|
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| |
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of "Heart to Heart Company" since 2006 |
|
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 |
China Statistics
 •
Demographic
•
Economic
•
Consumer
Behavior
•
Infrastructure
•
WTO
Accession
Area: 3,705,386 sq mi
Population (Unit
: 1 million)
| 1990 |
1,143
|
| 1995 |
1,211 |
| 2000 |
1,266 |
Population by Residence (%)
|
|
Urban(%)
|
Rural(&)
|
|
1990
|
26.4%
|
73.6%
|
|
1995
|
29.0%
|
71.0%
|
|
2000
|
36.2%
|
63.8%
|
Population
Structure by Age
|
|
1990
|
2000
|
|
Age
0-14
|
27.69
|
22.89
|
|
Age
15-64
|
66.74
|
70.15
|
|
Age
65 and above
|
5.57
|
6.96
|
Large Cities:
1. Shanghai (11,800.000 metro area)
2. Beijing (8,450,000 metro area )
3. Hong Kong (6,750,000 metro area)
4. Tianjing (5,350,000 metro area)
5. Shenyang (4,669,737 metro area)
6. Wuhan (4,040,113 metro area)
7. Guangzhou ( 3,935,193 metro area)
8. Chungquing (3,127,178 metro area)
9. Haerbin (2,990,921 metro area)
10. Xian (2,872,539 metro area)
Ethnicity: Han Chinese 91.9%
China has 56 ethnic groups
 Religions:
Officially atheist but traditional religion contains elements
of Confucianism, Taoism, Buddhism
GDP: $4.8 trillion
GDP per capita: $3,800
Real growth rate: 7%
Inflation: 1.3%
Unemployment: Urban ~ 10%
Labor force: 700 million
 Agriculture
-- 50%
Industry
- 24%
Services
- 6%
Exports: $194.9 million
Imports: $165.8 billion
Mainland China's Export Share by Region: (% of Total)
|
|
1997
|
1998
|
1999
|
2000
|
2001(Jan-Oct)
|
|
Guangdong
|
40.8
|
41.2
|
39.8
|
36.9
|
35.7
|
|
Yangtze
River delta
|
21.5
|
23.1
|
25.6
|
28.3
|
30.2
|
|
Bohai
Rim Region
|
20.9
|
20.4
|
20.1
|
20.3
|
20.3
|
|
Others
|
16.8
|
15.3
|
14.4
|
14.5
|
13.8
|
|
Total
|
100
|
100
|
100
|
100
|
100
|
Foreign
Direct Investment in China
|
|
1997
|
1998
|
1999
|
2000
|
|
US$
billion
|
45.3
|
45.5
|
40.3
|
40.7
|
Source: MOFTEC & China Statistical Yearbook
China's Market Share in Export Markets
|
|
1997
|
1998
|
1999
|
2000
|
Sep00-Aug01
|
|
US
|
7.1
|
7.7
|
7.9
|
8.2
|
8.6
|
|
Japan
|
12.4
|
13.3
|
13.8
|
14.5
|
15.6
|
|
Germany
|
2.8
|
2.8
|
3.1
|
3.4
|
3.5
|
|
Singapore
|
3.4
|
4.8
|
5.1
|
5.3
|
5.8
|
General
Retail Price Index
|
1995
|
1996
|
1997
|
1998
|
1999
|
2000
|
|
114.8
|
106.1
|
100.8
|
97.4
|
97
|
98.5
|
Economic
Indicators by Province,1999 (Source: 2000 China
Statistical YearBook)
|
Province
|
GDP(Rmb bn)
|
Per Capita GDP (Rmb)
|
Household Consumption
|
Fixed asset Investment
(Rmb bn)
|
|
Rural
|
Urban
|
Guangdong
|
846.4
|
11,728
|
2,842
|
8,987
|
293.7
|
|
Jiansu
|
769.9
|
10,665
|
2,560
|
6,239
|
244.2
|
|
Shandong
|
766.2
|
8,679
|
2,188
|
6,060
|
222.1
|
|
Zhejiang
|
536.5
|
12,037
|
2,797
|
7,985
|
195.8
|
|
Henan
|
457.6
|
4,894
|
1,376
|
4,214
|
120.7
|
|
Hebei
|
456.9
|
6,932
|
1,688
|
5,033
|
177.1
|
|
Liaoning
|
417.2
|
10,086
|
2,209
|
6,366
|
112.0
|
|
Province
|
GDP(Rmb bn)
|
Per Capita GDP (Rmb)
|
Household Consumption
|
Fixed asset Investment
(Rmb bn)
|
|
Rural
|
Urban
|
|
Shanghai
|
403.5
|
30,805
|
5,870
|
11,943
|
185.6
|
|
Hubei
|
385.8
|
6,514
|
1,698
|
5,295
|
123.9
|
|
Sichuan
|
371.2
|
4,452
|
1,610
|
4,876
|
122.4
|
|
Fujian
|
355.0
|
10,797
|
3,503
|
6,255
|
108.5
|
|
Hunan
|
332.7
|
5,105
|
1,945
|
5,290
|
88.4
|
|
Anhui
|
290.9
|
4,707
|
1,939
|
4,985
|
70.3
|
|
Heilongjiang
|
28937
|
7,660
|
1,593
|
5,632
|
75.2
|
|
Beijing
|
217.5
|
19,846
|
3,168
|
7,040
|
117.1
|
|
Jiangxi
|
196.3
|
4,661
|
1,637
|
3,482
|
45.4
|
|
Guangxi
|
195.3
|
4,148
|
1,459
|
4,987
|
57.9
|
|
Yunnan
|
185.6
|
4,452
|
1,885
|
4,933
|
66.4
|
|
Jilin
|
167.0
|
6,341
|
1,519
|
5,216
|
50.0
|
|
Shanxi
|
150.7
|
4,727
|
1,089
|
3,932
|
47.8
|
|
Shaanxi
|
148.8
|
4,101
|
1,180
|
4,520
|
58.9
|
|
Chongqing
|
148.0
|
4,826
|
1,351
|
6,190
|
52.5
|
|
Tianjin
|
145.0
|
15,976
|
3,088
|
7,316
|
57.6
|
|
Inner
Mongolia
|
126.8
|
5,350
|
1,497
|
3,765
|
3408
|
|
Xinjiang
|
116.9
|
6,470
|
1,885
|
3,988
|
52.7
|
|
Gansu
|
9302
|
3,668
|
952
|
4,615
|
35.6
|
|
Guizhou
|
91.2
|
2,475
|
1,082
|
4,334
|
31.2
|
|
Hainan
|
47.1
|
6,383
|
2,058
|
4,700
|
19.5
|
|
Ningxia
|
24.2
|
4,473
|
1,297
|
3,813
|
12.8
|
|
Qinghai
|
23.8
|
4,662
|
1,210
|
4,384
|
11.7
|
|
Tibet
|
10.6
|
4,262
|
1,054
|
4,685
|
5.4
|
Major
Consumer Markets in china, 2001 ( Sources: 2001 IMI consumer
Behaviours & Life Patterns Yearbook)
Beijing
| Households (m) |
3.9 |
| Saving deposit (Rmb bn) |
242.9 |
| Consumer goods sales(Rmb
bn) |
131.3 |
| Average annual wage (Rmb) |
13,500 |
| Annual Discretionary
income per household (Rmb) |
9,183 |
Shenyang
| Households (m) |
2.1 |
| Saving deposit (Rmb bn) |
90.1 |
| Consumer goods sales(Rmb
bn) |
51.6 |
| Average annual wage (Rmb) |
6,517 |
| Annual Discretionary
income per household (Rmb) |
5,364 |
Shanghai
| Households (m) |
4.7 |
| Saving deposit (Rmb bn) |
237.2 |
| Consumer goods sales(Rmb
bn) |
147.1 |
| Average annual wage (Rmb) |
14,147 |
| Annual Discretionary
income per household (Rmb) |
8,773 |
Guangzhou
| Households (m) |
2.0 |
| Saving deposit (Rmb bn) |
203.5 |
| Consumer goods sales(Rmb
bn) |
100.1 |
| Average annual wage (Rmb) |
16,201 |
| Annual Discretionary
income per household (Rmb) |
12,018 |
Wuhan
| Households (m) |
2.1 |
| Saving deposit (Rmb bn) |
57.5 |
| Consumer goods sales(Rmb
bn) |
58.8 |
| Average annual wage (Rmb) |
7,091 |
| Annual Discretionary
income per household (Rmb) |
6,262 |
Xi'an
| Households (m) |
1.58 |
| Saving deposit (Rmb bn) |
58.6 |
| Consumer goods sales(Rmb
bn) |
29.8 |
| Average annual wage (Rmb) |
7,764 |
| Annual Discretionary
income per household (Rmb) |
5,999 |
Chongqing
| Households (m) |
9.2 |
| Saving deposit (Rmb bn) |
90.9 |
| Consumer goods sales(Rmb
bn) |
59.6 |
| Average annual wage (Rmb) |
6,300 |
| Annual Discretionary
income per household (Rmb) |
5,896 |
The
New Wealthy
Urban households, by income segment (%)
|
|
2000
|
2010*
(Forecast)
|
|
Rmb
0-15,500
|
33.4%
|
11.2%
|
|
Rmb
15,500-22,500
|
33.8%
|
19.5%
|
|
Rmb
22,500-50,000
|
30.4%
|
56.8%
|
|
Rmb
50,000+
|
2.4%
|
12.5%
|
Source:
Asian Demorgraphics
Big
Spenders
Retail
sales of leading cities, 2000
|
|
Total
retail sales (Rmb bn)
|
Retail
sales per capita
|
%
of national total
|
|
Chongqing
|
71.5
|
2,306
|
1.9
|
|
Shanghai
|
186.4
|
13,913
|
4.9
|
|
Beijing
|
148
|
12,2331
|
3.9
|
|
Chengdu
|
57.6
|
5,762
|
1.5
|
|
Tianjin
|
75.2
|
12,541
|
2.0
|
|
Shijiazhuang
|
28.3
|
3,211
|
0.7
|
|
Wuhan
|
65.6
|
8,746
|
1.7
|
|
Changchun
|
28.5
|
4,076
|
0.8
|
|
Shenyang
|
59.7
|
8,914
|
1.6
|
|
Xian
|
35
|
5,142
|
0.9
|
|
Guangzhou
|
113
|
16,867
|
3.0
|
|
Hangzhou
|
38.5
|
6,204
|
1.0
|
|
Harbin
|
47.8
|
481
|
1.3
|
|
Nanjing
|
48.5
|
8,667
|
1.3
|
|
Dalian
|
50.6
|
9,041
|
1.3
|
|
Jinan
|
36.9
|
6,714
|
1.0
|
|
Qingdao
|
27.4
|
3,861
|
0.7
|
|
Zhengzhou
|
30.4
|
4,976
|
0.8
|
|
Kunming
|
19.2
|
4,790
|
0.5
|
|
Changsha
|
26.4
|
4,480
|
0.7
|
|
Nanning
|
14.3
|
4,755
|
0.4
|
|
Shenzhen
|
45.7
|
22,868
|
1.2
|
|
Xiamen
|
18.6
|
13,287
|
0.5
|
|
Haikou
|
7.7
|
12,821
|
0.2
|
|
Cities
total
|
1,281
|
7,168
|
33.9
|
|
National
total
|
3,776
|
2,965
|
100
|
Source:
Access Asia
Average
Wage of Staff and Workers (Rmb in 2000)
|
State
Owned Units
|
9,552
|
|
Urban
Collective Owned Units
|
6,262
|
|
Cooperative
Units
|
7,473
|
|
Joint
Owned Units
|
10,663
|
|
Limited
Liability Corporations
|
9,766
|
|
Share
Holding Corporations Ltd
|
11,131
|
|
Units
Funded by Entrepreneurs from HK, Macau & Taiwan
|
11,914
|
|
Foreign
Funded Units
|
14,372
|
Per
capita Balance of Saving Deposit (Rmb)
(6433
billion Rmb in total in the end of 2000)
|
1997
|
3,762
|
|
1998
|
4,279
|
|
1999
|
4,735
|
|
2000
|
5,077
|
The
Changing Faces of Chinese Women
|
|
Shanghai
|
Beijing
|
Guangzhou
|
|
Lifestyle
|
-Trendy
-Sophisticated
|
-Emphasize
intrinsic beauty
|
-Faddish
-Fashion
follower of HK
|
|
Preference
|
-Brand
conscious
|
-Price
conscious
|
-Time
conscious
|
|
Shopping
Habbit
|
-Loyal
to products made in Shanghai
-Experimental
|
-Functional
purchasers
-Look
for durability and maintenance
|
-Nonchalant
-Buy
imported brands
|
93.5% of young women had irrational or unnecessary
consumption
(taking about 20% of total expenditure)
Unnecessary consumption influenced by:
|
Discount
promotions
|
56%
|
|
In-shop
POP & on-site expositions
|
41%
|
|
Package,
color or style of the goods
|
35%
|
|
Advertisements
|
23%
|
A
Hybrid Approch to Segmenting Chinese Consumers
|
Segment
|
Riche
|
Yuppies
|
Salary
Class
|
Working
poor
|
|
Size
|
100,000
|
60
million
|
300
million
|
840
million
|
|
Geographics
|
Coastal
urban areas
|
Major
urban areas
|
Urban
areas
|
Rural
areas and small towns
|
|
Demographics
|
|
|
|
|
|
Household
income
|
>US$5,000
|
$2,000-$5,000
|
$1,000-$1,999
|
<$1,000
|
|
Age
|
30-65
|
25-45
|
18-60
|
All
age groups
|
|
Education
|
Various
|
College
|
High
School
|
Elementary
school
|
|
Occupation
|
Entrepreneurs
Business people Officials
|
Managerial
Professional Technical
|
Office
clerks Factory
workers
Teachers
|
Manual
laborers
Peasents
Off jobsˇ¨
Migrant
workers
|
|
Psychographics
|
|
|
|
|
|
Orientation
|
Optimistic
|
Hopeful
|
Status
quo
|
Uncertain
|
|
Innovativeness
|
Innovators
Trend-setters
|
Early
adopters
Opinion leaders
|
Early
majority
Emulators
|
Late
majority and laggards
|
|
Risk
Aversion
|
Low
|
Moderate
|
High
|
Very
high
|
|
Readiness
for Foreign Goods
|
High
|
Moderate
|
Low
|
Minimum
|
|
Lifestyles
|
Wheel
& deal,
Dine
& wine in exclusive clubs, frequent shopping
binges
|
Bust
work schedule, frequent dining out & excursions
|
Trapped
8 to 5, thriftily, less buying impulse, occasional
outings
|
Menial
labor, hand-to-mouth, mass style entertainment
|
Source: article by Geng Cui , 1999
The
Pyramid of china's Urban Consumer Market
|
Yuppies
|
5%
|
|
Little
rich
|
15%
|
|
Salary
class
|
25%
|
|
Working
poor
|
55%
|
Yuppies:
Approximately 5% of the market, are an affluent segment
with a household income of 78,181 RMB. These yuppies are
confudent and maintain active lifestyles. They are brand
conscious but also have become more sophisticated in seeking
values.
Little rich
Little rich families constitute 15% of urban China. With
a household income of 29,266 RMB, they are better off
than most Chinese. They are socially active and brand
conscious. However, they feel insecure and concerned about
the future.
Salary class
Salary class households consist of 25% of the urban population,
have an annual income of 15,166 RMB, and are the largest
group employed in the state sector. They are conservative
and satisfied with the status quo, yet they are more established
in social status and sometimes seek out foreign brands.
Working poor
Working poor families represent 55% of urban China and
have an annual income of 6017 RMB. They are largely impoverished,
immobile and at least satisfied. Most of their income
goes to the necessities, leaving them little for other
things. They buy mostly domestic brands.
Service Usage by urban households(Beijing)
|
Internet
cafe
|
5%
|
|
Car
rental
|
8.9%
|
|
TV
shopping
|
14.1%
|
|
International
call
|
17.4%
|
|
E-mail
|
17.5%
|
|
Internet
surfing
|
20.7%
|
|
Express
mail
|
25.1%
|
|
VCD/Video
rental
|
28.3%
|
|
Domestic
long-distance call
|
76.3%
|
|
Cable
TV
|
91.2%
|
Source:
1999-2000 IMI
Leisure
activities (%)
|
Activities
|
Cities
|
Countryside
|
|
Watch
TV
|
59.3
|
61.7
|
|
Go
Shopping
|
28.6
|
12.1
|
|
Outing/tours
|
27.7
|
6.1
|
|
Stay
home/ sleeping
|
20.0
|
21.4
|
|
Play
"Mah Jong"
|
19.4
|
36.3
|
|
Watch
video/ VCD /DVD
|
15.4
|
9.5
|
|
Paly
with childen
|
14.8
|
15.0
|
|
Gathering
& chat
|
14.2
|
37.9
|
|
Surfing
on the internet
|
13.3
|
1.4
|
|
See
movies
|
12.4
|
5.9
|
|
Video
/Computer games
|
9.2
|
3.4
|
Source: Horizon 12/2000
Communications:
Telephones -- 110 million
Mobile cellular - 23.4 million
Television broadcast stations -- 3,240 ( of which 209
are operated by China Central Television, 31 are provincial
TV stations and about 3,000 are local city stations)
Internet Service Providers (ISPs) -- 3
Transportation:
Railways: 65,650 km
Highways: 1.21 million km
Waterways: 110,000 km
|
|
Rural
Areas (Net)
|
Urban
Areas (Net)
|
|
1990
|
17.8
|
6.7
|
|
1995
|
21.0
|
8.1
|
|
2000
|
24.8
|
10.3
|
China's Commitment by Joining WTO
•Slash tariffs on imported goods
•Gradually abolish various non-tariff protective
barriers
•Minimize subsidies on various exports
•Increase the transparency of its trade policies
-116
laws & regulations to be revised & 573 to be repealed
-Local
governments' discretionary power will be reduced
•Respect and expand the protection of intellectual
property rights
•Reduce the limitations to foreign investments
Opportunities of the WTO Accession
•Restrictions on domestic sale by foreign manufacturing
companies (including HK ones) will be lifted
-50%
of HK companies plan to either begin or expand their sales
•Significant increase in opportunities for foreign
companies may import most products into any part of China
•Foreign investment restrictions on services industries
(e.g. distribution, Telecom, financial services, audio-visual
and tourism) will be relaxed
•Majority foreign-owned joint ventures and wholly
foreign-owned companies will be gradually be allowed.
Highlights
of the WTO Agreement
•Average import tariffs for industrial products will
becut from curren 14.8% to 8.9%
-Auto
tariff from current 80-100% to 25% by 7/2006
-Auto
parts tariff to 10% by 2006
-Electronics(e.g.
computers & IT related) tariff to ) by 2005
•Average import tariffs for all agricultural products
will be cut from current 18.9% to 15%
-Beef
tariff from 45% to 12% by 2004
-Apples
tariff from 30% to 10% by 2004
-Wine
tariff from 65% to 20% by 2004
•Telecom value-added services
-30%
foreign ownership in 3 major cities, 49% after 1 year
in 14 cities and 50% after 2 years in the whole country
•Mobile voice & data services
-25%
foreign ownership after accession, 35% after 1 year and
49% after 3 year
•Distribution and retailing
-Majority
ownership in Joint Venture allowed within 2 years ( no
restriction on equity in 3 years)
-Joint
Venture can distribute all imported and domestically produces
products and provide full range of subordinate services
( e.g. after-sales service)
|
New
Features
|
Marketing
Implications
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-GDP
increased continuously at a high rate over 20 years.
However , the per capita GDP is still low
|
-Most
consumers require quality at good prices
Some
are still sensitive to price and durability of products
|
|
-Increased
regional economic gaps & widened income gaps
between social groups
|
-Proper
market segmentation, targeting & product positioning
to different regions & consumers
|
|
-Deflation
economy in recent years and weak consumption
|
-Consumers
are facing many uncertainties, and are more cautious
about spending
|
|
-Most
consumer products are market driven
(demad
> supply)
|
-Concerns
regarding children education, health care , job
security & retirement
-High
penetration rates for most of durable goods
|
|
-Poor
enforcement in laws and regulations
|
-Act
ethically and develop products in compliance with
laws
|
|
-Pirating
and using counterfeit trademarks & package and
other unethical practices
|
-Take
extra effort protect trademarks and to prevent legal
disputes
|
|
-The
state sector still dominates large ˇVscale, capital
ˇVintensive industries
|
-More
fierce and complicated marketing competition
|
|
-Increasing
proportion of collective , private and foreign funded
enterprises
|
-About
half of the 500 largest companies in the world are
already in the market
|
|
-Planned
production is eliminated for most of industries
|
-New
market entry to some important industries are still
difficult ( government control & ˇ§relation
netˇ¨ )
|
|
-Production
and distribution of products become market-driven
|
-Managers
in Chinese firms have difficulty in adapting the
ˇ§marketingˇ¨ concept
|
|
-Price
controls are lifted and mainly determined by market
|
-Over
capacity has spurned price wars in many industries
|
|
-Significant
overproduction in many sectors
|
-More
emphasis on services, brand management, distribution
& promotion rather than price only
|
|
|
|
DMA- Your Environmental Protection Partner
In DMA, Go Targeted for the best direct marketing result is our mission;
Reduce Wastage for higher return and attaining better environment is our priority
Contact us at 28805918 or email us at dma@dm-asia.com
for further details.
|
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Need more details? Get Our company service brief now in just one pdf.
