In the first quarter of 2006, the Chinese economy grew by 10.2%. With growth in the Chinese market and constant constant growth predicted for the future, it is reasonable for Western companies to research what the Chinese market wants and needs before diving into its market in the Chinese market. Here are the current trends in the Chinese market:
food
With such masses of people in China and a steadily growing population, it is not surprising that food and food products are one of the largest markets in China. From gourmet cuisine to fast food to supermarkets and specialty food stores, almost all types of products are available in China. The biggest western names in food have already reached the Chinese market, including Walmart, Pizza Hut, KFC and, of course, McDonald's. There is also a huge market for all types of food and even catering services.
Banking and financial services
Many foreign financial companies, including Merrill Lynch and Royal Bank of Scotland, have already bought stakes in Chinese banks. With the abolition of additional restrictions for foreign financial companies in 2006, the banking industry should see even more foreign investment.
Luxuries
Tall goods, including foreign branded watches, clothing, jewelry, electronics and automobiles, are markets that continue to grow. The growing number of rich people in China continues to fuel the demand for high-quality and luxury goods of all kinds.
cellular
With approximately 440 million cell phone users in China, there is a huge market for cell phones, cell phone services and cell phones.
Shopping centers
Large shopping centers and shopping centers appear throughout China, most of which offer a wide range of imported products, in particular, stores from the US and Europe, including Chanel, Papa Johns Pizza, Gucci, Burberry and Ralph Lauren. Retail sales in China over the past four years have increased by 50%, with many lending to the shopping center building boom. Over the past six years, more than 400 shopping centers have been built in China, and this number will only increase. In Dongguan, you will find what is now the largest shopping center in the world - the South China Mall. It boasts 6.5 million square meters of total area and accommodates 1,500 stores.
Western brands
More than ever, the Chinese crave the most famous western brands. From fast food joints to soft drinks to coffee to clothes to entertainment shoes, many of the biggest western names already have a large presence in China or are exploring how to jump. Walmart, the largest retailer in the United States, already has dozens of stores in China, including three Sam's clubs and neighborhood markets. Coca-Cola is already ubiquitous in China, and McDonald's plans to open more than 1,000 stores across the country by 2008.
Regardless of the industry in which you are located, you must be careful to do the right research before delving into the Chinese market.
