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China Briefings

Reports on China issued by Samsung Economic Research Institute

China Business Intelligence No. 141

China Business Intelligence No. 141

Samsung Economic Research Institute Beijing Office

Nov. 18, 2009

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I. Economy

Cell phone manufacturers, Internet service providers, and telecom operators are in fierce competition to secure a foothold in the 3G market. Cell phone makers are now distributing cell phones with SNS function. The report analyzes the reason behind the cell phone makers' advance into the SNS market. Cell phones have portability and overcome the spatial limitations of the Internet. And SNS complements the limitations of one-way communication. Therefore, the convergence of cell phones and SNS provides an optimal space for personal communication, which combines both privacy and the openness of the Internet.

II. Industry

Korea's No. 2 retail giant, Lotte Shopping Co., acquired a 72.3% stake in China's Times Ltd., a supermarket chain in the Jiangsu region. Amid a slowdown in the growth rate of the Chinese retail industry after the outburst of the global financial crisis, an increasing number of large supermarket chains are expanding markets through M&A activities. With a low entry barrier and a high growth potential, the Chinese supermarket business is attracting an increasing number of foreign retail giants. Since a number of retail shops are already situated in core areas of major cities, large companies with a strong capital base prefer expanding their presence by securing shops through M&As.

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