China has risen from developing nation status to second place in the global GDP rankings in just a decade. The resulting improved living standards and greater spending by Chinese consumers has proven a tremendous opportunity for both local Chinese and global brands. These developments were also a shock to China’s system as its own citizens sometimes struggled to keep up with the pace. Just who are Chinese consumers? What are their lives like and what are they looking for? These are the questions China’s Evolving Consumers attempts to answer. It does so, and with some success, by lifting the lid on other aspects of their lives.
The predominant narrative on Sino-African relations is relatively simple. After more than three decades of sustained economic expansion, China is an economic juggernaut, with trade and investment overflowing its borders and into the global market. One the one hand, China, with its overcapacity, seeks new markets and new places from which to secure natural resources to keep the economic machine going. On the other, Western disengagement from Africa since the end of the Cold War has been filled in part by China, and China-Africa relations need to be understood as the logical outcome of the marginalization of Africa in the age of globalization in which Africa is hungry for development, investment, and capital.
Africa is, as far as development is concerned, the next frontier. China is leading the charge in setting up factories and businesses across the continent. McKinsey’s Irene Yuan Sun writes in The Next Factory of the World that this will help Africa become a “global manufacturing powerhouse” as it follows China’s path to industrialization. However optimistic this may sound, Sun argues that not only did China do this itself during the 1990s and 2000s, but that it is already working in Africa.
There is an old saw about advertising that only half of it works, but one never knows which half. And one suspects that despite all the data gathered and statistics generated, the online counterpart remains more art than science. Digital marketing involves navigating, in the words of Donald Rumsfeld, a number of known unknowns: things that at least one knows one does not know. For Westerner marketeers, however, China is largely a haze of unknown unknowns, things one doesn’t even know one doesn’t know.
In The People’s Money, Chatham House’s Paola Subacchi discusses the internationalization, or relative lack thereof, of the renminbi. The subject can be rather like a room of mirrors if one does not follow developments in international currencies, but for those that do, the book serves as a clear overview of the history and the issues, both in general and those facing Chinese policy-makers in particular.
Google vs. Baidu. Amazon vs. Taobao. Whatsapp vs. WeChat. And, most recently, Uber vs. Didi.
There is clearly a divide between China and the rest of the world when it comes to internet companies. Homegrown Chinese tech firms have fought off American challengers attempting to enter the Chinese market. Chinese firms have tried to expand their presence abroad. Alibaba had the largest IPO in the history of the New York Stock Exchange. Tencent is trying to market WeChat to non-Chinese consumers, and has invested significant stakes in Western video game companies, including an outright purchase of League of Legends’s developer Riot Games.
Jack Ma once described online shopping as a dessert in the United States, but the main course in China. That’s one of a set of key differences between developed-economy e-commerce and that of China, differences that escorted eBay out the Chinese door and kept Amazon as a minor player here, while the Alibaba Group has become the world’s largest retailer, the company with the largest IPO ever (US$25 billion in September 2014, though NTT DoCoMo’s 1998 IPO of $18.1 billion is about the same in current US dollar terms) and the nexus of around two-thirds of all parcels delivered in China. Writing for Harvard’s Working Knowledge in May 2014, Professors William Kirby and F Warren McFarlan assert that Alibaba “has done more for China’s small- and medium-sized enterprises than any government policy, ministry, or bank.”