Which industries are poised to boom in the next coming years in China?

Certain industries are poised to boom in light of the coming economic and demographic shifts in Chinese society and thus represent the brightest opportunities for foreign investment:

• E-commerce - for several years, e-commerce in China has been one of the most-watched markets in the world, with predictions valuing the industry as being worth more by 2020 than e-commerce in the U.S., the U.K., Japan, Germany and France combined. At present, cosmetics represent one of the most commonly made online purchases by Chinese consumers, followed by women’s shoes and apparel, and accessories and bags. The Chinese government plans to connect 1.2 billion people (85 percent of the population) to high-speed mobile Internet by 2020.
• Beauty and personal care – a Boston Consulting Group survey found that the Chinese are the world’s most health-conscious consumers, placing high premiums on looking and feeling good. Overall, the health and wellness market is expected to reach nearly US$ 70 billion by 2020, with more and more Chinese buying supplements and over-the-counter health treatments to relieve the stressed of a modern lifestyle. Notably, this is one industry in which e-commerce has yet to close the gap with traditional in-store purchasing, but can be expected to do so in the coming years.
• Automotive – already the world’s largest automobile market, China is on track for strong sales growth concentrated in the tier-two and tier-three cities of the country’s interior, even as the megacities of the east coast reach saturation. It is estimated that by 2020 some 30 million cars will be sold annually in China. The country will surpass the U.S. well before 2020 as the largest market for luxury cars. The aftersales sector will also maintain strong growth, including for spare parts, services, used car sales, and financing.
• Luxury goods – as the ratio of middle-class and affluent Chinese expands, the luxury goods market will grow apace through 2020. Already by 2013, Chinese consumers accounted for 47 percent of global luxury goods sales, spending about US$ 102 billion for the year. Today the strongest market sectors are watches; cosmetics, perfume and personal care products; and leather bags. While the use of e-commerce platforms for buying luxury goods remains somewhat limited in this respect, by 2020 this is likely to be much more common.