Week #27: Concert economy goes awry 🤡, 3 lower-tier market successes🏆, Domestic travel lower than forecasts 😞 | Following the yuan

While China’s economic growth has slowed, it’s logical to tap into more regions to harness the population dividend, just like what foreign brands did to China 20 years ago.

In another instance of me worrying about things beyond the scope of my control, I’m thinking about the prospects of businesses born pre-digitalization and how they could fare against their competitors. Especially when the latter has their sales number and customer data.

Whether you are an Amazon user or you are watching over Amazon for work, you may be aware of the ongoing Federal Trade Commission V.S. Amazon suit that alleges the e-tailer of monopolistic behaviors including prohibiting rivals from lowering prices. This is a practice that’s all too familiar in China’s market.

It makes me wonder how the U.S. would regulate Chinese on-demand platforms including Alibaba’s Freshippo, which is on its way to an IPO in Hong Kong that is separate from the main entity, and ride-hailing platform Didi.

As a regular user of both, I noticed rather unfair competition in recent months. Ride hailing platforms engulf business from taxi services is nothing new, but when Didi gives riders cash back while listing taxi, sometimes its own rides may cost just 1/2 than taxi.

Freshippo has been launching a slew of staple products from pasteurized eggs to soda water to salt-reduced oyster sauce. When stacking up next to the branded products from Japanese egg producer Avtan, personal care retailer Watson and condiment manufacturer Lee Kum Kee, it’s obviously advantageous in the current economy.

I’m certain that Freshippo made the product decisions using proprietary sales data of these branded products and then go head-to-head with them with imitators that carry similar packaging and selling points. Yay or nay, FTC?

Freshippo’s imitators of branded products are 1/2 or 2/3 of the latter’s prices.

1. Concert economy goes awry 🤡

What happened: When The Midi Music Festival, one of China's largest rock music festivals came to a third-tier city during the past holiday, there was a lot of expectation.

Seeing it as an opportunity to replicate BBQ city Zibo’s success model, Nanyang government recruited around 40,000 volunteers — a number similar size to that of the just-concluded Asian Games — and readied both medical and transportation support to give the 150,000 attendees an unforgettable experience.