Introduction

Supertrees, currently only located in Singapore, were first developed as part of a $1

billion initiative to develop three green spaces on Singapore’s Marina Bay. The trees were

designed by Grant Associates, a British landscape-architecture firm. The gardens, that were

opened to the public in 2012, have 18 trees in total- 12 at the Supertree Grove part of the garden,

and the remaining six are in groups of three at the Golden and Silver Gardens. The Supertrees in

Singapore contain over 162,900 plants and 200 species. The pants chosen for the trees were

based on the following: suitability for vertical planting, lightweight and hardy, soilless, ease of

maintenance, suitability for Singapore’s climate, not commonly found in Singapore, and high

visual interest.

Each Supertree is made up of four major parts. The first is a reinforcement concrete core,

an inner vertical structure that upholds the Supertree. The next is the trunk, a steel frame that is

attached around the reinforcement concrete core. Third are the planting panels, installed on the

trunk in preparation for the planting of the “living skin”. Last, there is the canopy, shaped like an

inverted umbrella. 11 of the trees have canopies embedded with environmentally sustainable

functions, some with photovoltaic cells to harvest solar energy and others with cooled

conservatories that serves as air exhaust receptacles.

Supertrees range from 62 to 180 feet in height, which can be compared to a 16-story

building. The Supertrees in Supertree Grove also have a skyway that connects the grove into a

420 foot long walkway at about 72 feet high. At night, the trees have the ability to light up. The

trees also have space inside them for retail space, which can house shops and restaurants.

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Below is a diagram of how the Supertrees and Garden by the Bay in Singapore function.

Mission/Objective Statement

Arbor inspires to create technologically innovative Supertrees that are environmentally

sustainable, urbanely functional, and visually exciting to help inspire and create solutions to the

environmental crisis.

Our idea: Introducing “Supertrees” that house vertical gardens, solar panels, and wind

turbines. With these fixtures, the trees would produce energy and reduce carbon emissions.

SWOT/PESTEL Analysis

Strengths

Supertrees are very multi-purpose and help with a variety of environmental issues all in one

device. They are also a fairly new device, currently found only in Singapore, so our product will

be solving the problem of creating clean energy solutions and having green space in cities in a

way that no other product can. The Supertrees also can be customized to fit the climate they are

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in, based on plants and other features that can be included in the tree. This can also be a

weakness, which is addressed below.

Weaknesses

A clear weakness of our product is the high cost. Ample space is also needed to build each tree,

they can range from 82 feet to 160 feet. Furthermore, the exact design of the tree needs to be

customized to the climate it is in. For example, the types of plants and the amount of solar panels

or wind turbines will need to be determined based on the climate, which will adjust the cost

depending on what is picked.

Opportunities

With the current mounting climate crisis, many countries are interested in green energy and

improving the environment. Supertrees are very cutting edge and include futuristic technology

that could lead to energy independence for countries and their cities in the future as the

Supertrees are developed.

Threats

Finding a place where several of these trees could be installed could prove to be difficult. For

example, zoning laws and people’s approval of the trees could interfere with their location. In

addition, finding a location where there is enough funding for a project like this could be

challenging.

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Market Analysis

Introduction

China, while once the world’s biggest polluter, is now the world’s biggest backer of

green energy. The concern over environmental degradation is very serious in China because of

the air, food, and water pollution that needs to be acknowledged. The proportion of coal being

used in China’s energy mix, once at 75% in the 1980s, had decreased to 62% in 2016. China now

accounts for 17% of the global investment in green energy, and has a commitment to cutting

emissions. In 2015, China installed an average of more than one wind turbine every hour, and

covered the equivalent of one soccer field with solar panels every hour, which should allow

China to reach its 2020 goal for solar installation ahead of schedule. By 2030, China hopes that

green energy will help reduce its CO​2 ​ emissions by 54% from its levels in 2010.

In addition to the benefits China will see at home from supporting green energy, the

geopolitical implications of climate change leadership are also worth considering. The United

States, historically the largest carbon emitter, is currently denying climate change under the

Trump Administration and has withdrawn from the Paris Agreement. China, however, is

becoming increasingly proactive and is on its way to becoming the global energy leader of

tomorrow, filling the space the US left wide open. President Xi Jinping has been vocal on the

issue of climate change, calling for an “ecological civilisation”, a claim that is supported by

China’s striving to transition energy sources and to become more energy efficient.

This commitment to green energy and addressing the issue of climate change is what

makes China an ideal market to bring Supertrees to. The trees provide many environmental and

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clean energy benefits while being a practical retail space that is visually exciting- the perfect

combination for a new building in China.

Economy & Technology

We chose a Tianjin, the world’s fifth largest port, in China to implement our Supertrees.

Tianjin is also building an Eco-City of 350,000 people that is meant to be a model for future

sustainable living. Urbanization has been integral to China’s rapid industrialization, with 793

million people living in urban centers (more than double the US population) (“Urban and rural

population”). Tianjin has a GDP of 1,788.54 billion yuan, an average salary of 86,305 yuan and a

population of 15.47 million (“The Ten Chinese Cities”; “Average Annual Salary”). Tianjin

Economic and Development Area (TEDA) is located 45 kilometers from downtown Tianjin.

TEDA, “one of earliest approved and best state-level development zones in China,” is an

economic powerhouse in northern China by being the primary area for economic development in

Tianjin (“White Paper”). The TEDA is a single zone with ten parks that are industrial and

development oriented. It was also recognized as the “China’s Most Attractive Economic Park for

Investment” in 2010 and rated at “China’s Most Dynamic Region” by the United Nations

Industrial Development” (“White Paper”). Tianjin is home to the Tianjin New Harbor, which is

the “largest freight terminal in North China” and handles a capacity of 100 million tons annually

(“Tianjin Economic”). This port exchanges with 160 countries and “serves as the primary

gateway of import and export for North China, Northeast China, and Northwest China” (“Tianjin

Economic”). Additionally, there are over 30 proven natural resources in the Tianjin area ranging

from fuels, metal ores and geothermal energy (“Tianjin Economic”). Some of the metallic

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minerals are gold, tungsten, copper, zinc, and iron. Some prominent industries in the area are

petrochemicals, electronics, automobile (energy conservation and new energy vehicle), high-end

manufacturing industries, biomedicine, and medical instruments (“White Paper”). There is a

strong emphasis on new renewable energies and TEDA is committed to developing a low-carbon

new energy industry. They focus on fields such as: “power generating equipment, energy

efficient materials and environment-friendly materials, energy storage equipment and fuel cell,

and high-end materials for advanced manufacturing and low-carbon industries” (“White Paper”).

This is perfect for our Supertrees because they have the ability to be manufactured a the city with

an already established industry community dedicated to development new energy materials.

China National Academy of Nanotechnology & Engineering is established in TEDA, which

would contribute directly to our Supertrees because they specialize in environmental protection,

optoelectronics and energy. The Tianjin Economic and Development Area is superb for the

creation of our Supertrees in and around Tianjin because they have fantastic accessibility from

the surrounding infrastructure. There is the Tianjin and Nangang Port for cargo ships and there

are multiple airports in the vicinity of Tianjin, the Tianjin Binhai International Airport and the

Beijing Capital International Airport 150 kilometers away (“White Paper”).

There is a solid amount of R&D activity in Tianjin, especially with respect to the TEDA.

There is a “TEDA Manufacturing Development Fund” that provides supporting policies on

capital increase support, capital increase incentives and incentives for starting new business

lines. There is a strong emphasis on sustainable development where TEDA will provide support

and incentives to firms that protect the environment. TEDA also encourages venture capital

funds and support for technology finance (“White Paper”). Tianjin’s R&D expenditures as a

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percentage of GDP was 1.96% in 2016 (“Internal Research and Development”). Additionally,

the Tianjin TEDA Science & Technology Development Group and Technology Development

Bureau help with investment support for technology ventures and professional technology

services.

Legal/Political Environment

It is critical to pay attention to the role of the government when looking into doing

business in China, because of the central role the government plays in this country. In China, the

government makes most economic decisions. This is paramount because Arbor would most

likely be looking into selling this product to the government. We would need to cater to the

Chinese government to get interest and funding for a product like this. However, we do see

working so closely with the government as a positive thing because they would have the funding

needed for this large investment. We looked into some important factors to consider when

attempting to do business in China. In getting approval for a Supertree project in China, we

found that joint ventures would probably be most effective. We even found out that agreeing to a

joint venture is occasionally the only way to get Chinese agreement on projects because

sometimes legal regulations require you to have a joint venture. It was also said to pay very close

attention to government policy and goals in China, and to align what you want to do with these

ideas as much as you can. One important tip was to “make a long-term commitment to help a

Chinese joint-venture.” The Chinese government has also become more closed off to foreign

business ventures that do not aim to improve China in the long term (Orr).

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 Now understanding these things about the Chinese government, we have some up with

the following strategies. Because the government is so central to economic decisions and

business ventures, we would be trying to sell this product to the government. In marketing our

product we should focus on the long-term benefits that Supertrees provide, including energy

independence, cutting edge technology, and pollution reduction. It is extremely important for us

to demonstrate that even though this is a foreign idea and foreign business, it presents such a

great benefit to China in the long run. Entering into a joint venture with China may be needed for

a large Supertree project. China also already produces 60% of solar panels and wind turbines, so

we would have easy access to these key components within China. Pointing out that we could

use important elements from China instead of buying them from other places could help in

showing the benefits of investing in our product (Orr).

Weather/Environment

Weather and climate are important factors with our product because they help determine

what features the Supertrees will have. Supertrees can have wind turbines, solar panels, and

rainwater collection, as well as plants growing on the outside. The climate of the city that wants

the Supertrees would determine what plants would be chosen as well as what other features make

the most sense. Because of its size, China features various different climates and environmental

conditions. One specific area we are focusing on is the city of Tianjin. This area features a windy

and dry Spring, followed by rainy summers and cold winters. Shanghai is a prime city

climate-wise for Supertrees. Shanghai gets lots of sun and rain, especially in the Summer. The

sunshine is also very prevalent in the Fall. Solar paneled Supertrees would do the best in this

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city, plants would also grow pretty well because the weather is only harsh in the winter. Overall,

China has a pretty hospitable climate for growing plants and collecting wind/solar energy. We

are confident our products would function well in China, especially in the southern areas.

Culture

China is the most populous country in the world with 1.379 billion people in 2016. It is a

multi-religious country, with the government recognizing five religions: Buddhism, Taoism,

Islam, Protestantism, and Catholicism. With many different religions recognized, religion does

not usually play a role in business in China.

The significance of family in China cannot be overstated. Family has long been a key

component in Chinese society. Many aspects of Chinese life can be tied to honoring parents and

ancestors. It is not uncommon for a person to remain close to their hometown or to have several

generations of a family under one roof. The structure of the Chinese family is hierarchical, with

elders receiving the largest amount of respect and obedience, and showing the proper amount of

respect to the appropriate members of the family is very important. With China’s rapid economic

growth, many young workers are drawn to the bigger cities to find better jobs and more money.

But as they enter their late twenties, Chinese young adults come under pressure from family to

settle down, marry, and have children, which most of the time requires moving back home.

The educational system in China is state-run by the Ministry of Education. All Chinese

citizens must attend school for at least nine years, which the government funds. Generally, this

includes six years of primary education, starting at ages six or seven, then three years of junior

secondary education, for ages 12 to 15. After junior secondary education, there are three years of

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senior middle school, which completes secondary education. After completing junior secondary

education, students get to choose whether they want to attend a regular senior secondary

education school, a vocational school, or a secondary professional school. The main goal of most

secondary schools, however, is prepare students for higher education. While many cities have

great ratings for education, many provinces results are not published, and schools in rural areas

are often understaffed, making the opportunities and education in rural areas much different from

the educational experience in big cities (The Chinese Education System).

Business in China relies heavily on personal relationships, many business relationships

are struck based on another business associate recommendation. Building good business

relationships relies on trust, so many meetings and banquets are to be expected. Seniority,

preparation, and promptness are valued more in China than they are in the United States. Respect

for authority and age are also emphasised. The largest business trends driving China today are

the urbanizing of a billion people and rising Chinese consumers- an additional 200 million

people will enter the middle class by 2026, joining 300 million people already there (Towson).

Art is a very important part of Chinese culture and includes performing arts, sculpture,

paintings, and more. Chinese art often has a central theme of nature, harmony, and balance,

which connect to the values held within the country. Chinese art has a history that dates back

over 10,000 years and a unique aspect that differentiates it from other cultures, making it an

important part of China’s history (The Arts in China). In 2016, China ranked first in the world in

turnover for art auctions with a $4.79 billion turnover, with the US in second $3.5 billion.

China’s turnover counted for 38% of the global market share and increased 8% since 2015

(Characteristics of the Chinese Art Market in 2016).

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Infrastructure

China is more than 50% urban which works well since our product is intended for this

setting. As previously stated, China also produces 60% of solar panels and wind turbines.

According to an article called “Infrastructure for China’s Ecologically Balanced

Civilization,” China’s infrastructure in cities will develop as they move to be more sustainable.

The article states that “China’s green investment needs up to 2020 are $274 billion-468 billion

USD per year.” This cost includes development of sustainable energy methods, pollution control,

green products and more. This is great for our business because it shows the funding and effort

that China has for projects such as ours. They are really trying to increase their green energy

production infrastructure.

Below is a chart that shows how China’s power generation is projected to change in the

future. As you can see, there will be a dramatic increase in the amount of solar and wind energy

produced. We hope to tap

into this trend and sell

China our product to help

them reach these goals

(Kennedy).

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 The following is a flowchart showing how different infrastructure areas will change as

China becomes more green. Many of these changes support the need and interest in Supertrees

(Kennedy).

Competitor Analysis

Our major competitors are other renewable energy companies like, Goldwind and Jinko

Solar. Goldwind is the largest manufacturer of wind turbines in the world during 2015 (Weston).

Jinko solar also has a very low production cost in the solar panel industry. However, we think a

weakness for these renewable energy companies is that they only produce one type of product,

either a solar panel or a wind turbine. Our Supertrees could incorporate solar, wind, or biomass

renewable energies. The adaptability of the Supertrees makes them more appealing because the

cities would not necessarily have to choose between solar, wind or another renewable resource. It

is also important to see charts of the installations of wind power in China because we would be

competing with different wind power companies.

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As you can see, the installed capacity of wind power capacity has been on the rise since the mid

1990s. Also, hydroelectric power is on the rise in China, the

regional share of hydroelectric power was 2.9% in 1973 and 14%

in 2006.

Objectives

Our primary objective is to be a Business to Business company that sells Supertrees to

businesses and governments. We want our Supertrees to be incorporated into an existing urban

infrastructure, while

still combating

climate change. We

are looking for a

public-private

partnerships to finance

our Supertrees. The

sources of income will

come from general

taxes, carbon taxes,

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and fossil fuel subsidy reductions from the public side. Then use commercial and personal

private capital to help with the rest (“The Sustainable Infrastructure Imperative”). In China’s

13th five year plan, they are increasing R&D by 2.5% of their GDP and growing green

investments by 15% (“The Sustainable Infrastructure Imperative” ).

This chart depicts the revenue and expenses of the Garden at the Bay in Singapore where

the current Supertrees are located.

If we decided to create an entire garden we would incorporate community programs to ensure

that the community is involved in the project. We would have classes that taught community

members about renewable resources and indigenous Chinese plants. It is also important for us to

maintain the land around the Supertrees because the area is meant to be a gathering space for the

community. Information Technology will be

integral to the project, as well, because they

will be directly connected to the power grid

in Tianjin.

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The Cost of an Individual Supertree is $360,217.45, as you can see from our calculation below.

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Market Entry Strategies

As previously stated, because of how the Chinese government interacts with foreign

businesses, a joint venture would be probable. We would really be trying to market and sell this

product to the government. Showing how Supertrees would fit within China and provide

long-term benefit would be key (Orr).

The clean energy industry in China has some of the highest growth potential in the next

10 years and is the main industry that our product fits into. China also currently produces 60% of

solar panels and wind turbines, so we would be interacting heavily with this segment in the

market. There are lots of ways of producing green energy, including the cheaper option of just

buying many lone solar panels. We would be focusing on illustrating the benefits of Supertrees

and why they are worth the investment over other green energy production methods. Our product

is very niche in that it combines clean energy with green space and retail space. In our

marketing, we would need to highlight why this combination is so unique and has so much added

value. Not only are the trees multi-purpose, but they are unique and show great technological

innovation and future-thinking. We could highlight how this would put China on the cutting edge

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of urban green technology, and how it would produce buzz, intrigue, and even tourism in

addition to the green energy it produces. These multi-functioning trees and their futuristic design

concept are what make our product so unique. The benefits for China extend beyond just the

energy production, and this is what we need to highlight in marketing the Supertrees (Orr).

Marketing

Arbor is a NGO operating structure using a business to business, or business to

government, strategy to sell Supertrees to private governments. Arbor’s marketing pitch will be

based upon the new market of hybrid technology that is made to help the environment. With the

plan to help this technology become a long-term trend in design, Arbor will focus on building

awareness of our Supertrees and what it takes to build them. We will attend environmental trade

shows to showcase our product to countries, like Envex, an international exhibition for

environmental technology and green energy, and Entech Pollutec Asia, an international trade fair

for environmental technologies. We will also be working directly with ministries, like the

Ministry of Ecological and Environment of China, to market our idea of Supertrees. Our main

marketing pitch will be that despite the large short-term investment Supertrees will require,

building them will help to provide massive savings in the long-term because of the clean energy

the trees will produce, as well as the environmental benefits of having vertical green space in

urban areas. In addition, Supertrees have huge business potential as well. The trees are visually

exciting and have retail space within them, so their is an opportunity for commercial and tourist

revenue from the Supertrees. With the Supertrees design- a high-tech, environmentally

sustainable building with green space- being the basis for twenty-first century buildings, many

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brands will want to be associated with the trend, and will pay to have retail space, advertising

space, or be a sponsor of the Supertrees.

Implementation

We would try to use resources within China if we could to hopefully cut down costs and

to also use as another selling point for the Chinese government. Solar panels and wind turbines

would come from from China because they produce so many. Other important materials would

be concrete, steel, native plants, and construction equipment. An exact time table is hard to

predict for this specific project.

General time table and flow chart for China project:

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