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China’s Sustainability Supertrend
     Top Five Opportunities and How Your Company and Career
                            Can Benefit

                           Green Drinks China

                        Presented by: Jason Inch
                             May 10, 2012
The Economic, Demographic and Political Forces that are Changing the World.
                     www.ChinaSupertrends.com
About the Presenter
   Jason Inch
       MBA, Richard Ivey School of Business
          Exchange at China Europe Int’l Business School (CEIBS)

       Undergraduate degree in Asian Studies, U. of Victoria (Canada)
          Exchange at Nanzan University (Nagoya, Japan)

       Twelve years work experience in Asia
       Co-author 2008’s Supertrends of Future China
       Author 2012’s China’s Economic Supertrends
       Adjunct Professor
       Partner at Shanghai consulting and
        event company
       Learn more:
          www.JasonInch.com

          www.ChinaSupertrends.com




    The Economic, Demographic and Political Forces that are Changing the World.
                         www.ChinaSupertrends.com
New Book – April 2012

                             A modern guidebook to China’s
                             macroeconomic trends and
                             opportunities, for
                             businesspeople seeking new
                             strategies, investors seeking
                             growth and professionals
                             interested in new career
                             directions. Published April
                             2012, available today.

The Economic, Demographic and Political Forces that are Changing the World.
                     www.ChinaSupertrends.com
China Supertrends Photography Project
• Capturing images of a changing China

• Collaboration between China-based
  photographers and author
  Jason Inch

• Photos in this presentation by:
    –   DK Wong
    –   HAN Yi
    –   SUN Lei
    –   HU Yinqiao

• Get involved!
    – www.ChinaSupertrends.com
      /photographyproject



   The Economic, Demographic and Political Forces that are Changing the World.
                        www.ChinaSupertrends.com
Agenda
• What are the Supertrends?
  – The Growth Engines of China
  – China’s Turbochargers
• China’s Sustainability Supertrend
  – Top Five Opportunities for the Next Five Years
• Q&A



  The Economic, Demographic and Political Forces that are Changing the World.
                       www.ChinaSupertrends.com
What is a China Supertrend?
• A combination of a growth engine, a
  turbocharger and one or more economic,
  demographic or political forces




  The Economic, Demographic and Political Forces that are Changing the World.
                       www.ChinaSupertrends.com
Growth Engines
• Economic components:
  – Trade
  – Investment
  – Consumption




  The Economic, Demographic and Political Forces that are Changing the World.
                       www.ChinaSupertrends.com
China’s 2007 GDP Growth:



      Consumption,
                                  Investment,
          39%                         38%




                     Trade, 23%




                                            8
China’s 2009 GDP Growth:
           Consumption   Trade
               8%         0%




                     Investment
                        92%




                                  9
China’s 2011 GDP Growth
                 Trade   Investment
                  0%        10%




               Consumption
                   90%




                                      10
CONSUMPTION WILL
AND MUST BECOME
THE KEY ECONOMIC
  DRIVER IN THE
     FUTURE




 The Economic, Demographic and Political Forces that are Changing the World.
                                                                               11
                      www.ChinaSupertrends.com
China’s Retail Growth




                        Source: China’s National Bureau of Statistics

The Economic, Demographic and Political Forces that are Changing the World.
                     www.ChinaSupertrends.com
Consuming and Aspiring
• Chinese consumers are playing their part to
  drive consumption.
• They aspire to a higher quality of life, for
  themselves and for their children.




  The Economic, Demographic and Political Forces that are Changing the World.
                       www.ChinaSupertrends.com
Opportunity #1:
                      Microtrends

Life
Of
Health
And
Sustainability
 The Economic, Demographic and Political Forces that are Changing the World.
                      www.ChinaSupertrends.com
Turbochargers
• Reverse Globalization
• Leapfrogging
• Determination




  The Economic, Demographic and Political Forces that are Changing the World.
                       www.ChinaSupertrends.com
Opportunity #2:
       Facilitate Reverse Globalization
                                                                     China ODI (US$ billions)

                                                        70
Year         US$ Investments Abroad
                                                        60
2003         ~2.7 billion
2004         ~$2.9 billion                              50
2005         ~$5.5 billion                              40
2006         ~$12.3 billion                             30
2007         ~$21.2 billion
                                                        20
2008         ~ $52.2 billion
2009         ~$56.5 billion                             10

2010         ~$59 billion                                0




                                                             2010
                                                             2003
                                                             2004
                                                             2005
                                                             2006
                                                             2007
                                                             2008
                                                             2009
            Source: Ministry of Commerce


   The Economic, Demographic and Political Forces that are Changing the World.
                        www.ChinaSupertrends.com
DESIRE TO
SUCCEED




The Economic, Demographic and Political Forces that are Changing the World.
                     www.ChinaSupertrends.com
GOVERNMENT POLICY




The Economic, Demographic and Political Forces that are Changing the World.
                     www.ChinaSupertrends.com
China’s Plastic Bag Ban




The Economic, Demographic and Political Forces that are Changing the World.
                     www.ChinaSupertrends.com
The Sustainability Supertrend

• Innovation                                Three Growth
• Clean Energy                                 Engines

• Sustainable
  Development
                                           Turbochargers




  The Economic, Demographic and Political Forces that are Changing the World.
                       www.ChinaSupertrends.com
Opportunity #3:
                    Innovate in China




BYD has just begun selling the all-electric E6 model to the public.

The Economic, Demographic and Political Forces that are Changing the World.
                     www.ChinaSupertrends.com
Environment
• Water
• Wind
• Solar




  The Economic, Demographic and Political Forces that are Changing the World.
                       www.ChinaSupertrends.com
CHINA’S RIVERS:
                        FROM THIS….




The Economic, Demographic and Political Forces that are Changing the World.
                     www.ChinaSupertrends.com
BACK TO THIS….




   The Economic, Demographic and Political Forces that are Changing the World.
                        www.ChinaSupertrends.com
From AIR…




The Economic, Demographic and Political Forces that are Changing the World.
                     www.ChinaSupertrends.com
…to OPPORTUNITY #4




 The Economic, Demographic and Political Forces that are Changing the World.
                      www.ChinaSupertrends.com
And Finally… Opportunity #5


    节能减排
   Save Energy,
 Reduce Pollution
The Economic, Demographic and Political Forces that are Changing the World.
                     www.ChinaSupertrends.com
Five Opportunities for the Next Five Years

1.    Microtrends
2.    Facilitate Reverse Globalization
3.    Innovate in China
4.    Solar
5.    Save Energy, Reduce Pollution




     The Economic, Demographic and Political Forces that are Changing the World.
                          www.ChinaSupertrends.com
THANK YOU!

JASON INCH JasonInch@ChinaSupertrends.com


Q&A

The Economic, Demographic and Political Forces that are Changing the World.
                     www.ChinaSupertrends.com

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China's Sustainability Supertrend

  • 1. China’s Sustainability Supertrend Top Five Opportunities and How Your Company and Career Can Benefit Green Drinks China Presented by: Jason Inch May 10, 2012 The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 2. About the Presenter  Jason Inch  MBA, Richard Ivey School of Business  Exchange at China Europe Int’l Business School (CEIBS)  Undergraduate degree in Asian Studies, U. of Victoria (Canada)  Exchange at Nanzan University (Nagoya, Japan)  Twelve years work experience in Asia  Co-author 2008’s Supertrends of Future China  Author 2012’s China’s Economic Supertrends  Adjunct Professor  Partner at Shanghai consulting and event company  Learn more:  www.JasonInch.com  www.ChinaSupertrends.com The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 3. New Book – April 2012 A modern guidebook to China’s macroeconomic trends and opportunities, for businesspeople seeking new strategies, investors seeking growth and professionals interested in new career directions. Published April 2012, available today. The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 4. China Supertrends Photography Project • Capturing images of a changing China • Collaboration between China-based photographers and author Jason Inch • Photos in this presentation by: – DK Wong – HAN Yi – SUN Lei – HU Yinqiao • Get involved! – www.ChinaSupertrends.com /photographyproject The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 5. Agenda • What are the Supertrends? – The Growth Engines of China – China’s Turbochargers • China’s Sustainability Supertrend – Top Five Opportunities for the Next Five Years • Q&A The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 6. What is a China Supertrend? • A combination of a growth engine, a turbocharger and one or more economic, demographic or political forces The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 7. Growth Engines • Economic components: – Trade – Investment – Consumption The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 8. China’s 2007 GDP Growth: Consumption, Investment, 39% 38% Trade, 23% 8
  • 9. China’s 2009 GDP Growth: Consumption Trade 8% 0% Investment 92% 9
  • 10. China’s 2011 GDP Growth Trade Investment 0% 10% Consumption 90% 10
  • 11. CONSUMPTION WILL AND MUST BECOME THE KEY ECONOMIC DRIVER IN THE FUTURE The Economic, Demographic and Political Forces that are Changing the World. 11 www.ChinaSupertrends.com
  • 12. China’s Retail Growth Source: China’s National Bureau of Statistics The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 13. Consuming and Aspiring • Chinese consumers are playing their part to drive consumption. • They aspire to a higher quality of life, for themselves and for their children. The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 14. Opportunity #1: Microtrends Life Of Health And Sustainability The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 15. Turbochargers • Reverse Globalization • Leapfrogging • Determination The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 16. Opportunity #2: Facilitate Reverse Globalization China ODI (US$ billions) 70 Year US$ Investments Abroad 60 2003 ~2.7 billion 2004 ~$2.9 billion 50 2005 ~$5.5 billion 40 2006 ~$12.3 billion 30 2007 ~$21.2 billion 20 2008 ~ $52.2 billion 2009 ~$56.5 billion 10 2010 ~$59 billion 0 2010 2003 2004 2005 2006 2007 2008 2009 Source: Ministry of Commerce The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 17. DESIRE TO SUCCEED The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 18. GOVERNMENT POLICY The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 19. China’s Plastic Bag Ban The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 20. The Sustainability Supertrend • Innovation Three Growth • Clean Energy Engines • Sustainable Development Turbochargers The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 21. Opportunity #3: Innovate in China BYD has just begun selling the all-electric E6 model to the public. The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 22. Environment • Water • Wind • Solar The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 23. CHINA’S RIVERS: FROM THIS…. The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 24. BACK TO THIS…. The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 25. From AIR… The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 26. …to OPPORTUNITY #4 The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 27. And Finally… Opportunity #5 节能减排 Save Energy, Reduce Pollution The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 28. Five Opportunities for the Next Five Years 1. Microtrends 2. Facilitate Reverse Globalization 3. Innovate in China 4. Solar 5. Save Energy, Reduce Pollution The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com
  • 29. THANK YOU! JASON INCH JasonInch@ChinaSupertrends.com Q&A The Economic, Demographic and Political Forces that are Changing the World. www.ChinaSupertrends.com