China is calling – is your company China ready?
Being “China Ready” means gaining an understanding of the resources and capabilities required to develop, enter, and ultimately grow in the market. By Mike Arand – NZTE China Business Development advisor Lately the question “Are you China Ready?” seems to be heard often and many are starting to ask what does “China Ready” really mean? Without doubt there is opportunity for many NZ companies in China. The top line numbers continue to be staggering – a total population of 1.4 Billion, 446 Million households, 670 Million netizens (internet users), and an economy that is set to have 470 Million middle class households earning over US$15k by 2030 (compared to the expected 133 Million households in USA earning over US$15k at the same time). And, as the Economist recently pointed out, even at a growth rate of 6-7% which is considerably lower than the average of the last few decades, China will add another US$900B to GDP by end-2016. That’s like adding an economy the size of Indonesia or the Netherlands in less than 18 months! Even at this slower growth rate, in the so-called “new normal”, the Economist expects that China is expected to have GDP of 36 Trillion by 2030. So an economy of this size with ongoing growth, with continuing urbanisation and a growing middle class which is driving huge growth in consumer demand must offer opportunity, right? Many of these factors are behind China now competing with Australia for New Zealand’s top export destination. It must be remembered, however, that China is also the top export destination for more than 120 other countries. The trade buyers and the consumers are absolutely spoilt for choice with a myriad of options for products and services with different brands, origins, prices, and a host of other attributes from other imported […]