06 | 2015 | China Young and Old

In this edition of German Chamber Ticker we will explore some of these developments and give you some insights into how e-commerce, migration and the changing demographics in China are interrelated. We will also show you how China’s older generation is increasingly engaged in the online world and how this might influence products, marketing and retail in general in the coming years. We hope that you enjoy reading! 

Mr. Stefan Rosenbohm - GCC South and Southwest China | Chairman of the Board of Directors


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Cover Story 1 - Regional Diversities of Population Aging in China


Handling Demographic Changes


With the dramatically rapid decline in fertility and relatively quick increase in life expectancy in the past four decades, China is expected to experience an accelerated population aging. This trend will continue even after the end of the one-child policy and the implementation of a universal twochild policy recently announced by the Chinese government. We therefore have to address two major questions: If the current migration age pattern continues, in what way will the population aging be different across the eastern, middle and western regions and between urban and rural areas? 


Cover Story 2 - Premium Age Branding



The Ignored Marketing Opportunities in China’s Aging Society


As most companies have excitingly marketed their products and services mainly to the youthful generations of China for the past decade, it is time to look at the other end of the demographic pyramid and flirt with a relatively untapped consumer segment: our seniors.    

China has a rapidly aging population. The group of 65+ year-olds is projected to soar to 210mn in 2030. The market of products and services reached an estimated value of RMB 4 trillion – that equals 8% of the GDP in 2014.


Cover Story 3 - Generations X, Y & Z in China


Different Approaches to Life and Work


Generations X, Y & Z aged 18 to 50+ all have their own respective attitudes and attributes that are mixed together in the modern workplace. In China, each generation is defined by its own unique educational background, skills & attitudes. In order for a company to function successfully, employers need to find a common language between generations X, Y and Z. Understanding the motivations and skills of each generation is vital to managing and maintaining a high performance team.Meanwhile, preparing and developing the younger generation is always the crucial task for each organization.


Cover Story 4 - Smart Technologies and Dumb Users?


Businesses Need to Improve their Products if they Want to Successfully Tap into the Potential of the Senior Markethina


Technology is the engine for the development of society and it has deeply permeated our daily life. In order to be part of the world, people have to use technology, to gather information and become known by others. In China, people’s life has been tremendously changed by technology. For example, the number of people who make payments online reached 359mn at the end of June 2015, an increase of 17.9% over the previous 6 months. Payments via mobile devices increased 26.9% over the past 6 months, reaching 276mn in June 2015.


Cover Story 5 - Ploughshares to Computers


Taobao Villages and the Next Generation


We have been witnessing the trend for decades: Young people from rural China set out to big cities in order to find work, happiness and life opportunities, in short: to hunt for treasures. In 2009, 145mn people migrated from the countryside to the larger urban areas, an estimated two thirds of them were born after 1980. This process has long been encouraged by the country's economic development agenda. In 2011, for the first time, the majority of China’s population lived in cities. .


In the Spotlight: Infrastructure Affects Private Life but also Business


Interview with Mr. Ingo Wolfsholz, General Manager North East China, DB Schenker

by Jana Kumpf

In March 2014, Mr. Ingo Wolfsholz was appointed General Manager North East China for DB Schenker. He previously gathered a rich array of experience in the logistics industry in Japan, Indonesia and the Philippines as well as in North America and is now stationed in Dalian, Liaoning province with his wife and daughter.


Feature 1 - FTZ Update

New Regulations for Industry Entry Thresholds in FTZs


In August and September of 2015, new regulations concerning industry entry thresholds and competition issues were issued in the FTZs. Below is an overview of the key contents of the new regulations. 


Feature 2 - Economic Update


Labor Market and Salary Developments


The Chinese labor market has remained relatively resilient to slower economic growth. Despite the economic slowdown, a record number of 13.2mn new urban jobs were created in 2014. Strong growth in the service sector, particularly in sectors related to the internet economy (IT, transportation and logistics), compensated for job losses in manufacturing and construction. The stock market frenzy also translated into a boom in financial services. This development is part of the transition of the Chinese labor market, as both the importance of manufacturing for GDP and employment are declining.


Feature 3 - Renminbi Clearing in Frankfurt


Frankfurt has Become the First Offshore Renminbi Hub in the Eurozone


The RMB´s importance has been growing steadily over the past couple of years, but the volume of transactions carried out in RMB in international markets still does not commensurate with China's role in the global economy. In August 2015, the RMB became the fourth most traded currency in global payments, but still only accounted for 2.8% of the total international payments. The ever increasing trading and investment links between China and the world create an urgent need for local transactions in renminbi.


Feature 4 - Short-term Fluctuations are not Long-term Trends


The EU, China & New Silk Roads

by Romano Prodi and David Gosset

The complex but irreversible integration of the European continent and the renaissance of the Chinese civilization arguably constitute the most significant factors of change of our time; the wise articulation of these two processes can only be mutually enriching and a source of growth and stability for our global village.


Feature 5 - Paving the Way for Smart Compliance


Interview with Dr. Bernd-Uwe Stucken and Philipp Senff, Pinsent Masons LLP Shanghai, on Compliance Management in China


Compliance in China is a serious matter; however regulations and practices are sometimes very opaque, leaving investors dazed and confused. To shed some light on the risks and responsibilities of compliance management in China, Dr. Bernd-Uwe Stucken and Philipp Senff from Pinsent Masons LLP Shanghai, together with twelve co-authors, recently published a practical handbook, offering the German business community in China an overview of the country’s broad compliance framework.


More than Business 1 - Most Help is Needed in Education, Healthcare and Aging Society

Oliver Ye Yang of the Shanghai Soong Ching Ling Foundation on Social Engagement and Charity Organizations


Most companies, especially small and medium-sized enterprises, only have limited resources to invest beyond their core business. To contribute to social causes, it is key to find and join forces with capable Chinese partner organizations. Many businesses want to engage, but find it difficult to find trustworthy charity partners. Trustworthiness for philanthropic organizations means that their work is transparent and traceable. German Chamber Ticker talked to Oliver Ye Yang, Deputy Secretary- General for Strategy and Policy of the Shanghai Soong Ching Ling Foundation. He shared his long-standing expertise in social engagement, sustainability and government relations.


German Chamber Ticker Editorial Team


Olivia Helvadjian

Senior Communications Manager & Chief Editor

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