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Chinese dragon keeps roaring: China's explosive economic growth and cheaper manufacturing spell big business for Western brand owners
Both Nestle
and Coca-Cola record sales of more than U.S. $1 billion in
the Chinese packaged food market. That market is estimated
to be worth in the region of U. S. $39 billion (30 billion
[euro]).But this does not scrape the surface of value growth
in a country of more than a billion people, of whom 885 million
are between the ages of 15 and 64, and where gross domestic
product is rising by some 9 percent per year. |
This rosy picture
contrasts with the economic status of China's citizenry.
The average annual disposable income is $545. U.S. citizens
earn $37,000 on average.This disparity could result in social
problems, despite the fact that figure is projected to rise
to $5,000 within 13 years. And, of course, it puts high-value
Western products out of financial reach for the average consumer.Nonetheless,
this is not discouraging major packaging users from entering
the market. Just as night follows day, this means a corresponding
interest from the world's major paper and board producers
that want to continue serving their customers under the 'think
global, act local' slogan.However it is the indigenous industry
that is leading the way in servicing the multi-national entrants
to this growing market.
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