The speed with which China is emerging from the global financial
crisis presents an opportunity for Midlands manufacturers and
retailers, according to PricewaterhouseCoopers LLP (PwC).
Illustrating the speed of China's growth, a new report by PwC
has revealed that China produced the most new multinational
businesses between 2005 and 2009, rising from 54 in 2005 to 141 in
2009. This came against a backdrop of extremely strong export as
well as overall economic growth in China which saw its share of the
world economy rising from 9.5% to 12.1%.
Sue Rissbrook, emerging markets specialist at
PricewaterhouseCoopers LLP (PwC), Midlands, said:
"China's growing consumer marketplace offers enormous potential
for Midlands manufacturers and retailers, as China speeds out of
the downturn. This is a significant opportunity for those who are
light of foot. Challenges still remain, including regulatory and
cultural differences and geographic distance but many UK companies
are now emerging as successful market entrants and growth
businesses in China and this is paving the way for others.
"There are significant opportunities for manufacturers and
retailers alike as demand for all kinds of consumer goods
increases. Tastes are changing too as higher value and branded
goods are increasingly sought after by the growing number of
wealthy Chinese consumers."
While the market opportunity in China is considerable,
businesses planning to enter the marketplace for the first time
need to research it well beforehand.
Sue Rissbrook, emerging markets specialist at
PricewaterhouseCoopers LLP (PwC), Midlands, said:
"Businesses need to understand the market differences and ensure
they have the right products available at the right price.
Positioning the product and brand is critical to ensuring longer
term success."
As more Chinese companies extend their global footprint, there
are both threats and opportunities for Midlands companies. The new
multinationals will be competing for global market share and there
is an opportunity for Midlands companies to achieve growth by
working with them - building on key strengths like innovation and
market and technical knowledge.
UK-based manufacturing output experienced its fastest growth for
more than 15 years in April and there is an opportunity for
Midlands companies to increase exports to China and other parts of
Asia by working collaboratively with Chinese companies. Sue
Rissbrook, emerging markets specialist at PricewaterhouseCoopers
LLP (PwC), concluded:
"Ultimately, forming alliances with China's new multinationals
could not only help to attract Foreign Direct Investment (FDI) to
the UK, it could also help Midlands companies to achieve
significant growth by gaining greater access to China and other
growing Asian markets such as Vietnam, Malaysia and Korea."