China to replace US as world's top consumer tech market

[TaiShang]

China to replace US as world's top consumer tech market, says CES chief | South China Morning Post

China is expected to become the number one market for consumer technology in 2016, overtaking the United States, thanks to both strong local buying power and the rapid development of homegrown innovation, said a top industry executive at the opening of the inaugural CES Asia in Shanghai.

Gary Shapiro, president and chief executive of the Consumer Electronics Association, the organiser of the Consumer Electronics Show (CES), one of the world's most closely watched technology and innovation events, held every year in Las Vegas, described Shanghai as a "city for the future" during a keynote speech at CES Asia on Monday, the first time the event has been held outside the US.

Shapiro, citing industry data and estimates, said the size of the consumer technology market in China, the world's second largest economy, will grow by around 5 per cent to US$281 billion this year, most likely overtaking the US as a the primary market for consumer technology goods by 2016.

Gary Shapiro, president and chief executive of the Consumer Electronics Association, speaks at the inaugural CES Asia conference in Shanghai. Photo: SCMP Pictures"Chinese companies are increasingly focusing on innovation and building on their extraordinary strength in manufacturing," he said.

"China is essential to the growth worldwide of the consumer manufacturing industry."

This forecast will delight Chinese officials, with President Xi Jinping and Premier Li Keqiang's administration keen to transform the Chinese economy into a more domestic consumption-driven model, away from its reliance on government-led investments and exports.

Li has been pushing his "internet plus" agenda to encourage Chinese tech entrepreneurs and innovators, helping the government drive job creation as the Chinese economy faces the slowest growth pace in more than a decade.

Attendees check their phone next to a sign. Photo: ReutersShapiro highlighted Chinese consumers, becomes more tech-savvy and increasing in wealth after decades of strong national economic growth, and fast-growing domestic technology firms such as e-commerce giant JD.com, as the two main drivers for the expansion of the consumer technology market in China.

He also described how international tech firms, such as long-standing industry leader Intel and emerging business leader Twitter – both with senior executives in Shanghai for CES Asia this week – could join the fast development of the Chinese tech market and help domestic firms promote their brand and business worldwide, one of the primary reasons many Chinese tech firms joined the conference as founding exhibitors and partners.

 

[Raphael]

This is a very important development. Increasingly, the Chinese leadership is focusing on "rebalancing" towards domestic consumption and strengthening internal markets. But what is important is not only increasing the size of that market and the amount they consume, but the quality of their consumption. A middle-class consumer market that buys sophisticated electronics is far more important than a lower-class consumer market that only buys rice and other basic necessities.

Under the concept of consumer sovereignty, the former will dictate trends in international markets for critical strategic and technological industries. When conflict starts to brew, the threat of a boycott from the most important consumer market in the world will assuredly cow agitators.

 

[TaiShang]

This is a very important development. Increasingly, the Chinese leadership is focusing on "rebalancing" towards domestic consumption and strengthening internal markets. But what is important is not only increasing the size of that market and the amount they consume, but the quality of their consumption. A middle-class consumer market that buys sophisticated electronics is far more important that a lower-class consumer markets that only buys rice and other basic necessities.

Under the concept of consumer sovereignty, the former will dictate trends in international markets for critical strategic and technological industries. When conflict starts to brew, the threat of a boycott from the most important consumer market in the world will assuredly cow agitators.

China's consumption power and capacity is definitely a strategic asset. As you pointed out, the quality of consumption is important, as well. A giant importer of cheap stuff will not definitely hold much sway in global geopolitics.

In addition to being a strategic asset, China's sheer size and quality development ensures that despite the rising costs (labor, environmental protection, etc), foreign companies stay in China and, as one of my threads somewhere down the list proves, comply with the increasing regulations that provide a better protection for the consumer and the environment.

 

[rcrmj]

it is going to happen, nothing to be surprised about it..we have the population mass, and high tech consumption is the key characteristic of a mid-income society (not that self-claimed and cheated one)

In terms of per capital we have yet to catch-up with the developed ones

 

[TaiShang]

JD.com's eyes on tech start-ups' incubator

2015-05-26

A showroom displayed on May 25 at the Shanghai CES Asia 2015 shows smart home appliances supported by JD+ project. (Photo provided to chinadaily.com.cn)


Recognized as fast-moving consumer goods, personal consumer electronics gadgets and smart home appliance have rapidly attracted domestic vendors' attention, while e-commerce behemoth has smelled the opportunity to join the market.

Present as one of the official industry partners of the ongoing International Consumer Electrics Show Asia (International CES Asia), Chinese e-commerce giant JD.com held a press conference on Monday to debut the company's "smart home" eco-system and introduce a group of gadgets hatched by the company's "JD+" project.

Voice-controlled smart loudspeaker named Ding Dong, movable power pack with storage function named Liu Yun, Zhuo Bang UP3 smart band, TicWatch wearable device, Duo Duo visual reality smart glasses, VINCI smart wearable music player and GYENNO smart spoon all have been launched and displayed during the event.

"There are hundreds of millions of users purchasing goods on JD.com, and we'll utilize big data technology to consult traditional manufacturers and start-ups based on the consumption habits generated from our huge amount of users," said a spokesman of JD.com.

Among the premiere smart devices, Ding Dong marks as the first product co-produced by JD.com and domestic voice recognition developer iFly Tek since the two companies joined hands in March this year.

According to Wang Zhenhui, president of JD smart group backed by JD.com, JD will continue supporting the transformation of traditional enterprises as well as provide service platform for small- and medium-sized technology start-ups.

On May 8, the e-shopping giant launched a start-ups incubator named "JD+ smart milk tea café" to attract Internet entrepreneurs and build bridges between them with investors. "JD's smart community webpage will be released on the official homepage of JD.com very soon," said Wang.

Meanwhile, JD will also hold "JD+ Smart Home Forum" on May 26 to elaborate the smart eco-system from start-ups hatch, technological platform support, industry chain integration, financial investment to sales distribution channels' expanding.

The inaugural Asian version of the US-based International CES opened at the Shanghai New International Expo Center on May 25.

During the three-day conference sessions, the exhibition will feature more than 200 exhibitors from 16 countries and seven keynote speeches before closing on May 27. It is "the premiere event for the consumer technology industry and will mark many firsts in the tradeshow history," said the organizers.