December 20, 2005

Chinese Economy and Opportunities Grow

Thinking of addressing the mainland Chinese market? I have two clients that are launching market development efforts there right now. We've had very focused discussions about "internationalizing" their products for China.

Ultimately the need/cost of localizing the products/services did not kill the decision to move forward. What made the difference was gaining an understanding of the market sizing and the adoption of an indirect business development strategy in China that made it a no brainer.

So what is the size of the opportutnity? Business Week is reporting that the Chinese Government has increased the size of its economy by taking into account service industries...

"A new survey of China's economy boosted its official output for 2004 by 16.8 percent by taking into account emerging service businesses, the government said. It said services' share of the economy rose sharply, while that of manufacturing fell. The results show China's mainland replacing Italy as the world's 6th-largest economy, trailing Britain and France. China would jump to No. 4, behind only the United States, Japan and Germany, if it added in Hong Kong, which reports its economic figures separately."

That there is an emerging service industry is big news. But the International Herald Tribune provides more insight as it reports on the existence of Chinese small and medium businesses...

"The revised figures, for instance, show that a much stronger services sector has emerged in the Chinese economy, taking some weight off the manufacturing sector. They also show that there are more small and medium-size companies in the country."

I'm thinking that as a result of this news a lot of companies will want to shift focus and resources to China. The first step you need to take is a market assessment and product localization plan. Contact me if you'd like to use my templates in this regard.

Click here for the full text of the Business Week article and here for the International Herald Tribune article.

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