“MNCs in China: Missing the Point?”
In the June 13, 2011 issue of The Financial Times Online, Booz & Company Partner Joanne Bessler (China) said that many Chinese companies are adopting aggressive strategies to gain market share, including 61 percent of those surveyed that are expanding or planning to expand their R&D capability in China. That compares to only to only 26 percent of Western multinationals planning to expand their R&D—and highlighted how Chinese companies are adapting to meet the increasingly sophisticated taste of Chinese consumers. Bessler was referring to the findings of a joint report from the American Chamber of Commerce in Shanghai and Booz & Company that said China is likely become the second-largest consumer market in the world by 2015, trailing just the U.S. The study also determined that as their incomes grow, Chinese consumers will have enough purchasing power to buy 14 percent of the world’s goods by 2015, up from five percent now. Wider access to information, travel and the Internet is raising awareness about different lifestyles in China and driving demand for a greater range of choices than in the past, the report added. Such trends reflect the transformation of China into a dynamic consumer economy from a centrally planned one that several decades ago was dominated by rationing and shortages.