About China SC Group

The Challenge

The 12th 5 year plan voted by CPC in 2009 ushered in the consumer era in China. China's total consumption will reach two-thirds of that of the US and account for about 12% of world total by 2020. Consumption share of GDP is expected to grow rapidly, and coupled with robust GDP growth will create unprecedented growth in many consumer segments. In addition to physical goods such as cosmetics and health and beauty aids, Chinese consumers are increasingly interested in high end services such as travel services to anywhere outside the PRC.

By the end of the 5 year plan it is expected that the Chinese middle class will number over 300mm, many millions of which will live in 3rd and 4th tier cities where there are rarely luxury stores or effective physical distribution of foreign consumer goods or services despite consumers' ability to afford them. Even today foreign high end consumer brands find it hard to rapidly reach Chinese consumers everywhere in china, especially beyond first tier cities. These companies are challenged in entering the Chinese consumer market due to several unique issues: