2001 Summit Speech: Business and Trade Opportunities in China

2001 Global Summit of Women

Hong Kong

Excerpted from a speech by Sein Chew, President and CEO of Unity Asset Management at the Global Summit of Women 2001 in Hong Kong on September 14, 2001

BUSINESS AND TRADE OPPORTUNITIES IN CHINA

Even without the 2008 Olympics and even without admission to the World Trade Organization, China is the fastest growing market in the world and it has the biggest growing middle class. A lot of money will be made if you service, manufacture for and feed this middle class. Here are two areas in particular where opportunities exist to serve the rising middle class.

1 - Creation of Television Content and Advertising

With televisions cheap and plentiful in China and with new broadband fiber optic networks creating a need for a great amount of content, an entrepreneur can benefit from the dearth of broadcast content in China. To benefit, one does not need to compete with AOL or HBO where negotiations are tied to political considerations and economies of scale. In fact, a smaller company could perhaps do better as the broadcast market is very fragmented. A small company could, for example, take a famous chef from back home and create a cooking show around her for Chinese audiences. There is also a great need for educational programs.

2 - Tourism

As middle class wealth rises, all sorts of services and products become marketable to them. Mainland Chinese tourists to Australia have increased 35% on a yearly basis. The average Chinese tourist spends $14,000 Australian dollars compared to $2,000 Australian dollars for the average Japanese tourist. One way to build a growing business is therefore to move up with consumer spending by China's middle class.

BUSINESS AND TRADE OPPORTUNITIES IN JAPAN

1 - Furniture and Housing Supplies

A recently-passed law making it possible to evict defaulting tenants has great implications for the housing market. New condos are being built in Tokyo and capital is pouring in as landlords have found protection in the law. As a result, there is going to be a mini housing boom which, in its turn, will create a real need for furniture and housing supplies. The exporter who invests in learning Japanese preferences and builds to these specifications is going to reap significant rewards.