Global finance has changed dramatically over the last twenty years. The economic powerhouse of the US has waned as the new powerhouses of China and India have emerged. This is apparent in a wide spectrum of different industries and businesses across the world.
Perhaps one of the most visible ways in which global finance has changed is in the way we spend money. Traditionally, retail has been about what can be produced in countries such as China and then sold to the populations of more western countries. The supply and demand of luxury items has clearly been about poorer countries supplying to meet demands of countries such as the US.
This has completely changed and now it is the demands of consumers in countries such as China that is driving retail companies. Companies, such as GDS International, have noted this shift in consumerism and have responded by offering their service such as business-to-business event management to a wide range of markets.
Companies, especially those in retail, can no longer survive and be competitive without understanding the shift in the market. Truly global companies such as Louis Vuitton and de Beers diamonds have jumped upon the emerging market that is China. Not only does China have almost a fifth of the world's population it also has a very large, and growing, number of multi-millionaires who have money and want to spend it on luxury items. To ignore this market is perilous for an international company.
However, for companies wishing to enter new markets such as China, it is really important that they understand the culture of the market within which they plan to operate. Many large companies such as McDonalds have not transitioned well into the Chinese market because they have failed to fully understand it, unlike their British counterparts Burger King which have been much more successful.
