For more than
30 years, China has been a place to buy and make. It
is an industrial jungle, with enticing returns and serious
risks. Although this jungle remains partially untamed,
it has been thoroughly explored and mapped. The jungle
is old news.
Today's headline is that China is a place to sell. It
is a huge and growing market - and it has a powerful
hunger for high quality products from overseas. The
local culture has massive brand-loyalty. The poor quality
of many domestically produced goods has created a mindset
that puts a large premium on imported goods.
The 22 million urban residents of the following 5 Chinese
cities: Shenzhen, Guangzhou, Shanghai, Ningbo, Beijing
represent 37 billion USD in disposable income. Shanghai
households alone have 18 Billion USD of annual disposable
income. If Shanghai was a country its GDP would exceed
that of New Zealand.
The local consumer prefers not to buy Japanese (if given
a choice), is highly brand conscious, prefers western
over asian brands, and is strongly peer and media influenced.
Most brands are not here at all, or are here only indirectly.
Great rewards await those who are forward-thinking enough
to invest in mindshare now. From consumer goods to building
products to food processing, now is the time.