Since Chinese economy is performing much better than the US economy even during the days of global recession, many US companies are coming down to the China market to see their sales increasing and trying to keep their bottom line intact.
Consider the case of Apple. iPhone has finally touched the China market as the country has got 1 billion mobile phone subscribers. The country has got the largest database of mobile subscribers in the world. As a result, Apple CEO Tim Cook told the investors that they are really very much focused on China. The US customers account for one third of the sales of Apple, but China contributes to about 12% of Apple’s revenue, in spite of the fact that they are a late entrant into the Chinese market.
The same is the case of Boeing as they are focusing China as the number one market for sale of commercial airplanes. As per forecasts given by the company, China will be needing 5000 new airplanes over the period of next five years. Competition will be tough as new companies from Russia, Japan and China will also bid to enter this huge market. Keeping an eye on this market, Boeing has launched aerospace education programs right from the primary schools to the universities. Posting net revenue of $4.8 billion in China, Boeing has got 6000 employees there in 2011.
Last but not the least, you will be surprised to know that American fast food chains KFC, Pizza Hut and Taco Bell earns much more revenue in the Chinese market than in the American market. The sales of these stores rose by 19% in China during the last year.
