All Eyes On Chinese Consumer Data, Particularly In The Luxury And High-End Segments, As Consumption In Other Markets Remains Sluggish
A number of outlets have given their thoughts on what it will take for Chinese consumers to cut back on their traditionally high savings rate and spend more of their disposable income, with some writing that it will take the creation of a bigger social safety net by the government and others advocating patience and still others defending high savings rates. Today, Susan Weerts writes in Seeking Alpha that data coming out of China this month suggests that consumers there are — without any major need for a socio-cultural shift, spending more on consumer items. This may mean that more confidence in the Chinese economy on the part of the consumer could be largely responsible for more spending in major cities and markets there.
As Weerts writes, the strongest growth in July retail sales was found in furniture, motor vehicles and building/decoration materials, which grew at 42.5%, 32% and 25% respectively, year over year. This massive growth, Weerts proposes, should give luxury brands some cause for (tentative) celebration: