China market segmentation

As in the case of specialty chemicals, fine chemical multinationals with a global reach are likely to become partners of choice for their multinational customers. However, in selected market segments, European custom synthesis or building blocks suppliers face aggressive competition from China as their Chinese competitors are in a superior cost position for the following reasons ... 

Consumer goods can be divided into two categories durables and nondurables. Consumer durables include household appliances, power tools, lawn and garden equipment, recreational goods, toys, etc. This market segment is widely diversified, with some very profitable niche opportunities. The downside of business in consumer durables is that the product life cycles are often short and many applications are highly price sensitive. While most of this market is national, the great majority of end users purchase not only from suppliers in the three North American Free Trade Association (NAFTA) countries—the United States, Canada, and Mexico—but internationally, particularly China. Many processors and material suppliers have followed these users overseas in order to serve their customer more effectively than is possible from a firm sited only in the United States. 

Green tea, consumed hot or cold, is most common in Japan and China and is growing rapidly in the United States owing to the numerous reports of health benefits. The market has doubled from about 110 metric tons in 1993 to just over 227 t in 1996. Green tea consumption in the United States remains a small segment (less than 2%) of the total tea market. 

Recycled plastics are used in a variety of applications, including automobiles, housewares, packaging, and construction. More information about uses is found in the sections on recycling of individual types of plastics. Recycled materials, including plastics, also are an important segment of world trade activities. For example, in 1995, recycled plastic exports from the United States alone amounted to 652.8 million lb, for a value of about 205 million. Most of these exports went to Hong Kong, and much of that material probably went on to China. The Far East is also an important market for other countries. 

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