What business are booming in China? What industry is growing quickly in China?Why foreign business owners invested in China market for their product service?
Some business owners are still reviewing and thinking when and what to catch the big business opportunity in China market.
SODA Global Marketing China Strategy Expert would like to make use this article to help you to get some hints and choose the right way to start now!
What is China market status in 2022
China import from USA from 2012-2021
In past 10 years, China developed a lot for import and exports business. US China trade data gives us good proof to see what the business look like. Such as import data for China from US (Data from Census), we can see there is stable improvement, especially reached a peak level in 2021.
Top 10 industries China imported from US are below.
Most are from energy material like fuels, iron, high tech products and agricultural products for consumers are also increasing a lot in 2021.Data is from US China business council.
In addition to Microsoft, Facebook, Apple, and HP, almost every Fortune 500 corporation has a presence in China. Behind one billion people and a rapidly expanding economy, China is the best destination to locate and start a company without a doubt. China's economy is huge and expanding at super fast speed. Export and import of products is also the country's primary source of revenue.
Top 3 reasons to invest in China
China huge market potential
China's GDP rose by 8.1% in 2021 to $18 trillion. As a result of this expansion, China's economy has now exceeded the $15.73 trillion in GDP of the European Union as a whole.
With a population of 1.4 billion, China’s GDP per capita was US$12,551 in 2021,.Many corporations are seeing enormous development potential in China because of the country's large population, its extensive engagement in a wide range of industries, and its political clout in many fields. And as an investor, you should search for a sector with more promising long-term development.
China multiple industry integration
Because of China's large labor force, high-quality infrastructure, and other benefits, manufacturing remains a viable option in the country. Despite the focus on China's growing labor costs, aspects like as worker productivity, dependable logistics, and the convenience of obtaining products inside the nation typically outweigh these costs.
The Chinese government's efforts to expand its reach in fields such as IT, economics, and politics are reflected in the enormous growth potential that many enterprises are seeing.
RMB Currency is strong
The strengthening of the yuan in contrast to the dollar during an inflationary cycle might help an investment in this market.
The Chinese yuan has gained more than 2 percent against the United States dollar in 2021, making it the best-performing major emerging market currency. Its trade-weighted value against key trading partners has increased by more than 2 percent.
Top 8 fast growing business in China 2022
No.1 New energy industry
China is attempting to achieve its "dual-control" goals of limiting energy intensity and consumption through the use of market forces. It's expected that the five-year plans will provide concrete direction following the completion of COP26.
More than half of new power capacity increases will come from renewable sources during the 14th five-year plan term (2021-25).
Firstly will be new energy vehicle industry, now besides Tesla, more and more China domestic auto brands started their E-Vehicle business, like XiaoPeng.More than 20 percent of new automobile sales in China will be made up of electric cars (EVs) in 2022, with a 45 percent rise in sales over the previous year.
Secondly solar related products are increasing quickly well.There may be more than 388 gigawatts (GW) of solar power capacity in China by this year, following the addition of 85 in 2021, which would represent an increase of 28% over the 20% in 2021.
No.2 Career and technical education in China
It follows on the heels of China's ruling Communist Party's July 2021 announcement of a "Double Reduction" policy that included a ban on for-profit tutoring of school topics for youngsters, thereby eradicating a $100 billion business.
However, there is still huge demand for career and technical education in China, such as some trainings for jobs.More people needs to adjust the remote work mode or start up their own small business, such training or consultings are very necessary for such new groups.
No.3 Nutrition and health business
Due to Covid, more and more products and services related to healthy care are booming in China. Food, Vitamin,small business health insurance, fitness, sport products….As the younger generation takes over as the driving force behind nutrition and health consumption, more practical functional items are becoming increasingly preferred.
No.4 Online business
The availability of internet services in China is predicted to increase, with revenue expected to expand by 17 percent by 2022. As a result, it is anticipated that the online service business would surpass $800 billion in revenue by 2021. Because of the lockdowns, the number of internet users has surged significantly during the previous two years.Like online meeting software, online event, online ecommerce….
No.5 Elderly care services
A plan for aged care services system during the 14th Five-Year Plan period (2021-2025) has been announced by the Chinese State Council, marking the latest step in the country's efforts to execute a national strategy to deal with population aging.
Among the key aims and duties for the five-year term are extending the supply of elderly care services and related products, enhancing the health support system for the elderly, and furthering the creation of service models that are creative and integrated in nature.
No.6 Courier service
The logistics service industry is also on the increase, with revenue growth predicted to reach 17.6 percent by 2022, according to forecasts. The industry will increase its usage of alternative and clean energy vehicles and investigate the possibility of building green distribution hubs.
Despite the fact that courier services are a relatively young company in China, they have made things more easy for both customers and retailers. With the introduction of eCommerce into the market, the industry is likely to grow even more rapidly.By the end of 2022, the courier service will serve virtually all administrative villages in China, adding that rural areas' logistical infrastructure will be improved.
No.7 Media and Entertainment Industry
According to research, more people used the internet and internet-based services during the COVID-19 lockdowns, with internet service usage increasing from 40% to 100%. The rise has reshaped the internet landscape, especially in China.
According to the GWI research (2021), a credible KOL has a greater influence on customers, particularly the younger age. 27 percent of GenZ said their primary purpose for using social media is to connect with key opinion leaders.
From a marketing angle, various social networks worked with each other in China, WeChat is still top social media in China,the growing popularity of live streaming ecommerce and KOCs (Key Opinion Customers) on platforms such as Douyin (Chinese TikTok), Little Red Book, and Zhihu demonstrates their ability to assist brands in raising awareness, generating engagement, and selling products.
No.8 Small business service
China's services sector crossed 50% of GDP in 2017 and is projected to reach 53.3 percent in 2021. This is much more pronounced in larger, highly industrialized cities such as Beijing, Shanghai, and Shenzhen, where the service sector accounts for 81.6 percent, 73.3 percent, and 62.9 percent of GDP, respectively.
Service or projects which support small business increased a lot, like sharing office, human service, payroll service…
Next step for China business strategy
If you already or plan to have some products or services related to industries we mentioned above, don’t hesitate to consider China as your main market. No worries about challenges for entering Chinese market, SODA Global Marketing offers full service for business settings, Chinese digital marketing, China Online shop selling, B2B sales to solve all your headaches.