This was quite a contradicting day! The first company we went to was Wonder Milk at Hua Xia farm. This was more fun than many expected. We got to taste some yogurt (delicious! Unless you eat about 5 of them like Kyle...). The presenters were both non-Chinese and their perspectives were a relief as it seemed heart felt comments and not a possible facade. They offer a luxury item with their brand - Wonder Milk ($6 per liter vs $1.75 of the competitor). Because its a dairy farm, this industry is very front loaded capital investment - have to buy the cows or calves and wait until they are able to produce milk.
After we made a quick stop back at the hotel to change from jeans to business dress, we headed to the US Embassy. We heard from Keith Anderson- the #2 in commercial affairs and Bill Zaret (sp). Some interesting facts we learned were:
- there are 300 million middle class in China
- China has an aging population such that predictions are by 2020 they will import labor
- there are 900 million cell phone users in China.
- China has 115 billionaires which is #2 in world behind the US.
- the political elite consists of engineers and economists unlike the US usual of lawyers.
We then heard from 'Xan' Alexander Moody-Stuart who was instrumental in helping Subway move into the Chinese market. A major difference in Subway China in the last 6 years is labor costs. In 2006, labor was 800 RMB / month. In 2012, labor was 1900 RMB / month plus bonuses.
After our visits, quite a few went back to the pearl market to shop around. Various other groups went to dinner etc. There was an SMU sanctioned dinner with alumni and other networking opportunities. I joined a few others and ate at a wonderful restaurant and had Peking duck which was absolutely fabulous.
~Elizabeth
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| Driving along in the bus with Mary |
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| The subway warnings |
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