Chinese Market Trends

Sofia Parrodi a01203820
1/29/2012
Chinese market trends
            China has suffered of many years of conformism, in which they regard expensive consumer goods as an award. When they are in public,they are “show offs” because they pretend to have expensive goods, while in real life they are saving every yen. I read an article that illustrates this argument perfectly. “The owner of a gleamingnew BMW will drive around for half an hour to avoid a 50 cent parking fee”. (The economist, 2011)
It is expected that China will be the 2nd largest consumer market in the world by 2015. China is on itsway to becoming the biggest luxury-goods market. Recently, the government made an increase in household consumption. The Chinese government lets foreign companies enter the country, not for thepeople to consume foreign goods, but to later build its own similar industry. The average Chinese saves about one third of their income. The role of their peers and family members is very important whenthey buy something; they usually do it either with company or by recommendation.
On the other hand, this country is heading to consumerism, by this I mean that the culture is changing. Their taste forluxury and hundreds of new goods and brands is increasing significantly. It is said that by 2020 China will become the world´s second biggest consumer market. (McKinsey, 2011)
China has many markettrends. In culture for example, there is the need for training in service industries. In communications, new apps will de introduced to the market. On products, medicines and new discoveries will beimportant. Finally, online shopping will become more popular and elder people will begin to spend more money  (Dan,2010).
One of the Chinese companies that have succeeded abroad is Alibaba. This siteworks as Ebay in China. It has more than 8 million small and midsize companies using its online marketplace. The company uses cautious strategies. In hard times managers have to conserve funds. Today,...