China has been the main source of cheap labor for companies in first world countries, but cheap Chinese labor is disappearing. Rising labor and real estate costs are causing production to shift elsewhere. The Chinese have become consumers, which is creating opportunities for foreign marketers. In The End of Cheap China, Shaun Rein, born and educated in the United States but now living and working in China, shares anecdotes from his personal and professional experience to illustrate current cultural, political, and economic conditions in China. Rein highlights the importance of understanding Chinese consumers and provides marketing advice to entrepreneurs interested in benefiting from China’s new and growing classes of consumers. He also analyzes political and social changes and their international implications, and speculates about the future.
• China’s era as a source of cheap labor is coming to an end. Blue collar wages are skyrocketing, as is the cost of space. Manufacturing is moving to other countries.
• China is gradually becoming a nation of consumers. Western companies can sell to the Chinese in a variety of ways, but they must understand how marketing to them is different from marketing to Westerners. Companies must learn to cater to Chinese tastes. Chinese consumers are willing to pay more for safe products.
• China now has a large class of super-rich people. They crave Western luxury goods and status symbols. They represent an exceptional market for certain American companies. Wealthy young Chinese women are an especially desirable target market.
• The rise of China is driving global changes in brand dominance and survival. While the United States now supplies most of China’s agricultural products, Chinese brands, such as Lenovo, are becoming popular in the United States.
• The Chinese government is more concerned with stability and the economy than with spreading its ideology or imperialism. To preserve stability, you must address major internal issues, such as food security; unaffordable medical care; political corruption; inhumane housing conditions and lack of affordable housing; and a misguided educational system.
In The End of Cheap China, Shaun Rein offers a unique perspective as a businessman who has lived and worked in China. The main section of each chapter is a lengthy anecdote or collection of anecdotes describing China’s past and present and where he might be headed; Marketing tips are provided at the end of each chapter in the sidebars. The Chinese market and how it differs from Western markets is a central theme. The book would be of interest to entrepreneurs who want to know how to do business in China and how to market to the Chinese. It would also be of general interest to readers who want to learn about the evolution of China. The content is divided into topics, which can be read in any order.
