The US media said China is in the past time of the world’s factory and is increasingly becoming the world’s biggest consumer. Forget the old growth model centered on investment and export.
In December 28, 2017, Bloomberg reported that “the Chinese consumers have ruled the world”. It is more important that the consumption character of China has changed, that is, consumption is no longer around the necessities of life. Increasing disposable income flows to cinemas, tourism and health care products. Investors have ignored the risk of this huge shift.
According to the latest official data, China’s final consumption of GDP is 63.4%, according to the latest official data. Household consumption has increased rapidly to $4 trillion and 500 billion. Retail sales have risen steadily at an average annual growth rate of 10%. In 2017, the sales volume of “double 11” Shopping Festival reached 25 billion dollars, which is impressive. It is almost twice the sales volume of the online shopping Carnival of the black Friday. U. S. “black Friday” online shopping Carnival sales of $14 billion.
The report says some details are a problem. Chinese consumers are becoming more and more mature and richer, and the products they buy are upgrading.
First, they have shifted from buying the necessities to the best. The consumption share of clothing and staple food is decreasing, while the consumption share of health care and green food, smart phones and tablet computers, sporting goods and equipment, fashion and personalized home appliances, cars and beauty products is increasing.For example,the consumption of China salmon market is growing 20% every year.
Second, the low end of the mass commodity is gradually withdrawing from the market, and the high-end brand products are pouring into the market.
Thirdly, consumers will reduce expenditure on visible goods and increase expenditure on tourism and services, including health care, education, entertainment, financial planning and tourism. The number of Chinese outbound travel is increasing. This not only benefits many Asian countries around them, but also benefits Australia, the United States, Canada, New Zealand and the European Union and other developed countries.
So all this is produced through various channels of shopping, including mobile shopping, online and offline shopping. At present, China’s use of Internet and mobile phone technology has far exceeded some developed countries. Consumers pay more attention to price comparison and read comments and recommendations from social media.
The report believes that as China’s expansion is increasingly dependent on consumption, its growth will be increasingly driven by internal growth. The import of high-end products and services will be expanded. This market will become more and more attractive to multinational corporations and investors.
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