Wednesday, September 16, 2009

Hello, when functional design speaks


In Kuala Lumpur’s Haworth 2010 annual product exhibition, held early this month, a series of sofas fascinated the guests. However the eight-year old classic design of the Hello series stood out for its functionalism and enduring design.

Since the beginning of 20th century, product designers struggled to achieve perfect harmony between elegant design and technology integration. Lynda Chesser and Bill Schacht, a husband and wife team found this balance when they designed Hello. Like yin and yang in Chinese philosophy, when they combine, it makes a more powerful whole with masculine strength and practicality and feminine attention to design aesthetics.

Bill approached the technical issues which make the Hello so functional while Lynda assured a timeless design. The couple has no fancy design philosophy, but their works were collected by the world’s leading office furniture firms such as Haworth, Steelcase and Herman Miller. Surprisingly, they love to design furniture for mass production, because for them, the purpose of their design is to balance the world of wants and the world of needs.

Their first cooperation with Haworth started in 1990, when Haworth purchased Mueller Furniture Company where they served after graduation. Haworth took a look at what they were designing and encouraged them to keep on going; Chesser and Schacht have been designing for Haworth ever since.

After creating a few case goods for Haworth as Composites, Tempo, Forenze and Vancouver, both sides came over the idea of designing a sofa range that could go easily in any architectural space. With only a simple requirement, Chesser and Schacht kept in mind that inspiration should come from all the criteria required in the workplace today and this drove their solution-based design.

Hello, like a universal language of greeting, was then conceived as stationary lounge chairs in a lobby or wood guest chairs in an executive office or mobile seating in any teaming space or the mini mobile that adds an irresistible element of fun to your workplace. They worked closely with Haworth engineer team to ensure every detail to be executed into mass production.

Once it was introduced in year 2002, Hello, instantly pleased the global A&D community as well as their end users. Due to high demand and to reach a wider range of consumers with more pleasant prices and better lead time, Haworth AP team decided to bring the well-received series two years later into Shanghai. Here, we inherited almost all models except for the wood guest chairs.

Over the years, Haworth AP-made Hello was selected by numerous projects to help them making statement such as Microsoft, NSN, ICBC and Cisco. But for most of the time, this practical product was preferred simply because it’s sturdy, looks nice, and does its job!

Fashion fade, but enduring design will remain eternal. Haworth and their design partners Chesser and Schacht will continue to seek timeless design with practical application.

Tuesday, September 1, 2009

China’s Frozen Exports

Are Still Small, But…

There’s big potential once food standards, freight costs and logistics hurdles are cleared.

Ethnic Chinese living overseas and major retailers like Wal-Mart are driving demand for frozen and refrigerated food from China. Wal-Mart, for example, has a purchasing office in the southern Chinese city of Shenzhen that looks for Chinese suppliers of frozen foods.

Exports are hindered by transportation costs, which erase some of China’s low price advantages. Of the 3.6 million tons of refrigerated vegetables China exported last year, almost all went to Japan and South Korea, said Tiexin Fu, vp of Beijing’s Xinhua Guoxin Trade Co., Ltd. “But the amount exported to America is increasing rapidly every year,” he said.

While some Chinese frozen foods are already finding their way to U.S. supermarket shelves, these are not bulk orders, said Zhenji Sun, manager of the import-export department at Wuxi Frozen Foods, located near Shanghai in China.

Because of issues such as transportation costs, prime U.S. markets for frozen and refrigerated foods from China are specialty shops targeting people nostalgic for the taste of home – and willing to pay a premium.

“Most Chinese frozen foods are imported for ethnic Chinese customers in the United States,” said a spokesman for the Shanghai Frozen Food Institute.

Meanwhile, there are still government restrictions on the export of meat to Western countries, left over from the days when China had problems feeding its own citizens. China exported about 74 million tons of meat-related products last year, said Zhonghua He, spokesman for the China Meat Association. Most of it went to the Middle East and Russia, he said.

Logistics Woes

Since there is no official government organization handling all frozen foods, it’s impossible to get accurate export statistics across all the food categories, said He.

In addition, China’s internal frozen and refrigerated foods market is still not fully developed, which results in problems with distribution and quality control. For example, there is a shortage of refrigerated trucks.

“Many companies will use normal trucks rather then special refrigerated trucks to reduce transportation costs, but it will of course result in low quality,” said Jian Xia, general manager of the Shanghai Jiao Rong Logistics Co., which supplies some frozen foods to Wal-Mart.

“Now it is rare for a U.S. supermarket to import frozen or refrigerated foods from China,” he said. “The problems are with the food standards, freight costs and freshness dates.”

Sea shipping is cheaper, but food may no longer be edible when it arrives, he said. Air transport costs will make the price uncompetitive.

But as the local market matures, the logistics infrastructure in China will improve and quality will go up, and transport costs will go down.

China’s frozen food market will reach $7.5 billion this year, according to Shanghai-based research firm Access Asia. By comparison, in 2000, the market was worth $4.8 billion.

—Maria Trombly is China Bureau Chief for SourceMedia, and a freelance writer. Linda Kiang contributed to this report.

Reported in 2006
http://www.rffretailer.com/Archives_Davinci?article=907

Foreign Involvement in Gas Stations

Summary:

As the demand for oil in the Middle Kingdom grows, so does the involvement of foreign oil companies like Total, BP, SHELL, ExxonMobile, Lukoil and Rosneft in China. These companies have partnered with China's heavyweight oil companies, China Petroleum and Chemical Corporation (Sinopec) and China National Petroleum Corporation (Petrochina), to build new gasoline stations all over China. Almost all of these activities are confined to the conversion of existing gas stations rather than new ones.

In contrast, Shanghai plans to add gasoline stations at a snail's pace. Market leaders Sinopec and Petrochina, with a combined 96 percent of the market, concentrate on renovating their old stations in the SAR.

As part of a diversification drive along lines seen elsewhere, the American fast food company McDonald's has partnered with Sinopec and will start building drive-thru restaurants at Sinopec stations near large and medium-size cities.

Not to be outdone, CNPC is looking to branch into real estate.

A Burgeoning Petroleum Market

China's automobile production has tripled in the last five years. Output in 2006 reached over seven million units. It is projected that China in 2010 will produce more than ten million automobiles and trucks. By that time, analysts predict that the Middle Kingdom will be the number two auto producer in the world.

Obviously, gasoline consumption in China is on the rise. However, the country's domestic sources of oil are currently on the decline. China's Da Qing oil field is drying up. In line with its WTO commitments, Chinese government has taken very cautious steps to allow the entry of foreign oil companies into the Chinese market.
Making good on its December 11, 2006 promises, the Chinese government opened the country's wholesale and crude and refined oil products markets in January of 2007.

While the wholesale market has been opened for foreigners, the government has still kept tight controls on the market, including its pricing mechanism, an analyst told Real Estate Club Shanghai. The mechanism is controlled by the National Development and Reform Commission. If price controls were relaxed, foreigners would have an easier time in the market, the analyst continued. However, Foreign companies would not be the only companies that would benefit from such a relaxation, a decision maker at one foreign oil company giant told Real Estate Club Shanghai. In fact, domestic oil companies stand to gain more from a relaxation of the pricing mechanism because while prices are currently out of line with foreign prices, it is the domestic companies experiencing significant losses.

Foreign companies are not just pursuing wholesale opportunities -- the retail market interests them as well. Total, BP, SHELL, ExxonMobile Lukoil, and Rosneft have partnered with Sinopec and Petrochina and Sinochem to open gas stations in China.

Foreign companies may not independently develop proprietary networks of over 30 stations each (a severe limitation in their view), and are therefore obliged to have local partners. Noting this, France-based Total has announced plans to create 500 gasoline stations over the next six years in two joint ventures in China's northern and eastern regions. BP in joint ventures with Sinopec and Petrochina respectively is in the process of establishing about 1,000 stations in the provinces of Zhejiang and Guangdong. Royal Dutch Shell in a JV with Sinopec is opening 500 stations in Jiangsu province. Most recently Rosneft, the Russian energy giant, has teamed up with Petrochina to build 300 gas stations in northern China.

Although the very large majority of these developments are simply the re-branding of existing stations, there can be no doubt that the need for the development of Greenfield sites presents opportunities for real estate companies and developers. Real estate companies can help with station location, land purchase and/or linking developers who build gas stations with the oil companies.

Shanghai: Still have room

Like the other parts of China, the Shanghai government will allow over 100 new stations in 2005-2010.
"There are about 770-odd gas stations in Shanghai," reads the 2005-2010 Shanghai Five-Year Plan. "The plan is to reach 900 by the end of 2010, mostly setting up along the highway and suburbia."

Sinopec controls 71 percent of these stations and Petrochina 25 percent, a Shanghai-based analyst told Real Estate Club Shanghai. These companies are focusing more on renovating old stations than building new ones.
Interestingly, the opening of the wholesale market to foreigners will not improve supply to independent gasoline stations to receive, the analyst introduced above stated.

Petrochina and Sinopec (and their foreign partners it seems) only supply gasoline and diesel fuel to their own stations, including the ones that they control indirectly.

Looking Forward:

It is not only the foreign oil companies like Total, BP, SHELL, etc. who seek to profit by partnering with Chinese oil companies. The American fast-food giant McDonald's is also seeking a piece of the action through diversification programs involving non-fuel sales.

In the summer of 2006 McDonald's and Sinopec announced a strategic alliance. McDonald's drive-thru restaurants will be constructed at some Sinopec gasoline stations. The first restaurants will be opened in large and medium-size cities like Beijing, Shanghai and Guangzhou. Other alliances for non-fuel activities could also be formed.

On a different note, Chinese real estate company Greenland Group last year purchased a coal trader and an oil operating company, which has received oil wholesale certification.

Another Chinese real estate company, Zhong Rong, has purchased oil leases in Canada and Oman.
About 18 other China real estate companies are ready to follow the lead of these two.
Petrochina is reportedly trying to enter the real estate industry, perhaps partnering with Lujiazui Group.

Reported in January 24, 2007
http://www.rec-shanghai.com/index.php?option=com_content&task=view&id=37&Itemid=9