Last week, China’s government has enrolled a new law in which around 90 million families may qualify for the new China two-child policy, making the one-child barrier a history. With a main aim of helping the population to rise to an estimated 1,5 billion in the next 15 years, the National Health and Family Planning Commission in China has finally overcame the long and controversial one-child policy which has been in charge for decades.
Opportunities for UK business
Although many critics say that this policy change is coming too late, there are numerous business opportunities for UK and other businesses abroad, especially in the healthcare, baby care and maternity products’ industry – coming from the simple fact that China is a fast-growing marketplace with more than 1,37 billion people actively involved in it.
The economic growth for this change in China’s law is evident – as the labor force aged between 15 and 59 is expected to grow tremendously – to about 30 million by year 2050. However, now is the right time to leverage these opportunities.
An estimated number of three to six million additional babies per year is expected, according to Credit Suisse – a bank that saw the enormous business opportunities both from the side of growth but also the overall consumption and cost of raising a child which number will certainly grow.
How to grab the opportunity to grow your business in China market ?
We already mentioned healthcare, baby care and maternity care as the ultimate fast-growing industries that are expected to grow substantially. However, this concept is only scratching the surface of the endless possibilities that this population growth will introduce to both the Chinese market but also the businesses abroad.
Adopting a successful business strategy oriented to this growth is what every UK business should consider with this new ‘trend’, and the first results already kicked off – the baby formula producers and maternity garment makers in China saw their shares rise by the daily limit of 10 percent.
While helping the struggling Chinese economy to stabilize, this change will drag bigger consumption and investment. From the perspective of UK businesses, certainly the best way to adopt a strategy oriented to this fast-growing marketplace is to consider the eCommerce (online sales) channel as the best option for shipping top-quality products in a cost-effective way.
Specifically the dropshipping method is considered as the best one to start with for UK businesses, which includes direct shipping without the need of storage facilities or inventory.
Directly linking to cross border commerce, the market research of every business should focus on technology as the main asset in the present situations. Another great benefit of this tremendous opportunity is the high percentage and involvement of China when it comes to online sales, but also the rise of mCommerce (mobile eCommerce) as a crucial factor to start with.
In the end, the best advice always comes in the form of linking to the marketplace in a digital way while talking with locals in real life and constructing a business plan that aims on tangible results. With the cost-effective aspect brought by the rise of technology and the digital marketplace (eCommerce), every UK business can start a new business revolution abroad – however it is necessary to bring the value proposition ahead, be different and make the most of the upcoming sales in a form of an engaging and safe eCommerce experience.