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Selling to China
As China's economic model changes from being mainly export driven to a more consumer-based model, new opportunities have arisen for businesses to sell products and services to this increasingly affluent market. China’s estimated middle class is now 150-300 million and growing. Retail sales are increasing 15 percent a year as disposable income rises, spending on food, apparel, household products and personal products is likely to grow by as much as 300 percent, from a market of RMB1.7 trillion in 2006 to a market size of RMB7.7 trillion by 2025.
China at last is beginning to resemble the type of market that the world has long dreamed of. While trade barriers and problems do remain, these are gradually being eroded. Manufacturers worldwide now need to consider the China market as a destination if they wish to break out of the U.S. and European markets, which for the time being at least, as a result of the recent recession, are set to be rather less dynamic than in the previous two decades. Bottom line growth and profitability can come from those confident enough to explore uncharted sales territories.
To read the full version of this article, please purchase the July/August 2010 issue of China Briefing, which can be found in the Asia Briefing Bookstore. Companies requiring assistance may contact any Dezan Shira & Associates' nine national offices at china@dezshira.com for advice or visit www.dezshira.com.
