As Crowd look towards the new year, we look back at what we have achieved in expanding the current offices to their true global potential.
We recently announced that we have set up a new office in Shenzhen, China. In this article we will explain why we’ve begun working in China and why we think the Chinese market will provide the perfect next step for Crowd.
Why Has Crowd Setup In China?
China’s global importance has been rising sustainably over the past few decades becoming one of the major international business hubs.
In recent years, China’s economy has experienced dramatic growth. According to the International Monetary Fund (IMF) rank China as the number one economic superpower in the world – surpassing the United States based upon the purchasing power parity of GDP.
China has the largest middle class in the world, with their wealth increasing 600% compared to the 115% increase across the rest of the world this century.
Both the growing economy and increasing demographic wealth has meant that China’s capacity for business has grown significantly – from actual goods to digital and virtual products, this gives a great opportunity to not only Chinese firms, but also foreign companies willing to put the effort in and work in China.
The Open Market of China
Since the late 1970s, China has set up 20 free trade zones in mainland China. The government of China gives SEZs special (free market-oriented) economic policies and flexible governmental measures. This allows SEZs to utilize an economic management system that is more attractive for foreign and domestic firms to do business in than the rest of mainland China.
Notably, China has also instigated the strategy of ‘the belt and road initiative’, the strategy underlines China’s push to take a larger role in global affairs with a China-centred trading network. The coverage area of the initiative is primarily Asia and Europe, encompassing around 60 countries. Oceania and East Africa are also included. Anticipated cumulative investment over an indefinite timescale is estimated between $4-8 trillion. To sum up, setting up a business in China does not only grant a share of the Chinese market with flexible economic policies and governmental measures, but also access to over 60 other countries.
The most surprising thing in China is, that Chinese people do not need cash to support their daily lives. The social media platform; Wechat, and the online shopping company; Alibaba now dominate Chinese life. The main ways of making a purchase in China is through either Wechat pay or Alipay, whether you’re purchasing an expensive Gucci suit or buying some cheap street food, you can just simply scan a QR code and click ‘pay’ and you’re done. Even homeless people are now accepting payments via these channels!
Our recent trip to China was very insightful and allowed the team to get a better understanding the country, its culture and the potential for business. Now that we have an office setup, we are on the cusp of launching our first campaigns and can’t wait to share it all with you.
Stay up to date with what we get up to in China and all our other offices through our news page.