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Economics and Business in the Asia – Pacific Region

Course Assignment:

CHINA

By: Pablo Labat
SECTION 1: The business opportunities of the Chinese market

China , as it is known, is the third biggest , and most populated country in the World, with over 1.3 billion citizens. With that kind of population and taking into account the growth that is now taking place in this country, it could be assumed that there is a large number of poor people, but besides ,there is also an astonishing number of people classified into the so called "middle class". This means more people with a disposable part of their income. And that disposable income is a highly profitable oportunity.  
This segment is the one that in short and long term, (it is expected that by 2030 this type of population will be more than 50% of Chinas population) is going to redifine the tendencies of the chinese market itself.
Geting into this opportunities may give you a first problem: which sector is the most suitable for starting and achieving some goals in the chinese market. Nowadays , the largest category of spending in China is food (followed by Recreation/Education and Transports/Communications), which was known by many western companies that are now making their way through the Chinese market. Another rising sector are the luxury goods. Just , to put an example of this growing sector in China, according to one of Porsche Spain marketing employers, Marcos Vargas, nowadays the country that most buys their cars is China. Having this type of wealth growth means that there is a huge emerging middle class, but there is also an "upper" middle class which will (and does) demand these luxury goods, such as French Wine, which grows pretty quick between chinese consumers. According to studies, more than the third part of the luxury goods sold on the planet on 2009 , were sold in China.
One of the main reasons for having business oportunities in China is their vast workforce, made out of 800 million...

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