By 2016, China will become larger than the US in terms of consumer technology sales over strong local consumerism and fast local innovation, Gary Shapiro, a top industry expert said. Gary Shapiro, president and chief executive of the Consumer Electronics Association, has been closely monitoring market data and stated that Shanghai as “city for the future” at a Consumer Electronics Show (CES) in Las Vegas just recently.
During the CES, Shapiro presented that the Chinese Technology Consumer Goods Market increased by 5% from $268 billion in 2014 to $281 billion in 2015. Shapiro explained, “Chinese companies are increasingly focusing on innovation and building on their extraordinary strength in manufacturing.”
The news comes in line with the direction taken by China’s leaders, President Xi Jinping and Premier Li Keqiang in transforming the country’s economy into a more domestic consumption-driven and less dependent on imported goods. Already, the Chinese consumers are becoming more tech-savvy, and their buying power improving to support increasing purchases.
Xiaomi Phones Sold Out in Europe and US at Beta Launch
Meanwhile, Chinese smartphone manufacturer, Xiaomi, has successfully entered the European and American markets with its low-priced, top quality handsets and accessories. Within minutes, everything at the company’s Mi online stores sold out, albeit the brand opened with limited quantities for its beta launch.
The stores sold four accessories at extremely affordable prices – two battery packs for $10 and $14 respectively, a pair of headphones for $80, and a fitness tracker for $15. Xiaomi’s virtual stores emptied its shelves with 200,000 items.
Xiaomi is currently valued at $45 billion and sold more than 60 million handsets in 2014, mostly in the Chinese market. Now that the company has proven that Europe and the US has a strong consumerism for affordable yet quality mobile phones, it expects to grow its financial value and sales in the coming months.