There are 1.3 billion potential customers in China and if U.S. companies have anything to say about it, they’ll all be buying American. Sound far-fetched? Find out why it might not be.
China is the fastest growing market in the developing world and the Chinese want to buy American. Why? Not only do our brands suggest wealth and quality in China but, to China’s consumer class, they symbolize that they have finally arrived.
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Zachary Karabell President of River Twice Research joins the panel for this conversation. Following is a synopsis of his main points.
New demand from China is presenting new opportunity for products that feel a little bit old in the U.S.
For example, take Yum Brands , the parent of KFC. Colonel Sanders may be no “spring chicken” at home but in China he’s nothing short of the “new kid on the block,” explains Karabell. And in China, KFC is a cool dining experience.
Avon is another brand that’s been able to remake themselves in China.
The same is true for Procter and Gamble's Oil of Olay which is experiencing strong demand in Beijing. The list goes on.
Many analysts believe this is just the tip of the iceberg. They say China is poised for explosive growth. If domestic weakness has left American companies lacking direction, perhaps there’s a simple fix. All they need to do is look East.
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Trader disclosure: On Apr. 23, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (DIS), (INTC), (MSFT), (YHOO); Najarian Owns (AAPL), (CSCO), (XLF), (YHOO), (BEAV); Najarian Owns (CHK) Calls, (MSFT) Calls, (POT) Calls; Finerman Owns (GS); Finerman's Firm Owns (MO), (MSFT), (PM), (SUN), (TSO), (VLO), (WMT), (YHOO); Finerman's Firm Owns (FNM) Calls; GE Is The Parent Company Of CNBC; Charles Schwab Is A Sponsor Of "Fast Money"