There is no market segment changing more than what is currently happening in China. It is important to stay abreast of the factors that will impact the China economy and to appreciate the current business opportunities for companies looking at implementing go-to-market strategies in China. Technology will continue to play a bigger and more vital role in the life of companies and the consumer. We currently see the huge market adoption of mobile devices with smartphones and tablets today but as we look at technology implementations over the next decade, there will be explosive growth in more sophisticated smart technologies spanning everything from personal robots to digital assistants. According to research conducted by Frost & Sullivan on the mega trends in China, there are currently 72 companies in China making up the Fortune 500 list and it is projected that over the next decade we will see over 200 China companies making this list. Clearly China today has transformed itself into becoming an economic super power and the influence of China in terms of trade and investment is on track to become the worldwide leader.
Changing Demographics in China
Over the next decade the demographics in China will not only double the overall population that is categorized as rich and affluent (income over $100K) but the middle class will grow from 28% of the current population to over 68% by 2020. This bludgeoning middle class will fuel incredible purchasing power and growth of the China economy along with spawning the creation of a whole new retail marketplace to address this population. The growth of this new middle class will fuel the accelerated consumption of luxury goods and attract a new range of products and services to consumers throughout the country.
Another interesting development in China is the aging population which is projected to grow 50% over the next decade. Frost and Sullivan forecasts that the population in China for those over 60+ will be over 300M or about equal to the current total population of the United States. This high percentage of an aging population will translate into an economic boost in the following vertical industries:
This market dynamic of an aging population will translate into the need for a range of new commercial enterprises to provide products and services to the growing retired population in China. These services will include pharmaceuticals, supplemental health services, senior tourism, elderly education and growth of assisted living products and facilities.
Changing Demographics in China
Over the next decade the demographics in China will not only double the overall population that is categorized as rich and affluent (income over $100K) but the middle class will grow from 28% of the current population to over 68% by 2020. This bludgeoning middle class will fuel incredible purchasing power and growth of the China economy along with spawning the creation of a whole new retail marketplace to address this population. The growth of this new middle class will fuel the accelerated consumption of luxury goods and attract a new range of products and services to consumers throughout the country.
Another interesting development in China is the aging population which is projected to grow 50% over the next decade. Frost and Sullivan forecasts that the population in China for those over 60+ will be over 300M or about equal to the current total population of the United States. This high percentage of an aging population will translate into an economic boost in the following vertical industries:
- Healthcare Products and Services
- Leisure, Travel & Entertainment
- Insurance
This market dynamic of an aging population will translate into the need for a range of new commercial enterprises to provide products and services to the growing retired population in China. These services will include pharmaceuticals, supplemental health services, senior tourism, elderly education and growth of assisted living products and facilities.
Social Networking in China
There will be a nexus between the adoptions of social networking by the population in China with the opportunity for the commercial marketplace to reach the Chinese consumer through this new wave of online consumers. Around 70% of all Chinese citizens will be engaged with social networking service by 2015 and this will represent almost 500 million consumers online. This social network customer base will fuel eMarketing commercial enterprise initiatives worldwide to reach this growing China marketplace for consumers that are online and active in social networking.
There will be a nexus between the adoptions of social networking by the population in China with the opportunity for the commercial marketplace to reach the Chinese consumer through this new wave of online consumers. Around 70% of all Chinese citizens will be engaged with social networking service by 2015 and this will represent almost 500 million consumers online. This social network customer base will fuel eMarketing commercial enterprise initiatives worldwide to reach this growing China marketplace for consumers that are online and active in social networking.
Opportunities Going Forward
The evolution of online consumers is growing at exponential rates in China as it is projected that every household by 2020 will have 10 connected devices which will translate into 80 billion connected devices. This represents 5 connected devices per user and the paradigm shift toward a digital society that will represent not only the purchasing of technology for over 5 billion internet users but also create the need for network bandwidth, network storage and internet service providers to address the infrastructure of the China population. The future is bright for the IT vendors with product innovation to capitalize on the new market opportunities in China.
The evolution of online consumers is growing at exponential rates in China as it is projected that every household by 2020 will have 10 connected devices which will translate into 80 billion connected devices. This represents 5 connected devices per user and the paradigm shift toward a digital society that will represent not only the purchasing of technology for over 5 billion internet users but also create the need for network bandwidth, network storage and internet service providers to address the infrastructure of the China population. The future is bright for the IT vendors with product innovation to capitalize on the new market opportunities in China.
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