1.3 billion customers – a myth or a reality 1300000000客户-神话还是现实

By Tsering Kyinzom 由次仁kyinzom

1.3 billion customers. 13亿顾客。 This is the magic number that captures the imagination of every company in the world with something to sell in China. 这是魔术数字说，又富有想象力的每一家公司，在世界各地与一些在中国销售。 Many would be tempted to think that even if they grab as little as 1 percent of the market share, they still have 10 million customers. 很多人会被引诱认为，即使他们抓斗少1 ％的市场占有率，他们还拥有10万用户。 Well, that’sa simple mathematical calculation and it remains just that. 那么， that'sa简单的数学计算，它仍然只是。 The trick lies in understanding China’s billion-plus population, what they buy, their spending power and what determines their purchasing pattern. 伎俩在于了解中国的10亿以上的人口，使他们购买的，他们的消费能力，以及什么决定了他们的购买模式。 In order words, the mind and the wallet of the Chinese consumer. 为了换言之，心灵和钱包的中国消费者。

China is going through an unprecedented economic boom and people’s pockets are getting deeper with many ready to embrace new lifestyle concepts and habits.中国正在经历一场前所未有的经济繁荣和人民的口袋不断加深，许多准备迎接新的生活观念和习惯。 What was until recently unavailable, forbidden or unaffordable is now available and affordable.什么是直到最近无法使用，禁止或支付不起现已和负担得起的。 At the same time, this is a China with many sub-Chinas – the city and the countryside, farmers and businessmen, young and old.在同一时间内，这是一个中国与许多附属我国-城市和乡村，农民和商人，青年人和老年人。 Out of 1.3 billion people, only about 400 million live in urban areas.列13亿人中，只有约400万人生活在城镇地区。 And income distribution is extremely uneven.与收入分配是极不均衡的。

A country of contradictions 一个国家的矛盾
China is not just a country of extremes, but also a country of contradictions.中国不仅是一个国家的极端，但也是一个国家的矛盾。 On the one hand, Chinese people don’t mind traveling for miles in pursuit of a good deal or spend an hour bargaining on bare essentials.在一方面，中国人不介意行绵延数英里，在追求的是一个很好的协议或者花一个小时的讨价还价裸必需品。 On the other hand, they will spend a fortune on premium brands as a manifestation of their social and economic status.在另一方面，他们会花了横财，对优质品牌作为体现自己的社会和经济地位不相称。

That’s not all.这还不是全部。 There are significant differences among Chinese buying habits - influenced by their generational gaps and place of origin.有重大分歧，中国的购买习惯-的影响，他们的代际差距和原籍地的。 For example, those above 35 are more traditional and prefer to shop from local stores while those under 30s are more exposed to Western products.举例来说，那些上述35条较传统宁愿店从当地商店，而下年约三十岁，更多的机会接触到西方的产品。 Similarly, those living in coastal cities like Shanghai and Guangzhou have higher spending power as compared to smaller inland towns and villages.同样地，那些生活在沿海城市，如上海，广州等具有较高消费能力相比，规模较小的内陆城镇和村庄。

The young consumer group and emerging middle class 年轻的消费金融集团和新兴中产阶级
It is the young breed of consumers with high disposable income and the vast aspirational middle class of China who are the target audience for foreign companies.它是年轻一族的消费者提供高可支配收入和广大期望中产阶层的中国人的对象为外国公司。

An increasing number of young Chinese with high levels of education belong to the majority of the big-earner-big-spender class.越来越多的华人青年与教育水平高是属于大多数的大仔-大富豪阶层。 Instead of concentrating on the 8-million affluent households, companies are now increasingly catering to the 30-million middle class families, many of them in second-tier cities.而不是集中于800万富裕家庭，公司，现在越来越多的饮食，以30万元的中产家庭，他们中的许多人在二线城市。 In fact, it is the emerging middle class that has propelled the sale of consumer products like televisions, mobile phones and personal computers in China.事实上，它是新兴的中产阶级表示，就一直销售消费性电子产品，电视机，移动电话和个人电脑在中国。

Competition in the market 市场上的竞争
Amid all the hype on China’s rapid modernization and growth, the Chinese marketplace is not without its fair share of challenges for new entrants as well as those already established there.在所有的炒作对中国的快速现代化和增长的同时，中国市场上也不是没有公平分担挑战，为新入行的人士，以及已在那里建立的。

Competition is intense.竞争是激烈的。 It not only comes from other foreign companies attempting to capitalize on the China opportunity, but also from home-ground companies who enjoy regional patronage, strong connections and a deep knowledge of the local environment.它不仅来自于其他外国公司企图利用对中国的机会，而且还会从家里地面公司享有区域乘客，密切的联系，并深入了解当地环境。 Some of them have grown to become local powerhouses and have become stronger by applying global know-how in a local context.他们中的一些人已经成长为当地的强国，并成为有力的运用全球诀窍在当地的情况。 For instance, companies like home appliance giant Haier and PC maker Lenovo have the traits of truly global competitors.举例来说，像家电巨头海尔的PC制造商联想集团有性状的真正的全球竞争者。

• Haier has grown from a refrigerator factory in Qingdao into the biggest home appliance manufacturer in China and a major supplier to over 160 countries over the last two decades. •海尔不断壮大，从冰箱厂在青岛成为最大的家电制造商在中国的一个主要供应商超过160个国家在过去20年里。 Its phenomenal success is attributed to the company’s “one low, three high” strategy, the one low being “cost” and the three highs as “value, growth and quality”.其惊人的成功归因于该公司的"一低，三高"战略，使一低"成本" ，以及三高"的价值，成长和素质" 。
• Lenovo is undeniably the “global Chinese company”. •联想是无可否认的"全球华人公司" 。 From its humble beginning 20 years ago, it has become the world’s third largest manufacturer of personal computers and its purchase of the PC division of IBM is recognized as the most daring overseas acquisition by a Chinese company.从卑微的开始， 20年前，它已成为世界第三大制造商的个人电脑和其购买的个人电脑事业部的IBM是公认的最大胆的一次海外收购，由一家中国公司。 The company’s aggressive strategy of combining low price with cutting-edge technology has made it a stunning success.该公司的咄咄逼人的战略相结合的低价格与尖端技术，作出了一个惊人的成功。

Many multi-national companies had to shut down due to its failure to keep pace with domestic competitors.许多多国公司不得不关闭，因为它未能跟上国内其他竞争对手。 Australian beer and wine giant Fosters, for instance, went to China in 1993 and had to liquidate its business after 13 years without profit.澳洲葡萄酒，啤酒巨头培养，例如到中国在1993年，并已用来清偿其业务13年后，没有利润。 Although China has the largest beer market, the company found it a tough environment to operate in due to weak branding and competition from low-priced domestic beers.虽然中国拥有最大的啤酒市场，该公司发现它强硬的运作环境中，由于弱品牌和竞争从价格较低的国内啤酒。

Another factor that contributes to the China market competitiveness and the challenges faced by foreign entrants, particularly in retail, is its fragmented nature. 另一个因素，助长了中国市场的竞争力，以及所面临的挑战，外国进口，特别是在零售，是其割裂性的。 Even though global retailers like Wal-Mart and Carrefour have successfully made their presence felt, organized retail in China is still small, accounting for 20 percent as against 80 percent in the developed world. 尽管全球性的零售商，如沃尔玛和家乐福已经成功取得了他们的存在感到，有组织零售在中国还是很小的，占百分之二十，作为对80 ％ ，在发达世界。 Organised retail still faces a large amount of competition from the high concentration of privately owned retail outlets and mom-and-pop shops scattered across the length and breadth of the country. 主办零售业仍然面临着大量的竞争，从高度集中的私人拥有的零售网点和小本经营的家庭商店遍布从深度和广度上的国家。

However, by using the right strategies and having a long-term approach, many global companies have cracked the market.但是，用正确的策略，并具有长远的做法，许多全球性的公司已经破解了市场。 Procter & Gamble, for instance, is a success story.宝洁，举例来说，是一个成功的故事。 It entered the market in early 1980s, just about the time China opened its doors to the outside world. Seeing the opportunity, it has taken a long term view to success in China.它进入市场，在80年代初，只是当时中国打开大门，向外面的世界。瞄准了机会，它已采取长远的观点在中国取得成功。

Specifically it has shown a long-term commitment to its China operation, introducing world-class technologies to China, building firm relationships with the concerned authorities at both the local and national levels and has developed itself into a strong local company. P&G’s meticulous groundwork as part of its market entry strategy also paid huge dividends.具体来说，它已显露出的长期承诺，其中国业务，引进世界一流的技术带到中国，建立稳固的关系，与有关当局交涉，在地方和国家两级，并已使自己发展成为一支强大的本地公司，宝洁公司的精心地基的一部分，它的市场进入策略也付出了巨大的红利。 It went to the market three years before it actually started selling its products, during which time it solely focused on creating brand awareness.它到市集三年前，它实际上开始销售其产品，在这段时间里，它仅仅集中于创造品牌的知名度。

Lessons from the front lines 来自第一线的教训
James McGregor, having lived in China for almost two decades as a successful journalist and China investor, in his book “One Billion Customers” mentions that:詹姆斯理觉后，在中国生活了近20年，作为一个成功的记者和中国投资者来说，在他的著作"十亿顾客"中提到：

• China is modernizing, not necessarily Westernizing. •中国是现代化，不一定西化。 It helps to retain a Chinese essence in your business.它有助于保留一个中国的本质，在您的业务。
• Avoid joint ventures with government partners unless there is no choice. •避免合资企业与政府的合作伙伴，除非是没有选择的。 If required, understand that the partnership is about China obtaining your capital, technology and know-how while maintaining Chinese control.如果需要，明白指出，伙伴关系是中国获取你的资本，技术和技术诀窍，同时保持中文控制。
• Don’t just go by the Chinese feasibility market study. •不要随便由中国市场的可行性研究。 It will be aimed at attracting your interest and not always painting the real picture.这将着眼于吸引你的兴趣，而且并不总是画的真实图片。 Do your own due diligence.做你自己的尽职调查。
• A long-term approach to China is a must. •一项长期方针，中国是一个必须进行的。 One must not be bogged down if the initial returns are not as promising as was hoped. Losing focus will ensure you do not recover the value of the time and resources spent initially.千万不要陷入如果最初的回报，还不如大有希望的，因为他希望失去重点，将确保你不收回价值的时间和资源花在初期。
• There is no place for passive investment in China. •有没有地方被动在中国的投资。 A company has to be actively engaged in forging relationships, building its brand and securing itself as a local company.该公司建有一个能够积极参与锻造的关系，建立其品牌形象和确保本身作为一个本地公司。
• Don’t equate language ability with business acumen. •不等同于语文能力与商业头脑。 The savviest of the Chinese businessmen may not know a word in English or has an overseas qualification.该savviest的中国商人可能不知道，总之，在英语或有海外资格。
• Don’t bribe. •不要行贿。 Focus on building a long-term, mutually beneficial relationship.侧重于建立一种长期稳定，互利的合作关系。
• An entrepreneur in China must understand politics, but cannot directly participate in politics. •一位企业家，中国必须了解政治，但不能直接参与政治。 Your company also has to help solve the country’s problems.你的公司也有，以帮助解决该国的问题。

Conclusion 结论
Despite large-scale investment and interest from foreign players, China still remains a medium-sized market.尽管大规模的投资和利息，由外籍球员，但中国仍然是一个中等规模的市场。 The high GDP rate notwithstanding, it will take many more years for the Chinese to prove that their spending ability matches the promise their population offers.高国内生产总值的比率尽管如此，它仍需要许多年，为中国，以证明他们的消费能力相匹配的承诺，他们的人口提供。 Overzealous companies, who jump on the plane to China simply looking at the impressive figures, are in for a nasty surprise.过份公司，跳转上飞机到中国，根本看令人印象深刻的数字，是在一个恶劣的惊喜。 However China remains a huge opportunity with many untapped sectors and a large population and growing middle class demanding new products and services.但是，中国仍然是一个巨大的机会与许多尚未开发的行业，并有大量的人口和不断壮大的中产阶级的要求，新的产品和服务。 The key factors lie in adopting sound business practices and taking a long term view to developing a local business.关键因素在于采取健全的商业惯例，并考虑长远的观点出发，以发展当地的业务。

(Source – Knowledge@Wharton, （资料来源-沃顿知识在线， http://knowledge.wharton.upenn.edu/ , Emerging Opportunities in BRIC,新兴机会在金砖， www.atkearney.com ; China’s Growing Consumer Market, ;中国日益增长的消费市场， www.klakogroup.com ) ）

Tsering Kyinzom,次仁kyinzom ， China Trade Gateway中国贸易门户