The Current Situation of the Chinese Market:

Since 2020, due to the impact of the pandemic, the economy of China and even the world has been hit, and therefore, purchasing power has also started to decline. As of now, although China’s purchasing power has not yet recovered to pre-pandemic levels, it still holds a leading position in the world – as early as 2018, China’s purchasing power had far exceeded that of Western countries.

One of the three reasons why you must enter the Chinese market: China’s purchasing power level will quickly recover to pre-pandemic levels and surpass Western countries again.

China has a population of 1.4 billion and a large number of potential consumers – these consumers are distributed on various social media platforms in China. For example, young people gather on platforms such as Xiaohongshu and Bilibili, while platforms like Douyin and Kuaishou are distributed across all age groups. As long as relevant work is done well on these social media platforms, a large number of customers can be obtained. At the same time, Taobao and JD.com have respectively registered 500 million and 300 million people – by combining social media and e-commerce, based on China’s strong purchasing power, one can quickly establish a foothold in the Chinese market.

One of the three reasons why you must enter the Chinese market: China’s market, even though it holds a leading position in the world, still has great potential.

As post-2000s and post-90s gradually enter the workforce, and their consumption concepts have already greatly differed from those of their parents, various emerging industries based on consumption upgrades and diversification will present different types of consumers in China, and they will grow at an unpredictable speed.

One of the three reasons why you must enter the Chinese market: Even small brands can obtain a large number of customers in China.

Chinese cities are divided into first-tier cities and second-tier cities, and even extend to 18th-tier county towns. The middle-aged and elderly in big cities are easily brainwashed by big and old brands, but as the younger generation floods into big cities, this phenomenon is starting to change: the younger generation prefers fresh goods and brands, so new brands have a strong appeal to young people in big cities. Meanwhile, in 18th-tier county towns, it is a new battlefield for small brands, where they can alleviate the competitive strength of big brands in first-tier cities, making it easier for people to accept emerging brands.

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