China’s wage growth forecast for 2018 highest in the region
With an increasingly stronger economy in China, salaries at the higher end of the scale are projected to rise in 2018, according to recruiting experts Hays.
Looking ahead, 51 per cent of employers will increase salaries by more than 6 per cent, 35 per cent will increase salaries from between 3-6 per cent, nine per cent will increase by up to 3 per cent and five per cent will offer no increase at all.
The Hays also see that in some sectors, employers are willing to go above average when hiring those with niche skills and in areas of skill shortages.
Of the candidates surveyed in Mainland China, 57 per cent are unhappy with their current level of compensation but 74 per cent did not ask for a pay rise during their last review.
The largest proportion of candidate respondents in Mainland China (85 per cent) expect a pay rise of more than 6 per cent while nine per cent expect an increase from between 3-6 per cent.
Simon Lance, Managing Director of Hays Greater China says, candidates are advised to do their homework on what their job role and industry is paying before deciding to move job roles in search of a higher salary.
“For employers, communicating to staff about the process behind salary increases will be even more important in 2018 particularly if the economy continues to show the strong improvements we seen in 2017 and likely to see in 2018, creating the perception that there should be more budget for salary increases,” said Simon.
This, in turn, is changing companies’ relationships with their customers and business partners.
BMW Group and Chinese manufacturer Great Wall sign a letter of intent
The BMW Group is in advanced discussions to ramp up the global success of its MINI brand through a new joint venture in China.
A key element of the brand’s continued strategic development will be local production of future battery-electric MINI vehicles in the world’s largest market for electromobility.
To this end, the BMW Group has signed a “letter of intent” with the Chinese manufacturer Great Wall.
Next steps will be to agree on the details of a possible joint venture and cooperation agreement and clarify aspects such as the choice of production location and concrete investments.
The BMW Group has no plans to set up an additional sales organization in China. The company is firmly committed to continuing the successful cooperation with the established sales structure, as the interest of dealership partners is one of the key considerations for the company’s business decisions in China.
In addition to its strategic considerations towards the MINI brand, the BMW Group will further expand its highly successful BMW Brilliance Automotive (BBA) joint venture in China with its partner, Brilliance.
BBA also operates a battery factory for electrified BMW brand vehicles produced locally in Shenyang. This is the first battery factory operated by a premium automobile manufacturer in China. It is a clear signal that the BMW Group is fully prepared for the electrification trend in China.
In addition to production of the first battery electric MINI at the main plant in Oxford, the planned joint venture for future MINI electric vehicles signals a further clear commitment to electromobility, a main strategic focus for the BMW Group.
The global automotive industry is undergoing iconic change. The BMW Group is not standing still.
The company has identified electromobility, autonomous driving and digitalization as the key drivers for the future. The BMW Group has set its vision: To be number one in all of these areas. China is vitally important to the Group to achieve that goal and the country is clearly leading in electromobility and pioneering digital change.
Rapidly advancing technology is fueling intelligent enterprises
Highlights how rapid advancements in technologies — including artificial intelligence (AI), advanced analytics and the cloud — are enabling companies to not just create innovative products and services, but change the way people work and live. , according to Accenture Technology Vision 2018.
The report notes that this latest technological transformation is unique in that for the first time the change is a two-way street; people aren’t just using companies’ products and services, but feeding information and access back to them.
This level of “integrated innovation” and degree of trust requires a deeper relationship — a true partnership based not only on a company’s products, but also its goals and values.
And with this two-way partnership come new responsibilities — to consumers, business partners and society at large — requiring leadership and commitment from the top.
The Technology Vision identifies five emerging technology trends that companies must address if they are to build the partnerships needed to succeed in today’s digital economy:
Trend1 Citizen AI: Raising AI to benefit business and society.
Trend2 Extended Reality: The end of distance.
Trend3 Data Veracity: The Importance of trust.
Trend4 Frictionless Business: Built to partner at scale.
Trend5 Internet of Thinking: Creating intelligent distributed systems.
Walmart China Announces New CEO
Walmart announced Wern-Yuen Tan as the new President and CEO for Walmart China.Wern-Yuen Tan, currently serving as President, Walmart Stores China, will be promoted to assume his expanded role on March 1.
Wern-Yuen has been leading the Walmart Stores business in China since April 1, 2017. Under his leadership, the Walmart Hypermarkets and Ecommerce businesses delivered a record year of financial, operating, and customer satisfaction results in 2017.
Walmart’s latest earnings show that Walmart’s net sales in China grew 4.1 percent in Q4 of fiscal year 2018 and comp sales increased 2.3 percent with a 1.5 percent increase in comp ticket.
Yuen also successfully introduced new Digital and Ecommerce platforms, creating more convenient ways to for customers to shop and engage with Walmart China.
Walmart launched its flagship store at JD platform last year and formed matrix of 5 flagship stores at JD. E-Commerce had an explosive growth and contributed to about 50% of the company growth in 2017.
Walmart’s GMV on JD Daojia also had an exponential growth. Currently, Walmart’s JD Daojia footprints extend to over 160 stores in more than 20 cities.
In his early career, Yuen held various positions in the Government of Singapore before joining the Boston Consulting Group in the U.S. and working his way to the Principal position.
He holds degrees in Finance, Economics and Management from both the University of Cambridge and University of Oxford in the U.K.