With decades of economic growth, rising incomes, over 1.3 billion consumers and a surging middle class with an insatiable appetite for Western brands, the allure of the Chinese consumer market – the world’s second largest – is obvious. But, as many consumer goods companies have recognised at their own cost, China is a tough market to enter, compete and survive in, let alone prosper. Yet, in the face of moderating growth and rising costs, the challenges facing international consumer goods businesses in China will not get easier in the long term.
Annual Real GDP Growth and Household Annual Disposable Income Growth in China: 2008-2020
Source: Euromonitor International from national statistics/Eurostat/OECD/UN/International Monetary Fund (IMF), World Economic Outlook (WEO)
Note: Data for 2014-2020 are forecasts.