Maximize your presence in the China market To drive the next round of global growth, companies will need to transition their operations and focus to one that serves the Chinese consumer. China Catalyst examines in–depth the transition currently underway in China from an export–led economic machine to a consumer–driven market. It outlines the economic imperative proving that greater consumer reach in China is a requirement in today's globally competitive market. China Catalyst also provides analysis that segments the market, helping you understand the hotbeds of emerging consumer demand helping prioritize your company's growth expansion in the market. Provides a current view of the growth and channels of modern retail now growing across the entire market Considers the importance of understanding China's 'Digital World,' the unique online universe that is critical to reaching new consumers Explores the current distribution as well as the supply chain trends and challenges that will help form the basis of a distribution strategy fundamental to market expansion Leaders of Fortune 500 companies are beginning to realize that tapping the full growth opportunity in the China market is a requirement. Those companies that successfully make this transition will be among the winners in the next era of global competition. China Catalyst will enable you to be at the forefront in understanding this transition and capitalize on this historic shift.

Table of Contents:
Preface ix Acknowledgments xiii PART I THE NEW PHASE OF GLOBAL GROWTH 1 CHAPTER 1 Into the Light: China s First Economic Miracle 3 A System Spirals Out of Control 6 Chaos Returns 7 Riding South to Reignite Reform 12 The Rise of Shenzhen and a New China 13 Notes 15 CHAPTER 2 Economic Transition 17 Wage Rates Are Increasing Signifi cantly 17 Foreign Direct Investment Is Evolving 20 Export–Directed Growth Is Being Challenged 21 Demographic Megatrends 22 The Rise of the Chinese Consumer 25 Notes 28 CHAPTER 3 Catalysts for Consumption 31 Build It Quickly: The Physical Infrastructure to Move Goods and People 33 Incentives to Increase Consumption 38 The Free Flow of Capital 40 Notes 43 PART II: MARKETS, CHANNELS, AND CAPABILITIES 45 CHAPTER 4 One Country, Many Markets 47 Disposable Income: Who s Got the Most? 50 Urban Income Growth Rates: Emerging Consumers 50 Getting a Fuller Picture 52 Consumer Demand Clusters 57 Notes 64 CHAPTER 5 Channels to a Growing Market 65 An Overview of China s Major Channels to Market 66 A Closer Look at China s Top Brick–and–Mortar Retailers 75 Notes 81 CHAPTER 6 Guan Xi Goes Online 83 An Overview of China s Digital World 85 The E–Commerce Rocket 87 E–Logistics: The New Core Capability 90 The Infl uence of Social Media 91 Go Where the People Are 95 Notes 96 CHAPTER 7 Distribution Issues and Trends 99 Overview of the Distribution Structure 100 Closing the Consumer Trust Gap 105 Distribution Trends 110 Retailer–Supplier Partnerships 114 Notes 117 CHAPTER 8 Hefei: Home of the World s Next–Generation Consumer 119 Life in the Middle 119 China s Sibling 122 Hefei Rises 124 Big Retail Moves In 127 Notes 130 PART III: FORGING AHEAD 133 CHAPTER 9 Go Deep: The Emerging Go–to–Market Retail Model 135 The Emerging Go–to–Market Model 138 Targeting Demand Clusters and Expanding Out 138 Expanding In 140 The Implications for Retailers and Manufacturers 142 IT as an Enabler 145 Notes 148 CHAPTER 10 The New Export Machine 149 Two Examples of China–Based Innovation: Kraft Foods and the Coca–Cola Company 150 Switching the Innovation Gear 152 Digital Culture 156 Multichannel Innovation 157 Notes 158 CHAPTER 11 The Path Forward 161 Challenges at a Crossroad 162 Final Thoughts on Strategy 164 Conclusion 166 Notes 168 About the Author 169 Index 171