The Chinese Consumer Looks To Be One Of The Biggest Engines Of Global Growth In The Long Term
China's inland consumer is rapidly becoming the country's engine of change and growth. Image © New York Times
The Financial Times has an excellent article today about the rise of the Chinese consumer, once a virtually non-existent market but now the darling of the world’s multinationals.The article details how the Chinese government is trying to get consumers to make the shift “from export-oriented growth to a greater reliance on inner dynamism,” much like the United States did in the 19th century. Going along with observations I have made before, much of China’s current growth and transition is comparable to the same events in the US roughly 100 years ago — from the problems with quality control and political issues, consumer reluctance to spend, and business “grey areas.” The article is well-researched and focused, and includes many valuable insights into the monumental task ahead for the Chinese government — transforming the spending habits of over a billion individuals, who have been accustomed to high savings rates (for cultural reasons as well as China’s lack of a social safety net) and a lingering distrust of less established domestic brands (particularly since the reforms of 1978-79).
But the key to this article is its surprising (and incredibly significant) observation is its figures about the exponential growth of the inland, third-tier city consumer. This consumer segment has only now come to light, and as we have discussed before, inland Chinese cities look to be the future; not only for individuals, but for businesses and marketers as well.
Posted in Business, China, Economics, Economy, Investment, Luxury
Tagged China, chinese, consumer, financial, financial times, government, Investment, Luxury, spending, stimulus, united states
Multinationals Hope Domestic Consumption, Inland Movement Will Counterbalance Drop In Exports
The world's target market
CNN reports today on the hopes of many western investors and CEOs for the rise of the Chinese consumer to help lift up the sluggish global economy. With slowly-increasing consumption rates in a country still highly populated by savers rather than spenders, redoubled efforts by western and Japanese companies to retain and expand their customer base shows that they understand that the Chinese market — with its vast potential but cut-throat competition — is critical for their global strategy.
Posted in Automobile, Business, China, Culture, Economics, Economy, Fashion, Investment, Luxury
Tagged Apple, Audi, branding, Business, China, china market, computers, consumer, founder, geely, JNBY, louis vuitton, marketing, panamera, porsche, shanghai, shanghai auto show, strategy
The Young Generation To Reject Frugality, Major Metropolitan Areas for Free-Spending Decadence?
Shoppers in Shanghai: Can We Expect Similar Scenes in China's Interior Soon?
While I’m iffy about Forbes’ China reporting, which tends to rival the Wall Street Journal’s for selective fact-finding and conjecture, I found this article on China’s young generation to be pretty interesting. While it is well-established that the under-30 crowd in China — who grew up in the post-Deng Xiaoping capitalist era and, as such, has no recollection of or interest in the staid, poverty-stricken Maoist period — is the polar opposite of their parents’ generation, not so much attention has been paid to their spending habits and rejection of traditional Chinese financial characteristics.
Posted in Business, China, Culture, Economy, Fashion, Luxury
Tagged China, chinese, consumer, demographics, deng xiaoping, kaifang, Luxury, mao zedong, marketing, shopping