China Catalyst: Powering Global Growth by Reaching the Fastest Growing Consumer Market in the World


Praise for China Catalyst

"Breaking through the clutter with a fact-based and analytical approach, China Catalyst identifies new sources of consumer growth, strategies companies are using to reach new consumers, and how your company can participate."
—Shaun Rein, founder of China Market Research Group and author of The End of Cheap China

"Comprehensive, current, and concise, China Catalyst provides a rich ...

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Praise for China Catalyst

"Breaking through the clutter with a fact-based and analytical approach, China Catalyst identifies new sources of consumer growth, strategies companies are using to reach new consumers, and how your company can participate."
—Shaun Rein, founder of China Market Research Group and author of The End of Cheap China

"Comprehensive, current, and concise, China Catalyst provides a rich understanding of China's evolving consumer market. It separates reality from perception with unique foresight that will help you build a future-focused China strategy."
—Bill Eichhorn, Current Executive Vice President and Former International President, Textura Corporation

"From identifying today's consumer demand hot spots to outlining the future state of retail in China, China Catalyst provides important insights for any company looking to expand into China's growing consumer economy."
—ED Rennemann, Chief Transformation Officer, Crate & Barrel

Maximize your presence in the Chinese market

One billion consumers are awaiting your business in China. Most of these consumers reside in cities that are not yet the household names of Beijing and Shanghai. The top ten fastest growing cities in the world are all in China. They lie inland, away from cities like Beijing, Shanghai, and others that have been the focus of the last generation. Despite this significant opportunity, many companies are not yet fully equipped to reach them. The emergence of China's consumer economy in these new, emerging areas are happening at a faster pace than most realize—it's time to prepare. China Catalyst provides you with a comprehensive overview of China's economic transition to help you chart a road map to gain a competitive edge in the marketplace.

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Product Details

  • ISBN-13: 9781118411292
  • Publisher: Wiley
  • Publication date: 7/1/2013
  • Edition number: 1
  • Pages: 176
  • Product dimensions: 6.20 (w) x 9.00 (h) x 0.80 (d)

Meet the Author

DAVE M. HOLLOMAN is currently an Associate Partner with IBM's Global Business Services organization. He has more than twenty years of global experience in applying technology and leading practices to help companies develop new sources of competitive advantage. Dave has received certification in production and inventory management from the American Production and Inventory Control Society (APICS). He also received a BS in industrial engineering from the University of Cincinnati and an MBA from the Kellogg School of Management at Northwestern University in Chicago.

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Table of Contents

Preface ix

Acknowledgments xiii


CHAPTER 1 Into the Light: China’s First Economic Miracle 3

A System Spirals Out of Control 6

Chaos Returns 7

Riding South to Reignite Reform 12

The Rise of Shenzhen and a New China 13

Notes 15

CHAPTER 2 Economic Transition 17

Wage Rates Are Increasing Signifi cantly 17

Foreign Direct Investment Is Evolving 20

Export-Directed Growth Is Being Challenged 21

Demographic Megatrends 22

The Rise of the Chinese Consumer 25

Notes 28

CHAPTER 3 Catalysts for Consumption 31

Build It Quickly: The Physical Infrastructure to Move Goods and People 33

Incentives to Increase Consumption 38

The Free Flow of Capital 40

Notes 43


CHAPTER 4 One Country, Many Markets 47

Disposable Income: Who’s Got the Most? 50

Urban Income Growth Rates: Emerging Consumers 50

Getting a Fuller Picture 52

Consumer Demand Clusters 57

Notes 64

CHAPTER 5 Channels to a Growing Market 65

An Overview of China’s Major Channels to Market 66

A Closer Look at China’s Top Brick-and-Mortar Retailers 75

Notes 81

CHAPTER 6 Guan Xi Goes Online 83

An Overview of China’s Digital World 85

The E-Commerce Rocket 87

E-Logistics: The New Core Capability 90

The Infl uence of Social Media 91

Go Where the People Are 95

Notes 96

CHAPTER 7 Distribution Issues and Trends 99

Overview of the Distribution Structure 100

Closing the Consumer Trust Gap 105

Distribution Trends 110

Retailer-Supplier Partnerships 114

Notes 117

CHAPTER 8 Hefei: Home of the World’s Next-Generation Consumer 119

Life in the Middle 119

China’s Sibling 122

Hefei Rises 124

Big Retail Moves In 127

Notes 130


CHAPTER 9 Go Deep: The Emerging Go-to-Market Retail Model 135

The Emerging Go-to-Market Model 138

Targeting Demand Clusters and Expanding Out 138

Expanding In 140

The Implications for Retailers and Manufacturers 142

IT as an Enabler 145

Notes 148

CHAPTER 10 The New Export Machine 149

Two Examples of China-Based Innovation: Kraft Foods and the Coca-Cola Company 150

Switching the Innovation Gear 152

Digital Culture 156

Multichannel Innovation 157

Notes 158

CHAPTER 11 The Path Forward 161

Challenges at a Crossroad 162

Final Thoughts on Strategy 164

Conclusion 166

Notes 168

About the Author 169

Index 171

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