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China will become the world’s largest consumer market
Around the world, there are few markets like that of China which
flourished so much in the past few decades and moreover, shows
sustained growth momentum. With the recovery of national economy,
2010 saw a sharp increase in advertising market. Along with the
continual expansion of middle class, China has just overtook Japan,
becoming the world’s second largest economy and also surpassed the
United States becoming the world’s largest car market, and soon,
China will overtake Germany to become the world’s third biggest
advertising market. But all of these are just a beginning. It is
supposed that China will become the world’s largest consumer market
since more global manufacturers and brands will enter into China
market when the full operation of Business One Global Trade Center
starts.
From the data by Statistical Bureau, we can see that China’s
current average consumer spending showed a sustained growth of 15%
a year in the past five years. And the private sector and consumer
spending only accounts for 36% of the country’s GDP, which suggests there is still huge potential in
China’s consumer market with no doubt. This is also reflected in
China’s next five-year-program. According to the adjustment plan of
economic structure during 2011 and 2015, the export-led economic
structure will be replaced by a domestic-led one focusing on
stimulating consumer spending and increasing domestic demand. This
will be a huge change.
New banks in China predict that in 2020 China will become the
world’s largest consumer market. But the vitality showing in
Chinese market also means big challenges for both Chinese and
foreign brands, that’s unprecedented in other parts of the
world.
Although the number of consumers is quite huge, the brands still
don’t know how to approach to the consumers. According to the
survey conducted by Our Observation of Forbes’ between January and
February this year, the respondents of 300 senior marketing experts
from both China and foreign enterprises express their concern of
this huge challenge.
There is no doubt that China has a very large market potential.
But how to enter into China’s market and develop the brand is a big
problem to be solved for most foreign brands. It relies on not only
the effort of foreign brands themselves but also some Chinese
professional trade platform like Business One Global Trade Center.
Through both electronic commerce and support of large show, more
win-win cooperation between Chinese trade platform and foreign
brands is to be expected.
