Sincerity International Group is a Chinese company set up in 2003 by Dr. Zhang Lian, an alumnus of The University of Hong Kong (HKU), to tap Africa's demand for two-wheelers. The case provides an overview of the motorcycle market in Africa, its features and characteristics, and the threats and opportunities the region presented. It explains how Dr. Zhang Lian, the founder, crafts an uncontested market space by leveraging China's mature supply chain to create a branded line of motorcycles, accessories, and service, integrating product design, manufacturing, sales and marketing, distribution and logistics, aftersales service, and maintenance. It aims to (1) understand how Sincerity uses "blue ocean" strategy for growth and achieves phenomenal success; (2) identify the key reasons for Sincerity's rapid development; (3) identify the major challenges thereafter, and (4) evaluate strategies for Sincerity to sustain growth.
Perfect Diary is the first Chinese beauty brand based on a direct-to-consumer (DTC) business model. Launched by Yixian E-Commerce in 2017, it is designed to be an affordable alternative to foreign cosmetics brands, targeting Gen Zs and millennials in China. It was the number one brand in China's online color cosmetics market in 2019. Its parent company Yixian went public under the name Yatsen Holding Limited (NYSE:YSG) in November 2020. The brand had achieved enviable growth from startup, with revenue reaching USD655.2mn in 2021. However, things soon took a downturn for Perfect Diary. Growth stalled, and eventually its sales started to decline in 2022. The case aims to (1) illustrate how Perfect Diary used a blue ocean strategy and internet strategy to grow and expand; (2) identify the key reasons of its rapid decline; and (3) explore strategic options for the brand to regain success.
The case is about Sea Limited (NYSE: SE), once Southeast Asia's most valuable listed company with a market capitalisation of over USD231 billion in October 2021. The company began as an online game distribution platform, and quickly evolved into a digital services ecosystem with an offering that included e-commerce and digital financial services. Being mobile-centric and focusing on emerging markets are at the core of Sea Limited's business model. In two post IPO fundraisings in December 2020 and in September 2021, it had amassed close to USD10 billion from the market. Investors were bullish towards Sea's prospects for growth. Yet, the global macro socio-economic conditions were challenging. Geopolitical tension between the US and China is increasing. Supply chains are disrupted. Interest rates are climbing, and the threat of global recession looms large. The case asks, under such conditions, how can Sea Limited address these challenges and realise its potential for further growth?
Set in 2018, the case highlights the latest developments in China's retail industry, with a specific focus on online retail. The growing penetration of smartphones, rising popularity of social media, prevalence of trusted digital payment systems, and government policy to integrate the internet into the country's future social and economic development have set China on the course to be the global leader in e-commerce. Mobile technologies, big data, artificial intelligence, and the internet of things (IoT) technology have transformed the process of value creation and supply chain management for brands and retailers in China. In July 2018, Pinduoduo (PDD), a social commerce platform backed by Tencent successfully raised USD1.63bn in an initial public offering (IPO) in the US, making it one of the biggest US listings by Chinese firms in the previous four years. Established for less than three years, PDD's phenomenal rise to the number-three position in China surprised many in the industry, including market leaders Alibaba and JD.com. It developed a new online group purchase model, teaming buyers via social media and focusing on consumer demands from rural regions. Its steep growth underscores PDD's success to investors. As the company enters its post-IPO era,what are the strategic options for PDD to sustain its growth?
The case recaps the development of a contemporary online furniture brand in China, and the path of development to ride on the wave of digital retail. From an art store in Beijing's 798 Art District to becoming an online furniture brand on Tmall, Uvanart has positioned itself as an "affordable and artistic" furniture brand and built quite a following in the last few years. But China's home furniture market is fiercely competitive. Traditional custom-furniture brands Oppein (欧派家居), Soufeiya (ç´¢è²äºš), and Homekoo (å°šå“å®…é…) have all gone public. Internet giants Alibaba and Tencent have teamed up with retail mall operators Easy Home (居然之家) and Red Star Macalline (红星美凯龙), to gain a foothold in the growing market. Online furniture design brands like Zaozuo (é€ ä½œ) and Ziin (å±éŸ³) have won the hearts of China's millennial consumers as well as venture capitalists seeking high growth investment opportunities. Growth and scale are critical to Uvanart in the coming years. Was the "affordable and artistic" brand strategy a sustainable differentiation?
Traditional Chinese medicine (TCM) and big data seem at odds with each other, but with the Healthy China 2030 blueprint and China's Internet Plus action plan announced in March 2015, the ambition of Gu Sheng Tang to integrate the two is not too far-fetched. GST's vision is to become a central intelligence unit for Chinese medicine, mining the extensive medical data it harvested toward building a big-data-driven TCM solution. Since inauguration in 2010, the Group has reinvented TCM's outpatient service with its Chinese Medicine Practitioner Partner Scheme, enabling experienced practitioners in the public sector to enter private practice. It has also developed an institutionalized supply chain integrating procurement, processing, testing, and prescription of herbal medicine. It operates an online platform for appointment scheduling and healthcare support services. In August 2017, the company successfully raised CNY1.1bn funding. How should the company use this cash injection to optimize its business strategy to take advantage of China's state mobilization of the Internet Plus strategy?
15fen (15分) was the name Henry He (贺鸿鸣) gave his first business venture - a neighborhood store (社区店) in Guangdong province, China, which promised home delivery of a grocer order within 15 minutes. His inaugural slogan was, "Staple Food & Seasoning, Everything At Your Doorstep in 15 Minutes". A first time entrepreneur, he was imbued with optimism towards internet retailing, and convinced that home delivery within 15 minutes was an unbeatable proposition. In no time, he learned the realities of the grocery business - low margin and hard labor - carrying bags of rice and tins of cooking oil from door to door. Back in 2012, China's internet retailing was dominated by Consumer Electronics, Apparel and Footwear and Consumer Appliances. Fresh Food was tipped to be the next big driver for e-commerce. Headlines such as "Fresh Food e-commerce will be the next blue ocean" were commonplace in the media, and they captured the imagination of aspiring entrepreneurs like Henry He. He was determined to ride this e-retailing wave to create his blue ocean in Fresh Food. But first, he must learn how to swim.
It was October 2015, Charlie Wong, CEO of Zuji Hong Kong told the media at the launch of Zuji's new brand campaign "Search, Discover and Share" that he would like to see Zuji "become the Google for travel" in Hong Kong. Indeed, a deemed pioneer and leading online travel agent ("OTA") in Hong Kong, the aspiration did not seem far-fetched. Yet, the ambition was not without challenge. Since Zuji went online in 2002, the brand had been twice sold and its geographic coverage shrunk from six to three markets: Hong Kong, Singapore and Australia. Online travel booking had been slow picking up in Hong Kong. After more than 10 years, online sales remained at under 10% of the total market in Hong Kong, compared to the regional average of 25% in Asia Pacific. As momentum built up, Wong predicted the online travel agent ("OTA") market to quadruple, from 10% in 2014 to 40% in 2016. Meantime, competition from multiple fronts was flooding the market. Global leader Expedia had launched Expedia.com.hk in 2013, and was investing heavily in marketing to capture share. Traditional offline agents were busy expanding their online presence, building a hybrid model as competitive advantage. At the consumer end, mobile phones have become an indispensable travel companion and its implication went beyond the migration from one platform to another. Around the world, the industry was seeing the rise of the millennia travellers with new needs and expectations while on the road, and they were changing the rules of the game. Zuji is facing the biggest opportunity of its time to ride this wave of change and reinforced its market leadership.
A buy-side analyst for an investment company that has a company-specific, fundamentals-based investing philosophy is considering whether to include a small-cap Canadian company engaged in commodity streaming contracts in the mining sector as a significant investment. The analyst must first learn what commodity streaming involves to better understand whether the company has a viable business model. He also has to research the copper and natural gas industry outlooks. He must then develop a net asset value model to determine an appropriate valuation for the company.
In 2007, Goldlion, one of Hong Kong's oldest menswear brands, opens the first Goldlion Accessories store in the city as part of its plan to rejuvenate its brand image. The company aims to promote Goldlion as a youthful and trendy brand by creating a fresh, chic and elegant appearance while maintaining its sophisticated image. By rejuvenating its brand image, Goldlion hopes to regain its Hong Kong market, especially the younger segment. This case illustrates the rise and fall of a Hong Kong-born apparel brand. It can be used to teach students to identify the types of marketing information needed to help a company answer its doubts and devise a viable strategy in order to achieve its goals. The case can also be used as a learning tool for designing an appropriate ad-hoc market research plan.
In April 2007, Huella Online Travel Ltd, a Malaysian-based online travel portal targeting Asia, including Greater China, announced its results for the financial year 2006. Its market share for Hong Kong had been hovering just under 5% since the launch of its local site in 2000 and was performing worse in this than in other markets. A qualitative market research study conducted earlier had revealed that low awareness of the Huella brand and the general risk-averseness of Hong Kong consumers towards online travel purchases appeared to be the key reasons behind this. These findings were also echoed by market intelligence and industry reports, both of which suggested that online travel had not picked up in Hong Kong, despite the city's high internet usage penetration rate and the techno-savvy nature of its population, especially that of young people. Indeed, Hong Kong's adoption rate for online flight purchases was among the lowest in the world. In order to confirm previous findings and to test their representativeness, Huella decided to conduct a quantitative study. The company's goals were to devise a viable marketing strategy to ease Hong Kong consumers' concerns towards online travel purchases and ultimately to increase its market share in the city. This case illustrates the types of information needed by a company for its specific marketing objectives and examines how different types of market research can help it attain its goals.