Future Watch. Signaaliprosessi kevät 2015 Team Finland China Sari Arho Havrén. Tekes DM #
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1 Future Watch Signaaliprosessi kevät 2015 Team Finland China Sari Arho Havrén Tekes DM #
2 2 Signaalien sisältö ja muoto Signal title: More Chinese tourists to Finland, stop-over Helsinki Finpro Relevance to Finland and Finnish economy Other: tourism, aviotion (needed decionmaking?)
3 3 Signaalien sisältö ja muoto Signal title: Health Care Reform (Privatization, Life Style, Mental Health, TCM Internationalization) Alibaba and other digital services and e-retailers are moving in to health care area in various ways. Some companies have developed new business models to take advantage of the privatization opportunities and ageing needs in East Asia. Like German Buurtzorg, who has nurses in their payroll for elderly home visits and nursing needs both in China and in Japan and is planning to expand to Korea. This company is growing very rapidly as the market has huge gaps between the offering in general and the growing health care needs. Also, the drug sales are expanding into online channels. The China Food and Drug Administration could approve Internet sales of prescription drugs by the end of 2015 breaking Chinese hospital s virtual monopoly of China s 149 billion USD prescription drug market. New business models, new Chinese emerging companies, healthcare goes more and more digital. Hospitals, societies, education. New areas opening such as Traditional Chinese Medicine internationalizes China. Global implications including Finland. Life Sciences Other: online commerce, logistics, digital industries, health technologies XIAOMI: Xiaomi recently invested 25 Million USD in ihealth Labs, a Silicon Valley-based healthcare wearable devide maker, to make a mobile blood preasure monitor => self care market evolution shaping up in China (ChinaSkinny) Wearable Health-related devices have bright future in China: An international survey into wearable health devices by Accenture found that 65 % of Chinese consumers have an interest in buying one by 2020, versus 39 % globally. Google Fit an Android app that tracks activity and connects to healthmonitoring devices, shot to number one on China app charts in a matter of days. The app peaked at 69 in the USA, 38 in the UK and 272 in Japan. Android accounted for 83.4% of smartphone sales in China versus 15.2% of ios. (ChinaSkinny)
4 4 Signaalien sisältö ja muoto Signal title: Special Economic Zone in Espoo Finpro Invest in Finland, Espoo, Finland Chinese are used to experiment new things in pockets. Experimental free trade zones like that of Shanghai Pudong s FTZ will eventually be established in more cities, offering a favourable economic environment to foster innovation. Formation of focused innovation hubs in certain cities, such as hardware innovations in Shenzhen, software innovations in Beijing and Internet of Things in Wuxi. Special Economic Zone would be a familiar and potentially attractive concept for Chinese investors. Cleantech Life Sciences Bioeconomy Arctic competencies & industries Other: retail, logistics
5 5 Signaalien sisältö ja muoto Signal title: Green Shipping South Korea, China and Japan together have 90 % market share of building new ships and vessels. Succeeding in Asia is a key factor in global competition. Hot topics especially among Korean shipbuilders have been for quite some time environment-friendliness and fuel efficiency in order to meet future demand from ship owners and stay competitive in global market where Chinese rivals are catching up fast. Koreans are closely following regulatory changes in the world and have developed ships to meet 2015 Northern European standards. The second driver, fuel price, has come down lately remarkably, and might slow down the energy driven green development. In addition, Chinese environmental problems will be addressed in the future also from this perspective. Finnish shipping industry, environment, energy services, IOT platforms, China, Korea, Japan. Global implications including Finland China is following the green trend: Shenzhen government plans to spend 200 million RMB a year on cash rebates to encourage shipping lines to switch to low-sulphur fuel while at berth, following initiatives taken by Hong Kong, as both cities attempt to rein in vessel exhaust emissions. Emission Control Area is aimed to be established by 2018 in Pearl River Delta in a similar way as in the Baltic Sea area eventually leading to nationwide policies. (South China Morning Post), digital, IOT Life Sciences Other: digital industries, ship building, energy sectors
6 6 Signaalien sisältö ja muoto Signal title: Logistics: One Belt, One Road Background: Chinese government is pushing forward a combination of long-term initiatives designed to increase China's global economic and leadership roles. Late 2013, Xi Jinping, began floating the ideas of a "Silk Road Economic Belt" and a "21st Century Maritime Silk Road". These were succeeded by a combination of the two concepts: "One Belt, One Road". The basic idea behind is to promote infrastructure development in Asia (and possibly beyond), thereby enabling deeper economic cooperation. Through this strategy China can increase its influence while also supporting its domestic economy by boosting trade and creating business opportunities overseas for Chinese companies. Some also view this as a means of using up surplus domestic industrial capacity. New business opportunities within transportation infrastructure construction, digital industries, infrastructure, value-supply chains, services Europe, ASEAN, ASIA, Global implications including Finland, IOT Other: infrastructure, logistics, digital industries, In late 2014 a US$40bn infrastructure fund was introduced that will help to connect Chinese provinces to foreign markets. Complementary to the "One Belt, One Road" policy, China's government has also laid the groundwork for the Asian Infrastructure Investment Bank (AIIB). This would be used, among other things, to promote the construction of transport and communication infrastructure in poorer Asian countries. NDRC: China focuses on the following: key passageways, junctions and projects, and give priority to linking up unconnected road sections, removing transport bottlenecks, advancing road safety facilities and traffic management facilities and equipment, and improving road network connectivity unified coordination mechanism for whole-course transportation, increase connectivity of customs clearance, reloading and multimodal transport between countries, and gradually formulate compatible and standard transport rules, so as to realize international transport facilitation port infrastructure construction, building of smooth land-water transportation channels, and advance port cooperation; increasing sea routes and the number of voyages, and enhance information technology cooperation in maritime logistics.
7 7 Signaalien sisältö ja muoto Signal title: Sustainable Urbanisation and Energy Efficiency As cities grow, they become hubs for innovation and interaction. But, if current values and practices are followed, environmental pressures and social detriments also become more severe. Cities could renew themselves through neo-growth a growth pattern that places culture and sustainability as the highest values. The purpose of economic activities would be first and foremost to serve human growth and sustainability instead of mere economic growth. China is the base for the biggest migration in the world history. In 2013, 730 million people lived in Chinese cities, 53,7%. Urbanisation is one of the biggest and most important themes in China. The focus is in Inner China. So far urbanisation has decreased poverty but created more environmental problems, energy consumption has increased, urbanisation is inefficient and drives local governments close to bankruptcy. Business opportunites in various sectors. Urbanisation will change dramatically within a decade. IOT will be utilised. Huge implication for China and Asia. Global implications including Finland Life Sciences, health Cleantech Other: Energy, logistics, digital industries, health technologies China to build world's first fourth-generation nuclear power plant BEIJING, April 20 (Xinhua) -- The building of the world's first commercial fourthgeneration nuclear power plant may start in east China's Jiangxi Province in 2017, if a plan to the effect is approved by the government, sources said. China adds 5.04 GW solar capacity in Q1 BEIJING, April China added 5.04 gigawatts (GW) of photovoltaic (PV) power generation capacity in the first three months of 2015 (by NEA)
8 8 Signaalien sisältö ja muoto Signal title: Regional Integration, Division of Labour What China plans Asia-wide: Improve the division of labour and distribution of industrial chains by encouraging the entire industrial chain and related industries to develop in concert; establish R&D, production and marketing systems; and improve industrial supporting capacity and the overall competitiveness of regional industries. Increase the openness of Chinese service industry to each other to accelerate the development of regional service industries. China wants to explore a new mode of investment cooperation, working together to build all forms of industrial parks such as overseas economic and trade cooperation zones and cross-border economic cooperation zones, and promote industrial cluster development; to promote ecological progress in conducting investment and trade. New business opportunities, implications of regional integration to value chains, to supply chains Asia Wide implications, Global implications including Finland # 2 China Plus1 Continued The increasing territorial assertiveness of Beijing has reminded investors that doing business in China comes with risks. Labour and other business costs continue to rise, weakening the comparative advantage of China as an export platform. Although few are abandoning China altogether, surveys reveal a continued strategic intent to rebalance regional investment portfolios. (Intercedent) # 3 Regional Supply Chain Management As MNCs turn their attention to the so-called middle of the pyramid Asia s next one billion consumers there is a growing impetus to adopt lower price points or differential pricing. Competition is intensifying also. Hence, there will be a greater need to secure competitive advantage via more efficient regionalised supply chains. (Intercedent) Life Sciences Construction and infrastructure Manufacturing Other: retail, logistics, digital industries, service industires # 4 Senior MNC Leadership to Asia To better capture the high growth market opportunity, MNCs are moving more of their senior management teams to Asia. They are sourcing more global management from Asia also. (Intercedent)
9 9 Signaalien sisältö ja muoto Signal title: China is Digital For foreign companies, understanding the increasingly significant role of business-to-business (B2B) and B2C e-commerce in emerging Asian markets is a critical prerequisite to formulating a competitive long-term digital strategy. Asia- Pacific region is already the largest regional e-commerce market in the world. In addition, understanding the current state of e-commerce in Asia and its development potential requires a familiarity with macroeconomic trends and development indicators in addition to the country-specific rules and regulations. Because the internet companies are boundary less they are re-defining many traditional sectors. New business opportunities from services to ICT, IOT, manufacturing, robotics, automation. Traditional MNCs that do not adapt locally and quickly can lose their competitive advantage to local companies Global implications including Finland Life Sciences, Health Technologies Manufacturing, Automation Other: retail, logistics, digital industries, robotics Chinese Consumers are connected. It is important for companies to create a sense of participation in order to build long-term and engaging relationships with connected customers as this is what Chinese companies are doing. Word-of-mouth, especially online, is influential to brand awareness (Gao Feng Advisory) More nimble and customer-centric organizational structures to realize rapid prototyping (trial-and-error), testing and co-development of products with consumers Closeness to the market in order to gain a deep understanding of consumer context By doing so, they are creating customer-centric offerings that can address customer pain points Innovators are leveraging Internet tools, such as social media platforms, to build customer intimacy Companies are developing strategies for digital transformation and creating new ways to connect with consumers (Gao Feng Advisory)
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