From Made in China to Consumed in China

From Made in China to Consumed in China

As the sustained and fast development of the Chinese economy and the ever-increasing number of urban consumers, it is predicted that China will become in year 2005 the world’s second largest consuming market ranking only next to the USA. Its individual consumption value will increase from 5.8 trillion RMB in year 2005 to 27 trillion RMB in year 2025.

The consumption potential brings both opportunities and challenges for Chinese and foreign enterprises. Facing social and economic changes, people tend to overestimate its effects in the short run and underestimate its effects on the far future. The same mistake is made in the popular attitude towards China’s consumption situation. In the beginning phase, the need of the Chinese market is highly overestimated and now the risk is involved that China’s long-term domestic need may be underestimated.

There are mainly four aspects that the Chinese local enterprises and foreign ones should pay special attention to. Firstly, they must understand that it’s necessary to subdivide the Chinese market due to its complication; Secondly, the enterprises should closely follow the trend of the ever-changing market, reconstructing their products to adjust the cost structure；Thirdly, the needs of Chinese market are changing faster than any other market in the world; Last but not least, there will be much more opportunities in the third class market of China than those in the Vietnamese and Southeast Asian markets.

For foreign enterprises, the present tasks are to lower prices and costs, set their own market strategies, establish good relationship with Chinese consumers, build their unique brands and launch successive new products in response to the need of the market.