Chinese AirBnB Tujia gets popular with New Funding

Chinese AirBnB concept 

New Tujia (www.tujia.com ) fund raising reflects strong investor confidence in its business model and market position, which could help the company to post strong growth before an IPO in the next 1-3 years.

 Tujia raises $ 300 million 

It seems that the hot websites only need to say they seek new funds these days, and they can automatically attract a large investor interest that allows them to raise huge funds and get high valuations.

Tujia popular in China

The latest company to follow the pattern is Tujia, a site that allows owners to lease their vacant properties to travelers, using a model similar to popular US site Airbnb. Just one month after media reported that Tujia is finalizing a new funding round of $ 250 million (previous post), the latest reports say the demand was so strong that it ended up raising $ 300 million ...

This kind of fund-raising outperformance has become quite routine these days, helping to boost a new generation of Chinese Internet companies that often simply copy western business models. Others to engage such turbocharged fund-raising include Didi-Kuaidi, which started out as a taxi app operator but is rapidly moving into the private car services model pioneered by Uber. Didi-Kuaidi originally set out to raise about $1.5 billion in its latest funding round last month, but ultimately ended up with $2 billion due to huge demand. Tujia isn’t quite as advanced as Didi-Kuaidi, but the company itself has become hot property by borrowing Airbnb’s business model of linking up property owners with travelers looking for cheaper, more homey accommodations than traditional hotels. Tujia’s latest funding is its fourth to date, and follows a previous round that saw it raise $100 million about a year ago.

source http://www.youngchinabiz.com/en/travel-airbnb-imitator-tujia-gets-hot-with-new-funding/


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TCL on the Comeback Trail With Samsung

Chinese manufacturer TCL TV (HKEx: 1070; Shenzhen: 000100) made all the right moves today, after its disastrous purchase of the European company and the North American television Thomson few years ago. In the latest smart move for the company, in my opinion, the strongest of the major TV brands in China, TCL signed Samsung (Seoul: 005930) as a partner in its LCD plant relatively state-of-the-art Shenzhen, with Samsung a 15 percent stake in one of the other factory partners. 

As part of the package, Samsung — already the world’s top LCD maker — will also buy 2.55 million LCDs from the venture annually, or 15 percent of its output. This deal is great for TCL, not only bringing in a major new customer but also making sure the plant gets the cutting-edge technology it needs to keep up with other global leaders like LG Display (Seoul: 034220) and Chimei Innolux (Taipei: 3481). TCL already enjoys a solid reputation at home, and with this new partnership could finally start to make some serious inroads toward developing a name as a quality global brand, much the way that Samsung has done over the last 20 years.Bottom line: TCL’s LCD tie-up with Samsung will give it a major boost towards becoming China’s first global quality TV brand.

source : http://www.youngchinabiz.com/en/tcl-on-the-comeback-trail-with-samsung-tie-up/ 

Luxury Brands mainly deal with Chinese clients

Despite a deteriorating environment in their country, the Chinese still represent a future customer for the luxury industry. It is the belief of HSBC's analysts unveil their recommendations on key values ​​of French industry.

Luxury market slowdown

Economic growth slowdown, property market at half mast, stock indexes were down: the rich Chinese have to worry about, and with them, the big luxury sector groups worldwide.

Over the past decade, these companies, French (LVMH, Hermes, Kering), Italian (Prada, Tod's, Ferragamo, etc.) and Swiss (Richemont, Swatch Group), took the extraordinary appetite of Chinese to prosper. And for most of them, China is now the number one market.

Macroeconomic difficulties are pervasively present in a year. But industry players are sullen longer. The anti-corruption campaign launched by the authorities in 2012 severely affected both segments of the industry from 2013: luxury watches and high-end spirits, choice of objects for the "business gifts" in practice that the Chinese authorities want to stop now.

Photos source @Agence Marketing Chine

Thus, sales of watches, for example, or cognac Remy Martin, probably fell more than 30% in 2013 and 2014 in the China

Bling Dynasty is over

However, a financial analyst, the luxury sector specialist at HSBC and author of a book on the luxury in China, "The Bling Dynasty," this market is full of promise. The year 2015 should, he said, mark a return to healthier fundamentals, with the end of destocking, particularly in watches and spirits.

Especially the Chinese will continue to travel. Now this is abroad they realize much of their luxury goods purchases. A reality that also reflects the share of sales made by the major groups with Chinese nationality customers. source

Revenue share realized with Chinese customers

• Louis Vuitton (LVMH) 33%
• Gucci (Kering) 34%
• Hermes 29%
• Prada 38%
• Swatch 57%
• Richemont 38

Travel industry in China

Travel industry in China 

Ctrip is likely to make a counter-bid for eLong following a surprise offer from Tencent, sparking a potential bidding war that should ultimately see Ctrip emerge as the victor.

I also have to suspect that this particular bid came without the knowledge of Ctrip, which itself owns 37 percent of eLong. Ctrip got its stake after joining a group that bought out a controlling 62 percent of eLong previously held by US travel giant Expedia (Nasdaq: EXPE) earlier this year. 

Tencent has owned its stake in eLong since 2011. Ctrip’s recent moves have all pointed to its own buyout offer for eLong, leading me to believe that we could quickly see a bidding war break out for the company.I’ve been predicting for the last few months that leading online travel site Ctrip (Nasdaq: CTRP) would make a buyout bid for former rival eLong (Nasdaq: LONG), so I was quite surprised to read that such a bid has come instead from Internet giant Tencent (HKEx: 700). This particular move is all the stranger because Tencent hasn’t shown much interest in the travel sector before now, though it previously invested in eLong and now owns about 15 percent of the company.

More broadly speaking, this latest buyout offer is part of a bigger wave of similar deals that have seen dozens of US-listed Chinese companies launch privatization bids this year. Most of those companies have failed to attract interest from US investors, and their shares have languished as a result. Many feel they could get better valuations in China, and are trying to de-list from the US and eventually re-list at home.
The case with eLong is similar, since the stock never did very well and has lost nearly half of its value since the Ctrip-led buyout of Expedia’s stake back in May. According to eLong, Tencent has now offered to buy all of its shares for $18 each, representing a 27 premium over their last closing price. (company announcement; Chinese article) But that price still represents a discount from the peak of more than $22 that eLong reached back in May when the earlier Expedia buyout was announced.

source http://www.youngchinabiz.com/en/travel-bidding-war-coming-for-elong-with-tencent-offer/

Shipping Purchases Home

In my 26 years of travel in China I have found many wonderful things to buy.  Most of them I have brought home on the plane with me including a 2.5 foot tall hand painted vase.  I have shipped a rug and a special embroidery home but that is all.  My experience with clients shipping purchases home as been good and some poor.  If the item gets broke in shipping you have a claim on it however you do not have the item that you purchased either.  Chinese are experts at packing purchases for travel.  I have brought home silk comforters, pottery, and antiques of many kinds without any breakage either in special packages or in my suitcase.  Rugs and artwork they usually have you sign the item some place on it so that when you receive it you know it is what you purchased.  If not sent by air, ship can often take up to 2 months so one needs to be patient.  I often have bought a second suitcase just for purchases that I have bought for family and friends for the Holidays.  They may be purchased at Bargain shopping booths for little money.  Ask your guide for help. 

Kung Fu at the Shaolin Temple

Many people are interested in Kung Fu and I have had to go to the Shaolin Temple and see for myself if it is worth sending my clients to that location.  The Shaolin Temple home of KungFu is located between the cities of Luoyang and Zhengzhou in the countryside.  The photo here was taken with the #1 Shaolin monk.  I was the only foreigner watching the demonstrations.  The Monk needed a volunteer and of course all the Chinese tourists pushed me into it.  The Monk had a small bowl which they use for eating lunch or dinner.  He put it on his stomach muscle and challenged me to remove it.(only once had anyone ever been able to do it)  I saw his skin was moist from all the activity so I thought perhaps if I twist it rather than try to pull it off, it might work.  It did and I was able to remove it.  I thought the audience would cheer but the Monk Lost FACE and the audience remained quiet.  This is a culture thing of course.  After the demonstrations were over, the Monk came out and requested me to come up on the stage.  He then bowed to me and presented me with the bowl.  An act of humility.  I still have the bowl of course and it makes great memories for me.  The Temple is original but has become quite a tourist attraction for mostly Chinese people some Kung Fu followers from around the world. One can take lessons there if you like but the facilities are not deluxe.  In Beijing there is a Kung Fu Show which is more like an Opera if you do not have the time to go to the Shaolin Temple itself.  I send many people to Xian, then to Luoyang where the famous Longmen
Buddhist Caves are located along with the White Horse Temple built in the 1st century as the First
Buddhist Temple in China.  Called that because two months came from India on white horses with their religious books to establish the temple.  From there by car to the Shaolin Temple and then to Zhengzhou to catch a plane either to Beijing or other destination.  The old Jewish Settlement at Kaifeng is not far away too but little is left of the Jewish settlement other than a large Metal Pagoda and a more modern area to remember the Jewish settlement.