Google and Chinese software company Kingsoft have announced a co-branding strategy on China’s online market— the launch of a web-based dictionary.

With this alliance, netizens can use Google’s translation service on Kingsoft’s popular English-Chinese dictionary software PowerWord that has estimated 30 million users. Moreover, Google’s web search and photo search services will be embeded in the new dictionary service, which will carry both Kingsoft and Google logos. According to Google, the two companies will share the online advertisements revenue.

It is a new approch of Google to compete with smaller local companies, such as Baidu.com on China’s online ad sales market and customer preference. This alliance will also help Google expand its user base in China and even make it a software client similar to Tencent’s QQ.

Since last year, Google has been making efforts to furthur fit into local market by partnering Chinese companies, like China Mobile, China Telecom. As a result, Google’s market share in China has grown by 0.9% in the first quarter of this year.

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Baidu, Google, Kingsoft, online ad sales, PowerWord, web and photo search, web-based dictionary

With sales dropping at home, Yum! Brands Inc, owner of the Kentucky Fried Chicken and Pizza Hut brands, is planning to expand its business in the Chinese market, which could make the country its biggest source of profit within a decade.

KFC was the first foreign fast food company to move into China, opening its first outlet in 1987. Since then, Yum has become China’s biggest restaurant chain with $2 billion of annual sales and over 2,500 KFC and Pizza Hut outlets.

But like many foreign firms in China, the US fast food giant has discovered it can’t just rely on a foreign brand name for growth and must instead adapt to local tastes and lifestyles. By offering a menu with dishes similar to the food that tens of thousands of Chinese have every day, Yum boosted its sales by 12% in the first quarter, while those in other international destinations and the US were 5% and 3% respectively.

And now Yum intends to increase its lead and plans to add 425 restaurants in China this year while McDonald’s, its nearest rival in the country, has said it aims to open at least 125 stores in the country in 2008.

Yum CEO David Novak has said he envisages eventually having over 20,000 restaurants in China. “We’re in the first inning of a nine-inning ball game in China,” Novak said recently. He also has predicted China’s contribution could reach 40% by 2017, exceeding 30% for the US by then.

So far, investors are welcoming the China strategy. Operating profit of Yum’s China division surged 30% to $375 million last year, accounting for over a quarter of the firm’s total operating profit of $1.36 billion, which rose 8%.

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BPOVIA, China, economy, KFC, market share

Online clothing retailer PPG said it has plans to list in the US toward the end of this year or in early 2009, either on the New York Stock Exchange or the NASDAQ.

Relying on the Internet and call centers, the company applies an e-commerce and traditional retail business model, which helped PPG to save the cost of maintaining retail outlets and attract $80 million in investment from TDF, JAFCO Asia, KPCB, and San Shan Capital Partners. Like Dell in the computer industry, its strong point lies in direct sales and 80% of its orders are over 250 yuan.

PPG’s biggest expense is advertising. The retailer spent 230 million yuan on advertising last year—about a third of its 700 million yuan in sales revenue. Its advertisement covers almost every possible channel—newspapers, TV, magazine and direct mail. Last year its ad budget shrank when management deemed market recognition was satisfactory.

“Now, we’re focusing our marketing strategy on branding,” said David Lee, its chairman. “We want to be another Gap.”
Instead of opening retail outlets, the company will strive to expand its business to second-and-third-tier cities through an intensive ad campaign in those markets. “We want to reach most cities across the nation in the next two years,” said Lee.

Besides, PPG is also looking for opportunities to explore the overseas market. It has set up a US subsidiary in late March and next stop will be Europe and beyond.

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advertising, BPOVIA, China, clothing, e-commerce, internet, PPG, retail

The global leader of home appliance makers Whirlpool and Chinese conglomerate Hisense, a large electronics and information industry unit operating in such fields as household appliances, telecom, information, real estate and commerce, have set up a joint venture for consumers worldwide.

The 50-50 joint venture will invest about 900 million yuan ($129 million) in high-end washing machines and refrigerators production under the Hisense and Whirlpool brands.

The two sides will work together on capital management, research, manufacturing, procurement and global marketing. And the expected production capability is two million washing machines and one million refrigerators each year.

“The strong union of Hisense and Whirlpool will improve the structure of the Chinese appliances industry and prompt the research, development and manufacturing ability of Chinese companies to reach international levels,” said Huo Dufang, director-general of the China Household Electrical Appliances Association.

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China, Hisense, home appliances, JV, Whirlpool

Superstar Virgo, one of the largest luxury liners in the Star Cruises fleet that measures 76,800 gross tons with 935 guest rooms able to accommodate 1,870 passengers, has received over 700 bookings for its planned maiden cruise via east China’s Xiamen City on May 8.

It is the first luxury liner to take tourists from China’s mainland directly to international waters. Before this, mainland tourists who want to take ocean-going cruises have to go to luxury cruise terminals in Hong Kong or Singapore.

Making its first call at Xiamen on the eastern coast of Fujian province on April 11 with over 1,600 overseas tourists from Hong Kong, Taiwan, Japan, the Republic of Korea, Canada, Singapore and Australia, Superstar Virgo will altogether make 25 regular calls at Xiamen at 1 p.m every Thursday and return to Hong Kong at 10 p.m on the same day till October.

Wu Mingfa, marketing manager of Star Cruises, said that Xiamen is an ideal port for international luxury liners to tap the huge market potential across China’s mainland, Hong Kong and Macao special administrative regions as well as Taiwan.

The World Cruise Shipping Industry predicts the number of cruise passengers in Asia will rise 40% from 1.07 million in 2005 to 1.5 million in 2010, which is made possible in part by Asia’s growing affluence and improved flight options to regional port cities.

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China, luxury liner, port, Superstar Virgo, Xiamen