1) Shanghai China is currently hosting the 2010 World Expo. This event reveals the character of this market. Starting in May and concluding in October, the World Expo is expected to attract nearly 70 million people, with a daily average attendance of 344,000. They recently set a record of 553,500 people on June 26. With well over 90% of attendees being mainland Chinese, and pavilion line wait times generally 2 to 4 hours, at 160RMB (US$23.50) for a standard day ticket and 90RMB (US$13.25) for a standard evening ticket, this demonstrates the buying power of this market. Most mainland Chinese see this event as the premier opportunity to see a large window into the world, while most countries use this opportunity to advertize tourism and business opportunities to the Chinese market.
2) Infrastructure development has continued at a breakneck speed. While living in Shanghai in 2004-05, there were four subway lines running through the center of the city. Today there are more than 13 lines running around the entire city that carries nearly 5 million people per day. The continuing Foreign Direct Investment that pours into this country ($90B in 2009) is also contributing to China’s prosperity.
3) Recent strikes among several multinationals that include Honda, Toyota, Foxconn, and others have driven wages up an average of 20-30% and, ironically, are endorsed by the Communist Party. These rising salaries are increasing disposable incomes in top tier cities, which contribute to the great opportunities to sell highly desired Western products.
These are only a few of the many factors that signal a great opportunity to sell your products into the China market. By selecting the right strategy to find, target, and sell your product in this market, your company can share in the prosperity of this emerging behemoth. Don't miss this great opportunity to grow your business. Will your products sell in China?
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Rodney Hiel is Managing Director of Asia Business Consulting. Minnesota based Asia Business Consulting strategically researches, develops, and tactically executes a proven process to create cost effective strategies for market entry in today’s Southeast Asia and China. Visit http://www.asiabusinessconsult.com/ for additional information.