KOTRA reported the "Year's China keywords." They introduced 30 categories to understand China, the most fast faced country in the world. The 30 keywords are: expanding communication, corruption, The balance of domestic demand and exports, Made with China, Shanlizu (闪离族; divorced people in Chinese) 'and' Hainu (孩奴; child of slaves in Chinese) and the political, economic, social, and cultural fields. The keywords in the economic sector might be interesting to Korean companies targeting the Chinese market.
1. 'Balance (Rebalancing)' has to be done for surviving
China's export-led economic structure is easily influenced by external environment changes. Therefore, in 2009 the Chinese government has expanded domestic consumption with a major financial commitment to rectify the imbalance of growth. China promotes economic development plans called '12 .5 determination' from 2011 to 2015. The main contents of the plan are expanding domestic demand, independent and creative expansion, the harmonious development of rural economies and improvement of the content of the external opening of China's economic growth by including how the 'balance' is the core of economic policy. By doing so, Korean companies might get many opportunities to export to the Chinese domestic market.
2. 'Chi-wan' and 'Chi-nam'; China pursues economic alliance
Recent China is strengthening the economic alliance with Southeast Asian countries. The term "Chi-wan" was born after Taiwan economic cooperation agreements (ECFA) conclusion which is oriented for creating an integrated economic area with China's capital and the Taiwan's technology. In addition, China hopes that the FTA becomes effective with Vietnam in 2015. This is why the word 'Chi-nam' gradually emerged. This year, China has initiated or made FTAs with 6 ASEAN countries such as Brunei Darussalam, Philippines, Indonesia and others. This movement of China has become a threat to Korean exports.
3. ' Masstige'; discard the low-cost markets brand, and change to luxury consumer market
According to the World Luxury Association, in January 2009 a total amount of consumption for China's luxury goods was US$ 8.6 billion accounting for 25 percent in the world market but at the end of 2009 the world's market share rose to 27.5 percent. China is the second largest luxury goods consumer market after Japan and in 2014 the luxury market is expected to grow to US$ 14.6 billion. Especially in China the young people, belongs to the age 18-50 are the main target in the market, so that it is expected to grow much faster than Europe where the main consumers are over 40. Also, consumption for inter-advanced products (Masstige products) which is placed after luxury products has been increasing rapidly. Accordingly, Louis Vuitton which has 29 stores in China aims at Chinese consumers with a discount. Korean companies aiming at the Chinese domestic market need to establish the high-quality marketing strategy.
4. 'Made with China'; international cooperation for production is highlighted
Last November, a China Department had an advertisement of the country's image for 30 seconds in CNN for planting the term 'Made with China' instead of 'Made in China' to world customers. China is trying to break out of the stereotype. The stereotype has been that Chinese products are equal to low-cost products. They started to build up a national image and broadcast that they produce goods through international cooperation an in part of technology, design.
Besides that, the report has introduced a variety of keywords such as, 'Handbag effects' which change the design for a disposable item regularly as a fashion product so that consumers want to have it, 'TaJinJi (她经济) which refers to increasing woman's purchasing power,' ' BaoBao JingJi' (寶寶經濟: spend 30 percent of household income on child care).'