been living in Asia for over 10 years. He tells ScandAsia that he initially held home country Christmas family values and went to Denmark with his Chinese wife and two children. However, over the years, they now prefer the big family tour over summer in Denmark since the weather is better for them. Christian says that his wife’s family originates from the South of China and therefore gravitates towards Guangzhou, Shenzhen and Zhuhai. “We have been several times to the theme parks “Splendid China” and “Window of the world” in
Shenzhen among family friends. Other years in between, we spend Christmas in Bali, Singapore, and so on,” he says. Christian’s daughter likes the Danish Christmas tradition and food, so last year she went with him while his wife, son (he prefers Chinese food) and parents-in-law went to a Zhuhai Spa place for relaxing time with grandmother. “In China, Christmas planning always combines with Spring Festival planning - and lately also skiing planning for our family,” he says. This year they will again ‘divide and conquer’ due to his busy work schedule, but they will start the festive season with some family skiing in November/December. “For Christmas, my wife will go to the ancestral town of Chao Zhou with children and parents-inlaw for a week before I join them in Hong Kong. We have many friends in Hong Kong and like the Disney Land which is not too big for children aged 6-8 years,” says Christian. “Finally, for a family like ours Hong Kong always reminds us of the place where “East blends with West” in true yin-yang style - and that has probably become part of our multi-cultural Christmas values!” he adds.
Christmas in the air Axel Blom and his wife “Jak” will on Christmas Eve be on a plane on their way back from a meeting in Oslo. “It is not our dream solution,” Axel Blom admits. “But this year, it just cannot be helped.” Axel Blom, who is President of the Thai-Norwegian Chamber of Commerce and long- time resident of Thailand, usually alternates between celebrating Christmas in Bangkok or in Scandinavia, which means either Norway or Denmark. “When in Bangkok, we always celebrate Christmas Eve with a dinner with some friends. I am myself in charge of the roast crispy pork with brown potatos,” says Axel. “I know it is more Danish than Norwegian, but lutefisk is not my taste,” he laughs. “Every year, we also always buy a real Christmas tree from Villa Supermarket. The smell is so good. This year, we will check to see, what kind of trees IKEA will be selling. I want to see if the quality will be the same.” he says.
First Christmas in Singapore His Excellency Mr. Tormod Cappelen Endresen, the new Norwegian Ambassador to Singapore, is looking forward to celebrating his first and rather unusual Christmas in Singapore. “I have spent a different way of celebrating Christmas whilst serving the military service. And what I like about a different celebration is that they are often the ones you remember the most. This year will also be an extra nice one as we are having family and friends visiting the town. In fact we are having about 15 guests from Norway coming down to Singapore for Christmas.” When asked about missing the traditional Norwegian Christmas preparations, Mr. Endresen said that there are many Norwegian community’s activities in Singapore. “There is the Julebasar at the Seamen’s Church and also Julebord (Christmas Parties) at this time of the year to attend. Pinnekjøtt is on the Christmas Eve menu for this year as we will be having it at the Norwegian Seamen’s Church. It will be nice with the Asian twist to it and I am looking forward to it,” said Mr. Endresen December 2012 • ScandAsia.China 11
12 ScandAsia.China • December 2012
Casper shows the hidden treasures of China Danish/Norwegian traveller and tourist guide Casper Tollerud has seen almost every corner of China. Now he wants to share parts of China that tourists normally do not see, so he started his own travelling agency called Genuine China Tours.
B
ack in 1997 a young Sinology student went on a study trip to China with his Danish University. Sinology is a sort of Chinese culture study, and one of the students lost his heart to China completely after the trip. His name is Casper Tollerud. Today, 15 years later, Casper Tollerud has his own travel agency based in Shanghai and Xian with 12 employees, over 30 destination offerings and working with agencies worldwide. Even Chinese tourists go to the Danish agency for guided tours in their own country. So what is the secret? Well, according to Casper Tollerud the secret is basically to know all the secrets about one of the most lucrative tourist destinations these days.
By Mikkel Keldorf
Casper Tolleruds’s top 3 hidden treasures of China: Gansu: A small village surrounded by beautiful nature. The Tibetan New Year’s celebration in February is worth seeing. Thousands of Tibetan pilgrims gather for this spectacular event held every year.
Hunan: Located in the South Central of China, the province includes the birth city of Mao, Shaoshan, and the “World Heritage Site” Wulingyuan with thousands of beautiful sandstone peaks.
Guizhou: This province in the South of China has beautiful sights and has one of the nation’s biggest demographic diversity. The place is famous for its beautiful closed bridges built by the Dong minority.
“We research all of our tours on our own. I take the trip and take photos, sleep at the hotels, eat in the restaurants and so on. It takes a lot of resources getting to know the different destinations, but we cannot compete with the local Chinese agencies on the price. We have to deliver better quality and we do that by researching thoroughly,” says Casper Tollerud to ScandAsia.
Difficulties with rules and regulations Casper Tollerud started guiding tourists in various destinations in China back in 1997 to finance his study trip. Since then he has worked for different Danish travel agencies. During his years of guiding he came up with a lot of ideas on how to improve the tours. But since he failed to convince his bosses back in Denmark to cut off the connections to the low quality Chinese agents, he decided to do it all on his own. In 2008 he established his first company in Shanghai, the city in which Casper Tollerod currently resides. Building up a company in the ever-growing megacity was not as easy as expected. A travel agency needs various different registrations and only 25 companies get the required license every year. “There are a lot of problems in that city. The small number of licences issued is a problem in itself, but as a foreigner you are nowhere near the top of the list when getting your license. At a travel agency, you work with people and not products – that is the main reason why there is so much more regulation in this business,” says Casper Tollerud. After failing to get the paperwork done in Shanghai, Casper Tollerud
created an office in Xian in the centre of China. The city has about 7 million inhabitants and is not nearly as touristy as Shanghai. So in 2009 the company Genuine China Tours was granted its full license in Xian. It is now the main office and Shanghai is the branch office.
From Europe to China – and the other way around? Since it’s difficult for Genuine China Tours to compete with local agencies and big international companies on tour prices, the company’s target is to reach the “older” crowd being aged 50+ as they tend to have time and money to enjoy a trip with a little extra quality. “A majority of our customers are Danish since they are the easiest for us to connect with. But we also have partnerships with agencies throughout Europe and a few in the Unites States. Most of our customers are the “grey gold” (expression for middle-aged and rich) because they have a huge urge to travel,” says Casper Tollerud. In the future Casper Tollerud expects not only to show China to Europeans and American tourists but also to arrange trips for Chinese people to Denmark. The economic boost China has experienced means more wealth and hopefully for Casper Tollerud – more travelling for the Chinese. “We have various ideas for bringing Chinese people to Denmark. We want to go by the same concept of showing smaller places and not only the capital, Copenhagen. We plan on making trips to Skagen, Bornholm and Odense,” says Casper Tollerud referring to some of the most important tourist cities in Denmark.
For more information about Casper Tollerud and his agency visit: www.genuinechinatours.com December 2012 • ScandAsia.China 13
The future of sport marketing in China Only one Chinese company, CG Crystal, a digital imaging firm, paid to be part of the London Olympics. Many of today’s Chinese companies are flush with cash. Yet its corporate chiefs don’t seem ready to splurge on a global marketing opportunity like the London games. Morten Sellaeg, Vice president at Shankai Sports international, a Chinese Sport Marketing firm explains why. By Alexandra Leyton
“I
n general sports marketing in China, sponsoring specifically, works like it did in the west 20 years ago. Companies back then would sponsor a football team due to personal interest or connection with someone at top management or to get some media coverage on television or print media. Chinese companies do the same. There is rarely any Marketing and Communication (MarCom) strategy behind their sponsorship decisions, simply because Chinese companies basically see sponsorship as donations or as a media buying. During the Beijing Olympics, many of the sponsors had the right to use the Olympic logo for their MarCom, but didn’t. They didn’t use their rights fully. Very few of these Chinese companies (sponsors) used the Games as a platform for sales, brand building or to increase their customer base,” Sellaeg says. One explanation to that, accordSouth Bund Fabric Market
ing to Sellaeg, is that it was politically expedient to play a patriotic role in China’s Olympics. So their sponsorship was as much about government relations as consumer branding. Sellaeg worked for one of the biggest international sports marketing agencies ‘Octagon Nordic’ in Stockholm prior to his trip to China 5 years ago. On behalf of Octagon, he had worked on a very successful commercial venture at the Volvo Ocean Race 2005-6 for Ericsson. In January 2007, he was offered the opportunity in China to take responsibility for their Sponsorship Consulting department. “For me it was a ‘no brainer’. It took me two days to make my decision and I was on site just over a month after I met the manager for Octagon Asia in Stockholm. My first impression of China was overwhelming; I knew it was a fast developing country with a one-party political system. But I knew China was head-
14 ScandAsia.China • December 2012
ing in the right direction and I saw improvements, which was one of the reasons they got the Olympics. I thought my daily life would be much harder, this was completely wrong. I found tremendous curiosity among Chinese people and drive, everything was possible. It was definitely the right time to be here,” Sellaeg says. Chinese companies have not really grasped Sponsorship as a tool for MarCom, according to Sellaeg. He says that maybe because it requires more than just buying some air time or certain advertising for an event on television. Sponsorship takes a lot of commitment which also requires additional investment. People who work in the industry in China focus mainly on getting the brand on televisions. They don’t see the positive side of building contacts, brand awareness, brand preference or having a local presence. In the long run, sponsorship that is used only as advertisement could become an Nanjing Road
ineffective investment, says Sellaeg. “In 2010, Yingli Green Energy became the first Chinese company and the first renewable energy company to sponsor the FIFA World Cup. They got great media coverage because they were the first Chinese company to ever sponsor a World cup. For them this was sufficient, for the next FIFA World cup it will be much harder to receive such media exposure, and you can expect greater competition from other global Chinese brands,” Sellaeg adds. Still, Sellaeg believes that the sport market in China has a great future. Chinese passion for sports is huge and the sporting goods market is worth USD 6 billion and is expected to grow 14 percent a year, according to China Sporting Goods Federation. While Nike remains the market leader, homegrown brands are catching up. China’s 1.3 billion potential fans are also irresistible to sports
leagues and thus, sponsorship will give them a local partner in the market. “The Olympics gave the market a boost and generally speaking, the industry has evolved, though not to the level of the international sports marketing practice. Anyway, we have also seen several interesting investments by Chinese companies in international sports rights,” Sellaeg says. The strategy of boosting image through sponsorship of foreign athletes began in China with Li Ning, which signed its first top-level star, Shaquille O’Neal, in 2006. The company, founded by the Olympic gold medal-winning gymnast of the same name, now sponsors far-flung teams such as the Swedish Olympics delegation and the Spanish and Argentinean basketball squads. So far, the Chinese have been conservative and signed only established players in hopes of maximizing their investments. Today, Sellaeg works to es-
sentially help Chinese companies who want to build their trade mark globally through sponsorship of international leagues, teams and athletes. A year ago he began working for Shankai International, a Chinese sport marketing company where he is responsible for sponsorship consulting and sponsorship sales. Right now the company is working with the World Cup in Brazil 2014. “More and more Chinese companies want to expand their business internationally. They have learned from other Asian companies like Samsung that Sports Marketing is a great communication tool to reach the international market effectively. China has more international sports stars in Basketball, Golf, Sailing, Swimming and etc. Since many people follow these sports, Chinese companies are more interested in investing (sponsoring) these sports and these athletes,” Sellaeg says. “These must be companies that Nanchang Road
are ready to invest internationally such as Lenovo, Huawei, UnionPay and Haier. I believe these kinds of companies will notice that advertising is not enough for the global market, and find other platforms to reach their target customers. And there is no better way to have a local presence or build business to business than sponsorship,” Sellaeng adds. After five years in China, one of the biggest challenges for Sellaeg has been to understand the decision making process in China as it is often time consuming and complicated. In China, most business decisions are made by CEO or even owners and to reach them takes time and patience, he says. “In Sweden, it’s not as difficult to reach the CEO of a company. In China, unless you’ve already established relationships with him or her, it’s almost impossible. One certain individual in a company has most of the power. Therefore, to reach that certain person and have
a decision made is time consuming. This sometimes affects business negatively, especially in terms of efficiency, rationality and the process behind investment decisions. In China, you can have a great idea but not even be considered by the boss because you don’t have the right connections. In Sweden, this is different in every aspect as it’s your business mind that counts not who you know. Private and business relations coincide in China,” Sellaeg says. “I can never overestimate how much patience you need to have in China. It takes a lot of time to see results from investments. But you build a good network, get to know interesting people. In the future, I would like to be involved in developing a globally recognized Chinese trade mark, where sports marketing and sponsorship is part of a MarCom platform. On a private level, I would like to learn Chinese language, at least on a conversational level,” Sellaeg adds.
December 2012 • ScandAsia.China 15
Bright future for in China China’s fast-growing economy has caught the attention of investors from all around the world. The rapid expansion of the country’s industrial base and the rise of domestic consumer markets have made its logistics sector grow at an extraordinary rate. By Alexandra Leyton
O
ne of the logistics companies growing in China is Project Expeditors Group. Finnish Sebastian Nummelin, the Branch Manager of the company’s office in Beijing, has remarked a steady growth in the market since the company first opened in Shanghai in 2007. “Our presence in China has made our business grow in Finland. China is the world’s biggest supplier of fabrics and many of the products we deliver are made in China and needed to be transported forward,” Nummelin says. The company works on a Freight Forward basis, meaning that the company works with other partners and subcontractors, who help them with the logistics and distribution. “We don’t have our own transport vehicles or inventories in China, the only place we use our own vehicles is in Finland. We tailor a package for each customer according to their needs,” Nummelin says. The concept of logistics management is new in China. Logistics has traditionally been viewed as a transportation service, and the majority of state-owned enterprises (SOEs) continued to handle this as an in-house function. As a result of self-management and localized operational footprints, transportation and logistics operations are highly fragmented. “The biggest challenge for foreign companies is to tap the local market. It’s mainly because our prices are higher and so is the threshold of communication between us and our Chinese customers. But Chinese companies know that the foreign companies tend to offer better quality. Our company has worked with customers in countries that are new to the logistics market such as Kazakhstan and Mongolia. With our extensive experience, I believe we have an advantage on how to deal with a new market such as China,” Nummelin says. The pace of regulatory change has been affected by the fact that
16 ScandAsia.China • December 2012
many government departments are involved in regulations relating to the sector. Coupled with the competitive advantages of local players, foreign investment is taking time to gain wide spread traction. “To get into the local market, you have to build good ‘guanxi’ relationships. You need people to introduce you to the right people that can give you the right contacts, especially with government officials. 100 percent of the Chinese railway is owned by the government, a transportation form which is very important for logistics. You may have to work a long time to reach your targets compared with the European market. In China, business often comes after you have established a strong personal relationship with your customers. Here, you need to be more personal and aware of your partner or customer than just sit in a meeting and discuss business, especially in the case of larger sums of money. The personal relationships is much more important here than in Sweden,” Nummelin says. According to Nummelin, the vast majority of business for the company comes from the movement of industrial products, mainly the paper industry. Foreign and foreign-invested companies have typically cornered the express delivery, sea freight forwarding and specialized logistics services and have gained a strong presence in a number of cities across China. As a result, many have seen sales increased by as much as 30 percent over the past few years. The efficient distribution of goods and finished products is one of the biggest challenges associated with China’s rapid growth. Greater strain has been placed on its transport, storage and distribution networks. “Since we opened up our new office in China, we have been able to grow in Finland. The Chinese market is very interesting; the projects here are bigger in volume and have high market potential. Recently, local Chinese companies have expanded their businesses to Europe, Asia and the United States, which will be good for logistics business,” Nummelin says.
We don’t want to be the biggest logistics company in China; we want to focus on good service instead. The relationship between customers and big logistics firms usually becomes too bureaucratic.
“Even though the economic growth has decreased, it doesn’t have affected us significantly. However, companies have become more pricesensitive than before. The price of air freight has slightly gone down over the past few years while the price of sea freight has increased dramatically. The competition is fierce, there are many listed companies. We don’t want to be the biggest logistics company in China; we want to focus on good service instead. The relationship between customers and big logistics firms usually becomes too bureaucratic,” Nummelin says. Nummelin arrived in the kingdom five years ago as an exchange student in Shanghai. Then he moved to Beijing to study Chinese language. And when Project Expeditor Group was looking for a Branch manager for its new office in Beijing, he took the chance. Embracing the Chinese business culture has never been a problem for him. Nummelin is fluent in Chinese and that helps with the communications. “I have learned that late nights singing Karaoke can enhance business relationships. I remember going out with the ‘big boss’ of my previous company. The next day my colleagues treated me more respectful and so did other bosses at work. Personal relationships are that important in China,” he says.
logistics business
December 2012 • ScandAsia.China 17
Medium
Rice Porridge (Risengrød)
By Gregers Moller
R
isengrød. It is simply not Christmas without it! I serve it for all our employees in ScandMedia at our year end party every year and they have come to expect it - although not really like it, I suspect. What they do like, though, is the hidden almond in the porridge and the gift that comes with finding it in your portion!
Evil
Ingredients: • 1 liter milk • ½ tsp salt • 110 gram rice (1 1/4 dl) (round grains preferrably) Cinnamon sugar mix: • Mix 4 tablespoons of sugar with 2 teaspoons of cinnamon powder. Almond: • Raw almond with brown shell on (or raw, white cashew nut).
I usually boil up the rice in plain water as the problem is that the milk may easily burn. When the water has boiled a few minutes, I pour in the milk and let it boil while stirring. Then I take it off the burner and pack it in my bed with a few blankets around it and leave it there for a few hours. At the same time I put an unpeeled almond in hot water.
Are you done?
W
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 ScandAsia polo shirt. Name:
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Mobile:
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Deadline for submitting your solution is 15 January 2013 18 ScandAsia.China • December 2012
Before serving it, I bring it back on the stove and heat it up while stirring constantly. If it is too thick, I add extra milk. This is when you put in the white almond - the shell will by now be so weak that you can rub it off with your fingers - or one year I used a white, un-roasted cashew nut. It is served in noodle bowls. Sprinkle it on top with the cinnamon sugar. Some like a lump of butter in the middle. Whoever finds the almond in their portion wins a gift, that you must have prepared in advance.
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