The End of Copycat China: The Rise of Creativity, Innovation, and Individualism in Asia
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China's changing course, and sustainable success requires a shift in strategy
The End of Copycat China helps business executives and investors understand how China's economy is shifting from one based on heavy investment to one on services and consumption by providing insight that help shape effective strategy. Drawing from over 50,000 interviews with entrepreneurs, venture capitalists, private equity investors, private Chinese companies, and multinationals, this book describes how Chinese firms are increasingly focused on innovation rather than copying what worked in America and how consumers are evolving with their hopes, dreams and aspirations. China's growth model of the last three decades is becoming increasingly ineffective, as relying on heavy investment and exports is becoming less and less feasible. Fifty percent of China's growth in 2013 stemmed from consumption, the government is establishing a Free Trade zone in Shanghai and ending the dominance of state-owned enterprises. This book provides a roadmap for companies and investors looking to navigate these changes and capture emerging trends, with deep insight and practical guidance on what innovation looks like in the new China.
- Survey the development of innovation taking place in China's economy, from an insider's perspective
- Consider the changes that must take place to shore up the broken growth model
- Examine the consumer trends emerging in the midst of rapid market evolution
- Understand how China's rise will impact its neighbors like Japan, Vietnam, Indonesia, and Cambodia
China's dramatic shift toward consumption presents a tremendous opportunity for foreign business, but traditional tactics are outdated at best, financially fatal at worst, as local competitors focus on innovation and move up the value chain and as consumers look for new brands and categories to spend money on. New strategies are needed to keep pace with the changing regulatory and consumer environments, and "business as usual" won't get very far. The End of Copycat China is the business guide to this emerging market, with expert guidance from the inside.
his vantage point as an investor, the market has developed to the stage where it is lucrative to invest in innovation. A great example of this type of investment would be 91 Wireless. But he said, “The next step which will happen within the next five years is that Chinese firms will innovate for the rest of the world. It is starting to happen even now.” He told me a story of visiting London and meeting senior officials who advise the prime minister. “They asked me for my WeChat ID,” he said. He
earlier it was common for international schools to have six-month waiting lists for primary school admittance, many are now losing students or are being forced to spend millions installing air purifiers in every classroom. Costs to battle pollution are high but are now must-haves. One administrator at an international school in Shanghai told me she saw more departures than normal in January 2014. “The primary reason parents gave was pollution—not cutbacks in their companies.” The number of
Chen what he is doing with his money. He said he was currently building a sprawling 2,000-square-meter mansion in Beijing, with “the best of everything imported from everywhere. Marble and curtains from Italy. Teakwood from Myanmar.” All told, he estimated he was spending about $50 million. Limits on the number of homes individuals can buy have created demand for megamansions. Five years ago, few homes sold for more than $5 to $10 million. Now, new complexes with $15 million homes, some at $80
brand DNA but is developing the hotel with the needs of Chinese consumers in mind from the very beginning, such as types of music, lighting, and toiletries. They are not bringing the same music Americans like, for instance, but are bringing a mix of playlists to educate consumers about Western music while including popular Chinese and Asian music. In interviews with 1,000 Chinese across the country where CMR showed potential design mock-ups of the hotel, respondents were “excited” about Hard
by creating a company with a business model Westerners could understand easily. He did not become rich through pioneering new technologies—he didn't need to. Rather, Jiang built his fortune by creating scale and market share. Others, such as Charles Zhang at Sohu, were even more obvious, copying Western business models from Yahoo! and other American Internet players, but it did not matter—they got rich and gained respect internationally for their business prowess. The first time I saw Zhang was