In the first quarter of 2006, the Chinese economy grew by 10.2%. With increasing growth in the Chinese market and the steady growth forecast for the future, it is prudent for Western companies to research what the Chinese market wants and needs before diving into the Chinese market. These are the current trends in the Chinese market:

Meal

With so many people in China and a constantly growing population, it is no wonder that food and foodservice is one of the largest markets in China. From fancy restaurants to fast food, supermarkets and specialty food stores, virtually every type of food is available in China. The biggest Western names in food have already made their way into the Chinese market, including Walmart, Pizza Hut, KFC, and of course McDonald’s. There is also a large market for all kinds of food and even catering services.

Banking and financial services

Many foreign finance companies, including Merrill Lynch and The Royal Bank Of Scotland, have already bought stakes in Chinese banks. With the lifting of more restrictions on foreign finance companies in 2006, the banking industry should see even more foreign investment.

Luxury articles

High-end products, including foreign brand watches, clothing, jewelry, electronics and automobiles, are markets that continue to grow. The rise in the number of wealthy people in China continues to fuel demand for luxury and high-end items of all kinds.

Mobile

With an estimated 440 million cell phone users in China, there is a huge market for cell phones, cell phone services, and cell phone accessories.

Malls

Oversized malls are popping up all over China, most offering a wide range of imported goods, particularly stores from the US and Europe, including Chanel, Papa Johns Pizza, Gucci, Burberry, and Ralph Lauren. Retail sales in China have risen a staggering 50% in the past four years, with much of the credit coming from the mall construction boom. In the past six years, more than 400 shopping malls have been built in China and that number will only increase. In Dongguan, you will find what is now the world’s largest shopping mall, the South China Mall. It has 6.5 million square feet of total floor space and space for 1,500 stores.

Western brands

More than ever, the Chinese crave the most famous western brands. From fast food restaurants to soft drinks, coffee, clothing, shoes and entertainment, many of the biggest Western names already have a large presence in China or are researching how to get involved. Walmart, the largest US retailer, already has dozens of stores in China, including three Sam’s Clubs and Neighborhood Markets. Coca-Cola is already ubiquitous in China and McDonald’s intends to have more than 1,000 stores open across the country by 2008.

Whatever industry you are in, you need to be careful to do proper research before delving into the Chinese market.