China crisis: threat or opportunity?

global-financial-crisis

What are the implications of China’s current financial crisis? Is it possible that it could offer both threats and opportunities?

The financial crisis in China gurgled away for at least a couple of months before exploding recently on the stock markets, creating uncertainty in what may lie ahead.

A financial crisis of this stature happening to one of the largest trading markets warrants the attention of marketers; they must determine what impact the situation is likely to have on their companies, their brands and, of course, their marketing strategy.

In Chinese, the word for crisis is a combination of two characters: danger and opportunity. The current crisis in the Chinese stock market illustrates the need to consider both these standpoints

Threat

On the one hand it would be easy to dismiss the current crisis as only affecting the cash flow in and out of the country.

However Chinese consumer confidence might well drop in response to the market downturn, resulting in fewer goods purchased and triggering an economic slow-down.

This threat poses a real danger to companies meaning that they might have to rethink their marketing predictions for 2016. However that said the other side of this crisis could be viewed as opportunity.

Opportunity

In recent years China was one of the largest countries to expand in export and still remains a market with huge potential for foreign markets and so companies need to keep calm and remain cautious

One major lesson that economies have all learned over the past decade is that any country can have an economic crisis, causing a global impact, such as Iceland, Greece and now China.

So with history in mind trading could well benefit from both sides of the crisis, minimising danger and maximising opportunity by keeping the lessons of past to the forefront