US Brands Expanding their Reach into the Chinese Market
US consumer brands raging from fast food to fitness clubs are expanding their reach into China, hoping to grab a share of the huge consumption potential that is brought by economic transition. Val Huston the principal commercial officer with the US Embassy in China believes that country has a huge potential for a franchise industry in consumer brands as people’s income is on the rise and more Chinese people are looking for a wider array of high quality products and services across the country.
Retail franchising is fast becoming a promising industry in the as it creates job opportunities and stimulates investment. According to the US International Franchise Association retail franchising generates more than $2 trillion in the US economy nad providing 18 million jobs. By opening retail franchising in China it will be generating 10 million jobs. China is one of the biggest markets in the world and long term partnership is offered since China’s economic shift from a manufacturing driven sector to a consumption based is offering a huge potential.
As markets expands in China. US brands are looking for other ways to penetrate the market. Am example is the world’s biggest gym chain Anytime Fitness is setting its eyes in the Chinese fitness market since it is under developed having less than 1 percent of Chinese people going to the gym or fitness clubs compared to the Japanese which is 3 percent. China in a long term perspective in market growth will continue from many decades, but accessing a new market is not as easy, it takes effort in finding the right location, suppliers and partners, localizing products and services.