Companies large and small around the globe are looking at China's incredible growth in consumer spending and salivating. But if you aren't in China now, it may be too late for you to get much of a foothold.
That's the lesson I took from reading What the West Doesn't Get About China, in the June issue of Harvard Business Review. According to authors George Stalk and David Michael from Boston Consulting Group, what we don't understand about the Chinese market includes:
- The market opportunities there are spread across wide geographies, languages and ethnic polulations -- China has 90 cities with middle-class populations of more than 250,000, and will have 400 in the next decade. (The US and Canada combined have 70.)
- Product adoption rates are higher in China than in most markets. That means that companies that aren't in early and dominant don't have much chance to steal share later.
- Serving the hungry Chinese consumer can be like drinking from a firehose -- growth rates of 30% to 70% that many Western companies can't satisfy, and thus cede to competitors.
Do you have plans to enter markets in China? What's your strategy?
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