 |
| +Shaun Rein |
The Financial Professionals´ Post:
In response to more competition, higher costs, and changing consumers, Chinese companies are being forced to move up the value chain and become innovative. "There is so much competition in China that you can't just copy a concept. You have to differentiate yourself in order to win. So you are forced to innovate," Rein wrote. This has occurred despite a government bureaucracy that had no incentive to promote innovation. "Officials simply do not want to take risks that could endanger their chances of being promoted." In the past, they were evaluated on GNP growth.
In a chapter called "End of Bling," the book describes how the Chinese consumer is moving away from simply chasing fashionable Western brands. They are going from "displaying status to quality of life," from "aspirational plays" as "they climbed up the social ladder." A big factor was the huge residential real estate boom from 2003 - 2008, "which could be the greatest wealth creator in the history of the world," which in turn (amongst other things) was spent on travel. In 2013, 113 million Chinese traveled abroad. This generation of Chinese travelers is "looking for local culture in more intimate settings," "places where other Chinese have not been." Currently "the new status symbol is sharing experiences on WeChat." The End of Copycat China is written in a fast moving, engaging style. This and the author's descriptions of today's China keep the reader's interest. The book is an extraordinary educational resource for financial professionals who want to be up-to-date on potentially profitable trends in ChinaMore at the Financial Professionals´ Post.
Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´ request form.
Are you interested in more stories by Shaun Rein? Do check our regularly updated list here.
No comments:
Post a Comment