We all know the buzz, China is here as an economic power. 1 billion Chinese citizens will live in an urban environment by 2025 according to McKinsey.
How does a global enterprise become a going concern within the Chinese consumer market is debated in public forums and boardrooms.
The Chinese Government has taken it upon themselves to increase private consumptions share of GDP and quadruple per capita income by 2020 (McKinsey).
China will be the worlds third largest consumer market by 2020, growing at a 8.3% CAGR, surpassing both the U.K. and Germany (McKinsey).
I propose there is a simultaneous game in a 'collaboration' phase between 2 players. The players are the Chinese Government incentives for private consumption vs. Global Retailers providing foreign direct investment (FDI). A 2 x 2 table theorizes High and Low play with both parties recognizing the added value of collaboration. Each player does have incentive to cheat, but punishment is material. A fund topic to keep our 'eye' on.
How does a global enterprise become a going concern within the Chinese consumer market is debated in public forums and boardrooms.
The Chinese Government has taken it upon themselves to increase private consumptions share of GDP and quadruple per capita income by 2020 (McKinsey).
China will be the worlds third largest consumer market by 2020, growing at a 8.3% CAGR, surpassing both the U.K. and Germany (McKinsey).
I propose there is a simultaneous game in a 'collaboration' phase between 2 players. The players are the Chinese Government incentives for private consumption vs. Global Retailers providing foreign direct investment (FDI). A 2 x 2 table theorizes High and Low play with both parties recognizing the added value of collaboration. Each player does have incentive to cheat, but punishment is material. A fund topic to keep our 'eye' on.
Links to McKinsey China Consumer information below.
McKinsey Reports
McKinsey Global Institute (MGI) Consumer Demand & Demographics
http://www.mckinsey.com/mgi/rp/consumerdemand/
Preparing for China's urban billion
http://www.mckinsey.com/mgi/publications/china_urban_billion/
If you got it spend it, unleashing the China consumer
http://www.mckinsey.com/mgi/publications/unleashing_chinese_consumer/index.asp
The value of China's middle class
http://www.mckinsey.com/mgi/publications/china_emerging_middle_class.asp
