China Media Group Corporation (OTCBB: CHMD)
China Media Group Corporation is media company focused on the lucrative Chinese market with offices in Beijing, Hong Kong and Texas.
Beijing Ren Ren Health Culture Promotion Ltd. is a subsidiary of China Media. Beijing Ren Ren has been appointed by the Chinese Central Government to manage their nationwide health education and awareness program.
The Chinese Government under the United Nations Millennium Development Goals Program [ www.un.org/millenniumgoals/ ] has named this project the Great Wall of China Project [ www.8085.com.cn/index_e.html ]. China has agreed to promote crucial health education and health awareness to 85% of its citizens by 2015, including high profile diseases including AIDS, hepatitis and other health topics including child health and disease prevention.
Beijing Ren Ren Health Culture Promotion Limited has been appointed to undertake this Great Wall of China Project and has received a nationwide advertising license from the Chinese Central Government. Beijing Ren Ren is the exclusive company to roll out this Great Wall of China project to 2015 and provides them a unique advantage in China.
Nationwide Licensing
Beijing Ren Ren Health Culture Promotion’s license includes a coveted nationwide geographic range and includes multiple forms of key broad based media including:
* billboards
* television
* newsprint
* magazines
* internet
This is the only license its type in China. Specifically this license permits advertising for at least three billboards in each district nationwide. This unique and exclusive opportunity represents significant potential revenue for Beijing Ren Ren Health Culture Promotion in a highly restricted market.
This unique license permits:
* Advertising both inside and outside of hospitals which is a controlled market.
* Advertising is licensed in all residential estates in China.
* Advertising on mobile hand held devices is authorized.
Beijing Ren Ren is currently expanding their offices to include Harbin, Guangzhou and Shenzhen.
Chinese Hospital Outdoor Advertising Program
Beijing Ren Ren Health Culture Promotion Limited has implemented plans to aggressively target the outdoor Chinese hospital advertising market with a program designed to initially target ten hospitals, each hospital with an initial rollout of approximately 15 signs making a total of 150 outdoor billboards / light box signs per group of ten hospitals.
Healthcare related advertising in China accounted for approximately USD 4.1 million (or about RMB 33,961 million) in 2004 and was ranked as the largest advertising sector representing about 27% of the total ad dollar spent in China according to iResearch, a research and consulting group in China.
Chinese Markets
Advertising and Media Market
In 2005, companies spent $18.7 billion USD on advertising in Chinese mainland, in which Shanghai, Beijing and Guangzhou made up nearly 50% of the total. This figure could reach $35 billion if Hong Kong, Macao and Taiwan were added.
Many analysts believe China’s advertising industry will continue to develop rapidly in the future, and more enterprises will place high-quality advertisements. Since China’s reform and opening-up, the output value of China’s advertising industry has increased 20% annually, and many transnational companies have invested in China’s advertising market. According to an agreement reached between Chinese government and World Trade Organization, foreign advertising companies began to set up exclusively funded branches in late 2005. Ten largest advertising corporations in the world have established their joint-funded companies in China.
Most of China’s bigger spending consumers can be found in Tier One cities which include Shanghai, Guangzhou and Beijing, or the more numerous Tier Two cities which include Chongqing, Harbin, Wuhan, Nanjing, Chengdu and Tianjin.
However, there are also hundreds of millions of potential customers in the hundreds of Tier Three and Four cities. The urban population is expected to grow rapidly as one of the largest mass migrations in history from the countryside into cities takes place.
In the decade to 2010, the United Nations estimates, 200 million rural Chinese will become city dwellers.
Mobile Phone Market
ROA Group estimates that the number of mobile subscribers in China reached over 374 million by the end of December 2005. Currently, the Chinese mobile market is growing rapidly as demand expands.
The annual growth rate is projected to amount to about 9.7% after 2005. It is expected that over 595 million Chinese people – 44% of the total population – will subscribe to mobile communications service by 2009. In 2005, the total sales of the Chinese mobile market were 317.1 billion RMB ($40 billion USD). With an annual growth rate of 9.4%, it is anticipated that this will reach 497.5 billion RMB ($63 billion USD) in 2009.
The Chinese mobile market reflects differences consumer behavior as compared to other markets. The demographics are appealing for advertisers with 25% of mobile users in China between the ages of 20-24 – and a subscriber base which is anticipated to reach half billion within two years.
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