Trade Tensions Don’t Distract from Pursuit of China’s Consumers, According to New Survey from HSBC
November 08 2018 - 9:00AM
Business Wire
US firms believe Chinese consumers aged
under 30 will be most influential
Although trade tensions between the world’s two largest
economies have flared in recent months, 58% of US businesses
currently exporting to China say they are likely to expand their
businesses there in the next three to five years, according to
HSBC’s first Navigator: Made for China survey.
China is also projected to be the most important market for
future sales for two-fifths (40%) of US businesses considering
China as a future export market, higher than the global average
(29%). Regarding future growth, nearly 61% of US firms believe that
Chinese consumers under 30 years old are going to be the most
influential in driving growth for their business in China. This
compares to 32% of US firms who believe the same for Chinese
consumers born in the 1980s, 1970s and 1960s.
“US businesses recognize that younger Chinese consumers are an
important part of their future growth,” said Jaron Campbell, US
Head of International Subsidiary Banking, HSBC Commercial Banking.
“As China’s economy continues to evolve, US companies are taking
steps to ensure that they are able to capitalize on the rising
importance of this demographic.”
Interestingly, bilateral agreements (41%) were cited as the
third trade pact thought to help companies drive business growth in
China. The top two included Mainland and Hong Kong Closer Economic
Partnership Arrangement or CEPA (54%) and the Regional
Comprehensive Economic Partnership or RCEP (43%).
Other key findings:
- Top three challenges for company’s
growth in China include; ability to adapt to Chinese tastes (35%),
international competitors (35%) and regulatory requirements
(33%)
- Among US businesses currently selling
or exporting to China, 42% say that it is the most important market
for them
- The top factor driving future growth of
sales in China is US firm’s ability to provide specialist expertise
to customers in China (45%)
- For more than half (55%) of the
businesses currently exporting to China competitive pricing is the
top requirement for Chinese customers
- 38% feel that technology services will
be the fastest growing industry sector in China followed by
consumer electronics (27%) and consulting services (19%)
Note to Editors:
HSBC has launched Made for China, a global survey looking into
the outlook of businesses either already selling/exporting to China
or those considering doing so. The research has been undertaken on
behalf of HSBC and asks key decision makers or those having
significant input into the decision making process in eligible
companies.
They are either currently selling/exporting to China or
considering doing so. The study covers the following areas:
- Importance of selling/exporting to
China
- Factors driving growth in
selling/exporting to China
- Challenges in selling/exporting to
China and to further drive growth
- Strategies and sales channels to
China
- Fastest growing sectors / consumer
generations in consideration of selling/exporting to China
A total of 11 markets were surveyed in September 2018. These
include USA, Canada, Mexico, France, Germany, UK, Australia, Hong
Kong, Malaysia, Singapore and the UAE.
HSBC Commercial Banking
For over 150 years we have been where the growth is, connecting
customers to opportunities. Today, HSBC Commercial Banking serves
around 1.7 million customers across 54 markets, ranging from small
enterprises focused primarily on their home markets through to
corporates operating across borders. Whether it is working capital,
term loans, trade finance or payments and cash management
solutions, we provide the tools and expertise that businesses need
to thrive. As the cornerstone of the HSBC Group, we give businesses
access to a geographic network covering more than 90% of global
trade and capital flows. For more information visit:
http://www.hsbc.com/about-hsbc/structure-and-network/commercial-banking.
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version on businesswire.com: https://www.businesswire.com/news/home/20181108005065/en/
HSBCMatt Ward, 212-525-1931matthew.m.ward@us.hsbc.com
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