Why the Chinese middle class is such a big opportunity
Whilst it may seem intimidating doing business in China, the Chinese middle class is growing at a rapid rate, and opening up a huge opportunity for Australian businesses.
China is a big and emerging market. With a huge population of 1.4 billion people, there is no wonder Australian businesses are attracted to the potential the market holds.
The most attractive market in the world
In 2017, China was said to be the most attractive market in the world, but what makes it so attractive? It has a huge growth rate, consumption rate and the sheer size of the market. These features alone, prove how much potential the market holds and how your firm can benefit.
Amongst the population, 76% will be classified as middle class by 2020, reflecting huge growth in this bracket. Consumers in this band have a lot of disposable income, which means increased spending.
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The second most powerful economy in the world
Following this pattern of growth is China’s economy, and it’s growing fast! It is the second most powerful economy in the world. This has also contributed to a reduction in poverty with a small 3.3% living below the poverty line. As the population gets richer they consume more, creating expansion opportunity for Australian companies.
When Australian companies turn to china they seek customers and China has a huge pool of them able to spend!
Culture drives opportunity
The Chinese culture is one of tradition and is heavily focused around the importance of status and the fostering of relationships in order to be successful. When dealing with chinese consumers or clients it is important to have a similar approach to business and it will result in long-lasting business relationships.
The Chinese are known for their strong work ethic and drive to be successful in every part of their lives. When you start working with the chinese you are going to work with people who are extremely disciplined and committed.
The Chinese are also an extremely well educated group, with 7.36 million people graduating university in 2017 and 91.9% of them being employed. With statistics like this, chances are you will gain highly educated staff and consumers.
The opportunity presented by the Chinese middle class is enormous. As for the benefits of doing business in China? Read more about them here.