The End of Copycat China The Rise of Creativity, Innovation, and Individualism in Asia

The End of Copycat China helps business executives and investors understand how China's economy is shifting from one based on heavy investment to one on services and consumption by providing insight that help shape effective strategy. Drawing from over 50,000 interviews with entrepreneurs, venture capitalists, private equity investors, private Chinese companies, and multinationals, this book describes how Chinese firms are increasingly focused on innovation rather than copying what worked in America and how consumers are evolving with their hopes, dreams and aspirations. China's growth model of the last three decades is becoming increasingly ineffective, as relying on heavy investment and exports is becoming less and less feasible. Fifty percent of China's growth in 2013 stemmed from consumption, the government is establishing a Free Trade zone in Shanghai and ending the dominance of state-owned enterprises. This book provides a roadmap for companies and investors looking to navigate these changes and capture emerging trends, with deep insight and practical guidance on what innovation looks like in the new China.

• Survey the development of innovation taking place in China's economy, from an insider's perspective
• Consider the changes that must take place to shore up the broken growth model
• Examine the consumer trends emerging in the midst of rapid market evolution
• Understand how China's rise will impact its neighbors like Japan, Vietnam, Indonesia, and Cambodia

China's dramatic shift toward consumption presents a tremendous opportunity for foreign business, but traditional tactics are outdated at best, financially fatal at worst, as local competitors focus on innovation and move up the value chain and as consumers look for new brands and categories to spend money on. New strategies are needed to keep pace with the changing regulatory and consumer environments, and "business as usual" won't get very far. The End of Copycat China is the business guide to this emerging market, with expert guidance from the inside.

Chapter 1 The Innovation Curve Stage 1: Copycat Companies and Low-Hanging Fruit 1

Chapter 2 The Innovation Curve Stage 2: Emerging Innovation 19

Jenny Lee, Managing Partner of GGV in Shanghai 40

Chapter 3 The Innovation Curve Stage 2 Continued: Innovation for China, Biotechnology, and Health Care 47

Brett Tucker, Managing Partner, Baird Private Equity China 59

Chapter 4 The Innovation Curve Stage 3: Innovation for the World 67

S. Y. Lau, President of Online Media Group, Senior Executive Vice President, Tencent 81

Chapter 5 The Beijing Cough: January 2013 87

Peggy Liu, Chair of JUCCCE 98

Chapter 6 The End of Bling 107

Gareth Incledon, Managing Director, HUGO BOSS China 118

Chapter 7 China’s Expanding Consumer Class 131

Richard Liu, Founder and CEO of JD.com 151

Chapter 8 Seeing the World 159

Fritz Demopoulos, Cofounder of Qunar.com 171

Chapter 9 Food Safety: From Chicken to Coffee 179

Steve Liang, Founder of Fields China 192

Chapter 10 The Search for the Next China 201

EPILOGUE 219

NOTES 223

ACKNOWLEDGMENTS 227

INDEX 229

SHAUN REIN is the founder and managing director of the China Market Research Group (CMR), the world's leading strategic market intelligence firm that advises leading international and Chinese companies, private equity firms, and hedge funds about profiting from China's rise. Rein is the author of the international bestseller, The End of Cheap China, and his work is often featured in The Wall Street Journal, the New York Times, and The Financial Times. He frequently appears on MSNBC, CNBC, Bloomberg, BBC, and CNN. He formerly taught executive education classes for the London Business School. He graduated from Harvard University with a master's degree focused on China's economy.