Since most middleclass Chinese gave up travel abroad in the past 20 months, interest for quality products available in the country has been growing tremendously.
And with money saved on travel hotels and restaurants, Chinese consumers buy in China and they buy more premium goods.
In 2020, luxury goods sales grew 50% in China. In the next 4 years, expectations are that 40% of worldwide luxury purchases will be done in China.
No wonder, considering that 2 new billionaires appeared in China every 3 days in 2020!
During the 4th edition of the China International Import Exhibition (CIIE) in Shanghai from November 5-10, visitors at the Swiss Booth, could get a real taste of Switzerland, literally.
On the 234 m2 booth, 26 Swiss companies presented, offered for tasting and even offered to bring back home their high-quality consumer products to Chinese visitors from all provinces and cities.
The joint booth, with a record number of Swiss brands exhibiting this year, is coordinated by the Swiss Centers, a non-profit organization that has been concretely supporting the Swiss economy in developing business in China for over two decades and is an official partner of CIIE since its first edition. Co-organizers of the Swiss Booth are the Swiss Chinese Chambers of Commerce in Switzerland (SCCC) and in China (SwissCham).
Picture legend: A taste of Switzerland in China: the Swiss Ambassador and Shanghai Consul General at the Swiss Centers Booth at the China International Import Exhibition 2021.
The Swiss Ambassador Bernardino Regazzoni and Consul General Olivier Zehnder visited all Swiss exhibitors, the well-established Swiss brands such as Frey (owned by Migros), Ricola, Jura and Victorinox, as well as new comers to the market such as Morand Distillery and Absinthe Kübler.
Picture legend: More than 25 Swiss brands showcase their high quality products at the CIIE 2021.
Chinese consumption and “common prosperity”
While tourism experiences a difficult year in China because of Beijing’s zero-Covid policy and mobility restrictions, the Swiss Centers experts see a lot of reason for long-term optimism for Swiss consumer goods.
Under the just launched ‘common prosperity’ campaign, the government seeks to expand the middle class, which undoubtedly will be positive for consumption growth in the long term.
Besides, since the most affluent Chinese citizen who used to travel and shop abroad buy now only in China, consumption of high quality products is expected to grow faster than the average retail consumption. This favors premium products which are typically made by Swiss companies.
The China Integrated Team has been instrumental in setting up and developping the business of more than 100 companies in China.
We hope that the information above can be of interest and we remain at your disposal for your China strategy and development plans.
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© Nicolas Musy & your China Integrated team