As we have already pointed out in our February article, in the Chinese market there are about 24 million companies.
In that article, we have seen the sector segmentation of the Chinese market, but which are the best areas to invest in?
Different studies outlined the three main sectors where it is more convenient to invest:
1) Food Industry: The high growth of the sector is driven by the growing consumption of households.
The vast consumer base, a distribution still in development, a still relatively low rate of service penetration, and large margins for development and the consumption of high-end products, bring the sector in the first three place for growth.
But that is not all because even if the slowdown in economic growth of China slowed down the use of alcoholic beverage, today it still remains the main consumer market in the world.
2) Electricity, Gas, Steam and Air Conditioning Industry: China is placing greater emphasis on the development of renewable energies, a sector in which the country is already the leading investor on a global scale.
The opportunities of supply in this sector are of short and medium term and are more developed in wind and solar subsector.
3) Health and Social Assistance Industry: Over the next five years, companies involved in hospital planning will have unprecedented opportunities in China.
By 2020, the pharmaceutical segment will reach RMB 1.9 billion, compared to 800 billion in 2014. The driving forces behind the market’s expansion are the increasing awareness of health care and the needs fueled by economic growth, a large population that ages, the increase in per capita health spending capacity, the ongoing health reform and the support measures of the Twelfth Five-Year Plan.
The Information Technology subsector in the health field is one of the most consistent investments that the Government faces to improve the quality and efficiency of the health service, with great opportunities for foreign suppliers. For this way, the high quality medical equipment imported from abroad and the related production technologies of components and machines / devices will continue to grow.
In conclusion we can say that the Chinese Market is an important reality to explore. If your company is looking for new markets to explore, has investment opportunities and is located in these sectors, the advice is to invest in this market, in order to get in touch with companies which can help you to grow quickly and expand your business horizons.