Is Social Media Key To Accessing China's Next Hyper-growth Industry?
With a 62% year-on-year increase in online bookings between 2012 and 2013, travel looks set to become China's next Hyper-growth industry. EVP International, Hannes Ben explored the pitfalls and possibilities of China's increasingly lucrative travel market for MediaPost on their Europe Daily column.
China is not only the most populous country on the planet, but one with an economy and society evolving at a ferocious pace. For e-commerce, companies like Alibaba, whose anticipated US-based IPO was valued at $221 billion this week, are starting to look outside of China to cement future growth. Whilst there is clearly no decline in online shopping, it does pose the question of which company or vertical is going to be next to experience hyper-growth?
According to a study by McKinsey & Company, in 2000, 4% of Chinese people were in the middle class range (making US$9,000 to $34,000). By 2012, 68% of Chinese people were in this range. This socio-economic development has been the driving force behind the Chinese e-commerce market that transacted $865 billion dollars in 2013, the largest market of its kind worldwide.