 | « Back to article | Print this article |
15 reasons why China will dominate the world
As of 2012, China is the world's second-largest economy, after the United States, by both nominal GDP and purchasing power parity, and is also the world's largest exporter and second-largest importer of goods.
In per capita terms, China ranked 90th by nominal GDP and 91st by GDP (PPP) in 2011, according to the IMF. China is a recognised nuclear weapons state and has the world's largest standing army, with the second-largest defence budget.
Let's take a look at how China is set to dominate the world.
Source: trendwatching.com/briefing/
Click NEXT to read more...
15 reasons why China will dominate the world
1. Urban boom
The lure of rapid riches is drawing Chinese to urban areas in droves. Just two recent stats to illustrate the mind-blowing scale of China's urban consumption boom:
i) Urban household disposable income is expected to double between 2010 and 2020.
ii) In 2010, China had 18 million households with an annual income above $16,000. By 2020, this number will be 167 million households. That's nearly 400 million people.
The outcome? A massive, sophisticated urban Chinese class of people, with a massive demand for high quality goods and services.
Click NEXT to read more...
15 reasons why China will dominate the world
2. Best of the West in the East
The demand for high quality goods and services has been met (more often than not) by Western brands trading on the status that comes with their heritage. Indeed, Western brands have scrambled to not only sell to Chinese consumers, but to pay homage to them.
With special ranges or products that are made for China, or by rolling out the red carpet to Chinese consumers around the world.
Both of which have set the expectations of Chinese consumers, and given Chinese brands and entrepreneurs the inspiration and confidence to step forward, while still remaining mindful of the need to match - or exceed - the standards of quality set by the very best of their Western counterparts.
Click NEXT to read more...
15 reasons why China will dominate the world
3. Global brain
The impact of the Great Firewall of China is well-documented, but China is connected. With over 513 million Internet users (compared to 245 million Americans online), Chinese entrepreneurs and consumers are part of the global brain: frantically feeding off (and adding to) global consumer culture and creativity.
Click NEXT to read more...
15 reasons why China will dominate the world
4. Designed better in China
You know you've truly arrived as an economy when local art, architecture and design move from functional to desirable:
The Brand New China Store, situated in Beijing, is a fashion and lifestyle store that focuses exclusively on Chinese designers. Selling clothes, accessories, furniture, home decor items and paintings at a wide variety of prices.
It's owned by Hong Huang, a major celebrity (media figure, blogger, television host and publisher) in China.
Click NEXT to read more...
15 reasons why China will dominate the world
Chinese architect Wang Shu was awarded the 2012 Pritzker Architecture Prize in May 2012 in Beijing, the first Chinese architect to win the prize for work on the Chinese mainland.
Click NEXT to read more...
15 reasons why China will dominate the world
5. Made better by China for all
Despite China's growing economic power, there are still hundreds of millions of Chinese with relatively modest incomes. And alongside this huge domestic market, there are billions of other emerging market consumers, making the rewards for Chinese brands which bring high quality, yet low cost products to market almost endless.
In December 2011, China Unicom unveiled the MI-ONE, featuring a 1.5GHz processor, a four inch display, and an 8 megapixel camera.
Designed to capitalise on the growing domestic demand for reasonably priced smartphones, the MI-ONE costs less than half what comparable smartphones from Apple or Samsung usually cost.
Click NEXT to read more...
15 reasons why China will dominate the world
At the end of 2011, China's state owned JAC Motors announced an investment of $500 million in Brazil, the world's fourth-largest car market.
The company's first overseas factory is expected to produce 100,000 cars per year.
Click NEXT to read more...
15 reasons why China will dominate the world
6. Made greener in China
With the Chinese government pushing the green agenda hard (for both reasons of economics and national pride), and both urban and rural populations mindful of increasingly visible environmental degradation, expect to see a steady stream of Chinese planet-saving innovations and initiatives:
The city of Shenzhen boasts a fleet of electric taxis. The fleet was supplied by Chinese automobile manufacturer BYD, and the pilot project has seen 50 electric taxis take to the streets. There are plans to add a further 250 vehicles to the fleet during 2012, as well as 200 electric buses.
At the end of 2011, China ENFI Engineering Corp completed work on the world's largest solar tracking station in Ningxia. The plant's solar tracking systems deliver a 25 per cent increase in capacity over traditional solar power stations.
Click NEXT to read more...
15 reasons why China will dominate the world
7. Made online in China
Driven by a massive online population and the censorship of key Western online brands, Chinese services are not simply imitating the Googles, Facebooks and Twitters of the world. Instead they are often showing their better-known counterparts the way forward by integrating, if not adding to and enhancing, popular online services.
O.cn is a stylised online mapping service that covers 38 of China's largest cities. The 3D maps interface with social networks, and users can click on individual buildings and areas to access user-created and curated content.
Click NEXT to read more...
15 reasons why China will dominate the world
In 2011, Sina, the Chinese web portal, launched a check-in service called WeiLingDi via their resident Twitter-like website Weibo.
Users are able to check-in at locations using WeiLingDi, earn badges, write reviews about local businesses, and connect with 60,000 verified Chinese celebrities.
Click NEXT to read more...
15 reasons why China will dominate the world
8. Made stranger in China
The rise of consumer culture in China has inevitably led to the creation of some 'remarkable' products and services. However unusual consumers' tastes, they are being met by Chinese brands.
In 2011, former Soviet aircraft carrier, The Kiev, was converted into a luxury hotel by its new Chinese owners. The ship has 137 standard hotel rooms, three VIP guest rooms, two presidential suites, and a luxury restaurant.
China Post offers a service enabling individuals to send letters from space, with a 'Space City 1′ postmark. Users send an email to Tiangong-1, a Chinese spacecraft orbiting the earth, which is then rerouted to a special China Space Post Office branch in Beijing.
The emails are printed, placed in space-themed envelopes, stamped with a 'galactic postmark', and sent in the mail.
Click NEXT to read more...
15 reasons why China will dominate the world
9. Made together in China
As the most populous country in the world, and one with a strong collectivist culture, it's no surprise to see a wave of innovative Chinese products and services that bring consumers together.
Handsup.cn aims to hand power over to the consumer by asking them to recommend products and services they want to buy, as well as the price tag. The more users that want a particular product, the higher the chance of it being available, and the lower the price.
In late 2011, Chinese P2P lending site CreditEase secured a round of funding, while founder Tang Ning was honoured by the Communist party. Both achievements signal the dramatic impact of P2P lending in China, where there are now over 100 sites offering services.
CreditEase has become one of the country's largest independent financial service providers, with more than 5,000 workers.
Click NEXT to read more...
15 reasons why China will dominate the world
10. Made bigger in China
Whether it's the size of the population, the cities, or the economy, China means 'big', if not 'biggest'. Just three consumer-focused examples to illustrate:
The Youngman JNP6250G is believed to be the largest bus in the world, capable of transporting up to 300 passengers. The first of the buses will be deployed in Beijing and Hangzhou, using dedicated highway lanes.
Click NEXT to read more...
15 reasons why China will dominate the world
Construction of Beijing Daxing International Airport is due to begin in late 2012. By the time it's completed in 2017, the airport's planned capacity is 200 million passengers per year. It will be connected to Beijing via a new high-speed rail link.
The year 2013 will see the opening of the world's largest freestanding shopping mall in the Chinese city of Tianjin, which is just 30 minutes from Beijing by high-speed train.
The SM Tianjin Shopping Center will cover 530,000 square metres, an area larger than 74 football fields.
Click NEXT to read more...
15 reasons why China will dominate the world
11. Made easier in China
All of the pressures that lead global consumers to seek convenience are amplified in Chinese cities. A couple of Chinese innovations leading the way when it comes to ease and convenience:
The Ubox mobile app for Android, iPhone and Java-based phones enables users to select and pay for snacks using their mobile device. It also includes a discount on the cash price for users.
In September 2011, Sichuan hotpot chain Hai Di Lao and Chinese technology firm Huawei announced a partnership to install telepresence screens in restaurants across China.
Thanks to the screens, customers can enjoy their meal with faraway friends and family - via a video link.
Click NEXT to read more...
15 reasons why China will dominate the world
12. Made faster in China
Everything is going, has to be and can be done faster, worldwide. Something Chinese companies are very much aware of.
The Huawei Ascend D Quad was launched in early 2012, claiming to be the world's fastest smartphone. The company's first quad-core smartphone features a 720p HD touchscreen and an 8 megapixel camera.
In 15 days at the end of 2011, Chinese manufacturing and construction firm Broad Group built a 30-storey hotel in China's Hunan Province.
The aim of the project was to demonstrate the company's Broad Sustainable Building technology.
Click NEXT to read more...
15 reasons why China will dominate the world
13. Made more luxurious in China
Of course, luxury is a key part of the China story. From 'Chinese' sub-brands (e.g. Hermes' Shang Xia) to Chinese brands being made in Italy (e.g. China Garments' Sorgere) Chinese consumers' cravings for luxury goods shows no sign of slowing.
Relevant here: wealthy Chinese splurging on an increasing number of home-grown Chinese luxury brands and services.
Originally launched in Shanghai in 1898, cosmetics brand Shanghai Vive was recently re-launched to appeal to luxury consumers in China and the West. The brand hopes to tap into its heritage and China's growing global cultural identity.
China Railways Group has created the world's longest high-speed rail network with about 7055km of routes in China, and trains topping speeds of 350km/h.
The Beijing - Shanghai route was opened in 2011 with business class travellers being waited on by uniformed stewardesses, and enjoying LCD TVs.
Click NEXT to read more...
15 reasons why China will dominate the world
14. Made better in China
While many of the brands in this Trend Briefing have only relatively recently made waves, there are of course plenty of established Chinese brands already operating comfortably on a global scale:
Sportswear brand Li Ning launched its US retail site in March 2012, heavily branded with the slogan 'Straight Out of New China' and featuring a number of high-profile endorsements. A promotion at the end of the month for special-edition 'Year of the Dragon' shoes caused the site to crash due to demand.
In January 2012, Chinese consumer electronics giant Haier demonstrated their 'Brain Wave TV', which allows users to control the action on their TV sets using their minds.
The experimental technology was showcased alongside consumer-ready innovations such as 3D TVs with 2D to 3D conversion.
Click NEXT to read more...
15 reasons why China will dominate the world
15. Implications
Forget the 'Made in China' stigma. It should be clear by now that ambitious and confident Chinese brands are already catering to demanding consumers, both at home and increasingly abroad.
And if you're a non-Chinese entrepreneur, why not get in touch with some of these brands to see if you can help them roll out globally even faster?
Click NEXT to read more...
15 reasons why China will dominate the world
Again, these brands and innovations are just the start. Fuelled by constantly improving technologies, a higher quality workforce and booming domestic consumption, Chinese brands are just warming up.
Which is why all brands need to keep both eyes firmly on China, a market that will increasingly define consumer culture.