57% of SME leaders expect China to replace the U.S. as world's number one consumer market in 10 year
Shanghai, April 3, 2007 - The UPS Asia Business Monitor 2007
(UPS ABM) revealed that the majority (92%) of SME leaders across the region rate
China as the market with the greatest prospects of economic growth in 2007, with
57% of the SMEs expecting China to catch up with the U.S. as the world's biggest
consumer market within the next 10 years.
The UPS ABM is an annual survey of the competitiveness of SMEs in Asia
produced for the third time running, and this year's edition surveyed more than
1,200 SME leaders in Asia.
Overall in the region, when asked to rate the relative competitiveness of
SMEs in other countries, 71% of SME leaders indicated that China's SMEs are more
competitive than SMEs from their own country. The UPS ABM 2007 also found
that 71% of respondents across the region feel that their company's supply
chains are effective enough to help them save time and money.
Richard Loi, Senior Vice President of UPS China said, "UPS is focused on
growing its intra-Asia network to meet SMEs' rising needs in the region.
For instance, customers have responded very well to the concept of UPS Express
retail stores in Shanghai which opened last August. This proves that our SME
customers appreciate these additional points of access to our shipping
services."
However, according to the survey, China's top trading partners - Japan,
Korea, Hong Kong and Taiwan are the least optimistic about China's ability to
achieve the position as the world's number one consumer market.
"China has continued to lead the region's economic growth in the last few
years; however, this growth has been driven mainly by foreign investments, as
opposed to the typical consumption-based growth. This explains why some SME
leaders in Asia continue to have mixed opinions on China's future market
predominance," commented Zhang Jun, Professor from China Centre for Economic
Studies, Fudan University.
"However, as outlined in China's 11th Five Year Plan, the PRC government will
make great efforts and allocate resources to solve the economic growth problem.
So we expect China to catch up with the U.S. and become the world's number one
consumer market by 2010, despite the reservations of some SME leaders,"
Professor Zhang continued.
China's SMEs have been growing fast since the UPS ABM first revealed in its
inauguration edition in 2005. The survey, however, also identifies a lack
of innovation as one of the top obstacles to SME competitiveness in China; with
90% of local respondents citing innovation as a highly important but yet
seriously lacking factor in contributing to SME competitiveness.
SME leaders also cite additional factors viewed as crucial to achieving
positive growth, such as the availability of a qualified workforce, and access
to funding and working capital.
Highlights of the UPS ABM 2007 include:
TRANSPORTATION AND LOGISTICS THE NEXT BIG THING IN CHINA
(Pg.7)
- 21% (higher than average level) of SME leaders in China state transportation
and logistics as the biggest growth opportunities in the country.
SMEs IN CHINA ACKNOWLEDGE NEED FOR IMPROVED LOGISTICS
(Pg.36)
- Over 70% of SME leaders in China state that there should be improvements in
the transportation infrastructure, adoption of technology, supply chain
management expertise, customs clearance, shipping processes, reliability of
logistics advisors/partners, and the liberalization of the logistics
industry.
EXPANDED INTRA-ASIA TRADE (Pg. 6)
- SME leaders are positive about increased prospects for intra-Asia trade in
2007, with 74% of respondents stating their anticipation for increased trade
between their country and the rest of the region.
BRIGHTEST JOB PROSPECTS IN ASIA IN YEARS (Pg. 5)
- The positive job outlook for 2007 bodes favourably for employees, with over
89% of respondents across all countries expecting to maintain, if not increase,
the size of their workforce. The greatest increase is expected in India (79%).
Even in mature markets such as Hong Kong and Japan, 34% of respondents
anticipate workforce growth.
UPS, which celebrates its 100th anniversary in 2007, is the world's largest
package delivery company and a global leader in supply chain services, offering
an extensive range of options for synchronizing the movement of goods,
information and funds. Headquartered in Atlanta, Ga., UPS serves more than 200
countries and territories worldwide. UPS's stock trades on the New York Stock
Exchange (UPS) and the company can be found on the web at www.ups.com.
|
|
 |
UPS Pressroom |
|
|
Read press releases, announcements and other media-related information about UPS.
|
|
 |
|
View History
