This week’s earnings announcement by Apple highlighted the importance of China in the world market. Their sales success in China this quarter has been hailed by some as the reason Apple was able to beat the numbers this quarter.
From the earlier days when the term BRIC was created and emerging markets started to be tracked, we all knew China would grow in increasing importance. And we continue to read examples like the Apple success. Expect to see the trend continue. Still, many companies have not yet ventured there or still expect that the day of China’s equal place at the table is still some time away. Not true
To get a picture of business in China, we took the China based companies in The Global 5000 (currently 155 of them) and created a profile with some key stats:
- The 155 companies employ 20,395,000 or 131,000 on average
- Total revenue for this group exceeds $3.5 trillion – $23 billion per company
- Revenue per employee is $174,330
- Total training spending for these firms is approximately $1.9 billion or $12.8 million in training budgets per company and $93 spent per person
- IT budgets for these China based companies is approximately $90 billion – $582 million per company and $4,400 per employee spent on IT
- For marketing, the spending is approximately $246 billion which equates to $1.5 billion per company and $12,000 per employee
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