An analysis of fast food consumption propensities in China

Name: _____MIKE_______________
Class: 6E
Lecturer: CHRISHTINE AND JOHN
Due Date:

ABTRACT
This report analyses fast food consumption propensities in China and compare with Australia in the 5-year period from 2007 to 2011. After Introduction, it firstly illustrates favourable and challenging factors in China, clarifying fast food market and pointing out the influences of population and Chinese population on fast food market. Subsequently, it analyses fast food consumption trend with several statistics provided, forecasts consumption propensities, and accesses Chinese and Australian fast food markets for the next five-year period. Additionally, marketing strategies for Chinese market to adapt market alternation are formulated to alleviate investment risk and develop permanent trademark in China for the next 5-year period from 2011 to 2016. Finally, using this information as a foundation, the report concludes by summarizing and re-emphasizing the main points of all sections in the report.

TABLE OF CONTENTS

TABLE OF FIGURES
Figure 1: China fast food market volume: million transactions, 2007–11(e) 9
Figure 2: China fast food market volume forecast: million transactions, 2011–16 10
Figure 3: Australia fast food market volume: million transactions, 2007–11(e) 12
Figure 4: Australia fast food market volume forecast: million transactions, 2011–16 13
1.0 INTRODUCTION
In the last couple decades of 20th century, China experienced several American fast food invasions into its culinary market. The first company was KFC (Kentucky Fried Chicken), followed by McDonald and then Pizza Hut. American Fast food, at that time, became an exotic phenomenon, influencing on the food consumption procedure in China. It has brought about a number of alternative meals that are different from the Chinese ordinary cuisine and made China become the highest consuming fast food country in the world. The purpose of this report is to analyse fast food consumption in China and compare with Australia, providing objective assessments of both markets to International Investors. This report starts with analysing challenging and favourable factors of China market with a profound examination of the effects of China population and economy on fast food China market. It continues by analysing fast food consumption from 2007 to 2011, followed by a 5-year forecast from 2011 to 2016 for Chinese and Australian markets, and markets assessment. Finally, proper marketing strategies are adopted to adapt fast food alternations, and the report is concluded with the summary and the main points of it.
2.0 ANALYSIS OF FAST FOOD MARKET, FAVOURABLE AND CHALLENGING FACTORS IN CHINA
China has encountered a remarkable upsurge in economy and become the most populous country in over the world despite Chinese strongly insisting policies for population development in three last decades. These led to number of dominant challenges for authorities. However, it is not completely a negative aspect in term of economy because it brings about a number of favourable factors such as a huge labour market and inexpensive input materials. This section will analyse favourable and challenging factors for Chinese fast food market.
2.1 Favourable factors
2.1.1 Population
According to The World Population Review, in January 2013, Chinese government released data confirming that the population in China was approximately an impressive 1.3 billion, and the majority of the population are in working age. Therefore, the enormous population seems to bring about several favourable factors that appeal international investors. Firstly, labours are available and abundant in China. There are roughly 800 millions labours with over 40% of those working in agriculture. However, some businessmen claim that China will be no longer in the cheap labour competition in