Tag: red

  • Red China – up-and-coming wineries gain recognition

    Red China – up-and-coming wineries gain recognition

    Chinese winemaker Legacy Peak, which started producing grapes more or less by accident in 1997, symbolizes the rapid growth of an industry that now wins accolades in global markets, but it once came close to giving up.

    “We wanted to pull out all the vines and call it quits,” said Liu Hai, its second-generation owner, recalling early struggles to cultivate a barren plot received from a local government in payment for construction work.

    His family knew nothing about farming when they got the land in the arid north-central region of Ningxia on condition that it be devoted only to grapes, but they started making wine a decade ago, after wineries that used their fruit won several awards.

    Since then, Liu says the winery has won awards and found export markets in France, Germany, and Southeast Asia, despite the annual output of fewer than 100,000 bottles.

    From the rolling hills of coastal Shandong province to the desert heights of Ningxia and the deep valleys of southwestern Yunnan, Chinese vineyards and wineries are winning recognition.

    “China is an up-and-coming fine wine producer, and its best wines can compete on the world stage,” said wine educator Edward Ragg, who is a reviewer for the influential Robert Parker Wine Advocate.

    The products of wineries such as Chateau Nine Peaks in Shandong, Silver Heights and Grace Vineyard in Ningxia, and Ao Yun in Yunnan, are rated as “outstanding wine of exceptional complexity and character” by Parker’s newsletter.

    Some, such as Nine Peaks and Legacy Peak, are finding export markets in Asia and Europe.

    China’s wine market is the sixth-largest in the world, with event organizer Vinexpo saying it consumed $14.8 billion worth of wine in 2018, and forecasting sales of $18 billion by 2023.

    But domestic wineries must battle an image problem, as consumers at home can be suspicious of their quality and often put off by high prices.

    “It was always easier to sell to foreigners because they are more open-minded, but it has been a tough sell with Chinese customers,” said Liu.

    Other problems are high production costs and erratic weather that can hamper efficiency and quality, while a slowing economy and the COVID-19 pandemic have hit China’s wine consumption since 2018.

    Modern winemaking in China dates fromg the 1980s, when French firms, such as the precursor of Remy Cointreau, began investing after the door was opened to foreign businesses by then-leader Deng Xiaoping.

    While the French influence persisted in a market dominated by reds and a glut of Bordeaux imitations, quality began improving in the early 2000s.

    That was a time when vineyards focused on growing healthier grapes just as incomes grew sharply, with more people traveling abroad and drinking more wine.

    Now home-grown wineries can allay the suspicions of some consumers, such as Yang Lu, who owns a restaurant in the Chinese capital.

    “I was amazed by how the aroma was full of nice fruits and flowers,” said Yang, describing her experience last year of first sampling the Mountain Wave label produced in Ningxia.

    “It had a nice color and was smooth with a long finish.”

    Until then, Yang, who is in her 30s, educated overseas, and widely traveled, had almost always ignored domestic wines, uncorking only imports such as New Zealand wines made from pinot noir.

    Some winemakers, such as Ian Dai, 33, who is behind the Ningxia brand Xiaopu, priced in the range from 168 yuan ($26) to 300 yuan ($47), are turning away from industrial methods in the search for a Chinese signature variety.

    Dai said he was looking to more natural methods, such as fermenting without commercial yeast or leaving acidity and tannin levels unadjusted to “let grapes express themselves”.

    An independent with no vineyards or winemaking equipment of his own, Dai is in his fifth year of winemaking after dropping out of college in Sydney and spending a decade in wine sales.

    Dai hopes to find grape varieties for a wine that represents China.

    “As a winemaker I should have the ego to make the best wine in this climate with grapes grown here,” said Dai, who expected it would take two decades to produce such a wine in China.

    Chinese wineries are also experimenting with alternative grape varieties, such as marselan, aglianico and saperavi. Marselan, a cross between cabernet sauvignon and grenache embraced years ago by Legacy Peak and others, offers high yields and a fruitiness much needed by Chinese reds, experts say.

    “Marselan could one day become China’s signature wine grape, like malbec is to Argentina,” added Ragg, a holder of the Master of Wine qualification

  • Vietnamese, Argentinian designers top latest Redress Design Awards

    Vietnamese, Argentinian designers top latest Redress Design Awards

    Circular fashion environmental charity Redress has awarded two designers with collaboration prizes for their entries in the Redress Design Awards for 2020. The Redress Design Award 2020 Grand Final saw awards presented to menswear designer Le Ngoc Ha Thu from Vietnam and womenswear designer Juliana Garcia Bello of Argentina, who won design collaboration prizes with VF Corporation’s Timberland and upcycling brand The R Collective, respectively.

    A runner-up award was given to Sri Lankan designer Ruth Weerasinghe. The award for the best Hong Kong designer went to Grace Lant. The competition cycle, sponsored by local government body Create Hong Kong, has served to draw attention to the issue of waste in the fashion industry that has intensified under the impact of the coronavirus pandemic.

    “Fashion’s waste crisis can’t be swept under the carpet any longer,” said Redress and The R Collective founder Christina Dean. “Covid-19’s retail and supply chain disruptions have stranded materials in warehouses, factories and stores globally. Now is the time to catalyze the circular economy – and this is Redress’ focus. The Redress Design Award has for 10 years educated designers about circular design. The industry must not waste the opportunities that Covid-19’s crisis is offering.”

    “The Redress Design Award has established as a recognized brand in the sustainable fashion design community over the past years by educating emerging fashion designers in order to drive growth towards a circular fashion system”, said Create Hong Kong head Victor Tsang.

    Over the past fortnight, 10 finalists in the competition were subjected to a tough series of virtual design and business challenges focused on real-life sustainability business cases.

    VF’s executive VP & group president Asia Pacific region and emerging brands Kevin Bailey, one of the judges, said the company’s collaboration with Redress over the past two years has connected it with talented, emerging designers “who are passionate about creating fashionable, compelling designs with environmental responsibility in mind”.

    “We are constantly inspired by their commitment to circular design and creativity. These are the future leaders who are going to help drive lasting and positive change throughout our global industry and we are proud to be part of their journey.”

  • Vietnam’s pepper farmers urged to keep calm and carry on

    Vietnam’s pepper farmers urged to keep calm and carry on

    Industry leaders have called on distraught and anxious pepper farmers to remain calm and refrain from selling their produce at low prices, saying the current price plunge is most likely a fleeting phenomenon.

    Do Ha Nam, Chairman of the Vietnam Pepper Association, said farmers should break their impulse to “mass sell” their produce immediately after harvest.

    “Vietnamese pepper exports now account for nearly 50% of global output, so we are actually in a position to control the market. Farmers should be calm and not sell at lower price, and the market will revert to its equilibrium,” Nam said.

    In the Central Highlands, the price for whole peppercorns on the domestic market has dropped from VND180,000 (US$8.04) since last August to around VND80,000 (US$3.57) per kilogramme as of May 28 to reach the lowest point in seven years, and many pepper farmers are in dire straits, with some pushed to the point of having to sell their land to settle debts.

    Authorities, meanwhile, are struggling to manage what they say is the consequence of unplanned farming and poor quality crops, which is dragging the whole industry down.

    According to the Standing Committee of the Tay Nguyen Steering Board, farmers were “misled” by pepper price surges in recent years to plant the crop on a large scale, ignoring warnings from local authorities. Subsequently, gluts have led to the sharp decline in prices, the committee has said.

    Nguyen Thi Do, a pepper farmer in Dak Nong Province, said her family had taken a bank loan of VND4 billion (US$178,770) to plant pepper on a 10ha plot. At her initial calculation of VND200,000 (US$8.93) per kilogramme of whole pepper, profits were certain, but the drastic drop in prices could force her to sell her land to repay the bank.

    Pepper rush

    Originally, Central Highlands provinces like Dak Lak, Dak Nong and Gia Lai had planned to expand the farming area for pepper to a maximum of 6,000ha by 2020. But all these provinces have surpassed this limit by far. Dak Lak has nearly 28,000ha of pepper farms, Dak Nong, 25,000ha, and Gia Lai, over 15,000ha.

    The national total is about 150,000ha, set to produce about 300,000 tonnes of pepper in the next two to three years, so, going by supply and demand function alone, prices could drop as long as supply exceeds demand, said Hoang Phuoc Binh, Deputy Chairman of the Chu Se District Pepper Growers’ Association in Gia Lai Province.

    To compound matters, even with farming on such a large scale, many farmers have experienced crop failures due to poor preparation and misuse of chemical inputs.

    Huynh Van Lan of Gia Lai Province, along with his peers, is increasingly worried about drops in both production and prices as his crop nears harvesting. Of more than 2,000 vines on his farm, 250 have died while the rest are producing just half their normal yield.

    Bad habits

    Tay Nguyen authorities have recorded a common practice among local pepper farmers of planting a new crop directly on malnourished, acidic and depressed soil without taking any step to replenish the soil with nutrients. This is causing slow growth and increased vulnerability to diseases.

    To make matters worse, a number of farmers have been using seeds of dubious quality, affecting the rest of the harvest. The use of toxic pesticides and growth accelerators has further exacerbated the situation.

    As if all this weren’t enough, the irregular drizzling since February 2017 has continued to dampen the pepper vines’ roots, exposing them to pests and affecting production.

    Experts say that the combination of market glut and poor quality crop threatens sustainable development of the domestic pepper industry, most particularly its export potential.

    High non tariff barriers are another challenge for Vietnamese pepper, which has to contend with markets already familiar with exports from Indonesia, Malaysia and India, they say.

    Sustainable solutions                                

    To prevent “spontaneous” and inefficient farming, the Tay Nguyen Steering Board has asked provincial authorities to adjust and firmly implement their provincial pepper cultivation plans.

    They should also organise comprehensive training programmes for local farmers in order to synchronise production in the region, the board has said.

    It has noted that the need for sustainability stretches across all crops and agricultural products, requiring farmers to work closely with other stakeholders in the supply chain to obtain technical support and suitable farming inputs.

    In Chu Puh District, Gia Lai Province, a key pepper producing area, a farming model that saves water, uses organic fertilisers and pesticides is showing encouraging results.

    More importantly, farmers are being advised to plant exclusively on suitable soils with high drainage to allow maximum growth and minimum soil damage.

    So far, the district has implemented this model on more than 100ha, and aim to expand this to 500ha by 2020.

    The Steering Board also advised local governments to focus on brand building and vertical integration to promote exports.  Clean, ecologically sound cropping is the ideal long term solution to the problems faced by the domestic pepper industry, experts agree.

    The rosier side

    Do Huong Duong, vice chairman of the Phu Nhuan Service Joint Stock, notes that despite the ongoing problems in quality, output and prices, export turnover has continued to rise.

    According to the Ministry of Agricultural and Rural Development, Vietnam exported about 75,000 tonnes of pepper worth US$456 million in the first four months of 2017.

    Vietnamese pepper has been a stable import in the US, United Arab Emirates, Pakistan, Indian and German markets in the first three months. There are signs of improvement in other markets like Thailand, where import of Vietnamese pepper has registered a year-on-year increase of 49.6%.

    These numbers prove that Vietnamese pepper is able to meet quality criteria in the strictest markets in the world, Nam said. Farmers have to be encouraged and helped to focus on improving their produce while the Government keeps an eye on mass production and quality control, he said, adding that that this would ensure market stability as well as sustained profits from this key crop.

  • Why Apple’s red iPhones are not ‘Red’ in China

    Why Apple’s red iPhones are not ‘Red’ in China

    Apple’s latest iPhone might be red, but it’s not Red in China. The special-edition version of the iPhone 7 and 7plus goes on sale in more than 40 countries, but China has done it slightly differently. The BBC explains why.

    What is Red about?

    Red is a charity looking to combat Aids and was originally founded by U2 musician Bono and activist Bobby Shriver. It gives the money it raises to the Global Fund for HIV/Aids that doles out grants.

    This includes providing testing and treatment for patients with the aim of wiping out transmission of HIV. Apple is the world’s largest corporate donor to the Global Fund.

    The special-edition devices celebrate Apple’s long-running partnership with Red and a portion of the sales will go towards its relief operations in Africa.

    But Apple’s Chinese-language sites don’t mention the product or cause. This left some perplexed.

    Internet users were among the first to spot that there was different branding on Apple’s landing page depending on the Chinese territory.

    When translated from Mandarin, Apple’s China retail website for the Red devices simply read as “now in red” while the Taiwanese site used the words “product” Red which the US and other countries have as well.

    Some analysts read this as yet another example of Chinese politics interfering with Western brands looking to do business in the world’s most populous nation.

    Apple had no comment on the matter.

    So why the different name?

    One possibility is that Apple is looking to navigate sensitivities in a state where messages are controlled: HIV/Aids and homosexuality remain taboo topics in China.

    The first case of HIV in China was recorded in 1989. By 2000 the disease was found in most of China, and as it continued to spread, the government kept denying the problem.

    Today discrimination against Aids patients is common.

    Any other contentious issues?

    Well there’s the Dalai Lama.

    Earlier this year Red’s Instagram page showed a picture of the Tibetan spiritual leader, whom China considers a dangerous separatist.

    This has led some to point to how the post was trolled.

    How will Red do in China?

    Apple has faced numerous challenges in China of late, which may be one of the reasons why it is offering the Red iPhones as a colour option as opposed to a product.

    Last year Apple’s online film and book services were shut down in China. Apple was also made to pull the New York Times from the China App store following a request from the authorities.

    But the red iPhones are poised to sell well because the colour is considered to be the most auspicious in Chinese culture and it is considered a prestige product there.

    The tech behemoth is clearly trying to maintain relations with its fastest-growing sales region.

    Apple chief executive Tim Cook has been making semi-regular trips to China and is opening four research and development centres later this year.

  • A mobile app enables Chinese consumers to buy from overseas retail websites

    A mobile app enables Chinese consumers to buy from overseas retail websites

    15 million consumers have posted reviews to Red, which has sold $110 million worth of products in its first six months.

    Nearly 600 million Chinese consumers connect to the Internet via mobile devices, and many of them are part of China’s emerging middle class that craves foreign goods. A startup has sold more than $100 million in six months by letting those consumers shop for imported products via a mobile app.

    The app, called Red, was launched in January 2014, but at that time did not sell any products, only allowing consumers to review foreign products. Since then, some 15 million consumers have written reviews of products from overseas brands, says Charlwin Mao, who created Xingyin Information Technology Co., Ltd., the operator of Red, in Shanghai two years ago.

    Mao, 31, who received his MBA from Stanford University, named the app Red after Stanford’s school colors.

    As Chinese consumers came to learn about foreign products, they wanted to buy them, Mao says. That led him in December 2014 to add e-commerce capabilities to the app, enabling consumers to buy some of the items that others review. In the following six months Chinese consumers bought 700 million yuan ($110 million) worth of goods through the app. Mao says many items sell out in two hours because he offers only items that are hard to find in China.

    “China has a huge demand for imported brands, but many consumers lack information about overseas brands. For example, many oversea products’ descriptions are written in foreign languages and are hard for Chinese people to understand,” Mao says. “My solution was to develop an app that enables China’s younger-generation shoppers to discover the best global products from peer reviews, not from salespeople.”

    Today, he says, about 15 million users write about 1 million posts every month and they lead others to respond, such as by “liking” 20 million posts per month. 82% users are under 30 years old and 90% are female, according to Mao.

    Most of those posting content to Red are Chinese consumers traveling abroad or Chinese living overseas. China’s Minister of Commerce, Gao Hucheng, said in a recent press meeting that more than 100 million Chinese visited other countries in 2014 and they bought more than 1 trillion yuan ($157 billion) worth of products during their trips.

    Red offers about 10,000 products. It owns about 80% of the merchandise it sells, with the rest being sold by outside merchants through the Red app. Popular categories on Red include cosmetics and fashion. There are products on Red from U.S. supplements retailer GNC Holdings Inc., No. 164 in the Internet Retailer 2015Top 500 and fashion boutique Otte as well as from Japanese brands Panasonic, Casio and Kose.

    Red operates a warehouse inside of a cross-border e-commerce free trade zone in the city of Zhengzhou, where imported products can be stored, then pass through an expedited inspection by  Chinese customs after an online shopper places an order. Red’s customers typically receive their orders in two to three days.

    Companies that sell products through online communities like the one Red created are appealing to investors, Zhu Xiaohu, managing director of GSR Ventures, said at a recent cross-border conference in Guangzhou. GSR has invested in Red as well as in LightInTheBox Holding Co. Ltd., a Beijing-based company that sells Chinese products online to consumers outside of China. “E-retailers, like LightInTheBox, need to invest a lot of money on ads to get new users,” Zhu said. “Now many investors like companies selling through an online communities because these companies can generate traffic without pouring money into marketing.”

    Mao says his company has raised tens of millions in funding and is now seeking a Series B infusion of capital.