HSBC took to the stage at the China International Import Expo. to launch its latest report on Chinese consumer tastes. Titled Navigator: Made for China, the report seeks to provide manufacturers with an understanding of changing Chinese consumer tastes and where there may be opportunities within the China market.
The report contains good news for British manufacturers. After several days of campaigning behind the slogan ‘Britain is GREAT,’ and pitching to potential Chinese clients that British products can be easily distinguished in China because of their quality, British manufacturers should be encouraged to read that HSBC affirms that international businesses selling into the China are successfully distinguishing themselves through the unique quality of their products.
Building on this idea that manufacturers must focus their attention on quality, the report also pays attention to the changing demographics of the China market and sign-posts how this shift is affecting the practicalities of selling into China. The report encourages manufacturers to focus on younger consumers who are after high-quality products that integrate advanced technological components.
According to HSBC’s Head of Commercial Banking, Asia Pacific ‘[manufacturers] all recognise the rapidly growing importance of the Chinese consumer and [the fact] that it’s really the young, affluent Chinese that are driving this consumerism.’
HSBC is confident that more and more manufacturers will find success selling into China, and at the launch of the report, Helen Wong, Chief Executive, Greater China said: ‘[the report is] talking about the middle class. At the moment it is around 400 million and could grow to 850 million by 2030.’ However, the report clearly points out that it is important that foreign firms focus on the needs of this growing demographic and avoid being blinded by its size. Ms. Wong continues to make the point that ‘foreign firms [must] understand the aspirations of younger Chinese consumers who are selective about brands, increasingly health conscious, and concerned about the environment.’ With that in mind, the report highlights opportunities for high-end manufacturers of consumer electronics and intelligent equipment.
Finally, the report stresses the need for international manufactures to work harder to understand local business culture so that they can form effective partnerships enabling them access to China through distribution agreements with local companies and establishing a presence on China’s e-commerce sites.
Please read the full report here.
Please read more about HSBC’s ‘Made for China’ initiative at the CIIE here.
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