Magazines Archives - 2007 May

Chinese consumer market set to be world’s second
Story 6

CHINA is poised to become the world’s second-largest consumer-goods market after the US by 2015, said a recent Credit Suisse study.

The bank estimated the Chinese would account for 14.1% (and the US, 37.7%) of total consumption among major economies, namely the US, Japan, Germany, the UK, Italy, France, Spain, Canada, Mexico, Brazil, South Korea, Australia, India and Russia. This a far cry from China’s 5.4% global share, versus the US’ 42%, in 2006 which tied this Asian market with Italy in fifth place, said the bank.

According to Vincent Chan, head of research with Credit Suisse, the proportion of Chinese consumption would grow to 8.6% by 2010, ranking it third after the US and Japan, and then to 21.8% by 2020. The projections were based on the bank’s poll of 2,700 survey respondents in the major Chinese cities of Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, Wuhan, Xi’an and Shenyang.

However, despite strong economic figures, with GDP growing at 10.7%, the survey showed that China’s budgeted and actual spending on many consumer items had declined last year from 2005. The study further found personal income rising at a slower pace than GDP, although the income growth of those aged 20-30 has kept pace with that of the national economy.

While the bank expects the growing Chinese economy, with its expanding population and accelerating urbanisation, to spur domestic consumption, it forecasts a continual decline in consumption in Japan, Germany, Italy and the UK.


2007 May Stories:

Pushing for contactless payment among Singapore retailers

CRC’s Zen Department Store set to become must-visit shopping destination

VF Corporation acquires The North Face

H&M debuts in China with Shanghai store

Tesco Malaysia in RM650-million expansion

Olympics spurring retail expansion in Beijing

Chinese consumer market set to be world’s second

Bharti, Wal-Mart to seal JV deal

Singapore’s GEMS service programme returns

Visa EMV chip cards achieve new milestone in the Asia-Pacific

Coles Group to spend A$133m on IT

Carrefour deploying PSC’s POS scanners in its stores

Australians still hampered by payment systems despite rise in online shopping

US consumers give e-commerce a thumbs-up

Order bento meals online

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