China's WTO membership has boosted the development of the domestic market research industry. According to the latest report from the commerce department, the turnover of the sector in 2002 is expected to reach some 300 million US dollars, a 30 percent increase year－on－year.
China's entry into the WTO has sparked the arrival of more and more overseas firms who constitute the first customers for China's growing market research industry. Chinese firms are also beginning to use market research as they realize the need for an extra business edge in the face of ever－growing competitiveness. Figures show there are more than 15,000 market research companies in China, 400 of which are considered sizable.
Ke Huixin, president of National Market Research Industry Association, said: "The whole sector has posted a growth rate of around 30 percent. I am sure the industry will continue to expand at its present speed, and it will develop in a more professional and specialized manner."
Some analysts are predicting the sector to double its present turnover by 2005.
However, China's market research industry is still in its infancy, with most companies collecting market data and advising on product development. Most of their customers are overseas－funded companies or joint ventures. Chinese companies have a long way to go before they can mimic the US, where most companies devote between one and five percent of their costs to market research.
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