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Analysis of China

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PESTLE Analysis of China

* Political:

* China set to focus on supporting domestic brands and creating more appeal for domestic brands, this will mean naturally less support for exports and overseas brands

* Single child policy means that consumers aged between 18 and 30 are likely to have savings from past generations passed down to them

* Economical:

* China has had the highest average yearly economic growth rate between 1980 and 2004 of 9.8%

* In 2011 unit prices increased as a result of increased raw material and labour costs

* During the global recession of 2008 and 2009, China recorded GDP growth of 9.6% and 9.2% respectively

* According to the Chinese central government GDP growth in 2012 is expected to slow 7.5%.

* Due to the strong confidence in China’s long term economic prospects, foreign direct investment in retailing continues to increase in China. By the end of August 2009, the total number of foreign investment companies reached 2,400, and the total investment capital in China surpassed US$4.8 billion.

* Social:

* Shopping has become a leisure pursuit for many middle class and affluent Chinese consumers. In particular multi-format retail Centre are very popular.

* Purpose built retail parks and mega malls are being set up by the government to encourage consumers to spend as they begin to see shopping as a leisure pursuit

* A number of public holidays and festivals provide great opportunities for gift giving

* Technological:

* Sina Micro-blogging site is widely considered as one of the biggest online marketing platforms in China and is reportedly a bigger phenomenon than Twitter in the US

* China has the highest number of internet users globally at 454 million

* Taobao a multi-branded online shopping mall accounts for 80% of China's total…...

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