DKSH Business Unit Performance Materials has won the “Ringier Technology Innovation Award 2020 – Food & Beverage Industry (Category: Food & Beverage Ingredients – Functional)” by Ringier, Switzerland’s largest internationally operating Swiss media company. The award was presented to DKSH for the innovative product Cluster Dextrin®, produced by Glico, DKSH’s valued business partner. DKSH provides Market Expansion Services to Glico Nutrition and exclusively distributes its products to the food and beverage industry in China. Cluster Dextrin® is a functional carbohydrate that provides quick and sustainable energy to significantly enhance performance during exercise and sports. It is made from non-GMO waxy corn starch utilizing Glico’s original enzyme technique. Cluster Dextrin® is highly uniform in its molecular structure, highly water-soluble and the solution allows a quick supply through the stomach into the intestine. Compared to traditional carbohydrate sources like glucose and dextrose, Cluster Dextrin® is clinically proven to enhance stamina, reduce intestinal discomfort and fatigue as well as suppress inflammatory stress.
V-ZUG, the Swiss manufacturer of household appliances, plans to open more stores in both top- and second-tier cites in China, and will introduce new digitalization of related products into the country’s lucrative market for the long term. Many opportunities arise from Chinese consumers’ growing demand for high-end home appliances, such as ovens, high-efficiency stoves and fabric-care appliances, as well as the evolution of consumer needs, from purchasing expensive products to customized solutions, said Jennifer Bao, managing director of V-ZUG (China). She said China is a market with attractive potential. According to statistics, high-end goods are bought by more than 400 million middle- and high-income residents in the country and the number will continuously grow. Being the second-largest market after Switzerland globally, V-ZUG currently has 60 sales outlets in 21 cities across China.
Nestlé has launched a campaign on three continents, taking aim at the fast-growing market for plant-based meat alternatives that has been led by startups like Beyond Meat. Nestlé began selling its Garden Gourmet Sensational Burger — a plant-based ready-made patty — in Europe this month. It also targets the huge U.S. and Chinese markets. The entry of the world’s largest food company broadens the field of competition in plant-based meat, which has gotten a boost from increased health awareness during the coronavirus pandemic. “Success in plant-based foods will be a once-in-a-generation opportunity,” CEO Mark Schneider has said. The company is accelerating its push into meat alternatives around the world. In China, it is investing CHF 100 million (USD 110 million) to expand a factory in Tianjin, with plans to start producing artificial meat there by the end of the year. The company sees significant room for growth in China, the world’s largest consumer of pork.
Credit Suisse Group AG is set to reap the benefits of a secret investment it made in Alibaba Group Holding Ltd. (NYSE: BABA) subsidiary Ant Financial Services Group, as the latter goes public in Hong Kong and Shanghai, Bloomberg reported. The Swiss bank invested $100 million during the Chinese financial firm’s latest funding round in 2018, which brought Ant’s valuation to $150 billion, according to Bloomberg. Asset management firm Bernstein projects Ant Financial’s valuation to be $210 billion, a premium of 40% over Credit Suisse’s investment. The lender didn’t previously disclose the amount it invested in Ant and does not have plans to sell its stake, people familar with the matter told Bloomberg.
Hong Kong will soon lose its status as the place with the world’s lowest corporate tax, replaced by the small mountainous canton of Nidwalden in Switzerland, a study found. That’s according to a taxation index by BAK Economics that regularly measures the attractiveness of Swiss cantons compared with each other as well as locations abroad. Switzerland is implementing one of the most significant tax reforms in decades. Tax burdens on corporate profits are expected to fall sharply in several cantons, especially Nidwalden, located on Lake Lucerne, according to the study. Unless Hong Kong changes its own tax regime, Nidwalden will push past it by 2025 with a corporate rate of 9.8%, the independent Swiss economic research institute concluded. Nationally, the Swiss corporate tax rate should fall to 13.5% from 16.8% when the reforms are fully in place by 2025, BAK estimated. That would be lower than Singapore. The canton of the capital Bern, with the highest tax burden in Switzerland, comes in ahead of European cities such as London, Munich, Vienna, Paris and Milan, the study found.
Our previous analysis of Swiss Businesses in China published in the 2019-summer edition of the Bridge was titled “Economic Slowdown becomes top concern”. The current survey was completed days before the Wuhan lockdown and the main concern was a further intensified “Economy Slowdown in China” with 69% of Swiss firms listing it as a challenge against only 51% in the 2019 survey. Finding and attracting talent remains the top internal challenge. With slower growth, however, the intensity of the challenge is diminishing while innovation and marketing become key competitive advantages to build up for success. Building these advantages is certainly more and more important as competition and rising costs remain the other key external challenges that businesses face in the Chinese environment. To sell, Swiss firms differentiate themselves very clearly from their Chinese competitors through “High Quality” and “Developing a Strong Brand”. They also woke up to the critical importance of R&D and market research, two elements where they are this year on a par with Chinese respondents. Chinese firms, traditionally weaker at branding and innovating, compete and differentiate by putting emphasis on service, distribution and providing cost effective goods and services (price/quality ratio). Overall and despite the geopolitical rivalry, trade war and increased top down management of the Chinese society, the Swiss have been confident about their business prospects for 2020 and in the 5 years to come. Their confidence level is as high as it has been in the last 5 years.
In a recent interaction with the media, Swiss Re China CEO John Chen shared how China domestic insurers should catch up with the rest of the world in the post-pandemic era. “Chinese insurance companies should launch products and services with targeted and customised features to increase the insurance coverage rate during post-pandemic,” he said. According to Mr. Chen, the current challenges facing the Chinese insurance market include – economic recovery after the pandemic, changes in the underwriting cycle, the catastrophe protection gap under climate change, comprehensive reform of auto insurance, the sustainable development of health insurance and digitalisation. He mentioned that the lockdown of cities in response to the pandemic control has brought economic activities and business operations to a halt. This has led to economic growth falling into a gradual recession and global supply chains being hit. In terms of life insurance, he noted that the pandemic has led to the shrinking of the traditional channel of sales.
DKSH Business Unit Technology and Bruker, renowned for its market leading analytical X-ray solutions, have extended their distribution agreement in China. Last year in April, the two companies strengthened their partnership in Asia by adding a business cooperation in China with the distribution of the Bruker XRF products S2 PUMA and S2 POLAR. With the extended agreement, DKSH will also provide marketing, sales and after-sales services in China for the Bruker 3D X-ray Microscopy product line. The 3D X-ray Microscopy product portfolio consist of three powerful benchtop systems and the SKYSCAN 2214, which is the highest resolution 3D X-ray microscope launched by Bruker, a pioneer in X-ray nano-tomography. The entire SKYSCAN series offers 3D X-ray microscopy at exceptional resolution with an unparalleled user experience. Utilizing the latest technologies in each of the components make the SKYSCAN series the most complete and versatile system on the market. DKSH aims to bring 3D X-ray Microscopy to customers across a range of material science industries, including geology, oil & gas exploration, polymers & composites, batteries & energy storage, pharma & packaging, automotive & aerospace, 3D printing and electronics.
Agrochemical giant Syngenta Group Co. Ltd. has officially debuted as part of China’s government-led mega-merger of two dominant state-owned chemical companies ahead of a possible IPO in China by mid-2022. The newly formed company Syngenta, which was registered last year, evolved from the Swiss pesticide producer that China National Chemical Corp. (ChemChina) acquired in 2017 and took in agricultural assets from ChemChina and Sinochem Group. In a statement announcing its launch Thursday, Syngenta said its first-quarter revenue was USD 6.3 billion, of which about a quarter was generated in China. The company last year surpassed Bayer AG to become the biggest agrochemical company in the world, racking up USD 23.2 billion in revenue. ChemChina acquired Syngenta AG, the predecessor of the newly launched company, for USD 43 billion in 2017 in the largest ever overseas acquisition by a Chinese firm. As part of efforts to reduce ChemChina’s debt after the takeover, it has been working through a merger with state-owned rival Sinochem. In January, the two Chinese state-owned chemical giants announced they would consolidate their agriculture chemical assets into the newly formed Syngenta Group as part of their ongoing restructuring plan.
The eagerly anticipated data on economies’ competitiveness has gone live, opening discussions on changes in the hierarchy on a national, regional and global level. The annual rankings, now in their 32nd year, have been released unlocking a wealth of data on the performance of 63 economies across the globe. Singapore was number one for the second year in a row. In second to fifth place, in order, came: Denmark, Switzerland, the Netherlands and Hong Kong SAR. A marked pattern in this year’s results, which are an amalgam of hard data taken from 2019 and survey responses from early 2020, is the strength of smaller economies. Arturo Bris, Director of the IMD World Competitiveness Center and Professor of Finance, says, “The benefit of small economies in the current crisis comes from their ability to fight a pandemic and from their economic competitiveness. In part these may be fed by the fact it is easy to find social consensus.”