Understanding the attractions of the Chinese market today is no easy task.
The news seems at first glance very contradictory:
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We see the huge success of Chinese exports of electric cars, solar panels and other products to global markets.
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But there is also plenty of news about the real estate crisis in the Asian giant and, for the more attentive readers, articles circulating highlighting the low level of confidence among Chinese consumers.
Faced with such a confusing picture, there is no choice but to investigate further and come to the conclusion, unfortunately for exporters around the world, that the Chinese economy (and thus its consumption capacity) is currently not at its peak.
Nevertheless, ample opportunities remain in China, home to 1.4 billion people, especially for those who follow a handful of simple, yet essential guidelines:
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E-commerce remains the dominant force in the country and working with experts in the field is a sine qua non if we want to succeed in this hyper-competitive world.
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Adaptation is key: the Chinese consumer no longer accepts without complaint any foreign commercial proposal just because it is foreign. They are looking for a connection with their traditions, they are interested in products that respect and promote values (ideas, images, etc.) that are specific to their country.
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Too little investment = certain failure. But big investment does not guarantee anything either. If brands like Bershka, Pull&Bear and Stradivarius left China a few years ago, it was not for lack of resources… In any case, entering cities with 5, 10 or 20 million inhabitants requires significant resources and is consequently a critical factor to take into account.
Source: https://www.cnbc.com/ and own elaboration
