Arab Today, arab today grip of consumerism to tighten in china
Last Updated : GMT 17:26:21
Arab Today, arab today
Arab Today, arab today

Grip of consumerism to tighten in China

Arab Today, arab today

Arab Today, arab today Grip of consumerism to tighten in China

Shanghai - Arabstoday

Financial experts in China are fond of quoting what they call the \"clothing clash\" analogy. Back in the day, when couture meant various shades of grey and blue suits, it was common to turn up in identical clothes. Now, with the market firmly in the grip of fashion, the probability of a \"clothing clash\" is next to zero. Choice is the consumer\'s birthright in contemporary China, spawning prospects of sustained growth for the near and five-year future. Indeed, the target set by the government for retails sales is staggering. China is set to release its first domestic trade and logistic plan for the 12th Five-Year Plan (2011-2015) targeting retail sales of 30 trillion yuan (Dh17 trillion) by 2015. Of this, e-commerce is expected to be 12 trillion yuan and online retail sales 2 trillion yuan. At the centre of this great consumption drive is the quintessential Chinese customer, who according to a recent research report by the American Chamber of Commerce in Shanghai, is someone between 21 and 40 years old, living in Tier One or Two cities, earning an income between 10,000 and 50,000 yuan per month. More importantly, this new consumer is Internet-savvy, used to endless choice of goodies and alien to a life of frugality. This group is more likely to spend money on branded items, travel and leisure pursuits. According to McKinsey\'s research, China is expected to have more than four million households, with annual income of over 250,000 yuan by 2015. At present households in this bracket account for less than one per cent of urban Chinese families, but this section is growing at 16 per cent every year. The ballooning of this cross-section will ensure the growth of the Chinese luxury sector. Substantial growth will be driven by greater penetration into the lower tier cities where luxury brands networks are just a fraction of existing megacity markets. Provincial towns and cities thus remain under-penetrated, although income levels and supply of high-end department stores and shopping malls are rising. And one of the main beneficiaries of this trend are luxury car dealerships which made the most of the spending power of China\'s upper middle class last year. Market reports and analysis suggest that the most positive view is invested in the luxury car segment, instead of the passenger vehicle sector. Cars for the \"masses\" will suffer slightly due to the phasing out of preferential policies and rising fuel costs. The luxury passenger vehicle segment, on the other hand, has an immense untapped potential. It accounted for only six per cent of China\'s car sales in 2010 compared to 15 to 20 per cent in developed markets. Sustained economic growth and increasing disposable income levels will ensure a good run for companies like Brilliance China, Geely Auto and Zheng Tong, a leading luxury dealership group. The most significant trend impacting consumer behaviour, however, will be information technology, which essentially includes shopping on the internet and mobile phones, as well as gaming and social media. This is now likely to be the most powerful market trend that will influence the widest cross-section of the emerging consumer class. According to AmCham\'s research report, IT is projected to alter the shopping activities of lower-income groups with less than 10,000 yuan per month. This group will be more demanding and keen on value-for-money deals. In many ways, these consumers represent the high volume, low price differentiation approach that many Chinese companies have embraced to tap the hundreds of millions of new customers at the grassroots. Most local companies have thus implemented online shopping strategies, depending on revenue from technology-enabled transactions. Sub-sectors such as e-commerce, social network and open platforms are attracting enough attention with IPOs in foreign markets and large venture capital investment. Traditional \"biggies\" such as Tencent and Baidu, with large user bases, will benefit from bigger online ad-spends and continue to see solid revenue growth. Internet users in China number 457 million and will only grow. The party has just started for the Chinese consumer. From / Gulf News

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today grip of consumerism to tighten in china Arab Today, arab today grip of consumerism to tighten in china

 



Arab Today, arab today
Arab Today, arab today Prepares to present her new collection

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today 11 family members dead in rebel push

GMT 07:57 2017 Tuesday ,21 February

11 family members dead in rebel push
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims

GMT 14:57 2017 Monday ,20 February

A giant initial public offering on track

GMT 14:50 2017 Monday ,20 February

Energy Market Research

GMT 09:38 2017 Monday ,20 February

Japan returns to trade deficit in January

GMT 07:16 2017 Monday ,20 February

Global arms trade highest since Cold War

GMT 06:10 2017 Monday ,20 February

Tourism shows signs of recovery in Egypt

GMT 05:45 2017 Monday ,20 February

Brexit U-turn ruled out by many in EU
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today 57 monkeys carrying 'invasive' genes

GMT 16:00 2017 Tuesday ,21 February

57 monkeys carrying 'invasive' genes
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Ahmed Fahmy stresses he did not ignore singing

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 14:51 2017 Monday ,20 February

Ways to acquire presentation skills

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday