China is a diverse and quickly growing world marketplace. Most of the world’s leading corporations now have offices in China. Finding ways of international trade with China is a great way to capitalize on their growing economy.
In a period of global recovery, the world’s largest exporters are now looking towards pursuing international trade with China. Since the 1840s, Western companies have dreamed of the riches a country as large and – since 1978 – as dynamic as China would generate for them. Some have succeeded; many big companies, including General Motors, would have found it much harder to re-emerge from bankruptcy without profiting from international trade with China.
There are wide range of opportunities for international trade with China for exporters. Many major fields are currently enjoying heavy growth are: ready-made food & beverages, transport, Information technology and telecommunications, protection of environment,minerals and power, estate construction equipment and services.
There are few things that should be kept in mind when one goes on the expedition of exploiting international trade with China. These are:
Do your homework
Beware of industrial dynamics
Take your time
Mistrust and opportunism are endemic in China
Trust is interpersonal and takes time to build
Chinese society is hierarchical
The best opportunities for international trade with China include education, healthcare, food, clean-tech/green-tech and software industry. I would like to discuss packaged food among the different fields in which international trade with China takes place usually.
Packaged Food in China
Since China is developing,demands with regard to more advanced goods, and also the emphasis on excellence and freshness of food is growing. This means that there is a significant unsatisfied requirements with regard to packaged food in China.
China has always been a stable market for imported goods, especially when it comes to hotels, cafes, bars, modern and western style restaurants or motels. Recently, Brand significance and loyalty is increasing in China. So that show that companies having developed brand recognition worldwide and non-passive marketing techniques will capture greater share of customers and market. International organization shaving super market permissions in China include Yaohan, Wellcome, Parkson, Park ‘N Shop, Careful, Price art and CHC.
These organizations are establishing supermarkets in limited geographical locations. Sales of packaged food in China were valued at US$124.3 billion in 2010. The industry of packaged food in China is expected to grow by 51.4% in value from 2011 to 2015.
The dairy market was the largest segment in the market of packaged food in China with sales of US$25.1 billion in 2010. Bakery products and dried processed food rank second and third in the sector of packaged food in China.
The top packaged food sub-categories include drinking milk products, baked goods, chilled processed meat, instant noodles, vegetable and seed oil, etc. The countries where these products are easily available at low cost or where these products are highly in demand and those which have good trade relations with China would be more successful in benefiting from international trade with China.Comments Off on An Ideal Place to Invest – China