Map: China’s Target Market

Monday, September 25, 2006 19:11

China is without a doubt the great red hope. With 1.3 billion consumers, it is just a matter of numbers: the largest mobile phone market, luxury car market, fast food market, and so on.Brand managers around the world in companies large have small have made annual trips to China to understand the market. Companies like APCO, Ogilvy, Edelman, and Ketchum have all staffed up to assist their clients do everything from create Chinese names, media campaigns, and crisis management.

For some, it could potentially mean a market that is larger than their home market, and for others, it will prove to hold little real potential.

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China Target Market

As can be seen in the adjacent map, China is not just a single market, but a collage of many.

The majority of provinces still report having more than 50% of their residents living in rural conditions (indicated by, Rural China the Chinese symbols for Farm).

Our next layer, was to show the differences between the various provinces in disposable income (Red for >15,000RMB, Orange for >10,000, Yellow for <10,000RMB). Finally we added 3 different sized dollar signs to represent the different levels of consumption and expenditure (large for >10,000RMB, medium for >6,500RMB, and small for provinces reporting less that 6,500RMB per capita).

Put all this together, and add our previous retail map, and you have the basis for a basic understanding of what markets should be focused on right now, which have potential, and which should be placed in a category of wait and see.

In some ways, the China is much like the E.U. in that within the umbrella of a political organism and its borders are a number of perse characteristics. What works in the North, will not in the South. What one can afford in the East, may be unaffordable in the West.

For many looking to sell into China, it is important to understand the differences within the China market as too often many make the mistake of treating China as one large market.

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One Response to “Map: China’s Target Market”

  1. Third Party Logistics News - says:

    September 27th, 2006 at 10:14 am

    […] Allroadsleadtochina has an excellent map detailing the most affluent regions of China. It’s no surprise that people living in the Eastern Coastal regions have the largest disposable income.   [link] Related Posts: Logistics in China : Smaller players need to adapt and change to survive.TNT Asia Expansion3PLs looking to expand their business might want to look at ASEAN countries.Asia’s Tigers still going strong […]