The Ever-Changing Landscape of Chinese Markets

The market landscape in China is booming, though there has been considerable fall in certain sectors. But this robust economy is not one to back out. The market is undoubtedly unpredictable for international investors who wish to expand their business in China. For years the Chinese economy was riding on the profits from the export oriented economy but currently there is decline in this industry which will again change the market dynamics in the coming years.

Factors Affecting Fall of Chinese Export Industry

·         Global recession

·         Demand for high wages

·         Payment of high taxes

·         High import and export duties

·         High competition from other Asian countries

The Chinese government is now walking on the footsteps of western economies and has turned to consumer spending as a way to recover the failing economy. Recent reports suggest that the spending power of Chinese consumers have increased to a great extent due to higher incomes .Trade experts predict that with e-commerce being introduced into the scene the retail industry will experience 7% growth in the coming years. It already occupies about 6.8% of the economy. 

Current Market Trends in China 

At present the sectors which have experienced deterioration in China include the US retail brands, the manufacturing sector, service industry due to unemployment, fall of capital markets due to lack of capital and reduced foreign investment. Also the food industry is undergoing crisis due to low quality of food being sold.

The sectors which are poised to grow according to market trends analysis are the increasedsocial media marketing for building of brand image, speeding up of public relations services for maximizing brand popularity. Demand for high quality grains have increased in China for animal fodder as wealthy Chinese look out for high quality meats. There will be a high demand for software programmers for building an efficient system of financial transactions for suppliers and consumers. Pharmaceutical industry of China too will grow with more research being done in medicines. Luxury commodity market will have huge sales. 

As China now is a major part of the global economy, people can no longer ignore the preferences of Chinese consumers. Ambitious businesses daring to head out into the Chinese economy should understand its trends to crack the entry code to Chinese consumer markets.