China is currently undergoing a once-in-a-lifetime transition to a consumption- and services-based growth model. To facilitate this transition, the government has embarked on an ambitious urbanization drive to turn tens of millions of rural farmers into urban consumers.
The government has a detailed blueprint outlining how it intends to implement this project. A key component is targeting city clusters as the country’s core economic structure over the coming years. Companies who familiarize themselves with this program and adopt a clustering strategy of their own will benefit from additional scale and a more efficient use of resources.
Multinationals that adopt a cluster strategy are advised to align their organization’s approach to China with the government’s city-cluster development model. FSG has selected several areas where executives should consider adopting a city-cluster focus to optimize their chances of reaping the benefits from this monumental reform.
To that end, our global research team has developed a tool that will enable MNCs to identify the cities and clusters of most value to their business. Executives should consider using this tool to align their organization’s approach to China with the government’s city-cluster development model.
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