Consumer Growth
Income & Consumption Growth
Social Class Gap
Foreign Products & Services Acceptance
Consumer Growth
 China¡¯s population has surpassed 1.33 billion. The world¡¯s population is 6.7 billion; China represents 20% of the world. One in every five people is a resident of China.
In comparison
The population in the United States is currently around 304,059,724, approximately 1/5 of China.
Germany (Most populated country in Europe)¡¯s population is currently around 82,369,552, approximately 1/16 of China.
Income & Consumption Growth
China's Per Capita Income (PCI) grew at an average annual rate of 8% over the last three decades, drastically reducing poverty.
According to the IMF, China¡¯s growing PPP has reached $5963 in 2008.
PPP is an adjustment of the exchange rate so that identical good in two different countries has the same price when expressed in the same currency.
China passed a 4 Trillion Yuan ($590 Billion) stimulus bill in 2009 to stimulate consumption.
Unlike developed countries facing over-consumption and credit crises, China does not and plans to continue boosting consumption heavily throughout the following years(Sentinel Asset Management)
Social Class Gap
Ratio of average PCI between rural and urban individuals was £¤4140 to £¤13786 (1: 3.33) in 2008.
By 2010, 825,000 people will each possess at least £¤10 Million; up 6% from last year (The total assets covered surpass£¤ 9 Trillion ($2 Trillion) this year, up 7% from 2008, China Daily April 16th, 2009).
Income and consumption gaps remain large between west and east. In 2007, while income in the east was £¤32283, it was only £¤13212 (1:2.44) in the West.
People residing in the same city, but working in industries such as securities and banking obtained 5 times the wage of workers in textile and agriculture industries.
Foreign Products & Services Acceptance
Product Reception
Foreign products experience exceptional success and government support within China, with ROS (Return on Sales) and ROI (Return on Investment) increasing significantly within the past decades.
Starbucks opened its first Chinese outlet in 1999 and now has over 300 locations in more than 20 cities.
"No market to date potentially has the opportunities for us that China ultimately will," Schultz (Starbucks Chairman & CEO)
According to statistic, out of the estimated 1,000,000 unlocked IPhone devices globally, 50% currently reside in China.
Luxury Goods
China is now the third-biggest consumer of luxury goods, accounting for 12% of sales worldwide.
Foreign Company Success
According to a survey by the American Chamber of Commerce, 3 out of 4 U.S. companies say their China operations are profitable; most say their margins are higher in China than elsewhere in the world.
"For companies selling consumer items, a presence here is essential," says Jim Gradoville, chairman of the American Chamber in China
71.5% of respondents are either Very Profitable or Profitable, 23% are breaking even or have small loss
Nearly half of respondents have revenue over 10 million USD (13.7% recorded 100 million USD or more) |
