Technology and almond eyes go together: China as the new digital frontier
Recent studies show China as the new digital frontier: an ever-growing market for the sale of products and services by the western world, but also a place in which are emerging new businesses, technologies and consumption models, bound to become popular at international level. China is in the first positions for what is related to investments in new technologies, like Virtual Reality, drones, Artificial Intelligence, autonomous vehicles. But not only that, in this country there are the highest e-commerce and mobile transactions worldwide. China leads the world in terms of startups, 1/3 of them has a turnover of more than a million per year.
In addition, are in China three of the Internet giants: Alibaba, Baidu and Tencent. The digital transformation of China has been affecting good the country’s economy and the Chinese government is trying to innovate the business models available, based on cheap labour and capital costs, towards the Industry 4.0 vision. The aim is to invest on the adoption of cybernetic systems, Cloud Computing & IoT technologies, and connect data in real time with smart factories and developers to optimize the productivity of the industrial value chains. Companies investments are growing also in the field of R&D and Artificial Intelligence, with the great benefit of taking advantage of the extensive amount of data in their possession. In the future the country could become global leader for AI and productivity applications and by 2020 the government plans the development of a real Chinese AI.
Compared to Western countries, China excels in the industry of e-commerce with an incidence of 35% on the global market. It is interesting to see how Chinese users are different from the western ones about consumption pattern and habits. Chinese people prefer make purchases by mobile devices and look for services and experiences more than for simple products. They don’t browse the official brands websites but they use marketplaces or social applications where they can find what they want to buy, in a easy and funny way.
For what is related to export, China is still an under-exploited market in Italy (only 1% of export), but lately are opening up new logistic channels of access (“the new Silk Road”), for which reason in the future will be easier to exchange business relations with the East. There’s no doubt that Italian firms can exploit better that market still unexplored, especially if we think about the economic growth perspectives of countries like China, characterized by a considerable potential development compared to the industrialized countries. Consumption increase significantly, and keep growing especially in the peripheral areas, the so-called cities of third-level.
Currently considered the largest market for Western countries, China will be a space of continuous and significant economic growth and technological innovation, and it will have an increasing strategic role in the digital world and in the development of new business models.