China Insights

GCiS shares a mix of China economy and business observations, industry articles based on recently published multi-client reports, infographics composed with public statistics and annual reviews of China demographics.

 

At a Glance: The Chinese membrane market

This article is based on a GCiS multi-client report: China Membranes Market Research Report

In the July/August 2013 Edition of Water and Wastewater Magazine, we discuss the market for filtration membranes in China and explain how sales of these membranes will remain robust over the next few years, due to downstream demand and favorable market conditions.

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Why are Foreign Companies Growing Slower in China?

Weakness in One Sector in Particular Provides Part of the Answer

A recent finding from the GCiS Research Data Set shows that over the past 4 years, starting in 2008, domestic Chinese companies have grown significantly faster than foreign-invested companies. This includes both private as well as state owned Chinese firms (SOEs). Heading into 2012, FEI’s (foreign invested companies, including WOFE and JV) were growing significantly slower than Chinese companies.

One reads almost daily how much this or that MNC is having record sales in China, though it bears keeping in mind that in many cases this is not because the company has gained market share in China, but because the economy has grown so fast over the past 10-15 years. Just since the year 2000, China has added over RMB 40 trn in GDP (nominal), or nearly USD 7 trillion at current exchange rates. Certainly some foreign companies have had great success in China above and beyond GDP growth- GM and Apple come to mind. Though in many cases this has been momentum growth, with growth actually below GDP or sector rates. The chart shows that at the start of the period FEI’s were growing at about average (for industrial markets), though this has slowed by 2%, while the rate of Chinese firms has increased.

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China's High-voltage Cable, Wire Market-Domestic Dominance, Foreign Opportunities

This article is based on a GCiS multi-client report: China High Voltage Cables Market Research Report.

An analyst at GCiS China Strategic Research explains how the combination of uneven economic development in China and an uneven distribution of resources has forced the construction of massive high-voltage transmission projects. The cables for these projects are sourced from domestic companies, but there are still opportunities for foreign companies in a more advanced and rapidly growing market segment, submarine cables.  

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Why Can't My Company Do a Billion Dollars in China?

Or $100 Million? Or $100,000?

Most who deal with China strategically have long ago moved past the mindset of “if I could only sell a product to every Chinese person, then I’d have it made…,” realizing that penetrating this market and making sales is not so simple. Unfortunately some still look at China from afar and see a much rosier picture than exists here on the ground- a big market, fast growth rates, low hanging fruit, and with these come expectations that are just as high. Such as for one’s company:

  • To triple sales in China within 5 years
  • To gain 20% market share within 3 years
  • To do $1 billion or $100 min in China within 3-5 years

In some cases these are possible, though in many cases not, especially with a slower market at present. So if your company can’t meet these goals, what’s the problem? We outline here the top factors that will limit growth of your company in China:

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The Road Ahead A Look at China’s Automotive Coatings Market

This article is based on a GCiS multi-client report: China Automotive Coatings Market Research Report.

Repair and OEM coatings markets are fundamentally very different, as one shadows automotive production and the other follows more closely with customer preferences. Luke Johnson, senior analyst at GCiS China Strategic Research, discusses some of the findings from their recent market study on automotive coatings with Coatings World.

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