Top 15 Most Profitable Industries in China
People always tend to work in high profits industry and hope to earn more money. Where will the jobs be tomorrow in China? Below is a list of the 15 most profitable industries. Education, automotive aftermarket industry, software and wedding photography, all these are among the easiest fields you can get into.
Chinese state-controlled banks have enjoyed high government-guaranteed profits. Total profits of China’s banking industry reached to CNY1.42 trillion ($232.7billion) in Jan, 2013 with a growth of 14.5％ than that of 2012.
2. Real estate
Real estate is always the number one industry that the billionaires of Chinese origin are engaged in. Chinese real estate has been the easiest money-making business in the world. There’s probably been no simpler way to accumulate wealth than developing property in China. The business model is simple: acquire a piece of property, mortgage the property with banks, sell out most of the apartments within several weeks when the construction begin and then get returns as high as 500% before the building was even occupied.
According to statistics, China has about 300 million people wearing glasses, the annual market demand is more than 100 million pairs of glasses every year. To the layman’s eye it is an “inexplicable” lucrative industry; a pair of glasses which cost 20 Yuan (US$3) is usually sold for 300 Yuan (US$48) or more.
4. Funeral industry
Chinese people may be reluctant to discuss about death, but never hesitate to invest in the funeral services. It is estimated that people spend 200 billion Yuan($33billion) every year on funeral services, ash deposition, cemetery plots and other services.
5. Pharmaceutical industry
The cost of producing drugs is typically low, however the drugs usually sell at a price several or even dozens times higher than its cost. China’s pharmaceutical industry saw profits rise 17.6 percent to 219.7 billion Yuan last year.
China is the world’s third-largest consumer of cosmetics just after the US and Japan. Cosmetics, in particular, have ridiculous markups (5000-10000%). SK-II facial treatment costs 6.1 to 10 Yuan ($1-$1.60) including its research and development and is sold for $89. A Shiseido eye shadow costs less than 10 Yuan (US$1.60) to produce retails at 650 Yuan (US$104).
7. The beverage industry
In all kinds of drinks non-carbonated juice is the most profitable. A bottle of juice priced at 3 Yuan (US$0.5) is made at a cost of 0.07 Yuan (US$0.011), while a canned drink costs just 0.05 Yuan (US$0.007) each to produce. Even if we take into logistics cost account, the beverage profits are still very high.
In China children’s education is one of the largest family expenditures. Elite schools including kindergartens, elementary schools and middle schools charge high “sponsorship fees and school selection fees” for enrollment.
9. Wedding Photography
Wedding photography, an industry with distinct Chinese characteristics, creates an amazing profit each year. Chinese concept that wedding is a “once in a lifetime” also encourage studios to charge exorbitant prices. The cost of shooting a set of wedding photos varies from several thousand to more than a hundred thousand Yuan.
10. Baby nursing products
How big is China’s baby nursing product market? According to the 5th census published by the government, each year 16 million babies are born in China and the number of 0-3 year-old infants is about 69 million. People spend about 100 billion Yuan annually on baby products. China adopts one-child policy, so a family usually has just one child, which makes the child become the center of family life. Parents like to spend more money on clothing, toys and other products for infants and young children.
11. Automotive aftermarket industry
China owns an expanding and aging stock of light vehicles, which has greatly promoted the development and growth of auto aftermarket in China. Many businesses like after-sale service, auto finance and used car trade have become a profitable industry on the entire automotive industry chain.
12. Chinese liquor
Chinese liquor industry is among the most profitable industries with an average profit margin above 50 percent. A tonne of grain which at cost of 1,600 Yuan (US$260) makes 50 kg of Wuliangye spirit, which retails for 15,000 Yuan (US$2,390).
China’s telecommunications industry is monopolized by three state-owned companies: China Mobile, China Unicom, and China Telecom. Despite some completions, they mostly sell services at a tacit high level price. Chinese phone users have to select among the three mobile networks and afford monopolistic price.
14. The software industry
15. Small household appliance industry
Compared with large electric appliances like color TV and refrigerator, small household appliances has low costs but very high profits. A high-end electric shaver sells for 1,800 Yuan (US$286) costs no more than 360 Yuan (US$57) to produce.