Sunday, March 17, 2013

Is Your Business Missing the Boat to China?

China is a difficult market to acquire exact data as the government often keeps vital information to itself or only release partial data, but the world knows that the China market has the largest and fastest growing middle market that are showing tremendous purchasing power.   Assuming the online Chinese ecommerce  market is a satisfactory reflection of their purchasing power and growth, one can use this as a barometer to evaluate the size and growth rates.  As of June 2012, there is an estimated 193 million online shoppers purchasing approximately USD $200 billion in products and services and this is expected to double in transaction size to over USD $400 billion by 2015.  

As I described in my book, "Dancing with the Dragon", China is a market that US business and US government have to come together strategically because we still have a golden opportunity to take advantage of this, but the window will not be open too long.  The US's future growth has already been shown to be in foreign sales of goods and services, and with China as our #1 an #2 partner for trade and business, we need to think long term.  The S&P 500 companies have derive more than 50% of their current revenues from abroad for many years now and the writing could not be clearer for the US.  The US has a lot of leverage still with its economic and military dominance globally to align our two countries as there is too much to loose for both sides if it does not happen.    

Even if the US government cannot get its act together (which is completely possible as they cannot make meaningful decision these days on any level), your company can still explore these markets with the many available tools and simple strategies.  

I will describe these tools and strategies in my next series on "How to Open Your Market in China".  
Until next month.

No comments:

Post a Comment