Original subtitles

On January 17, 2021

China's economic annual report was released

The report pointed out that in 2021

China's per capita GDP will reach 80,976 yuan

which is about 12,551 U.S. dollars at the U.S. dollar exchange rate

which is very close to the threshold for high-income countries set by the World Bank

The number of middle class in China is the largest in the world in absolute terms

surpassing that of the United States, reaching 109 million people

The number of Chinese millionaires (measured in US dollars)

and ultra-high-net-worth individuals has also grown rapidly

The report pointed out that as of 2015

the number of millionaires in China exceeded 1.33 million

and the net worth of nearly 10,000 Chinese exceeded US$50 million

an increase of nearly 24%, ranking second in the world

Among them

8% of the world's ultra-high-net-worth individuals

(with assets of US$50 million and above) are from China

Credit Suisse also predicts that the number of millionaires in China

will grow to around 2.3 million in the next five years

In 2021

the total retail sales of consumer goods in China will reach 44.1 trillion yuan

about 6.5 trillion U.S. dollars

It is the second largest consumer market after the United States

and will become the first in the future

Chinese people are in a strong trend of consumerism

As long as they have money, they will definitely spend it

Even if they have no money, they will borrow money

If they like a certain brand very much, they will try various ways to buy it

even go abroad to buy it

Nothing can stop Chinese people from traveling and shopping all over the world

except mobile phone signal

Jack Ma, the main founder of Alibaba Group

once said that Chinese people are "not short of money"

China has a consumer market of 1.4 billion people

and has unlimited potential

Therefore, Jack Ma has created various platforms

and has become the richest man in Asia

by covering almost all aspects of Chinese people's lives, including video

audio-visual, life shopping, office and study, etc

China's becoming the world's largest consumer of luxury goods also seems to confirm this point

According to reports

Chinese people spent 770 billion yuan on luxury goods in 2018 alone

accounting for one-third of the world's total consumption

Faced with such a huge consumer market

how should foreigners make money from the Chinese

First of all, let's take a look at which foreign-funded enterprises in China are doing well

Wal-Mart , an American worldwide chain enterprise

the largest company in the world in terms of turnover

Wal-Mart is mainly involved in the retail industry

and has the largest number of employees in the world

In 1950, Sam Walton opened the first discount store in the United States

and Wal-Mart Supermarket has been on the rise ever since

In 1996, Wal-Mart extended its tentacles to China and opened its first Wal-Mart store

and Sam's Club store in Shenzhen

Since then, relying on its strong supply chain and high-quality and low-cost strategy

Wal-Mart began to quickly seize the Chinese offline retail market

By 2021, Walmart China started from Shenzhen, and in 25 years

it has opened more than 400 shopping malls

and more than 20 distribution centers in more than 100 cities across the country

Especially since entering 2021, Wal-Mart China has repeatedly broken historical records

Among them, in the Q2 financial report just released by Wal-Mart

Wal-Mart China’s net sales increased by 6%, comparable sales increased by 2.9%

e-commerce net sales increased by 75%

It is worth mentioning that Sam's Club has a strong performance in the Chinese market

with double-digit growth in sales

and more than double the number of new member registrations year-on-year

This membership-based retail model has become a bright spot

in the development of Wal-Mart in the Chinese market

because of its positioning in high-consumption groups

and the provision of differentiated products

KFC, one of the multinational restaurant chains in the United States

It is also the second largest fast food and largest fried chicken chain enterprise in the world

It was founded by the founder Colonel Harland Sanders in 1952

It mainly sells fried chicken, High-calorie fast food such as hamburgers

French fries, rice bowls, egg tarts, and soft drinks

KFC first entered China in 1987

and its early entry laid a good foundation for its market in China

At that time, foreign brands were very popular

and Chinese people took pride in eating fast food

KFC achieves standardization, unification and scale

in the management of the supply chain of raw materials for production

The standardization of raw material procurement, cleaning, storage

die-cutting, and marinating is separated from stores

and processed by pre-made food companies

This is the function of the central kitchen in modern catering

The store is only used as a place for heating, packaging

selling and dining of prepared food

This effectively controls the waste of raw materials

the quality of raw materials, the uniformity of taste and product appearance

According to the latest data released by Yum China

the parent company of KFC, as of June 30, 2021, KFC already has 7,609 stores in China

Mercedes-Benz, the German car brand, the inventor of the car

is considered one of the most successful premium car brands in the world

Its perfect technical level, excellent quality standards

innovative ability to introduce new ones, and a series of classic coupe styles are commendable

Mercedes-Benz is the world's number one luxury car brand

he biggest advantage of Mercedes-Benz is the texture of the interior

and the relatively stable driving style

It has very high comfort, and the luxury of the interior

is comparable to luxury brands Said to be one of the best

The quality of Mercedes-Benz is also relatively reliable

Exquisite, reliable, and durable are the tenets of Mercedes-Benz

Of course, Mercedes-Benz cars are also relatively expensive

which gives ordinary people a high threshold

Therefore, Mercedes-Benz has long been a symbol of Chinese identity and face

and owning a Mercedes-Benz has become a manifestation of noble identity and status

According to the latest financial report released by Mercedes-Benz

in the third quarter of this year, Mercedes-Benz's global car sales were 520,000 units

a year-on-year increase of 20%

Among them, the overall sales volume of new energy vehicles was 75,900 units

a year-on-year increase of 23%

accounting for nearly 15% of the total sales volume

The Chinese market is still one of the most important markets for Mercedes-Benz

In the third quarter, Mercedes-Benz sold 206,800 vehicles in China

far exceeding Europe's 152,700 vehicles and North America's 83,200 vehicles

The fundamental reason why Wal-Mart, KFC, and Mercedes-Benz

can achieve great success in China is reliable quality

They provide high-quality guarantees that are difficult for domestic companies to achieve

As we all know, for a long time

due to the low spending power of the Chinese people and the lax supervision

most of the products in China were low in price and "just use it"

Food safety issues are also worrying

Some food operators have weak legal awareness, serious mercenary thinking

and do not pay attention to food quality

Wal-Mart and KFC have successfully won the love of Chinese people

who have strict requirements on product quality

by introducing Western raw material supply chain management systems

and providing reliable high-quality products

Especially with the rise of the middle class

the popularity of Wal-Mart and KFC is getting higher and higher

A good example is the success of Sam's Club

which offers a wide range of high-quality imported goods, even if they are not cheap

but still attracts a large number of Chinese middle class

With the rise of China's economy

the Spending power of Chinese people will become stronger and stronger in the future

In the future, Chinese people will have great demand for

high-quality raw materials and products

high-quality education

high quality tourism and entertainment resources

and even high-quality living environment

China imports a large amount of high-quality raw materials and products

from the United States, Australia, and New Zealand

Many Chinese students go to the United States and the United Kingdom to study

in order to obtain the status of international students

American blockbusters, Japanese anime, and South Korean online games are still competitive

The good environment in developed countries such as Europe and the United States

continues to attract Chinese people to travel and settle down

Even if these things are expensive, the Chinese are willing to pay for them

Because these things are difficult to copy in China

but foreign countries can provide them immediately