Forget 'MIC' (Made in China), or even 'MFC' (Made for
China). How about OBC: OWNED
BY CHINA?
As most global corporations are still busy digesting the
fact that China now is the de-facto workplace of the world,
it's time to update your BRIC
strategies: The Middle Kingdom is increasingly producing
quality goods for internal consumption, eagerly snatched
up by a burgeoning Chinese MASS
CLASS living the EASYASIA
dream. Hence, IKEA is not only opening up factories in China,
but retail outlets as well. And while that is a mind-boggling
economic reality in itself, get ready for yet another twist
to this saga: Chinese companies setting up factories and
buying companies in the US, Europe and Asia, to sell and
strutt their branded stuff all over the world. OBC:
OWNED BY CHINA, indeed! Examples?
• Haier,
China's leading electrical appliance maker, has 13 sites
abroad, including Iran, Indonesia and the US, directly targeting
those consumer markets, trying to build a global brand and
global clientele. It opened up a factory in South Carolina
in 2000, and its appliances are now sold at Target, Wal-Mart,
Costco and Best Buy stores.
• China National Offshore
Corporation (CNOOC) now controls Repsol, Indonesia's largest
offshore oil producer
• D'Long Strategic Investments
is busy buying up well known Western brands, like Murray,
a leading American lawnmower and bicycle maker, in order
to move production to China while profiting from the credibility
that comes with US or German brands. (Source: The Economist.)
• Lianhua Supermarket
Holdings, one of Chinas largest supermarket chains, wants
to set up shop in Europe and is on the lookout for locations
in Brussels and Antwerp. (Source: 'De Financieel Economische
Tijd.)
• Legend Computers, the
ambitious (and biggest) Chinese computer manufacturer, is
also eyeing the global market. Its QDI subsidiary sells
motherboards to white-box manufacturers in Europe and Asia,
and has recently started selling Legend-branded PCs in Hong
Kong. Don't expect Legend computers to pop-up in Swedish
or Brazilian stores tomorrow, but definitely keep an eye
on this potential OBC poster-child.
OPPORTUNITIES
Any trend watcher worth his or her global salt already has
China high on the 'to-track' list. And while manufacturing
IN China, and selling TO the Chinese market will provide
fascinating trend material for a long time to come, there's
definitely money in aiding, partnering with, or selling
to Chinese companies eager to make it outside the P.R.C.
The fact that the Chinese government is keen on eventually
getting 50 Chinese companies into the Fortune Global 500
won't hurt either. Expect the OBC trend to stick around
for a 'while' ;-) >>
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