HSBC Navigator: Chinese Consumers Want Canadian-Made Goods

Ad blocking detected

Thank you for visiting CanadianInsider.com. We have detected you cannot see ads being served on our site due to blocking. Unfortunately, due to the high cost of data, we cannot serve the requested page without the accompanied ads.

If you have installed ad-blocking software, please disable it (sometimes a complete uninstall is necessary). Private browsing Firefox users should be able to disable tracking protection while visiting our website. Visit Mozilla support for more information. If you do not believe you have any ad-blocking software on your browser, you may want to try another browser, computer or internet service provider. Alternatively, you may consider the following two offers if you want an ad-free experience.

Canadian Insider Club
$299/ year*
Daily Morning INK newsletter
+3 months archive
Canadian Market INK weekly newsletter
+3 months archive
30 publication downloads per month from the PDF store
Top 20 Gold, Top 30 Energy, Top 40 Stock downloads from the PDF store
All benefits of basic registration
No 3rd party display ads
10-day money back guarantee*
JOIN THE CLUB
Canadian Insider Ad-Free
$49/ year*
All benefits of basic registration
No 3rd party display ads
10-day money back guarantee*
GO AD-FREE

* Price is subject to applicable taxes. Money back guarantee: For bona fide Ad-Free or Canadian Insider Club subscribers, if you downgrade to Basic or cancel with-in 10 days of first subscribing, we will refund your payment upon request. Immediately after downgrading or cancelling, using the same email that is associated with your account, request a refund via our Contact Us form at the bottom of the page. We will only consider one refund request per household or organization. We cannot accommodate refund requests where an account holder has not provided verifiable address and billing information.

Paid subscriptions and memberships are auto-renewing unless cancelled (easily done via the Account Settings Membership Status page after logging in). Once cancelled, a subscription or membership will terminate at the end of the current term.

HSBC Navigator: Chinese Consumers Want Canadian-Made Goods

Canada NewsWire

Survey charts international businesses' ambitions to sell to China's fast growing consumer market
"To succeed in the future, international businesses must be 'Made for China'"

VANCOUVER, Nov. 6, 2018 /CNW/ - Canadian businesses are increasingly looking at China as a future growth market to sell and export their products and services, according to findings from HSBC's first Navigator: Made for China survey.

The survey results showed that China is projected to be an important market for future sales or exports for about three out of five (58%) of Canadian businesses. And among those Canadian businesses surveyed who are currently not selling or exporting to China, slightly under one-fifth (16%) are likely to expand into China in the next three to five years.

HSBC's Navigator: Made for China survey explores the intersection of international businesses' growth ambitions with China's increasingly affluent and discerning consumers. In September, the survey canvassed the views of 1,205 small and large companies in 11 key global economies that already export to China or are considering doing so.1

"As China becomes a more urban society, its rising middle-class consumers are increasingly demanding quality manufactured goods that will enhance consumers' lifestyles," said Linda Seymour, Head of Commercial Banking at HSBC Bank Canada. "This consumption upgrading in China will provide enormous opportunities for products and services from Canadian companies who want to grow their business and tap the large and growing affluent Chinese market."

What Chinese consumers want
International businesses believe that technology-related products and services will achieve the fastest growth in China, reflecting the sophistication of Chinese consumers and their demand for products that can enhance their lifestyle.

Among Canadian respondents, 38% said that exports in the technology services sector (such as information technology, biomedical technology, big data and artificial intelligence) would grow the fastest. High-end intelligent equipment such as that found in the 'Internet of Things' (30%) and consumer electronics (24%) and were also identified as expected leaders in export growth to China.

Strategies of exporting to China
China's business environment is dynamic and can be rewarding for many foreign companies, especially those who conduct the proper research and carefully craft a strategy to execute.

For Canadian businesses surveyed, the top three strategies for entering the Chinese market are:

  • Selling directly (43%)
  • Developing local distributor networks (42%)
  • Developing joint ventures / a joint venture (38%)

Additionally, slightly more than three in ten (31%) of Canadian businesses surveyed also mention setting up a subsidiary company in China as a strategy to access the market.

For businesses interested in selling in China, the top three channels according to Canadian responses are:

  • Direct sales through the company's website (62%)
  • Sales through a third party website (56%)
  • Direct sales through local e-commerce platforms (55%)

Challenges? What challenges?
Understanding the local business culture (45%) was identified as the top challenge faced by Canadian businesses already selling or exporting to China – a concern also felt among European companies (43%) but less so by companies in the United Kingdom (28%) and the U.S. (33%). Having to allow more time for regulatory compliance in China (34%) and the need to price more competitively (30%) were seen as further challenges by Canadian businesses.

The top three challenges for a Canadian company's growth according to those surveyed are market knowledge (38%), regulatory requirements (35%) and finding the right local partner (35%).

Changes made by Canadian businesses surveyed to meet these challenges are setting up subsidiaries in China (31%), improving their own distributor network or relationships in China (31%) and setting up partnerships with local companies in China (29%).

"To succeed in the future, international businesses must be 'Made for China.' China is no longer just the world's factory; its fast-growing consumer market is prompting international businesses to re-evaluate how and what they sell to China," said Stuart Tait, Regional Head of Commercial Banking, Asia-Pacific, at HSBC.

"While made-in-China goods are found in-store and online around the world, the rapid development of China's economy means that Chinese consumers are shaping the strategies of international businesses. These companies need a new playbook: 'Made in China' is no longer enough; they and their products need to be 'Made for China,'" said Tait.

Note to editors:

About Navigator: Made for China
HSBC's inaugural Navigator: Made for China report surveyed 1,205 businesses with turnover of $5m-$50m USD turnover from 11 key markets globally, including: US, UK, Singapore, Malaysia, Australia, Hong Kong SAR, UAE, Germany, France, Canada and Mexico.

Survey respondents were key decision makers from businesses already or considering selling and exporting to China. The survey gauges future growth drivers of trade to China, strategies and sales channels as well as fast growing sectors and consumer generations.

About HSBC Bank Canada

HSBC Bank Canada, a subsidiary of HSBC Holdings plc, is the leading international bank in the country. We help companies and individuals across Canada to do business and manage their finances internationally through three global business lines: Commercial Banking, Global Banking and Markets, and Retail Banking and Wealth Management. The HSBC Group is one of the world's largest banking and financial services groups with assets of US$2,603bn at 30 September 2018. Linked by advanced technology, the HSBC Group serves customers worldwide from around 3,800 offices in 66 countries and territories in Europe, Asia, North and Latin America, and the Middle East and North Africa.


1 Europe: France, Germany, UK
Asia-Pacific: Australia, Hong Kong SAR, Malaysia, Singapore
MENA: UAE
North America: Canada, Mexico, USA

 

SOURCE HSBC Bank Canada

View original content: http://www.newswire.ca/en/releases/archive/November2018/06/c3446.html

Copyright CNW Group 2018

Comment On!

140
Upload limit is up to 1mb only
To post messages to your Socail Media account, you must first give authorization from the websites. Select the platform you wish to connect your account to CanadianInsider.com (via Easy Blurb).