Development Ideas for South Asia

[AndrewJin]

Sri Lanka has quite a lot of local tea brands like Dilmah and I see it in the UK all the time. What kind of brands do you get in China?

I only see western brands, but Chinese seldom buy tea of foreign brands, I cannot figure out a single foreign brand except Lipton which has been localised. If a Sri Lankan tea band can enter Chinese market with localised marketing strategy, it can gain much more profit in China than UK.

@Azizam Red tea from Sri Lanka

Not just tea or teabag, but tea drinks!
The sales volume of Chinese beverage market is 221.8 billion yuan（35.7 billion US dollar) in 2014 with an annual growth rate of 10%. Tea drinks account for proximately 25%(water 25%, carbonated drinks20%, fruit juice 20%, functional drink 7%). A regular teabag of Lipton red tea is sold around 30-50 cents，25 cents in Taobao.com($0.04), however, a bottled red tea can be sold around 2-6yuan. I am looking forward to see Sri Lanka's own tea drinks in China!

Tea drinks in a 24-hours convenient shop, Wuhan, Central China

 

[Koovie]

Or birth control.

Ehm how are condoms not birth control?

 

[Water Car Engineer]

Ehm how are condoms not birth control?

Actually, this is different connotation, here when we say birth control, we automatically mean the pill, not condoms. Though you're right, surgery, condoms, pills, etc. fall in the same category.

 

[Shotgunner51]

I only see western brands, but Chinese seldom buy tea of foreign brands, I cannot figure out a single foreign brand except Lipton which has been localised. If a Sri Lankan tea band can enter Chinese market with localised marketing strategy, it can gain much more profit in China than UK.
View attachment 235444

@Azizam Red tea from Sri Lanka
View attachment 235446

Not just tea or teabag, but tea drinks!
The sales volume of Chinese beverage market is 221.8 billion yuan（35.7 billion US dollar) in 2014 with an annual growth rate of 10%. Tea drinks account for proximately 25%(water 25%, carbonated drinks20%, fruit juice 20%, functional drink 7%). A regular teabag of Lipton red tea is sold around 30-50 cents，25 cents in Taobao.com($0.04), however, a bottled red tea can be sold around 2-6yuan. I am looking forward to see Sri Lanka's own tea drinks in China!

Tea drinks in a 24-hours convenient shop, Wuhan, Central China
View attachment 235447

Well said! Sri Lanka has a favorable image among Chinese consumers, I believe tea brands (as well as other food and beverages) from SL can ride on this make a huge success here.

It's like Korea has a favorable image associated with fashion & hi-tech, hence many Korean brands, mostly in lifestyle and pricy gadgets, are so popular in China.

 

[Gibbs]

It's true though, it's difficult to do anything when crowding and overpopulation ruins any beautification projects. This won't help Sri Lanka though, our birth rate has fallen to barely replacement level.

What we need is education, nothing else will do anything permanent. We need strong research institutions and a culture of research, development and entrepreneurship.

Couldn't agree more.. I always reiterate the only way the island is going to escape the middle income trap it's in is through R&D.. And in order to do that it needs to overhaul the whole secondary and tertiary education system that is producing brainless public workforce thats no good for anybody

I only see western brands, but Chinese seldom buy tea of foreign brands, I cannot figure out a single foreign brand except Lipton which has been localised. If a Sri Lankan tea band can enter Chinese market with localised marketing strategy, it can gain much more profit in China than UK.
View attachment 235444

@Azizam Red tea from Sri Lanka
View attachment 235446

Not just tea or teabag, but tea drinks!
The sales volume of Chinese beverage market is 221.8 billion yuan（35.7 billion US dollar) in 2014 with an annual growth rate of 10%. Tea drinks account for proximately 25%(water 25%, carbonated drinks20%, fruit juice 20%, functional drink 7%). A regular teabag of Lipton red tea is sold around 30-50 cents，25 cents in Taobao.com($0.04), however, a bottled red tea can be sold around 2-6yuan. I am looking forward to see Sri Lanka's own tea drinks in China!

Tea drinks in a 24-hours convenient shop, Wuhan, Central China
View attachment 235447

Real Tea | Official Site of Dilmah Tea Inspired | World of Tea

Dilmah Tea | Facebook

this brand is huge in Australasia and Japan, Wonder why it has'nt penetrated the Chinese market

 

[AndrewJin]

Real Tea | Official Site of Dilmah Tea Inspired | World of Tea

Dilmah Tea | Facebook

this brand is huge in Australasia and Japan, Wonder why it has'nt penetrated the Chinese market

Never sea Dilmah in ordinary supermarket (maybe in imported goods supermarket),
but u can buy in online like in Taobao.com

The sales volume of China's bottled tea drinks is 8 billion US dollars in 2014.
The marketing expenses of a Chinese tea drink brand called JDB(加多宝) reached 3.5 billion yuan ($ 560 million) in 2013.
The market share of carbonated drinks drops by 10% in 2014, however, tea drinks increase by 25%.
The key to enter Chinese market is

• money
• localisation

@Azizam Imported teabag or tea won't make a huge money in China. Chinese prefer domestic tea and tea drinks. Tea drinks witness 20-30% annual growth when carbonated drinks are on the decline. It's better to sell processed localised products in China, more profitable, however, call for big money.

 

[Azizam]

Never sea Dilmah in ordinary supermarket (maybe in imported goods supermarket),
but u can buy in online like in Taobao.com
View attachment 235756

The sales volume of China's bottled tea drinks is 8 billion US dollars in 2014.
The marketing expenses of a Chinese tea drink brand called JDB(加多宝) reached 3.5 billion yuan ($ 560 million) in 2013.
The market share of carbonated drinks drops by 10% in 2014, however, tea drinks increase by 25%.
The key to enter Chinese market is

• money
• localisation

There is even a website of Dilmah in Chinese though.

Dilmah tea 迪尔玛茶中国总代理 源国贸易

 

[Sky lord]

@Nihonjin1051 Do you have any suggestions on how to promote entrepreneurship?


Very good.

Robotics can be utlizied to increase efficiency and reduce cost but for that, the robots have to be more affordable and the farmers have to be taught the technical aspects of the tools. Here's an example.

I am not sure about robots in farms. Most of South Asia has a lot of semi educated population needing jobs. We do need improved technology but we also need jobs for the boys until manufacturing is in place, so need to find a happy medium.

 

[Sky lord]

One crucial aspect of South Asians (especially Sri Lankans) I've noticed is that they tend to blame politicians for all their woes despite having democratic systems. They contradict themselves because in a democratic system, the politicians are bound to deliver what the people expect from them just to secure their power in elections. And despite blaming their failure on politicians, I have noticed that vast majority of people don't seem to demand better infrastructure, clean streets, better public transport, good standards of living etc. Not just that even developing infrastructure and planning cities properly are considered as a "waste of money" or "destroying the natural beauty of the country". For instance, many towns in Sri Lanka are in a very bad condition and they are poorly planned so in the recent times, the government tried to plan and organise one particular town but it was met with heavy protests, especially about cutting down two trees and that many were saying that this town is already beautiful and it doesn't need to be planned.

Great observation, we get what we demand. I think that may be the most important aspect to development, is to make people demand the best, the government will be forced to deliver. Those town people who was against the development you mentioned may have been manipulated by vested interests who did not want o give up their land. Or maybe people preferred what they had ( or didn't know any better ).
The single most important pre-condition to modernity is vision and you gotta market that vision. People will take care of the rest. East Asia tends to have authoritarian governments, so can't compare.

 

[Azizam]

Great observation, we get what we demand. I think that may be the most important aspect to development, is to make people demand the best, the government will be forced to deliver. Those town people who was against the development you mentioned may have been manipulated by vested interests who did not want o give up their land. Or maybe people preferred what they had ( or didn't know any better ).
The single most important pre-condition to modernity is vision and you gotta market that vision. People will take care of the rest. East Asia tends to have authoritarian governments, so can't compare.

The problem is people don't have lomg-term goals. They just need to enjoy low prices and cheap talk and that's about it. Let's hope that success of regional countries will force them change their mind.

 

[Gibbs]

After going through your thread on emerging markets.. Would like to see valuable inputs on this @LeveragedBuyout

 

[LeveragedBuyout]

After going through your thread on emerging markets.. Would like to see valuable inputs on this @LeveragedBuyout

I'll have to catch up on the thread first, but I will be happy to contribute if I am able to.

 

[Guynextdoor2]

Step one- Send Bhakt and right wingers of all religions into concentration camps.....development will automatically follow....

 

[damiendehorn]

Step one- Send Bhakt and right wingers of all religions into concentration camps.....development will automatically follow....

Does that include modi? Who do you define a right winger?

 

[kawaraj]

ARM Control by our dear neighbor INDIA. Use the money saved to educate all people in here.