This old China
Card no longer works like before. The new world market, the largest consumer
market, is in China. 1.4 billion Chinese are moving up the economic ladder to
be consumers of better quality goods and services. The growing middle class is
creating a huge demand for higher end goods and services. The buying powers of the
Americans and Europeans have diminished and so is the buying power of the
Japanese. The big consumers are the nouveau riche Chinese in China. The current
wave of China tourists buying overseas would not last for long when China is
making all the goods they desired.
The new
China Card is to produce in China and sell to the growing affluent Chinese
market. Many western and Japanese manufacturers have the foresight to seize on
this opportunity to be in China to sell to the Chinese consumers. There will be
more and more joint ventures with branded high value foreign manufacturers
partnering Chinese businesses to manufacture and produce for the Chinese market.
Without this ticket many of the western manufacturers would go the way of the
dinosaurs, uncompetitive and without a big enough market to sell to. The Americans can try to produce at home and
sell to the Americans at American prices but would not be able to export
anything to the world at a competitive price.
The new
China Card is the way to go to survive. The new China Card is the passport to the
world’s biggest consumer market. A new partnership to make and sell to the
world’s biggest consumer market in China will mean profitability or heading
towards oblivion for the manufacturers of quality consumer goods and services.
This is the new challenge and new normal of the 21st Century.