Forecast China Market
Mapping China’s middle class
China’s transformation from an isolated economy to a global economic powerhouse has turned hundreds of millions Chinese into eager consumers of everything from luxury bags to cars. The explosive growth of China’s emerging middle class has brought sweeping economic change and social transformation—and it’s not over yet. Driven by large-scale urbanization and Chinese government’s strategy of investment on infrastructure and house building to continue pushing the economy to a soaring high, the world has seen the rise of a powerful new – largely urban – middle class. According to market research in China, only 4 percent of urban households in China were middle class in 2000; by 2012, that share had soared to over two-thirds and by 2022, we forecast China market with middle class reaching 630 million. That is three-quarters of urban Chinese households and 45 percent of the entire population. Average per capita urban income in China is roughly triples that in the countryside. Moreover, there are set to be 170 million new urbanites between now and 2022.By 2022, more than 75 percent of China’s urban consumers will earn 60,000 to 229,000 Renminbi ($9,000 to $34,000) a year.
Tremendous potential in China
China’s burgeoning middle class offers tremendous potential for businesses worldwide, especially for foreign companies who have entered into Chinese market or are planning to bring their presence into the market. The pace of change has been extraordinary, and newfound affluence also changes the way middle class behave in comparison with the past and leads to new behaviors in this group. It is important to forecast China market as well as middle class’ consumption pattern. Upper middle class consumers respond more strongly to the emotional dimension of products and services. In contrast the mass middle class focus more on purely functional product attributes such as durability.
Having grown up in an environment of non-stop economic growth and abundance, mass middle class are more confident that their personal incomes will rise. They also tend to be more brand loyal, more adventurous in adopting new products and services, and more willing to trade up to premium products, according to market research on forecast China market.
At the same time, another trend is also underway: the geographic center of middle-class growth is shifting to China’s Western and Northern regions. For the past 20 years, economic growth has been concentrated in first- and second-tier cities in the coastal regions. Within 10 years, however, third-tier cities will be the main drivers of growth. Further, the new rich in third- and fourth-tier cities are much likelier to spend their disposable income online: 27 percent compared to 18 percent in first-tier cities.
Daxue Consulting’s Forecast China market solution
With its solution Forecast China market, Daxue Consulting has been actively providing services in China market entry, China business development, China business strategy, outsourcing in China, consultancy in China and so on.
China market entry
Daxue Consulting regularly conducts studies on marketing strategy in China to enter this new market, including allocation of investment, store-checks, image analysis, habits of consumption based on our data and information. As China’s market is steadily growing, China market entry has become a crucial stake for Western companies of all shapes and sizes. Understanding how to enter China market is the first step of a successful development in China. Daxue Consulting provides all the customized tools to assist you in your China market entry.
We help you to identify your market, we drive you to choose the most suitable location, we conduct valuable market research, we support you to hire great staff and we provide you knowledge and expertise on due diligence. To optimize each of these step, Daxue may use various methodologies:
- Qualitative interviews with market experts: consultants, professors, experts
- Quantitative surveys through any methods : online survey, phone questionnaire, in store interview
- Diagnosis, analysis of competitors, competing media plans through desk research
- Interviews with competitors through various approaches
- Synthesis of internal documents, etc.
China business development
Daxue Consulting regularly helps clients optimize their China business development by offering database building assistance, market research, tailored distribution analysis and SEO.
Daxue uses various research methodologies, providing up-to-date marketing studies to inform your business development strategy. These include:
- Market diagnosis, analysis of sector competition and competing media plans so you know the lay of the land when you plan your strategy
- Qualitative interviews with China market experts. Our network of consultants, professors, industry specialists and others can provide specific answers to your questions
- In-depth interviews with potential competitors through various channels. Precise and relevant benchmarking and competitor analysis means speaking directly to local best-in-class companies
- Qualitative interviews with our clients
- Synthesis and compilation of internal documents, research, publicly available documents and more. Our teams of bilingual researchers know where to find the information and how to present a comprehensive digest.
For more detailed services on forecast China market, please visit our website https://daxueconsulting.com/consulting-china/ .
See also the China Wealth report