The rising Chinese middle class, currently ranging between 100 million and 200 million in number, has offered great opportunities for Western companies to sell their goods and services, said a seasoned US-China business expert in Chicago.
In a recent interview with Xinhua, Phil Corse, the Kellogg Adjunct Professor of Global Marketing at Northwestern University, said: "To put it into perspective, the number of China's emerging middle class is equal or even greater than the entire population of Japan. They are moving up very quickly to buy more home appliances, cars, computers, luxury goods, etc."
Corse has a classical, disciplined and analytical marketing background and has worked for several companies in consumer products and durables business. He has been working with China for over 15 years and travels to China 3-4 times a year.
According to Corse, China is no longer simply a low-cost manufacturing base for international companies as most people assume, and the burgeoning middle class in China is creating enormous market opportunities for Western companies.
It signifies a large and still growing market of those with enough disposable income and strong purchasing power, he noted.
"We have done the first part of manufacturing in China very well, but the second part of selling to this market is much more difficult," he said.
Corse pointed out that compared with the US middle class, China's emerging middle class is much younger.
"They are between 25-44 years old. And about 80 percent of them live in the 9 major coastal cities in China, which makes it a little easier to target, " he said.
When analyzing Chinese consumers' characteristics, Corse thinks that they are very pragmatic and inspirational.
"They are savers but also spenders looking for products that they can identify with and express themselves with," he observed.
Talking about the effective ways to reach the middle class, Corse suggested to start with Chinese social networks, mobile marketing and local advertising.
Looking into 2010, Corse believes that the increasing trend is that the US economy is transferring from a consumption economy to a stimulus economy.
"We have no choices but to look at other places in the world. My No. 1 place is of course China. India is not quite ready yet," he added.
Having been doing business with China over the last 15 years, Corse is constantly impressed by the tremendous support he received from the Chinese government, both at central and local level.
"In China, we as foreigners are looking at the Chinese government as partners. But in the US we look at the government as barriers because they are not as supportive as Chinese government when it comes to help small and medium businesses," Corse said.
Corse predicts that the Chinese economy will grow at a speed of more than 8 percent in 2010.
"The Chinese government has put their money back into rebate for Chinese consumers and loans for businesses which will certainly help the economic growth," he stated.
Commenting on US-China trade relations, Corse said: "US and China relations are going to be very good in 2010. China is our banker and I hope our government understands the extent to which we owe China."
Finally, Corse recommended that any business people who are interested in exploring China market should visit the Shanghai Expo in 2010, which is going to be the largest event in the planet with millions of visitors from all over the world.>
