The opening of our offices in Hong Kong has confirmed to us that the growing prosperity of the Chinese population and the sheer mass of consumers will also make China an increasingly attractive market to European companies.

In our latest study, we investigated the potential and characteristics of the Chinese market, focusing on the needs of multinational companies in the B2C and B2B sector We highlight the general conditions for sales and marketing activities and analyze the potential of the digital economy for a market entrance or market expansion.

Opportunities are especially to be found in digital media
China already has the largest Internet population. The Chinese spend an average of 16 hours a week on the Internet, which corresponds to the television consumption of an average Chinese citizen. However, there is a clear digital divide between East China [with Internet penetration rates comparable to the EU] and West China [with online penetration similar to that of emerging markets. The Chinese market thus requires strategies, which are adapted to the country and its regions.

The core findings of the study:

China is a highly attractive market with impressive growth rates and future growth potential
The middle class, and therefore the wealthy tiers in China, will spread rapidly, leading to an expansion of the respective consumer base.
Wealthy Chinese will no longer be found just in the megacities, but in all urban agglomerations and larger city structures.
These urban centres with a large middle class are mainly in East China: there is a high correlation between strong economic performance, high levels of income and the eastern provinces.
The target groups of the affluent middle and upper classes with purchasing power can best be reached on line: well-educated and affluent Chinese have Internet access and surf the Net.
Internet user behaviour is different from that of Western industrial nations: it tends to be game and entertainment-oriented, which is one of the reasons for the extremely young average age of online users.
There is a clear digital divide between East China, with Internet penetration rates comparable to the EU, and West China, with online penetration similar to in emerging markets.
China already has the world’s largest Internet population and the reach of online portals is comparable with those of international counterparts.
This reach is still underused by advertising companies, so there are good opportunities for a successful positioning.
The online world in China is dominated by completely different players than in the rest of the world. These companies have already implemented very successful business models and have impressive operating margins. They also rely much less on advertising revenue than American Internet companies.
Mobile communications are widespread and can be used for effective end customer communication. However, the 3G Standard, and thus broadband mobile telephony, has not yet arrived in China.
eCommerce is growing rapidly. Until now the market was strongly influenced by C2C and B2B models, but B2C platforms are beginning to catch up.
China’s economy is dominated by medium-sized enterprises, which are already easy to access via the Internet. Online business in the B2B area is extremely professional.
aquarius consulting and aquarius asia will be happy to assist you in defining your digital marketing and sales strategies in China and, of course, to help you implement them. We look forward to further discussions with you!