Team Finland Future Watch Report "Signals of online revolution for china"
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Team Finland Future Watch Report "Signals of online revolution for china" Team Finland Future Watch Report "Signals of online revolution for china" Document Transcript

  • China's Future Signals 2-5 years 10 March 2014 China Skinny China Skinny | www.chinaskinny.com | info@chinaskinny.com | +86 21 3221 0237 | Suite 805, 69 Yanping Road, Jing’An, Shanghai, China 1 China's Future Signals Looking 2-5 Years Ahead 10 March 2013 China Skinny
  • China's Future Signals 2-5 years 10 March 2014 China Skinny China Skinny | www.chinaskinny.com | info@chinaskinny.com | +86 21 3221 0237 | Suite 805, 69 Yanping Road, Jing’An, Shanghai, China 2 Table of Contents Executive Summary Introduction & Overview Signals: 1. Increasing Education Needs 2. Social Media-Integrated Rich Mobile Entertainment 3. Soaring Staff & Operational Costs for Businesses 4. The Trend Towards Wearable Technology 5. In-Car Telemetry Integration with Everyday Lives 6. Rising Independent Travellers 7. The Worsening Likelihood of Ill Health 8. Smarter Environmental Intelligence 9. Food Production Corporatisation 10. The Food Safety Movement The Last Word 3 4 5 6 7 8 9 10 11 12 13 14 15
  • China's Future Signals 2-5 years 10 March 2014 China Skinny China Skinny | www.chinaskinny.com | info@chinaskinny.com | +86 21 3221 0237 | Suite 805, 69 Yanping Road, Jing’An, Shanghai, China 3 Executive Summary The Chinese market is unique in the world. Whilst it presents significant prospects, its scale, rate of change and regional variances, coupled with social changes makes it necessary to understand and anticipate trends to realise these opportunities. The following report assesses key Chinese political, technological, economic and social trends over the next 2-5 years and combines them with some of Finland’s key strengths to define 10 B2B and B2C future signals. These signals provide opportunitiy guidelines for Finnish companies to develop products and services most likely to service China’s future needs. These signals are interrelated and may be best achieved with Finnish businesses collaborating on their strengths. The first signal identifies Chinese parents’ focus on education, and the opportunities rising wealth presents for alternative and complementary technical-based education tools, especially in the field of creativity. Finland’s excellence in both education and technical/gamification positions it well to service this need. Mobile gaming is soaring in China due to rising smartphone penetration. Integration with social media platforms such as WeChat will create new opportunities for richer multi-player games, building on Finland’s leadership established by companies such as Rovio Entertainment. Soaring labour and operation costs in China, coupled with a shift to higher value industries will lead to increased demand for online tools that create business efficiencies. Wearable technology is set to boom in China, and Finland’s Nokia ecosystem, design leadership and sports companies position it well for this. Likewise, in-car telemetry will grow faster than car ownership, capitalising on similar industries. China is already the world’s largest market for outbound tourists, and travellers could double within the next five years, with a shift towards independent travel. Something these tourists will have in common is a smartphone, so apps and services that assist with travel are set to be in high demand. Health is one of the biggest issues facing Chinese consumers, and online tools that integrate with health products, services and health fads to capitalise on connected middle classes will find success in China. One of the significant contributors to poor health is China’s environment. The Government, businesses and consumers are all potential customers for tools which help deal with the worsening situation, providing many market niches. To meet rising demand for food, China is moving away from small farms to corporate farms, which by proxy, will drive demand for efficient farming tools and processes. Related technologies to monitor and create safe processes in food production will also be sought after by businesses and consumers. China’s unprecedented growth and transition present significant new market opportunities for Finnish companies, however it is important that Finnish businesses understand China’s unique traits and challenges to create solutions to best service these.
  • China's Future Signals 2-5 years 10 March 2014 China Skinny China Skinny | www.chinaskinny.com | info@chinaskinny.com | +86 21 3221 0237 | Suite 805, 69 Yanping Road, Jing’An, Shanghai, China 4 Introduction & Overview The Chinese market is like no other. Its scale, rate of change and regional variances, coupled with influences such as political intervention, a rising middle class, urban migration, changing family dynamics, rapid modernisation and internationalisation, and the increasing influence of the Internet, social media, eCommerce and smartphones has created a market more dynamic and complicated than anywhere else. The sheer scale of China means that meeting future needs of the country's organisations and consumers provides massive economic opportunities, even for market niches. China Skinny has assessed key Chinese political, technological, economic and social trends to identify ten key signals over the next 2-5 years. These signals provide opportunities in both B2B and B2C and are well-suited to Finland's strengths and areas of expertise. China Skinny has provided examples of Finnish companies that are well placed to benefit from the opportunities in China, however this not an exhaustive list. The ten signals identified are: education tools, smartphone entertainment, business efficiency, wearable technology, in-car telemetry, independent travel, health aids, environmental intelligence, food production corporatisation and food safety. We have focused on areas where technology and the Internet will have a significant impact. In this increasingly integrated world, many of the signals are related to one another as seen in Chart A: China Future Signal Connectedness. Collaboration between Finland's key businesses and industries will see it ideally placed to take advantage of the significant future potential of China's economy. We hope that you find these forecasts enlightening and helpful, and look forward to providing a further study into the chosen signal. Chart A: China Future Signal Connectedness
  • China's Future Signals 2-5 years 10 March 2014 China Skinny China Skinny | www.chinaskinny.com | info@chinaskinny.com | +86 21 3221 0237 | Suite 805, 69 Yanping Road, Jing’An, Shanghai, China 5 1. Increasing Education Needs Summary With most families having one child in China, parents have just one chance for their offspring to succeed and provide for them in their retirement. Chinese parents place great importance on education, and it is not unusual for them to spend more than 30% of their household income on education. According to research by Boston Consulting, Chinese parents stated education would be their number one priority if they were given a 25% increase in discretionary spending. A significant rise in incomes between 2016-2019 will drive spending on education. There will be a rapid rise in education-related services that complement existing schooling and enhance areas poorly provided for such as creativity. A natural preference for devices such as smartphones and tablets will drive adoption of scalable, tech-based educational tools. Finland's education system is rated as the best in the world, which coupled with creative technology companies, sees the country well placed to take advantage of this. Gamification (Section 10) is becoming an increasingly popular way to learn, and could combine Finland’s excellence in both education and gamification. Rating [A] Education spending will grow faster than incomes overall creating a significant opportunity for tools that capitalise on Finland’s lead in education, tech and gamification. Macro Viewpoint: [A] Consistency with policy trends. Consistent with Chinese Government aims to encourage creativity and raise education standards. [A] Consistency with technology trends. China is part of a global trend to utilise technology to create interactive educational tools, in addition to rising mobile and tablet adoption. [A] Consistency with economic trends. Middle class households in China will increase from 8 million in 2010 to 57 million by 2020 with a large portion increasing spending on education.   [A] Consistency with social trends. Education is a key Confucian ideal and has always been important with Chinese, however as China becomes more competitive, parents understand they need to differentiate their children’s education and focus on areas such as creativity. Disposable Income Growth versus Household Education Spending Source: National Bureau of Statistics of China & Euromonitor Micro Viewpoint: [A] Market Impact. Fill gaps such as creativity addressed poorly by Chinese education system. [A] Spirit of Innovation. Innovative solutions will be required to drive adoption. [A] Uniqueness. Chinese parents place even more focus on academic education than their Western counterparts. Notes The Chinese Government fiercely guards its education sector, and foreign education businesses located in the Mainland require a Joint Venture with a local company.
  • China's Future Signals 2-5 years 10 March 2014 China Skinny China Skinny | www.chinaskinny.com | info@chinaskinny.com | +86 21 3221 0237 | Suite 805, 69 Yanping Road, Jing’An, Shanghai, China 6 2. Social Media-Integrated Rich Mobile Entertainment Summary With more than 500 million online smartphone users in China, there is already a significant market for mobile entertainment. Of the 14.7% of Chinese smartphone users who paid for an app in the first half of 2013, 63.7% paid for a game, more than double the next highest category. Chinese consumers’ lifestyles are ideally suited to mobile entertainment, with a high portion of public transport users, and a low percentage doing out-of-home evening activities such as sports and going to the pub. 4G handset sales in China are forecast to grow 1500% this year to 72.4 million, and given the average Chinese consumer purchases a new device every 6 months, within 2-5 years, China Skinny estimates more than 350 million consumers will have a fully featured smartphone with a minimum of 4G data speed. 570 million games were downloaded on WeChat alone over a 3-month period in 2013, sewing the seeds for fully integrated social-networked, multiplayer games. In addition, external accessories that enhance the gaming experience through all senses will create unlimited possibilities for significantly richer gaming experiences. Over the next 2-5 years, the mobile gaming industry will grow at a faster rate than mobile penetration overall. Companies such as Rovio Entertainment, and its ecosystem, strongly position Finland to take advantage of the opportunity. Rating [B] Finland’s experience, insights and ecosystem for creating successful games places it in an excellent position to create innovative social games, and gain access to social network APIs. Macro Viewpoint: [B] Consistency with policy trends.   [A] Consistency with technology trends. Integration of gaming with social media platforms coupled with constantly improving smartphone capacity and data speeds. [A] Consistency with economic trends.   [A] Consistency with social trends. Chinese youth spend more time on their smartphones and have smaller range of competing interests to games than most nationalities. China's Mobile Game Revenue Source: iResearch Micro Viewpoint: [A] Market Impact. Established social media gaming channels will create a viral route to market for appealing games. [A] Spirit of Innovation With such a competitive gaming market, gamers need to innovate to create cut through. [A] Uniqueness The ubiquity smartphones and social networks such as WeChat and it’s interconnectedness with the gaming community provides the most established mainstream gaming platform in the world. Notes Gaming consoles are currently illegal in China, meaning mobile entertainment has had less competition from other channels.
  • China's Future Signals 2-5 years 10 March 2014 China Skinny China Skinny | www.chinaskinny.com | info@chinaskinny.com | +86 21 3221 0237 | Suite 805, 69 Yanping Road, Jing’An, Shanghai, China 7 3. Soaring Staff & Operational Costs for Businesses Summary Labour costs in China are rising more than 10% a year. Related costs such as office rental are also mounting, with Beijing now the forth most expensive location in the world, costing more than New York and Tokyo per square metre. Coupled with that, Chinese businesses are increasingly moving away from low-skilled industries such as low cost manufacturing and focusing on higher value sectors. Each of these trends is driving up the cost of staffing, training and retention in China. China Skinny predicts between 2016-2019, it will become commonplace for Chinese businesses to invest in tools that enable them to increase staff efficiencies and automate tasks, with cloud-based solutions and apps less susceptible to piracy. Finland is well placed to service this need with a strong reputation for efficiency and technical solutions, with companies such as Tieto. Rating [A] The shift to efficient workplaces in China over the next 2-5 years presents significant opportunities for Finnish businesses who provide technical solutions that meet the need. Macro Viewpoint: [A] Consistency with policy trends. A key Government imperative is to raise wages in China which will drive the need for efficiency tools; and The 12th Five Year Plan aims for value-added output of emerging strategic industries to account for 8% of GDP, driving further focus on efficiency.   [A] Consistency with technology trends. The cost of labour in China has reached tipping point, with businesses now justifying technological investment over additional labour. [A] Consistency with economic trends. Economic growth and the corresponding business expansion is creating increased price and service-focused competition, and competition for skilled employees. [A] Consistency with social trends. The Chinese workforce is shifting from manufacturing-focused to white collar and service-based. Wage Inflation in China Source: The Ministry of Labor and Social Security for the PRCMicro Viewpoint: [A] Market Impact. Reduce issues around staff churn; Service increasingly important need for customer service; and Support efficiencies in business. [B] Spirit of Innovation   [A] Uniqueness In the space of a decade, China will develop from a cheap labour economy into an advanced economy where efficiency tools and automation are imperative. Notes ***
  • China's Future Signals 2-5 years 10 March 2014 China Skinny China Skinny | www.chinaskinny.com | info@chinaskinny.com | +86 21 3221 0237 | Suite 805, 69 Yanping Road, Jing’An, Shanghai, China 8 4. The Trend Towards Wearable Technology Summary Finland’s leadership in design and mobile technology puts its businesses in a strong position to capitalise on the rising trend of wearable technology in China. A Baidu survey discovered 93% of Chinese Internet users were aware of wearable technology, with 75% willing to purchase, although the industry is still in its infancy. Health, fitness, sports, social media, child monitoring, employee efficiency, information and entertainment tools and aids could utilise the unique opportunities from wearable technologies. Fitness, health plans and social sharing are the top three perceived uses by consumers and companies such as Suunto, Amer Sports and Polar Electro could collaborate with Nokia equipment engineers and related ecosystems to develop solutions to meet this need. Rating [B] Whilst wearable tech is not a essential pressing need in China, China’s large population and love of gadgets presents a significant niche well suited to Finland’s tech and sporting strengths. Macro Viewpoint: [B] Consistency with policy trends. [A] Consistency with technology trends. Chinese consumers are looking for gadgets and online tech that integrate with other life needs. [B] Consistency with economic trends.   [B] Consistency with social trends. Chinese consumers place high importance on social capital gained from having the latest gadgets. Wearable Tech Expected Uses by Chinese Source: Baidu Micro Viewpoint: [B] Market Impact.   [A] Spirit of Innovation Utilises Finnish strengths in innovating mobile devices, apps and sports. [B] Uniqueness Notes ***
  • China's Future Signals 2-5 years 10 March 2014 China Skinny China Skinny | www.chinaskinny.com | info@chinaskinny.com | +86 21 3221 0237 | Suite 805, 69 Yanping Road, Jing’An, Shanghai, China 9 5. In-Car Telemetry Integration with Everyday Lives Summary The China auto industry has become the largest in the world. In 1990, there were just 5.4 million cars on the road in China, now there are more than 20 million sold a year. China's increasing middle classes will see this growth continue for decades - in 2012 there were just 8.3 cars for every 100 people in China, versus 61.2 in Finland and 79.7 in the USA. China is forecast to buy half of the world’s new cars by 2020. China’s smartphone usage amongst the middle class who own cars is among the highest in the world, leading to increasing consumer demand for integrated in-car technology. Chinese consumers have a preference for embedded factory-installed telemetry systems. However, increased fragmentation and dependence on smartphones will see demand for device and hybrid solutions soar within the next 2-5 years. Nokia equipment engineers and related ecosystem are well placed to take advantage of this growth. Rating [B] Although in-car telemetrics are not of primary concern for the majority of Chinese consumers, there are still significant numbers of car owners in China, almost all of whom are big smartphone and other technology users. Macro Viewpoint: [B] Consistency with policy trends. [A] Consistency with technology trends. Technology is becoming increasingly integrated with Chinese consumers lives. [A] Consistency with economic trends. Rising incomes in China are driving car purchases, which by proxy, will raise demand for in-car telemetrics. [B] Consistency with social trends. New Vehicle & In-Car Telemetry Sales in China (Millions of Units) Source: BAIH, NBS China, CAAM, IHS Micro Viewpoint: [B] Market Impact.   [A] Spirit of Innovation Solutions will need to be innovative and specifically meet Chinese driver needs. [B] Uniqueness China’s scale makes it unique, with significant opportunities from the half of the world’s car sales expected in China in 5 years. Notes ***
  • China's Future Signals 2-5 years 10 March 2014 China Skinny China Skinny | www.chinaskinny.com | info@chinaskinny.com | +86 21 3221 0237 | Suite 805, 69 Yanping Road, Jing’An, Shanghai, China 10 6. Rising Independent Travellers Summary More Chinese tourists are going overseas every year. In 2012, 83 million Chinese travelled internationally, growing to 94 million in 2013. Rising incomes and relaxed visa restrictions mean as many as 200 million could travel in 2017 according to CLSA. Although Chinese have traditionally joined tour groups on overseas trips, an increasingly confident traveller wanting new and unique experiences is travelling independently. In late 2013, 62% of Chinese going abroad said they preferred travelling independently; China Skinny expects this to rise to 80% by 2019. The majority of these tourists will have a smartphone, ensuring that there will be a significant market for mobile tools that meet the unique needs of Chinese travellers, such as catering to emergency health concerns, shopping aids (Chinese shop more than any other nationality when abroad), tools for travellers lacking confidence when speaking English/other languages, Chinese restaurant finders, etc and tools integrated with wearable technology (Section 5) and in-car telemetry (Section 7). Finland’s strengths in the mobile and online app segment positions it well to take advantage of this rising trend. Rating [B] Whilst there are countless opportunities to provide apps and tools to hundreds of Chinese travellers, Finnish companies are most likely to have success focusing on market niches. Macro Viewpoint: [A] Consistency with policy trends. Government policy is reducing visa restrictions for lower-tier denizens coupled with countries lessening their visa restrictions will drive Chinese tourism abroad. [A] Consistency with technology trends. Increased smartphone adoption will create channels to reach travellers. [A] Consistency with economic trends. Rising incomes are driving travel growth. [A] Consistency with social trends. Chinese consumers are increasingly valuing life experiences, which is driving tourism growth. Outbound Chinese Tourists Source: CORTI, CNTA, CTA, CLSA Micro Viewpoint: [B] Market Impact.   [A] Spirit of Innovation Innovative solutions to market niches will drive demand [B] Uniqueness Notes ***
  • China's Future Signals 2-5 years 10 March 2014 China Skinny China Skinny | www.chinaskinny.com | info@chinaskinny.com | +86 21 3221 0237 | Suite 805, 69 Yanping Road, Jing’An, Shanghai, China 11 7. The Worsening Likelihood of Ill Health Summary Health is the number one concern for affluent Chinese. Cancer, diabetes, obesity, infertility, premature births and antibiotic usage rates are all soaring, attributed to rising pollution, food safety issues, increasingly stressful urban lifestyles and an aging population. Putting money away to cover future health issues is the top reason for China’s high saving rates. By 2019, increasing ailments and awareness of health, coupled with an highly tech-literate population, will create significant opportunities for healthtech tools and products that provide an alternative to, or are complementary to China’s crowded health system. Demand for proactive solutions will also rise. Online/app developers and smartphone accessories can work with Finland’s established Healthtech companies such as Mendor, Planmeca Group, Arc Dia and Suominen to create attractive solutions for Chinese customers. Rating [A] Health is already an industry of primary importance in China, and will continue to grow over the next 2-5 years based on current trends, presenting significant opportunities for Finnish companies. Macro Viewpoint: [A] Consistency with policy trends Health is a leading focus for the Chinese Government, who have invested 270 billion Euro in healthcare reform since 2009. Numerous other prime Government focuses such as pollution can trace their roots back to health. [A] Consistency with technology trends Advancements in technology are addressing health issues globally. [A] Consistency with economic trends In addition to rises in general health spending, BCG forecasts China’s health and wellness market will be worth nearly $70 billion by 2020. [A] Consistency with social trends Increasingly urban lifestyles and aging populations are driving health awareness and concerns. China's Worsening State of Health Micro Viewpoint: [A] Market Impact Provide complementary, alternative and proactive service to meet China’s soaring health needs. [B] Spirit of Innovation Innovative technology solutions are most likely to meet the needs of China’s mounting health issues. [A] Uniqueness China’s health issues are extreme internationally, and the infrastructure is not up to a standard to support an increasingly wealthy middle class. Notes ***
  • China's Future Signals 2-5 years 10 March 2014 China Skinny China Skinny | www.chinaskinny.com | info@chinaskinny.com | +86 21 3221 0237 | Suite 805, 69 Yanping Road, Jing’An, Shanghai, China 12 8. Smarter Environmental Intelligence Summary It’s no secret that China’s environment is among the worst in the world. Just 1% of China’s 700 million urban dwellers breathe air considered safe by the European Union. 90% of China’s cities’ groundwater is polluted to some degree, with almost two thirds severely polluted. Pollution contributed to over 1.2 million deaths in 2012 and is the primary reason for 80% of Chinese who plan to emigrate. China’s pollution is a major issue for all segments of China, from the Government, to business, to consumers. Although the Government is focusing on reducing heavy polluters, rising non-renewable electricity consumption and car usage will continue to worsen pollution levels over the next 2-5 years. Rising awareness and negative sentiment will also drive demand for solutions. Tools that can measure, monitor and address China’s pollution at any level stand to significantly benefit in China, with environmental measurement companies such as Vaisala well positioned to benefit. Rating [B] Although China’s environment issues are significant, opportunities for Finnish companies are likely to come from providing niche solutions such as measurement and monitoring. Macro Viewpoint: [A] Consistency with policy trends Inviting of foreign investment environment protection industries is a key pillar of the 12th 5-year plan. Between 2011-2016 the Chinese Government plans to invest 350 billion Euro on environmental protection, with significant investment likely to continue until 2019 and beyond. [B] Consistency with technology trends   [A] Consistency with economic trends Pollution is a substantial drain on the economy from a productivity, health and emigration standpoint. [A] Consistency with social trends Air and water pollution, are Chinese consumers' fastest growing concerns and the number 1 reason for emigration. Daily Average PM2.5 Pollution 2013 China's Worst 10 Cities Source: China's Ministry of Environmental Protection, ALA, WHO Micro Viewpoint: [B] Market Impact   [B] Spirit of Innovation [A] Uniqueness Although other cities around the world are polluted at similar levels, the scale of China’s pollution, awareness and size of middle classes affected make it unique globally and provide large opportunity for niche solutions. Notes ***
  • China's Future Signals 2-5 years 10 March 2014 China Skinny China Skinny | www.chinaskinny.com | info@chinaskinny.com | +86 21 3221 0237 | Suite 805, 69 Yanping Road, Jing’An, Shanghai, China 13 9. Food Production Corporatisation Summary China’s rising middle class are eating more food every year, with China forecasted to account for almost half of the global increase in food demand between now and 2050. Over 15% of China’s arable land suffers from soil pollution. Coupled with climate change and urbanisation, increasingly less land is available to produce significantly more food. The Chinese Government aims to supply almost all of food demand domestically, requiring technology that enables farms to do more with less. Part of this shift will be enabled by the trend moving away from small individual peasant farmers to company-operated farms, who will start to utilise connected technology to monitor and produce food more efficiently over the next 2-5 years. This technology could include telemetry providing monitoring and control through online tools. The falling cost of smartphones in China will bring the Internet to the majority of rural Chinese by 2019, putting technology solutions into the hands of the farm workers, in addition to urban white collar farm company workers. Like In Car Telemetrics (Section 7), the Nokia equipment engineers and related ecosystem could collaborate with farm machinery companies such as Sampo-Rosenlew. Rating [A] As a key Government focus, there will be significant investment into efficient farming in China, creating large opportunities for synergies between heavy machinery manufacturers and tech companies. Macro Viewpoint: [A] Consistency with policy trends The Chinese Government has had a long standing target of 95% food self sufficiency; and China's 12th Five Year Plan supports foreign investment in modern agriculture. [B] Consistency with technology trends   [A] Consistency with economic trends Rising demand for food is a direct result of economic growth in China. [A] Consistency with social trends A stable food supply is one of the key contributors to overall social stability. Food Consumption Trends in China Source: SSBc Although the Food consumption table above only displays data until 2010, it is utilised to illustrate the broad categories of increased consumption as Chinese consumers get wealthier, a trend that will continue until 2019 and beyond. Micro Viewpoint: [A] Market Impact A stable food supply will be secured. [B] Spirit of Innovation   [A] Uniqueness The scale and rate of the transformation of China’s food supply chains is unique globally. Notes The dairy industry is an example of farming corporatisation in China, where the Government had aimed to move 70% of production from small farms to company-operated farms by 2011. However, just 40% of production was from company-operated farms by 2013.
  • China's Future Signals 2-5 years 10 March 2014 China Skinny China Skinny | www.chinaskinny.com | info@chinaskinny.com | +86 21 3221 0237 | Suite 805, 69 Yanping Road, Jing’An, Shanghai, China 14 10. The Food Safety Movement Summary China’s infamous 2008 melamine dairy scandal and resulting 300,000 victims brought China’s abysmal food safety standards to light. Social networks and an increasingly transparent state media have raised awareness further and as consumers become wealthier, they are demanding safer food. Whilst some of the need for safe food will be met by rising imports, China’s domestic food supply is focused on improving its safety and reputation. Finnish tech firms have opportunities from both a B2B standpoint, such as agricultural technology (Section 3) and processes (Section 2), and B2C such as tech developers and food producers like Raisio Group, HKScan and Olvi working together to create competitive advantages selling to Chinese consumers through smartphone and web tracking of food origins, to packaging with companies such as Huhtamäki. Rating [A] Food Safety is one of China’s most pressing social issues providing significant opportunities for technology solutions for process, packaging and food producers from Finland. Macro Viewpoint: [A] Consistency with policy trends The Government is committed to fixing the food safety issue allocating significant resources to regulation, process changes and propaganda. [B] Consistency with technology trends   [A] Consistency with economic trends The rise in consumers with the ability to pay for safe food is a direct result of economic growth in China. [A] Consistency with social trends The market is demanding safer food, with a lack of trust in local food and beverage driving imports to 57 billion Euro by 2018. China's Food Safety Issues & Sentiment Source: PEW Research Micro Viewpoint: [A] Market Impact Increased reliability in food supply; and Increased transparency and efficiencies in food supply. [B] Spirit of Innovation   [A] Uniqueness China’s vast supply chain and rampant corruption contribute to a food safety issue that is unique globally, especially in a market with such a sizable middle class prepared to pay for safe food. Notes ***
  • China's Future Signals 2-5 years 10 March 2014 China Skinny China Skinny | www.chinaskinny.com | info@chinaskinny.com | +86 21 3221 0237 | Suite 805, 69 Yanping Road, Jing’An, Shanghai, China 15 The Last Word China’s unprecedented growth and transition presents significant new market opportunities for Finnish companies. However, the complexity and dynamism of China means that it is important to fully understand China’s unique traits and challenges before investing to create solutions to capitalise on these opportunities. This report has provided a high-level view into future opportunities based on trends and signals in China, and deeper investigations should be made into understanding the intricacies of a segment should Finnish companies look to pursue these opportunities. China Skinny hopes that Tekes and the desired audience have found this report helpful and insightful. We look forward to providing further investigation and analysis into the chosen signal.