Are You Pressing ‘Snooze’ on China?

Oct 30 • Morry Morgan Blog, Sales and Negotiations, Trainers Blogs • 2574 Views • 1 Comment on Are You Pressing ‘Snooze’ on China?

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THE CHINESE CONSUMER IS ABOUT TO WAKE. Not necessarily because it wants to, but because it needs to. China’s ‘Purchasing Managers’ Index’ (PMI) dipped below 50 in September, at 49.8, indicating a contraction in the manufacturing sector. Meanwhile, over the past 10 years, the average Chinese household savings has risen from an average savings rate of 30 percent in 2005 to 50 percent in 2015.

…household consumption only contributes 35 percent towards China’s Gross Domestic Product (GDP)

When household consumption only contributes 35 percent towards China’s Gross Domestic Product (GDP), while comparatively, US households contribute 75 percent, China’s leaders know that it’s time to wake up their 1.3 billion consumers.

And that’s why last month in Washington, China’s leader, Xi Jinping, voiced the Party’s commitment to opening its markets and completing a transition from export-driven growth to consumer driven expansion. In short, the Party has begun to shake the middle-class awake; a population that could surpass 854 million by 2030, according to ANZ Greater China economists Liu Li Gang and Louis Lam. More importantly, Liu and Lam believe this middle class will help move Chinese consumerism from 35 to 50 percent of the country’s GDP, and that’s exactly what the Party wants.

And what the Party wants, the Party gets. In contrast to Western politician’s election promises, the Party’s ‘Five Year Plans’ are not wish lists, but matter-of-fact commitments. Such is the benefit of maintaining ‘Socialist Market Economy’. The ‘sleeping giant’ is drowsy, but awake.

This is old news for some markets.

…the Party’s ‘Five Year Plans’ are not wish lists, but matter-of-fact commitments.”

In 2009, China surpassed the US in car sales, becoming the world’s largest auto market. Last year, 23 million vehicles were sold. In 2014, China became the leading market for red wine, with over 1.86 billion bottles purchased, and in the same year, China surpassed Japan to become largest consumer of Belgian beers. In the next 10 years, hundreds, if not thousands, of other markets will also boast Chinese as their number one consumer.

Now, whether your business takes advantage of the awaking of the Chinese consumer depends on your first step. “The journey of a thousand miles begins with a single step,” said Chinese philosopher and poet, Laozi. That journey’s a lot easier with a team that’s already been in China for 15 years. So contact ClarkMorgan today to learn how to ‘Sell Big to China’.

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One Response to Are You Pressing ‘Snooze’ on China?

  1. Oliver R says:

    Good update on the China market.

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