Fnac -- It Is Time To Arrive In China Or Not?
...have been ready to experience a revolution in their purchasing of books, CDs, DVDS, etc. Earlier years the big success of the international supermarket chain come to China and changed the way the Chinese families’ buying their daily life products, and the overall national growth of wealth also enable them to pay more for their mental consumption. It is a good opportunity for the foreign advanced companies who are experienced enough to begin their business in China, but who is the one that can seize the resources at the first time?
I. Expenditure trend
Year 2002 2005 2010 2030 2050
Expenditure (Billion RMB) 6318 7861 10566 35613 109024
Growth 2002 - 2005 20%
Growth 2005 - 2010 34%
Growth 2010 - 2030 237%
Growth 2030 - 2050 206%
(Table 1. the expenditure growth from 2002 to 2050)
The total value of consumer expenditure grew by 20% through the year 2002 and 2005, which continued to experience a higher growth in the future.
The Engel coefficient also tells us that by the year of 2010, this number will decrease till 30% while a further drop of 25% will be realized by the year of 2020. The Chinese consumers are tending to pay more for the non-food products in their daily lives with the increase of their income and wealth.
These figures point to a strong growth in the cultural products including books, CDs, DVDs and other kinds of recreation and leisure product, due to the Chinese are at the same time paying more and more attention to the importance of education and they have changed their social value and lifestyles which emphasized more on the aspect of leisure and their pursuit of high quality of life.
II. The domestic bookstore industry – Competition from the local and international players
China is predicted to be the biggest book market that is under-developed, and according to a report by the CIPS (a...
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