Thursday, January 6, 2011

Size Does Matter!

When it comes to China it does make a huge difference.

China with it's 1.3 billon population has overtaken Japan. In 2008 China's GDP was at $US 4.5 trillion, 2009 $5.0 trillion and 2010 at $5.7 trillion. ( Japan 2008 = $US 5.0 trillion, 2009 = $US 5.0 trillion and 2010 = $US 5.4 trillion) * 2010 figures are estimates by IMF.

Chinese size does matter, in a recent report these Chinese tourist visit Japan in groups. They stayed at cheap hotels eat instant noddles but they spend 10,000 euros on a Louis Vuitton bag.

Chinese from China are buying up almost everything. Their influence on Japan is no longer merely for thousands of years in areas of language to culture. Read these, in 2009 Chinese companies bought 19 Japanese firms to the tune of $US 546 million. This compares with only 4 deals worth $US 316 million in 2006.

Last when I was in Ginza about just 2 years ago, there were already maps, brouchers and now I hear that in Japan today you get magazine and a local mandarin newspaper that circulates to about 90,000 chinese (Japan New Generation Overseas Chinese Newspaper).

Yes they are big China, it's per capita gross domestic product is STILL low. About $US 4,000 against USA $47,000 an Japan $US 42,000.

So my friends we will see a new trend. Maybe new product launches will now be in China as the choice market!

TJ

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