China’s fast-growing and dynamic consumer market is offering opportunities to global companies as there are more planned investments that are set to be made in high value-added products and services.
There is an increasing number of Chinese people who were living healthier lifestyles and therefore are demanding different kinds of oil which has prompted Cargill, a U.S.-based agriculture and food company to announce that it is seeking to make more investments in opportunities in the value-added oil field, said the Asia Pacific president of the company Robert Aspell.
“Once you get to a certain economic level, you don’t continue to eat more food. You start diversifying and upgrading,” Aspell told Xinhua, on the sidelines of the Boao Forum for Asia (BFA) annual conference, which concluded Friday.
The structural reform of the Chinese economy has increased the importance and role of consumption in the economy and it accounted for 76.2 per cent of the country’s GDP growth last year.
Chinese authorities have said that in the coming years, a major driver of growth would be consumption because of the Chinese market size of almost 1.4 billion and an expanding middle-income group. It would also be boosted by government policies for increasing resident income and enhancement of quality of goods and services.
The Chinese government work report delivered to the annual national legislative session earlier this month, claimed that in order to increase the supply of quality products and services, multiple avenues would be used by the country.
China’s changing consumer market has brought about tremendous opportunities, said business leaders from around the world present at the forum.
One can view explosive growth in the domestic consumption in China ranging from daily consumer goods to luxuries, which presents great opportunities for business, said Keynes Li, senior vice president of Nu Skin Greater China, a U.S.-based developer of skin care products.
Li said that in 2018, there was a 23 per cent year-on-year increase in the sale of the company in China because of growth in the market segment of personalized skincare products,
“The growth exactly reflected the rising demand from Chinese consumers for high-quality products and services,” Li said. Its investments in China had been increased by the company last year, he added.
It is therefore important for companies to not only be aware of the products that the Chinese population consumer but also the manner in which such products are consumed if companies want to monetize the opportunity.
There has also been growth in the film industry because of China’s booming consumer power, said. Compared to just 0.1 just 10 years ago, the average number of times that Chinese go to the cinema every year reached two in 2018, he added. There was an upgrade in the whole process in which Chinese consumers are consuming content and the growth in not limited to only to content, he said. “For example, in just a few years, the Internet has totally changed how we buy a movie ticket,” he said.
“There is much activity going on in China like the upgrading of consumption. This is keeping us on our toes,” Aspell said
(Adapted from XinhuaNet.com)