Liza Lin is a Bloomberg reporter based in Shanghai, where she covers consumer issues in Asia.
In Depth recently spoke with Liza to discuss her coverage and the direction of the economy in China and across Asia as a whole.
Where does the Chinese market fit into the global consumer industry?
China is no longer the production floor of the world — it’s now the world’s largest marketplace. The country has become the biggest market for consumer companies, ranging from fast food companies such as Yum! Brands to luxury automakers such as Audi. Every major multinational corporation is either already entrenched in the market or looking for inroads to enter quickly.
Given that the consumer industry is, by nature, reflective of the culture, do you tend to turn to real people or industry experts as sources for stories? What’s the benefit of being able to talk to a variety of source types?
When covering the consumer industry in China, it’s important to be a consumer yourself. China is changing so rapidly that new fads, trends and buying habits pop up all the time. Reporting is about talking to people around you and observing how lifestyles are changing. With Bloomberg we also have access to a range of sources, from your average man on the street to chief executive officers of the world’s largest companies, all of which have given me a wealth of story ideas.
What future trends do you see developing in the Chinese consumer market? Are there any emerging issues that readers should look out for?
E-commerce will play a big role in any future consumption trend in the Chinese market. There are at least 618 million Internet users in China. In the biggest cities, such as Beijing and Shanghai, virtually everything from coconuts to Gucci bags can be bought online. As more and more Chinese switch to smartphones and mobile payment systems develop, mobile shopping will soon take off too.
Another issue to watch out for is the intensifying competition in the market. With companies big and small entering the market, Chinese consumers are spoiled for choice. This means incumbent market leaders need to improve their game to keep market share. New entrants need to make an effort to understand local buying habits and have a well-thought out strategy before expanding into the country.