Big load brands of lead

  The main players already in the process of enlargement of the inner form

Big brands across Europe to the cities of the second and third place in China that the country turned the domestic market continues to grow outside of Beijing and Shanghai.

With a presence already in the big cities in China, multi-national European brands such as Louis Vuitton and established diverse as Ikea are inland in search of new customers.

French fashion house Louis Vuitton recently opened branches in cities such as Urumqi, Zhengzhou, Kunming, and while Ikea stores in Tianjin and Wuxi has opened this year, 14 years after its first branch in Shanghai.

The move sparked the realization that China's remarkable economic growth is not limited to the three major cities of Beijing, Shanghai and Guangzhou. In fact, 35 regional cities, which account for 17 percent of the population of China are up 39 percent of GDP, according to the China-Britain Business Council.

"Companies that have traditionally flocked to China to deliver products and processing increasingly clear that in many areas, these products are now tradable in China itself, not for 10 years, they were n," said Chris Lowsley UK Trade & Investment.

A China-Britain Business Council report found that companies that try to serve the local consumer markets by the economic growth is promoted, has created increasing purchasing power and population growth as rapid urbanization of China regional cities. Since 2008, the business opportunities that could be found in the coastal cities of China, spread to the majority of medium to large cities.

But the competition to sell to these new regional market is difficult. Become in the last few years, "regional" and "secondary" are buzzwords among most nations Room and Chamber of Commerce in China, with many of commissioning reports in the hope of giving a benefit to its members.

"French companies will continue their efforts to China from second-tier cities, including Qingdao, Changsha, Kunming and Xi'an, across the country are planning to consumer markets in the cities of the second type supports stimulate and thirdly," Annick de Kermadec-Bentz man President of the French Chamber of Commerce, told China Daily in an earlier interview.

Meanwhile, Swedish Ambassador Lars Fredn personally attended the opening ceremony of the Tianjin Ikea earlier this year to promote the growth of the Swedish brand in China.

Such attention to detail has served Swedish companies in China and second-tier cities. Swedish retailer H & M, which only the first a store in China opened in 2007, operates 64 across the continent by the beginning of the year in such diverse places such as Chengdu, Changsha and Harbin. The company plans to further open up new stores in China this year than anywhere else in the world.

"Our business concept works really well received in recent times and fast growing markets like China, where we can grow faster," says H & M CEO Karl-Johan Persson.

The growth of H & M in China was fast in every way. The company is already profitable than in any of its other markets, according to the Swedish bank Handelsbanken, and expects that the number of stores in China to triple over the next three years. The majority of them will be in regional cities.

But big challenges remain. Domestic Competition is intense throughout the year that Chinese enterprises to adapt to the presence of multinational companies. These cities of the region is still relatively untouched by the European and international retailers have time to learn from their counterparts in Beijing and Shanghai, when it comes to international competition had.

For example, H & M is a tough competition between the regional cities Metersbonwe, a clothing store in Wenzhou, a franchise network of approximately 3,000 stores sports apparel in the same broad base has 18-30 people targeted by H & M.

Previously, foreign brands in regional cities grow by something not so far. But they were a disadvantage in competition with domestic rivals, especially when it comes to marketing.

"Look I think the big companies that are already established in China have their antennas and with the growing community of consumers in these markets," said Chris Lowsley to UK Trade & Investment.

"If they want access, they must above all via the Internet and how they think to get on Chinese search engines. It is an area that deserves attention for companies.

"If you are check boxes in the consumer goods industry, you should not only regional cities, but on Internet sales in the regional cities. Sales growth in China over the internet anywhere else in the world."

For China Daily