2009-08-04 10:48:33 - As more and more brands vie for market share how would you ensure your fair share? Remember no brand is immune from becoming irrelevant.

China’s urban elite are role models with a lifestyle sought by hundreds of millions of Chinese.

High profile sports and entertainment events are powerful tools for corporate and brand relationship building with key customers, top employees and the people who make your business a success. Creating a lasting impression starts with associating yourself with the right events.

Some of the biggest brands in the world understand the importance of associating with events that their customers and potential customers view as reflective of their lifestyles. Their ability to successfully import this capability into China will determine who wins and who doesn’t.

According to RAOMABO Associates, China's economy is certainly well on the path to recovery! Last week, China announced that its

second-quarter GDP growth clocked in at a mind-boggling 7.9% - while the rest of the world was stumbling. China is on track to exceed projections for 7% economic growth for the full 2009.
I personally observed this robust economic growth and turnaround firsthand on my recent trips to China - so I wasn't really surprised by the strong numbers. This economic rebound was apparent throughout China from larger cities like Shanghai and Nanjing to second tier ones like Xian as well...and it was the leisure industry that seemed to be leading the growth.

The leisure industry which was a largely unknown concept in China just a few years ago has now become a commonplace and popular topic. Leisure, entertainment, vacation and consumption have become hot topics of conversation that have attracted the attention of both the government as well as ordinary citizens.
Statistics have shown that when the national average Per Capita Income reaches US$1,000, demand for leisure comes into being. China’s per capita GDP reached US$1,700 in 2005 and triggered an era of phenomenal development of the leisure industry. Today the PPP stands at around US$4,990.

One of the most awesome trends in China today is the strength of the Chinese consumer. For years, I've been predicting that China's rapidly expanding and affluent middle class -- commonly referred to as Chuppies -- would replace U.S. Baby Boomers as the most influential consumer group in the world by 2020. Considering the current global economic crisis and China’s resilience, I think Chuppies may well overtake U.S. Baby Boomers much sooner.

During a time when most consumers worldwide are cutting back, the Chinese continue to spend. Throughout my trip to the Greater China region, I observed the Chinese ability to spend. While consumers worldwide are feeling the pinch of the global recession, the Chinese have a huge savings pool and wealth is being created throughout the country due to the Chinese government's stimulus package and the country's incredible bank lending policies. As a result, Chinese consumers are growing richer and spending like never before. They're now the main customers at China's high-end restaurants and hotels and are the largest group of visitors to the country's most popular tourist attractions.

Leisure is one of the strongest sectors in China today.

With Chinese consumers increasing their income and spending - domestic consumption has been a strong driver of economic growth in China this year. In fact it's played a key role in the country's ability to post 7.9% GDP growth during the second quarter.

A number of sectors have benefited greatly from the Chinese ability to spend amid the global economic recession, including travel. But I think China's leisure industry has been one of the greatest beneficiaries. In fact it’s actually one of the strongest sectors in China today. Now that's a trend any market person should sink their teeth into!

Helen Wang a noted authority on middle class consumer trends in China says, “If you think of China as only being the world's largest low cost manufacturer - think again. As its economy continues to grow, a burgeoning and increasingly affluent middle class of consumers is rapidly emerging.“

The number of households that have achieved middle class status reached in excess of 920 million in 2008 - mostly in coastal urban areas. These urban elite or Chuppies are attracted by the western lifestyle. As they become more sophisticated, they seek out the higher-end designer aesthetics of western brands that have traditionally been unavailable from cost-conscious local designers and manufactures.

Walking on the streets of Shanghai, it’s not rare to see European luxury labels like Louis Vuitton all over the place - and beleive me they are not FAKES. While fakes are manufactured in Asia – its buyers are not the Chinese Yuppy. They wouldn’t be caught dead with a fake.

You’ll even see brands never seen in the US, like Bentley and Harry Winston. Chinese Yuppies are very status-conscious people. The new rich know what prestigious brands are in. And they want these to reflect their status. Whether it’s Rolls Royce for cars, Dunhill etc. for shirts, or Cartier etc. for jewelry.

When Chinese Vogue was first launched, its print run of 300,000 copies sold out almost immediately. US magazine Better Homes and Gardens has partnered with one of China’s biggest print media companies to launch a Chinese edition of the magazine, with a mix of American and China-specific content to target local consumers and advertising markets.

The urban elites are role models with a lifestyle sought by hundreds of millions of Chinese. It’s estimated that another 300 - 400 million consumers from second tier cities will be joining the middle class in the nextfew years. China will soon become, if not already, the world's largest market for new purchases of eveything from cosmetics to computers to automobiles.

So where does all this leave you and your brand?

Well, as word of the huge marketing opportunities in China spread, more and more brands will be vieing for market share. Remembering that NO brand is immune from becoming irrelevant...how should you position your brand in the eyes of China’s growing affluent?

One globally successful strategy is to associate your brand with Horse Racing in China. A sport that has retained its historical position as the sport of kings. Although it’s an emerging industry in China - the Chinese passion for competitive sports guarantees that horse racing will become phenomenally popular with both the afffluent, as race horse owners and the masses as supporters.

One of the few properly licensed companies permitted to run competitive horse racing in China is a client. A company that’s leading the revival of horse racing in China. Drop me, Steve Coipa, a line and I’ll suggest how you can be assured of securing your brand’s place in the minds of China’s exploding Chuppies. Afer all it cost’s you nothing to find out...