Rise of Chinese Consumer Power: Theory and Evidence

Author: (Switzerland) Gan Na, translated by Guo LiHong
Publisher:
Publish Date: 2006-08-01
Features: This book is divided into two parts. In the first part, a comprehensive analysis is conducted on the possible development of China's overall consumer spending in the medium term. By utilizing the economic growth forecasts of the CSFB for other major economies, China is studied in the context of the global economy. We also discuss the sustainability of China's economic growth model in recent years, as well as the economic issues arising from the government's recent measures to curb overheating. Then, we provide a detailed discussion on the impact of China's population trends on consumer spending, as well as the effects of social and cultural changes on consumer spending. Finally, we forecast consumer spending on some major products in China and other key countries. In the second part, based on a specialized consumer survey conducted in mid-September 2004 involving 2,700 people in eight major cities of China, we draw conclusions. This survey collects data on personal and household consumption of a series of products and services, as well as general information on consumer income and consumption attitudes. The products and services covered include: automobiles, beverages, electronics, food production, food retail, restaurants and food services, household and personal care, luxury goods, telecommunications equipment, tobacco, transportation, and tourism. Then, we evaluate the opportunities and implications faced by major consumer markets worldwide. We believe that multinational corporations will benefit from China's consumer growth. Although for some of these companies, the Chinese market currently accounts for only a small portion of their total revenue. However, we believe that compared to their competitors, they are making strategic shifts to achieve greater profits. If our views are correct. This book is the investigation report on China's consumer power by Credit Suisse Boston (CSFB). The survey believes that strong economic growth, the rise in the proportion of consumption in GDP, and stable real exchange rate appreciation will lead to a threefold increase in China's share of global consumer spending, which presents a good sales growth opportunity for global consumer product companies. The survey covers 2,700 people in eight major cities in China, providing rich and highly valuable industry data for business managers and academic researchers, specifically involving industries such as: automobiles, beverages, electronics, financial services, food production, food retail, food services, household and personal care, luxury goods, telecommunications equipment, tobacco, and transportation and tourism.