Market trends in China

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Market trend analysis is crucial for the enterprise to make right decisions to enter China market and maintain ongoing business. As a professional consulting firm, Daxue Consulting offers China market entry strategy, custom-tailored market research and industrial information services. To do business successfully, it is important to understand market trends in China.

Eight growing market trends to make China the largest consumer

China has become an increasingly important player of the global economy because of greater influence of Chinese consumers. The preferences of China market of 1.3 billion people have made great contribution to China`s economic development and will continue to be prosperous in the next decade. There are eight greatest growth potentials in China; here are the main market trends in China.

Health food and nuts

China’s health food market is expected to grow to $70 billion by 2015. The expanding demand for healthy food and nutritious supplement among China`s middle class and high end customers has boosted. Nutrient products are popular and cover all age group, from babies to elderly people. Baby booming, high aging rate and extremely intense working pressure on young and middle-aged group stimulates the consumption of nutritious health food, especially imported natural organic products, including nuts, milk, fruits.

Mobile internet

China’s mobile internet industry is booming. The speed of growth is much higher than that in many developed countries. According to EufoDesk, the number of users in China`s mobile internet was 6.48 billion, more than doubled than that in 2010. It is a good chance to build connection with China`s mobile internet and provide related services, including games, apps, etc.

Wine Consumption

China is currently the world’s fastest growing market for wine consumption, with growth rates of around 20 percent annually. For example, in 2009 about 126 million cases of wine were sold in China. It is predicted by Euromonitor, China will surpass the U.S. to become the world’s largest consumer of wine by 2015.

In China, Wine drinking is considered a healthier alternative other alcohols. As sales of imported wines are growing faster than domestic brands, some Chinese companies choose to acquire wine assets in in Australia, France and Chile or set up joint ventures.

Pet ownership

More and more Chinese are keeping pets thanks to increasing levels of disposable income, and consumers are now able to afford better care for their animals. Pet ownership has led to sharp increase in pet-focused websites and social networks and dog treat stores. In addition, dogs could be a kind of luxury. Dogs are viewed as a status symbol among wealthy Chinese. A multimillionaire coal baron from the country’s north bought a Tibetan Mastiff for about $1.6 million in 2010, while another Chinese woman bought the same breed for $600,000 in 2009. Pet ownership, as a rising industry with a range of targeting strategy, will experience rapid development.

Luxury compound goods

Luxury retailers are flocking into China to seize business opportunities with the expection of China`s market to grow 18 percent annually from 2010 to 2015, and reach $27 billion by 2015. If these projections prove to be correct, China would account for more than 20 percent of the world’s luxury market by 2015.

At the same time, China is a big manufacturer of luxury goods. For instance, about 20 percent of Prada‘s luxury collection is made in China. And French luxury group LVMH’s Moet is planning invest a sparkling wines production factory in the remote Ningxia Province.

Green techonology

Middle-class Chinese consumers are becoming more environmentally conscious than before. According to a survey by research firm TUV SUD Asia Pacific, around 84 percent of consumers said they were prepared to pay more money to buy environmentally-friendly and 74 percent said they had already been doing so.

The government is also pushing ahead green technology plans with funds no less than that of America to make the country use more renewable energy. According to Boston Consulting Group, sales of electric vehicles — hybrids, plug-ins, and battery-only cars — will grow to 7 percent of China’s new light-vehicle sales by 2020.

More online shopping

E-commerce sales are expected to reach $1.3 trillion in 2025 which is 34 times what they were in 2011, says Alex Zhan, Frost & Sullivan, a business consultancy. Online shopping encourages the new concept of “fewer trips, bulk shopping”. E-commerce is also getting a boost from residents in smaller cities where retail chains haven’t set up shop yet. Online shopping breaks geographical restrictions and makes it possible for everyone to enjoy the same product no matter where he or she is. The industry will still enjoy great attraction among public in the next decade.