For Sale In China Blog

Having given a lot of thought to how China is developing and the course its development is likely to take I began to wonder what opportunities would present themselves for the generation of tomorrow. What should Chinese parents be advising their children to consider as careers for the future and what do they themselves consider the best opportunity for advancement.

Medicine? Engineering? Politics? Accountancy?………… Maybe Hospitality or Entertainment or possibly Hairdressing or Personal Grooming?

None of the above! What is clear, is that China is heading for a dramatic and fundamental shift in its thinking and when it comes the world had better watch out.

Why?………….For years Chinese have lived in and being educated in a system where individuality is discouraged. In times past it was much more than discouraged, it was often physically beaten out of people. It is little wonder that Mainland Chinese are very conformist by nature, keen to ‘fit in’ and of course keen to be seen to take the Government line on everything. Even Political hierarchy were keen not to be seen as an alternate thinker. Until very recently the Political elite was comprised almost entirely of qualified Engineers, as that was considered a safe degree for someone in Political office to possess. No Economists, no Lawyers, no Political Scientists and certainly no Businessmen. But the tide is turning and the Politicians are beginning to appear from differing backgrounds, many who may have had experience of some education in the West.

So what will be the ‘Best Job in China’. ………. The Entrepreneur …………….

On every street corner in China you see Entrepreneurs selling anything from food to clothes and fancy goods. The streets are literally bursting with small shops selling anything imaginable, but concentrating on a very limited scope of products. Every town is full of thousands if not tens of thousands of people or families trying to earn a living from their own devices. A true entrepreneurial spirit is alive and thriving in today’s China, but with one enormous drawback. The typical Chinese entrepreneur is not accustomed to operating in a market economy. It is almost as though there is a huge Cartel operating in China but without any of the economic benefits of such an operation. It appears that their are unwritten rules about who can trade in what and where. It appears that traders are happy to operate in this manner without the greed that a market economy would force.

Enter the Retail Entrepreneur …………Ten years from now I predict a huge shift in the way retailing in China will operate. Currently people shop locally, in small, inefficient, understocked outlets. Why? Transport! Either they do not possess their own vehicle or the public transport service is inadequate or expensive. This is an immediate barrier to Western shopping habits. However this is guaranteed to change in the next decade.

Local shops may have the captive audience but are not taking advantage by offering a variety of goods and maximising sales opportunities. In some towns where they do have what can loosely be described as Department Stores, you will find at least as many staff as customers and as a result prices that are beyond the reach of most Chinese. The future lies in giving the average Chinese shopper good access to fairly priced merchandise in adequate surrounds with efficient staff, properly trained to service the needs of the shopper. Everyone thinks of China as the Worlds mass producer …………but retail and shopping is one area where this simply does not apply. Everything is small scale and times past.

When China gets its transport infrastructure sorted, Western operators such as Argos, Wall-Mart and B&Q will be quick to pounce.

But in the meantime the Chinese Entrepreneur has time to act. Time to get a toehold in what will be a burgeoning retail market place. Time to establish a brand that will pay dividends or maybe just time to get started so when the big guys do want to spread their wings the Chinese Entrepreneur may be in a position to cash in by selling out.