Chinese Middle Class

Once market segments are established it is important to find out what would drive customer value for Chinese consumers. Customer value can be reckoned as the difference between what customers want to get from a product or a service and what customers have to give in order to get it. The Chinese government announced their support to increase worker’s wages over the next decade. They have tried to reduce the gap between wealth and poverty. By increasing Chinese domestic economics, Chinese middle class is expanding which could be an opportunity to Australian exporters. In line with rising income, the country's middle class had risen to 80 million by January 2007, up from 65.5 million in January 2005. The middle class in China is defined as comprising households with an annual income between RMB60,000 and RMB500,000 (An Hodgson, 2007). Middle class towns are designed to mimic western- life style, in terms of making the streets name in English without Chinese translation like Up East Side Manhattan. This circumstance makes it easy for Australian marketers to get into Chinese market. When Australian franchises approach the Chinese market, Chinese customers’ value and confidence would be the target. Clearly customer value can be built of focusing on what a specific market segment considers to be important or of great benefit to them; these two theories are strongly intertwined for a marketer looking to position their brand in China.
Due to the increasing Chinese middle class, an explosion of growth in the Chinese coffee market is has occurred. Australian coffee franchises, such as Gloria Jeans, are better known than other countries’ companies. With the Chinese middle class being the targets market coffee shops could be placed not only in the cities of China, but also in areas that have been identified as “middle-class”. Furthermore an increasing demand for meat in china could be highly beneficial to Australian meat exporters, with Australian produce to be considered of a... [continues]

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