What are the most promising markets in China this year?
Chinese consumers are fond of cosmetics
Chinese consumers are fascinated by Western luxuries brands, especially cosmetics. Therefore, investing in this market can be a good way to succeed in China. Many Western companies operate in this sector: France is the leading China’s supplier with a quarter of all imports.
China is the second largest cosmetics market in Asia, were 80% of business leaders are foreign companies such as L’Oreal, Estee Lauder or Kiehls. It is a promising market that can offer many opportunities.
The e-commerce is increasing by 25% each year and it is difficult for Chinese consumers to do without it those days. The arrival of the e-commerce on the cosmetics market represent a great business opportunity.
You can read here: Estée Lauder develops a brand just for China
Education: from private schools to online training
The difficulty of public education in China has led to the creation of some alternative ways to learn, such as private schools. Today there are over 70,000 private schools in all levels and about 400 international schools. The government is investing heavily in this sector since it has authorized its privatization in the 1980s.
Interesting: The education market in China
In addition, the increase of living conditions and the emergence of a middle class of 350 million people allow this sector to develop very quickly. Furthermore, online education is also increasing: it has generated 84 billion Yuan in 2013 with a year-to-year growth of 20%.
According to estimates, the number of people who will use online education in 2017 is expected to reach 1.2 billion. Education promises to be a very promising market for those wishing to invest in China.
E-commerce: skyrocketing performances
The online retail market reached about $143.5 billion in the third quarter of 2015 and recorded around 688 million Internet users during the same year. These figures are incredible.
Mobile purchases increased by 240% compared to last year and account for $ 80 billion. This growth is explained by the expansion of the use of convenient payment methods such as WeChat Wallet and Alipay, but also by the fact that there is an increase in the use of digital mobile devices like smartphones and tablets.
However, the Chinese e-commerce market is very competitive and many companies are now undisputed leaders (Alibaba.com, Tmall, Baidu, TaoBao …). There is a saturation of online sales offers: to exist in this market, you must be able to stand out, through a unique positioning, some quality content and a strong image.
Broader horizons for the travel sector
Chinese consumers are more and more open to the world; and now they have the money to complete their ambitions with the increase of their living conditions. They want to discover new horizons and new cultures. According to the number of Chinese people today, there is a huge potential market.
But their desire to travel is not only targeting foreign destinations, they also want to discover their own country, which represents a huge opportunity because China is big as Europe! Moreover, it is well known that Chinese travelers spend a lot while travelling, either in China or abroad.
Read more about this topic: China’s travel and tourism market takes off
A health sector to improve
China has an aging population, and this is a major issue today for the Chinese government. But the population is not only becoming older, they are also becoming richer, and they have the money to pay for care in a health system that is not good enough yet.
Therefore, China is seeking to improve its health system, making it as a promising sector. But there are inequalities. The government pusts all its efforts on larger cities were there is some population concentration to the detriment of rural populations. This can also be a potential opportunity for business.