Economic China’s per capita GDP in PPP at 2005

Economic AnalysisEconomy factor of a country are major point of consideration for any marketer planning to move to a foreign country. The economy sate of a country directly defines the ease with which the company will be able to function in that country. Furthermore, a good economy policy enhances a chance of a successful entry into the foreign country. China economy experienced a great growth in last few decades which makes the country to become world’s second largest economy. Economic statistics and activity         1.    Foreign PolicyIncrease in economic activities and change in income level has led to important changes in food consumption. Over the past 35 years, China has achieved remarkable economic growth. China’s per capita GDP in PPP at 2005 prices, which was around US$ 524 in 1980, grew at an annual growth rate of 8.5% to US$ 7,958 in 2012 (World Bank, 2013b). Change includes not only higher demand of food but also high quality. In 2004, China’s food imports were more exports. In 2008, food deficit was around US$14 billion and it increased to US$22 billion in 2011 (researchonline). As in past two decades China foreign policy rules has changed which promote friendly exchanges and cooperation with other countries (slidesshare). Easy rules for foreign trade help both the countries to do mutually benefitted trade which in turn increase the Gross domestic product of the country.           2.    Personal Income Per CapitaFast economic growth with moderate population growth have resulted in increased consumer income. As income increase, people spend for on food consumption which are high in quality.Increase in disposable income shift family to consume good quality of products which are rich in macronutrients. People are more involved in professional work so their schedule timings are busy so they will prefer Cereals over traditional food as rice. More disposable income help people to choose better products. More is the disposable income, more is the purchasing power. This will be another factor that will favor market of Patanjali Muesli in China. Distribution channelsDistribution channels play an important role is international business. The route along which products and services are traveled from producer through market intermediaries to reach final users. In recent years, China has loosened restriction on distribution system to provide full trading and distribution rights to foreign companies(export.gov). New trading rules in China removed earlier restrictions on size of trading units, hence provide easy way for business for foreign firms. For instance, Wuhan, Hubei has become multimodal logistics hub of central China. Thus, provides easy shipment of Patanjali Products through cargos(chinabusiness). As logistics infrastructure is improved in China so it will help Patanjali Company to conduct better wholesaling and retail activities. With rapid expansion of internet Online distribution channels has become popular method to buy products and services. Patanjali Company can distribute products through online with affordable delivery charges for people who will buy Muesli cereals in bulk as small packets will attract more consumer to purchase