Imagine a country where 700 million people move from abject poverty into a brand new middle classin a span of 40 years. A country that was once ideologically opposed to capitalism, that now embraces property rights, free market competition and profits. A country with the third largest stock exchange in the world—when measured by market capitalization.
You are imagining today’s China.
It is estimated that by 2030, two-thirds of the world’s middle class will be in the Asia-Pacific region. By that time, the Chinese middle classis expected to number 1 billion.
Until recently, the Chinese government restricted access to its markets by foreign businesses. Following the natural order of things, these restrictions limited supply and drove up demand. Chinese consumers hungered for Western products and major players willing and able to pay the stiff price for market access—like GM, Nike, Apple and Starbucks—flourished.
But the Chinese middle class demand for products has increased beyond the capacity of a restricted market, so the government is opening up access. Large and medium sized businesses are now increasingly able to compete for the attention of the Chinese consumer.
Of course, just because there is access doesn’t mean the process is simple. Your “i’s” have to be dotted and your “t’s” need to be crossed. There are cultural bridges to be built, media strategies to be assessed, and so on. Avela Consulting is here to make that all easy. With office in Houston and Shanghai, we have been in country since 2002. We know our way around, and are waiting to help you with your first step toward a middle class on steroids. Simply contact us.
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