As growth in our domestic markets remains sluggish the government is busily trying to persuade many companies of the opportunities that the export market holds and in many cases they’re right. I spent a great many years traipsing across Asia and Europe on behalf of the companies I worked for and we were very successful, our export markets provided great growth opportunities.
If you’re thinking about exporting, UKTI and Export Cornwall are providing some great help and information to those businesses willing to dip a toe in the (international) waters. For years we’ve looked on with envy at the double digit growth figures that the Chinese economy has reported although recent indications seem to suggest that growth has slowed slightly, so does China still offer UK businesses an opportunity to get out of the doldrums?
I asked my friend and colleague Sammi, from MarketMeChina to give me an update on the key growth sectors in the Chinese economy. This is what she said:
As Chinese internet spending continues to rise, Western companies are presented with unique opportunities. Western goods and services are synonymous with high quality in the eyes of Chinese consumers. With new emerging markets in China, there are plenty of chances for Western companies to expand. We have put together some details on six of the emerging markets in China. This is by no means an exhaustive list, rather a demonstration of how varied the demand for Western goods and services in China can be. For more information on the huge potential China offers your business, the best thing to do is get in touch.
Luxury Goods China is the world’s largest consumer of luxury goods. Chinese consumers are prepared to make large purchases online, including items such as cars (source: Observer Solutions Report). Luxury brands have often thought that price and security made these kinds of purchases ill-suited to the online environment, but as consumer behaviour evolves, China is demonstrating that it is possible for luxury goods to successfully enter China’s online market.
Health products China’s spending on healthcare products has risen at a rate of between 15 and 30 per cent per year for the past two decades. It is estimated that by 2015 Chinese consumers will be spending $95.2 billion on dietary supplements and vitamins. Although China makes most of the world’s vitamin supplements, the majority of these are exported, meaning there are great opportunities for healthcare businesses (source: China Daily). With the perceived higher quality of Western products, UK companies are perfectly positioned to supply the growing demands of health-conscious Chinese urbanites.
Online education The popularity of online education could have something to do with the differences in the education system. The Chronicle of Higher Education reported last year that philosophical lectures by American professors were being watched by thousands of students in China. The key may be in the different ways in which China and the West teach their subjects. According to students interviewed in the Chronicle piece, Chinese education focuses very much on facts and statistics, while the Western courses were asking more questions on the subject matter. This gives Western companies who offer online training and learning courses to supply one of the emerging markets in China that caters to people eager to engage intellectually with topics.
Real Estate Chinese property buyers switch from Hong Kong to Thailand, the US and London, according to Financial Times. The US ranks tops among mainland Chinese looking to buy homes outside their country, with New York being the most popular city, according to a survey of searches on Chinese-language property portal website Juwai. Chinese purchasers bought over $10 billion of US real estate in 2011 and account for 9% of foreign US house buyers, second only to Canadians, according to Juwai.com. Chinese investors bought 27% of new homes sold in London in 2012, according to a report by Chinese Weekly, a UK-based paper, quoting data from Savills, a UK-based estate broker. This is a great opportunity for the real estate industry that can offer good properties to invest.
Overseas Travels Chinese travellers are the world’s biggest spenders: £67 billion while traveling abroad in 2012. By 2015, 100 million Chinese will travel abroad, a benchmark originally forecast for 2020. (Source: United Nations World Tourism Organization) According to Hurun Report, the preferred leisure activity is travel for Chinese millionaires, who spend an average $227,000 annually on tourism, accounting for 25 percent of their expenditures. This fantastic opportunity is open to the hotels, travel agency and relevant industries.
Baby Care Chinese mothers want to ensure that their children are getting the best. With its reputation for quality, Western brands are often seen as the product of choice. There is a growing demand in China for international products in the childcare market, with Chinese distributors actively seeking UK manufacturers of products such as instant milk formulas and baby feeding bottles. For any Western company producing childcare items, the demand for foreign goods in this sector makes this one of the important emerging markets in China. Western companies have huge potential for doing business in China.
For more information on how you can enter the emerging markets in China, get in touch with us today.
About the author Fenghua Mo (Sammi), Director & Founder of Market Me China Ltd
Fenghua specialises in China online marketing helping Western businesses to extended their audiences in to the growing Chinese market. Trained in Baidu search engine optimisation, pay-per-click advertising and Chinese social media marketing, Fenghua understands China’s internet world and the differences between Chinese and Western culture and is always looking to explore opportunities and create effective online marketing strategies to help Western companies traverse the digital world in China.
Fenghua is the founder of Market Me China Ltd. Market Me China – marketing the world to China, is a UK-based online marketing agency with global clientele. Saving your time from finding different agencies for different needs, our One-Stop-Shop of Chinese Online Marketing enhances your products and services with opportunities to be found by 591 million Chinese internet users and to reach your business goals in the booming Chinese markets. Web: www.marketmechina.com Email: [email protected] Tel: +44 (0) 1736 757734 Mob: +44 (0)7928 595520