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...Tingyi's growth is the result of laborious distribution work. Rather than rely on wholesalers, Tingyi hired specialized staff to ensure that its products were being sold not just in large supermarkets and convenience stores but in the tiny xiaomaibu, or corner grocers, where Chinese consumers still make a large share of incidental purchases. "Control over end distribution channels is one of Tingyi's key competitive advantages," according to the China Brands Index from Hong Kong brokerage CLSA...

Author: /time Magazine | Title: Follow the Leaders | 3/8/2010 | See Source »

...Still, overseas influences aren't excluded. Septwolves maintains foreign designers on its staff, and its advertising campaigns use both foreign and Chinese models. But there's no ambiguity about the target. "We've designed styles that are especially tailored to the Chinese," Zhou says. When Chinese consumers really start to make their mark on the world economy, we can expect a lot more of the same...

Author: /time Magazine | Title: Follow the Leaders | 3/8/2010 | See Source »

...fitful progression - initially offering vacation packages, but temporarily withdrawing them in 2007 to focus on air tickets and hotels. Both players offer nearly identical prices, so customer service is a key point of difference. While Chinese Web users have become more sophisticated about researching prices on the Internet, they still prefer to buy tickets by phone (just 35% of Ctrip's customers buy their air tickets via the website). Ctrip's step-by-step approach has also helped there, enabling it to steadily accommodate increasing business volumes. When Ctrip customers dial in, their calls are answered within 20 seconds. "Otherwise...

Author: /time Magazine | Title: Follow the Leaders | 3/8/2010 | See Source »

...designs were in universal demand. Zhou was well versed in foreign style - at his Fujian factory, he had been producing export garments for five years, and the early designs of his own line, Septwolves, were almost identical. At the time, Chinese manufacturers seeking a reputation for quality and modernity still felt obliged to ape Western brands, as they had been doing for decades. "Like many other domestic companies, we started out aspiring for such influence," Zhou recalls...

Author: /time Magazine | Title: Follow the Leaders | 3/8/2010 | See Source »

...Asian states worry that an alternative order based on the superiority of the Chinese civilization will eventually become hierarchical. A still insecure and internally weak China has largely pursued win-win economic relationships to appease a nervous region. But if its domestic example is anything to go by - where the authority of the CCP to wield power and control resources is absolute and dissent is harshly treated - a dominant Middle Kingdom might show little future restraint in the relentless quest to enhance China's national power...

Author: /time Magazine | Title: Perception Gap | 3/8/2010 | See Source »

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