China boosts domestic consumption
As exports from China lessen due to global economic uncertainty, China looks inwards to its own population and corporations to fund the rapid country growth seen since the mid-eighties.
As said in a FTchina forum “Retail sales have held up much better in China this year than in other big economies, growing at a real 15.9 percent in March year-on-year. But more important than the overall trend is the composition of the retail spending.
The most robust consumer spending figures are coming from inland and lower-tier cities rather than from the traditional growth powerhouses clustered around the Yangtze and Pearl river deltas. A China confidential survey assessing consumer spending intentions among an estimated 64m middle and upper income households in 189 cities in March showed a much higher propensity to spend in lower-tier cities.”
This type of inward spending opens a new window for non-Chinese companies to begin to push sales to China rather than the traditional manufacturing/export methods of the past. With this new market for the world to sell to deeper issues of China’s communication infrastructure begin to surface. How to get the Chinese population to view your products and begin spending their money with you? In the past, a Chinese language section of a company’s website has sufficed as a passive selling opportunity. However, today we see more and more companies building and hosting their sites in or near China due to the quirky Internet access and also due to Internet censorship issues. The CANDIS Groups’ strong position in the Chinese IT industry has allowed the CANDIS Group to grow a high end IT infrastructure from within the country in expectance of this turnaround in consumer trends. Effectively, the CANDIS Group is the bridge between the west and China vis-a-vis connectivity, access and hosting solutions. “We are fortunate that our infrastructure was built with this global picture in mind as now is the time for the world to take an interest in the buying power of Chinese people” says Richard Ford, CANDIS Group’s CTO.
