China credit card market

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China credit card market

  1. 1. The Credit Card Market in China: Opportunities forForeign FirmsThe credit card market in China has been growing at double-digit rates since the early 1990s and hasboomed since 2003. China became the world’s second largest credit card market (after the U.S.) in 2012in terms of number of cards issued and transaction volume, and is expected to become the worldslargest credit card market by the year 2020.Being highly policy-driven, the Chinese credit card market is largely directed by political calculation,policy mission and administrative intervention. Even though economic and social factors play a vital role,government regulations and policies control or strongly influence the competitive landscape, the creditcard ecosystem and the industry income structure. Foreign companies must recognize that governmentregulators are working on a course of regulation that is oriented toward supporting state-owned anddomestic Chinese enterprises.Even so, the Chinese credit card market will continue to be the most promising market worldwide dueto the size of the national economy and population. And the relative slow-down of the Chineseeconomy will have a limited impact on the market given the huge scale of business opportunity and thetight control of credit risks by the central bank. Packaged Facts predicts that market growth in 2012 and2013 will notch downward due to card migration and risk control concerns, but will pick up again from2014 onward due to the growing customer base and developing mobile and internet payment business.Buy a copy of this report @ http://www.reportsnreports.com/reports/218317-the-credit-card-market-in-china-opportunities-for-foreign-firms.htmlDifferentiation of positioning based on brand image, promotional strategy and strategic vision is criticalto success in this market. Big name foreign firms are attractive to middle- and upper-class Chinesecustomers, whom foreign companies can target through high-quality and exclusive services. In addition,younger adults are forming a new generation of consumers who are more technologically- andinnovation-driven when it comes to choosing credit cards, such that the most technologically advancedcompanies will be best positioned to perform in this market.At the same time, the payment processing market is going through a revolution in China with theintroduction of third-party payments. New competitors are entering into the market and sharing profitsfrom card payment companies and banks. Alliances and the competitive landscape have beentransformed, and payment companies will need to reconsider their positioning and partnership strategyin this market.Request a Sample of this report @http://www.reportsnreports.com/contacts/RequestSample.aspx?name=218317.

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