China is the world’s fast-growing, most voraciously competitive, and perhaps most widely misunderstood market. But it’s one that South African companies would do well to get to know, as Future World International CEO Wolfgang Grulke argues.

China is already a force to be reckoned with in South Africa’s retail sector, where 2,200 Chinese stores sell apparel and footwear. So says Steve Ross, the CEO of Edcon which owns the Edgars chain in South Africa.

“470 million items were imported from China in the past year,” he elaborates. “The five biggest retailers account for only 25% of unit sales – 75% is being distributed through small Chinese retailers.”

But it is US retailer Wal-Mart that has embraced China most vigorously, says Grulke. Traditionally focused on US products, Wal-Mart now imports 80% of its stock – mainly from China.

“13% of all Chinese export products end up on a Wal-Mart shelf,” says Grulke.

Dealing with China, however, means learning some new rules.

Don’t expect China to embrace democracy, advises Grulke. And recognize that China and India are changing the way the entire globe does business.

Plus, adds Grulke, understand the paradox that China will continue to export both deflation and inflation.

“Deflation, because China manufactures cheaper products than anyone else. And, as long as its demand for natural resources keeps growing, China will also export inflation by pushing resource prices up.”

Grulke will be a keynote speaker at this year’s SAPOA (South African Property Owners Association) Convention, the high-powered annual get-together of the brightest and best in the commercial and industrial property market. The Convention takes place this year from 17-19 May 2006 at the International Convention Centre in Durban. Ends

Issued on behalf of : SAPOA (South African Property Owners Association)
                                    Neil Gopal
   CEO, SAPOA
T. 011 883 0679

by   Marketing Concepts
   Sandy Davey
T. 011 783 0700
C. 083 453 6668