Tag: China

China: The “Last Untapped Market on Earth”

China consumer spending is on the rise, and it’s showing that China can be a powerhouse for companies selling a vast range of products.  At the Central Economic Work Conference in December, policymakers said that they will "increase the proportion of the middle class" in 2012 and that this will transform the country from one where products are made to one where they are purchased.

Retail sales rose 17% from January through November of 2011.  President Hu Jintao is hoping that retail sales will increase by more than 15% annually over the coming five years and that they will get to 32 trillion yuan by 2015.

In addition, by 2015, China may actually beat out Japan as the world’s center for luxury market goods, according to research that was released by McKinsey & Company.

And companies are starting to follow suit. Apple Inc. recently changed its line that says, “Designed din California, Made in China” to say “Designed in California, Made for China” for its new Shanghai store.

Tesco China, the UK-based grocery and merchandising retailer has more than 100 outlets in China.  Their corporate affairs senior vice president Lu Haiqing said, that China is the "last untapped market on Earth."

Gap Stores Coming to China

China has been targeted as a new location for Gap, the US apparel retailer. Gap has announced that, by the end of 2012, they plan to triple the number of stores they have in China. Trying to counter their less than stellar sales in North America, Gap Inc, which includes Gap, Banana Republic and Old Navy, is outlining a strategy to increase its total sales.

Gap opened its first store in China in November 2010. Now, they plan to expand from their current 15 stores to more than 45 by the end of fiscal 2012.

As Glenn Murphy, Gap chairman and chief executive said in a statement, “The combination of our global strategy and formidable growth platform puts us in a strong position to expand our reach into the top 10 apparel markets worldwide.”