Targeting China's consumers
Updated: 2012-03-09 08:01
China cut its 2012 target growth rate to 7.5 percent at the National People's Congress. A slowing of the world's second-largest economy may put the global stock market's current rally on hold for now, but as Premier Wen Jiabao said, "expanding consumer demand" is one of the priorities for the upcoming year, says an article on reuters.com. Excerpts:
China's economy could be moving to a new stage, in which consumer companies fare better than its well-established manufacturing base and look for higher profitability. China's new focus on the consumer is necessary for its industrialization efforts and economy to become self-sustaining.
Therefore, companies should invest in those businesses targeting the masses in China, such as China Mobile, the country's largest mobile phone operator, and Sohu, which operates a popular network of Internet sites, including gaming and social networking. Global companies that make basic consumer products could also benefit. Experts believe that Chinese consumers will continue buying products from big brand name multinational companies because they have a reputation for quality. Companies like Coca-Cola, McDonald's and Yum Brands will continue to expand in China. Even global automobile companies such as General Motors, are increasing their market share.
(China Daily 03/09/2012 page10)