China is among the most lucrative and promising markets in the world with the third-largest buying power of $6.991 trillion. According to the National Bureau of Statistics, in 2005, the per capita disposable income in China is about $1525 in urban families and $473 in rural families. Even though the Chinese quantity of disposable income is lower than the US’s $28,000 real disposable income per capita, this sum is steadily rising; in 2005, the People’s Daily Online reported that the sum of per capita disposable income increased by 12.9 percent, or 11%, if cost variables are deducted. Also, with increasing population from the middle-class group, the Chinese consumption rate is expected to increase from 58 percent in 2002 to 65 percent by 2010 and to 71 percent by 2020, quite near the rate in developed nations, said Chen Xingdong, chief China economist with BNP Paribas Peregrine in Beijing, adding that China has a potential enormous consumer market.
China’s middle class is continually growing. A French investment bank’s definition on the Chinese mid-class group covers the well-educated professionals and white-collar employees (brain employees) with per capital annual income of 25,000-30,000 yuan (roughly $3,600-$4,300), household annual income of 75,000-100,000 yuan (roughly $11,000-$14,500) and participants at the decision and management of businesses. In June 2004, this group comprises around 13.5 percent of the total Chinese population (roughly 175,500,000 people). In 2002, 50 million Chinese households were qualified for the standard, with per family having annual income of 75,000 yuan (roughly $11,000) and possessing 310,000 yuan (roughly $45,000) of assets typically. By 2010, the figures will double, with around 100 million households qualified for the standard, per family using annual income of 150,000 yuan (roughly $22,000) and possessing assets of 620,000 yuan (roughly $90,000), according to the BNP Paribas Peregrine.
Best Business Segments
Based On the details published by the USA government and Sinomania! Research, the best export opportunities for USA companies in non-agricultural goods are in (1) information technology, (2) telecommunications equipment, (3) computer software, (4) gas and oil, (5) medical equipment, (6) pharmaceuticals, (7) pollution control equipment, (8) airport and ground support equipment, (9) construction and decoration materials, (10) automobile components, and (11) agricultural chemicals. With the collapse of the dollar and the steady and unfaltering increase of the Chinese market, the Chinese consumers and companies are inevitably gaining more purchasing power on earth.
In March 2008, the average general tariff rate is at 9.4 percent and 7.4 percent for USA priority solutions. In 2002, China started cutting tariffs to satisfy its obligations to the World Trade Organization. Then, in 2005, most products saw their final tariff reductions in 2005. Since that time, few products have had their prices cut. What’s more, in its 2007 annual report to Congress, the US Trade Representative stated that China’s reduced tariffs contributed to another substantial increase in total US exports, which rose about 17 percent from January to September 2007 when compared to the same period in 2006.
Even Though, says China Internet Network Information Center, China’s level of internet penetration is reduced (15.9 percent) when compared to the United States’, ” Japan’s, and Korea’s percentage of penetration (all of which are over 65 percent), China retains an abundant quantity of promise. In actuality, in 2007, the amount of Web users in China surpassed the amount of Internet users in america, which previously had the largest population of Internet users. This range of Internet users will continue to grow.
Even Though over 300 million Chinese people, or almost a quarter of the nation’s population, have studied English based on Xinhua, many (mainland) Chinese men and women prefer to read content in their simplified Chinese characters. This is how it is for the most part, but at the southernmost provinces in China and especially in Hong Kong, the use of English has a medium to strong presence. Since almost a quarter of the nation’s population has researched in English, it’s advised that a company has some of its material in Chinese so that the Chinese customers may click through that Chinese page to reach and use the English version of the site.
Unlike Most countries in the world, the Google search engine hasn’t dominated this market. The search engine here of predominance is Baidu (baidu.com), that’s the local search engine which has the largest market share in China (about 60 percent). In second, Google asserts 20%, and in third, Yahoo asserts 10%.
Due to the Prominence and the aggressive nature of China’s marketplace, it’s often daunting to break into the industry and automatically become an instant hit. This can explain why many companies elect to seek support from China business consulting services even as they continue to invent their own market entry strategies.
In such a competitive marketplace, it’s Highly suggested to begin online as a first step. There are a number of benefits associated with this market entry strategy and include but not Limited to:
- It is always easy and quick to set up an Internet Business in China since there are less restrictions
- It’s also your best option if you want your company to get a nation-wide coverage
- Setting up an Internet business is relatively Economical
- You not only get nation-wide coverage but also global coverage
- You get to manage your business from anywhere in the world
The growing requirement of e-commerce companies in China offers you a perfect opportunity to start an Internet business in China
E-commerce Business in China
E-Commerce Company in China is flourishing. In China, B2C online sales are increasing at an annual rate 25 percent hence supplying businesses with loads of investment opportunities to benefit from. In actuality, it’s estimated that by the year 2018, half of their entire online sales will emanate from Tier-3 cities and under.
Trade values of the China’s B2C online marketplace according to the third quarter of 2015 (November) reached an estimated 503.6 billion yuan (roughly $78.58 billion) representing a 49.7% increase when compared to the same period last year.
Companies in China has amazed many considering the fact that China’s As of 2000, China was yet to create any e-commerce application. There Were only 2.1 million net users enrolled that year which gave Small hope to e-commerce companies. Roughly 600 million internet users and the flourishing e-commerce company was Attracting interest from all over the world. It’s even estimated E-commerce market place on the planet. Development china a lucrative enterprise for companies and businesses.
For more information marketing in China see this chinese website.