Raymund Chao, Chairman for Asia Pacific and Greater China, PwC, participated in a panel "Identifying effective strategies for the Chinese consumer market".
While consumption continues to grow into an important driver of China’s overall economic story, in the long term, ‘consumption with Chinese characteristics will be shaped by a booming middle class, an aging population, and a new generation of consumers with unique tastes. Technology and digital innovation, residential and health care expenditures, and changes in disposable income also have an impact. From an international perspective, the cooperation between the Eurasian Economic Union (EAEU) and Belt and Road Initiative (BRI), coupled with the rise of China-Europe Railways, will facilitate cross-border trade and make Eurasian economies an important part of China’s consumption story.
The participants of the panel discussed if China goes through a ‘consumption downgrade’ as global economy slows? They also talked about the technology that can reshape business models to reach Chinese consumers and what should businesses do to address the next wave of consumer-spending growth in China.
Raymund Chao noted during the discussion that if we talk about investments in the retail market in China, then first of all it is necessary to think about final consumers. "We need to determine the preferences of the Chinese people, what kind of food they have, the level of their income," said Raymund Chao. In addition, 50% of consumers in China make purchases online, and 86% use mobile payments. This should be considered when choosing a strategy for successful promotion in the consumer market in China.
Other participants include Maxim Volkov, Chief Executive Officer, Russia-China Argriculture Industry Development Fund; Dmitriy Krasyukov, Chief Operating Officer, SAP CIS; Timur Maksimov, Deputy Minister of Economic Development of the Russian Federation; Dmitry Morozov, General Director, BIOCAD; Xiaojun Yang, President, 9F Group.
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