In a positive sign for the Chinese economy, recent reports have indicated that label production is now at an all-time high within the domestic Chinese markets, an indication that the economy of this massive nation is slowly shifting away from its original low-cost export model and is beginning to place additional emphasis on developing alluring products for domestic audiences.
The relationships between economic models and advertising is quite interesting, if only due to the fact that, up until this point in China, the majority of the more sophisticated labels in China were imported alongside Western luxury goods, which were considered very much a status-symbol purchase.
In response to this new focus on the developing Chinese economy, a number of European label manufacturers have begun to forge business relationships with Chinese companies who are likely to lead the charge when reforming the domestic retail scene here. Whether or not this type of investment will yield lucrative results remains to be seen. That being said, the presence of key investment groups, such as Rako, within the Chinese marketplace leads many to believe that the Chinese economy is indeed engaging in a fundamental restructuring.
On a purely aesthetic level, it is also quite fascinating to observe the unique marketing practices adopted by native Chinese companies when preparing compelling packaging for their products. The level of thought and attention to detail present on many of these product’s labels is a strong indication that the time has finally come for Chinese companies to market to their own people on a level that has, up until this point, exclusively been reserved for the Western world.
Meanwhile, many international retailers have begun to expand their operations away from Chinese tier-one cities, such as Beijing and Shanghai, and enter into new positions in less affluent regions. As China’s wealth continues to rise, it stands to reason that individuals locate in these cities remain well able to purchase the goods provided by Western companies. Whether or not Chinese products will reach this level of respect and class, however, remains to be seen and is still an object of fierce speculation.