TNS Predicts China's Market Research Industry Will Overtake Japan Around 2012 to Become Fifth Largest Globally

TNS Predicts China's Market Research Industry Will Overtake Japan Around 2012 to Become Fifth Largest Globally

November 14, 2007

Volume of Market Research Business Generated by Chinese
Companies to Continue Growing Faster than Multinational
Spends


    SHANGHAI, Nov. 14 /Xinhua-PRNewswire/ -- In 2009,
China's fast-growing market research industry will have
grown by as much as 70% from its 2006 annual value of
US$600 million* to become worth more than US$1 billion. By
around 2012, China will overtake Japan and will be the
world's 5th largest market for market research.

    These two key predictions were made today by Tony
Cowling, President of TNS and President of Gallup
International Association, at the China Europe Business
Meeting Frankfurt, where top business leaders from Europe
and China are exploring current and future relationships.

    During the last 5 years, money spent with market
research agencies in China has doubled, and over the past
10 years it has quadrupled with China's market research
industry today worth US$600 million.

    "A country which did virtually no commercial
research 15 years ago is now in 8th place globally, and at
current growth rates (nearly 25% absolute and 17% net of
inflation), has already overtaken Spain and will pass Italy
in 2008 to become 6th largest in the world," said Mr
Cowling.

    "It is realistic to expect market research to show
15% to 20% real growth in the next five years, and certainly
double-digit real growth for the next 10 years."

    Even when China eclipses Japan, there will still be
significant room for growth based on annual market research
spend per capita. While China will then be the second
largest market in the world for advertising, China's annual
market research per capita will stand at US$3 in 2012,
against the US$30 that will be seen for the US and Germany,
and nearly US$40 in France and the UK.

    For many years, western global brands drove demand for
market research but Tony Cowling said this has changed. 

    "Over the past three or four years, the volume of
market research generated by Chinese companies has been
growing much faster than the multinational spend. China's
leading market research agencies are finding that the
volume of business they receive from Chinese companies is
approaching 50% of turnover. Our partner in China for
continuous and syndicated business -- CTR Market Research
-- is certainly seeing more rapid growth on the Chinese
side of its business."
    
    Tony Cowling emphasised the future importance of
China's `local' agencies, especially given the growing
importance of China's 2nd tier and 3rd tier cities.

    "As is well known, development in China is
happening in many centres simultaneously. In the 2nd tier
and 3rd tier cities, the domestic Chinese market research
companies are at an advantage owing to their local
knowledge, unique culture, and the difficulties western
global brands have in extending distribution networks and
targeting the right consumers."

    Tony Cowling completed his speech in Frankfurt by
saying that, looking ahead five years or more, market
research agencies in Europe can expect more business coming
out of China's borders -- in the same way that countries
such as Japan and the United States have always been big
buyers of research in Europe.
    
    "Currently, the bulk of Chinese exports are not
`China branded' -- they are components or semi-produced
items, or `made to order' products for Western branding.
But through our own consumer panels and media measurement
panels, we have many examples of the recent growth and
strength of Chinese brands. As Chinese companies start to
look overseas for higher sales and greater brand share,
they will come to Europe and the United States. This will
be good for the big market research agencies who have
already built up relationships with these companies in
China. The big agencies in London, Paris, Berlin and New
York will be required to help China's brands understand
Europe and the United States, and successfully market and
advertise their way into western markets."

    * Source: ESOMAR.


    For more information, please contact:

     Cindy Liu
     Marketing & Communications Manager
     TNS China
     Tel:     [phone] x156
     Fax:     [phone]
     Email:   [e-mail]
     Website: http://www.tns-global.com