Research Needs of Chinese Companies Today

Market research industry in China has shown stellar growth during the last decade thanks to the world’s fastest growing economy. Local research firms are now seen competing with foreign competitors while technology applications were extensively implemented in the field.
The industry’s revenue in 2014 is expected to be USD 4 billion, 12.6% up from the previous year, and the annualized growth rate for the past five years (2009-2014) is around 14.8%, currently employing 52,739 through 4,108 companies.
On the other hand, while the profit margin (18.2%) of the market research industry in China is much higher than that of other industries, it has come down from its peak rate of 24.3% in 2002 due to increasing labor costs and market competition. 

Approximately 15.6% of industry’s revenue goes to the labor cost.

 

The Research Need Today

Attracted by the huge market potential in China, multinational companies have opened offices or factories since 1990s, while successful Chinese companies started looking aboard to achieve sustainable growth.
It is now clear that not just multinational companies need market research to help with their localization in the Chinese market, but domestic companies need it for their global market strategies as well.

The huge population in China generally offers great opportunities for FMCG companies from which the market research industry can also benefit. In that sense, the most popular research topics are consumer analysis, purchase decision process, consumer psychology and consumer need.

In terms of the market research service, clients are not satisfied with simple data collection anymore because the market insight and strategy development have become much more important lately.

For inquiries on this market overview or a full report, please contact  Dennis Am, marketing/sales manager (dennisa@groupibi.com)