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Seize the opportunity or miss the imminent China consumer demand boom.
(A) China faces economic growth/GDP growth slows down but still continuously grows at above 7%
(B) Some of the key strategies of the new leaders (President Xi and Premier Li) are:
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Increase proportion of GDP growth driven by domestic consumer consumption.
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Accelerate the urbanisation of China, i.e. increase the living standards of numerous lower tier cities as a key strategy to rapidly increase the population of the middle class.
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Enable the entire, or close to entire, Chinese population to achieve a middle-class standard of living, in the mid- to long-term.
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Relaxation of one child policy to combat an ageing population. A baby boom not seen in decades is on its way. |
(C) China consumers have also evolved in many ways
Increasing purchasing power:
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Especially for the younger generation, less propensity to save, with most ready to spend, especially on themselves.
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Young people’s ‘multiple income sources’, i.e.
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They earn their own salary if they are already working.
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They spend the savings of their parents and their grandparents; who are more than willing to spend on their ‘prince/princess’
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Increasingly discerning taste:
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Consumers are getting more and more knowledgeable.
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They are willing to spend more on quality goods, for personal consumption and enjoyment, have preferences for imported goods/brands.
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In short, now that the fruit is even juicier, there is a consumer demand boom coming.
More importantly, this presents a window for brands not already in China to enter the market. If this window is missed, the hurdles to enter will increase formidably.
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