ABSTRACT
Can growth and sustainability be combined? The best place to look for an empirical answer is China because the scale is so large on both counts. Economic growth has slowed but remains impressive (GDP grew by US$1.5 trillion between 2012 and 2014); 1 but equally important is the nature of this activity: consumers are becoming more brand-conscious, alert to values as well as value. It is no longer enough to produce cheaply and consistently: brand positioning is crucial even in the third- and fourth-tier cities served by satellite TV and global-level advertising. Along with discerning consumers, multinational companies face stiff competition from a state sector that enjoys a low cost of capital, and a dynamic, agile and well-networked private sector, including several Chinese multinationals. Even national players can be significant competitors — China's three largest provinces (Guangdong, Jiangsu and Shandong) would each figure in the world's top 20 national economies. 2 All of these consumers, and all these companies, are clamouring for growth.
