After five weeks in Sweden, am back in Ningbo in the province of Zhejiang in eastern China. For three years I have worked with helping Swedish companies to get into the Chinese market. I’m walking through a dying shopping center a bit outside of Ningbo’s city center talking on the phone with clients and brands that frantically wonder if they are going to make it if they should get involved in, wait or leave the Chinese market. My answer is that there are many signs that the situation is brightening.
DESPITE THE TIMES being tough people here are working like never, late into the night to help the companies to get back on their feet again. It applies to everyone, from owners to bosses and employees.
This creates hope that China will recover fast and that it will open for new possibilities for the Swedish companies that want to get into this gigantic market.
After a heavy and tangible decline across the country due to the corona crisis, people are now hungry to make up for what has been lost.
This is even though we may not yet have hit the bottom in the international demand for products made in China, and that there may be a second wave that risks hitting the Chinese economy hard as well.
It is clear, both in numbers and through observation during a walk along the streets, who are hit the hardest. The working class had to take the biggest hit as usual. With low job security and minimal savings, many are now having a hard time. The middle class generally has stable personal finance, which means that they can recover faster. The upper class feels the crisis financially but is still financially strong, although no longer as willing to spend large sums on entertainment.
SOME INDUSTRIES AND products have been greatly consumed, while others have grown. E-commerce and such things that are being sold online it is going well for. The thing that is really working well is live broadcasting and other methods to improve the customer’s shopping experience, people want to be entertained when they shop now.
Unfortunately, less sustainable companies have already perished in all professions. he hardest hit are industries for leisure activities, entertainment, and restaurants. But in their place, new and innovative companies are now beginning to take their place. With the slowly increasing demand, lower, and a lower cost of starting your own, because of stimulus packages, and reduced prices for rent and services, many new companies can emerge after the crisis.
The market is still alive and full of opportunities for those who are willing to learn and adapt and who dare to take risks!
This was originaly a article in the magazin Säljarna
We have translated the article, as it is still relevant.