"Sometimes Change is What We Need"

There is no doubt that China is the biggest consumer market in recent years and it is only going to get bigger. We have summed up why now, is the best time to penetrate Chinese market

Chinese market is changing

Chinese consumerism is relatively a new phenomenon. Up until 10 years ago, there was almost no consumption in China, people were less willing to spent their money, and consequently, the savings rate was very high and went up to 70%.10 years ago, following government strategic decision and the development of online E-commerce in China, this country started to consume and Chinese economy began growing exceptionally fast.

Nowadays, Chinese people are consuming. Online consumption and E-commerce has reached around 500$ Billion per year!

Progressive Online Consumption

While consumption wave is multiplying, new platforms gain popularity among the consumers. We all know Alibaba Group, which was established by Jack Yi Ma, and as from 2003, Alibaba is the owner of Chinese largest retail website, Taobao. That one only, controls around 80% of the E-commerce market, and as for today, Taobao sales reach 300 billion per year, that is more than E-Bay and Amazon combined.

When one is considering to enter a new market, it is important to notice that the online sphere is easier to penetrate, due to its remote characteristics, fewer regulations and more versatile supply (and demand) of goods.

China is one of most growing markets when it comes to E-commerce and online shopping, where consumers rarely visit the mall (physically), and where everything is perfectly adapted for online purchase.

New Needs

Along with local consuming wave, Chinese consumers began seeking for new and high-quality products. As a result, consumption of imported goods gained popularity as well. Now, the interest in foreign products is high and different markets importing successfully (and less successfully) their products.

When such a large part of products consumed by the Western world is imported from China, why should Chinese consumers be interested in foreign merchandise?

The answer is not complicated. It will not come as a surprise, that there is no distinct advantage to home appliances or furniture from abroad, nor to clothing or simple home use goods. Those can be found in relatively good quality in China. Chinese prefer to buy local products and big international brands, but which are localized in China.

The successful imported products in China are usually in the field of body care, life style, special food, health, etc. When it comes to their body health or care, the Chinese will rather buy imported goods and will pay extra for it.

Therefore, to penetrate successfully into Chinese market, one can import famous international brands, or intrigue the Chinese consumer with a unique product, unreachable in his/her own country that will attract their interest.

Tamir Nahmias is an International Business Development Manager and Co-Founder of ICBB group.

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