Days later, Chinese Foreign Ministry Spokesperson Jiang Yu said
such remarks "contained an obvious political scheme to steer
responsibilities towards the developing countries."
Then China executed a British citizen, Akmal Shaikh, on drug
smuggling charges despite strong objections by British
politicians.
China's relationship "down under" was also under pressure last
year, primarily relating to the demand and pricing of natural
resources. However, 2010 is expected to be significantly different.
Not only has China become Australia's leading trade partner, but
there is an unquenchable thirst for Australian products in China,
be it energy, resources or agriculture. Bilateral ties are
therefore critical.
One area to watch will be China's "outbound" intentions this
year. Not only are Chinese companies looking to extend their reach,
but Chinese cities and provinces are working to upgrade their
"investment" or "tourist" brands with advertising and PR campaigns
aimed at the outside world. This type of activity will tell a
different story about China, one that steers clear of any political
context.
7. Companies will intensify geographic expansion
plans
China initiated its "Go West" campaign a decade ago in an effort
to reduce the income disparity between the relatively poor western
areas and their wealthier neighbors to the east. The campaign has
helped grow the economies of such cities as Chongqing into an
investment target for domestic and overseas investors.
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As China's urbanization moves forward, brands that are reaching
maturity in first and second-tier cities will accelerate their move
to third and fourth-tier cities and beyond, where disposable income
per capita is rising quickly, and the creation of new wealth has
had profound impact on consumer behaviors.
In 2010, focused marketing efforts on emerging cities will
become the norm. Looking forward, we also expect the flight to
cities by rural residents to continue, and small and medium-size
cities will feel the impact.
The central government sees such cities as a good choice for
migrant workers to settle in. Recently, the government promised to
allow more rural people, mainly migrant workers, to settle in
cities, increasing their access to social resources.
8. Green will be the new red
During Chinese New Year celebrations, the color red symbolizes
luck, but in 2010, green is the color symbolizing China's
future.
In December 2009, the Copenhagen climate conference brought
global attention to environmental issues, with China playing a
major role in the talks. Despite widespread criticism that China,
the world's largest emitter of carbon dioxide, has not done enough
to meet climate change goals, the government has promised to cut
carbon output by as much as 45% by 2020.
China has evolved considerably in terms of recognizing the
serious consequences of environmental issues. The 2009 economic
stimulus plan, for example, included a special budget for
subsidizing consumers willing to upgrade their less
energy-efficient home appliances.
China has emerged as the world's largest manufacturer of solar
panels, and is well positioned to lead the production of electric
cars.
The government also established the National Energy Commission,
a "super-ministry" under the direct leadership of Premier Wen
Jiabao and Vice Premier Li Keqiang. The move indicates that energy
has been identified as key to China's future development, and
requires coordination by multiple ministries. In 2010, expect to
see China continue to promote a "low carbon society." As part of
this, China will continue to encourage eco-friendly innovations and
invest heavily in renewable energy.
Despite China's efforts in sustainable development, the
disconnect between the country's energy and environmental policies
remains an issue. China recently released its first national
pollution census to selected audiences. The report, including
detailed mapping of the country's environmental issues, suggests
China still has a long way to go.
9. Grey will represent gold
The size of China's "grey" population, a group comprised of
around 300 million people aged 50+, makes it one of the most
important demographics in the world.
What's more, the impact of China's one-child policy and a lower
mortality rate are causing this group to grow rapidly in relation
to the overall population. Without siblings to share the burden of
care, young families in China are under heavy pressure to support
two sets of parents; some may even be caring for up to four sets of
grandparents.
"Without siblings to share the burden
of care, young families in China are under heavy pressure to
support two sets of parents."
This year we will see a greater focus on the increasing number of
elderly needing support, and the declining proportion of young
people.
While the threat this poses to economic growth will cause
headaches for China's policy makers, opportunities will emerge as
more affluent-yet-busy young earners look to companies they trust
to help them care for their graying loved ones.
Despite being such an important demographic, China's older
population has been largely overlooked by marketers.
According to the National Seniors Bureau, only 10% of products
and services bought by senior citizens are actually targeted at
them.
While the elderly are known to be keen savers, China's older
generations still spend, with per capita annual spending of senior
citizens predicted to increase from $1,620 in 2005 to $4,112 in
2015.
10. The 2010 World Expo in Shanghai will define the
future
China's government has reportedly spent over $45 billion on the
2010 World Expo, taking place from May 1 through Oct. 31, 2010 in
Shanghai. China hopes the event will bring China as much attention
as the 2008 Olympic Games in Beijing.
With the theme "Better City, Better Life," the World Expo is
evolving as a platform for companies and countries to impress upon
attendees and the media how their products, services and locations
address the way we live in an increasingly urbanized world.
The big question for many is who will attend the Expo? Estimates
of the number of foreign visitors who will travel to China for the
event fluctuate, but there is no question that it will be filled
with Chinese tourists.
"Who will attend the World Expo and
what will they look for?"
Of the 14,000 respondents nationwide who took part in an Ogilvy
survey in December 2009, 42% say they plan to attend, and 87% of
Shanghai residents say they will go.
What is critical to many of the sponsors, however, is the
attention given to the Expo by government officials. One insider
commented that provincial and municipal officials will come in
droves on fact-finding tours that will tell them how best to
prepare their locations for the future.
One thing that is certain about working in China is that it
promises to be interesting. We believe preparation and being
proactive are the best ways to address the challenges.
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