Basketball Rose--094,Men's Nike Pro Aeroloft Tights (Seaweed/Reflective Silv),Basketball Harden--008,, rapidly growing, but challenging, consumer market as it evolves from being the “workshop of the world”.
Man Max 90-1042,Men's Nike LunarGlide 8 Running Shoes (Blue),Nike Free44-1024,. Yet the share of household consumption in China’s gross domestic product was still as low as 40 per cent last year.
Assume that the share of consumption in GDP rises to a somewhat less abnormal 50 per cent by 2027. Assume, too, Nike Free45-0724,Men's Nike Pro Hypercool 3/4 Length Tights (Black),Nike Free45-0772,.
Jordans 10-0049,Men's Nike Pro Hypercool Compression Tights (Indust Blu/Arm Nav/Blk),Man Max Lunar-0032,. The corresponding figures for the US are 13 per cent and 2 per cent. Thereafter their growth is forecast at 8 and 4 per cent respectively, in nominal terms (or 5 and 2 per cent in real terms). Basketball kyrie-0029,Men's Nike Victory Solid Golf Polo (University Blue),Air Force LOW-0349,, and its aggregate consumption would reach 74 per cent of US levels by 2027. (See charts above).
Assume, instead, Nike Free44-0963,Men's Nike Victory Solid Golf Polo (College Navy),Man Max 87-0194,, too, that, after 2023, Man Max 90-0949,Men's O'NEILL Shaping Bay Screen Tee (IND-INDIGO BLK HTR),MAN Max 2016-0053,. Then China’s aggregate consumption will still reach 55 per cent of US levels by 2027. Even under these considerably less favourable assumptions, Nike Free44-0929,Men's O,Nike Free45-0628,.
What, then, will be the features of this growing consumer market? A Men's Quiksilver Carver Suede Flip Flops (Black), delineates its main drivers and the challenges these are likely to create.
By 2027, 22 per cent of the Chinese population (324m people) will be over 60. This demographic shift is sure to create significant new markets for goods and services targeted at the elderly. Meanwhile, Nike wonen Flyknit-0117,Men's Reebok 9'' Boxer Briefs (Black/Green Gecko),Basketball James-0509,.
China’s astonishingly dynamic “sharing economy” — already visible in the booming market for shared bicycles and cars for hire — will expand further, Jordans 13-0189,Men's REEBOK WORK Sublite Work Soft Toe Sneakers White (WHITE),Basketball Kobe-0353,.
As elsewhere in the world, Chinese consumers will also increasingly demand and obtain personalised goods and services. Basketball Rose-0087,Men's REEBOK WORK Trainex Composite Toe 6inch Work Boots Black Medium Width (BLACK),Kid free28-35-0156,, argues the report,Nike Free44-0875,Men's RUSSELL ATHLETIC Basic Tee - VALUE DEAL (BLACK-),Basketball Kids5-7-0064,.
Jordans KID 11C-3y-0246,Men's SKECHERS 7111 BRS Alley Cat Brown - VALUE DEAL (BROWN),Man Max 90-0791,. Hema, for example, is a start-up, backed by the Alibaba Group. As I witnessed during a recent visit to Alibaba’s headquarters in Hangzhou, a Hema store is a mixture of supermarket, restaurant, distribution centre and online store. MAN Max 2016-0028,Men's SECOND SKIN QUATROFLX Long Sleeve Compression Top (Black/Gradient Print),Basketball OTHER-0092,.
Crucially, Basketball Durant-0219,Men's SKECHERS Relaxed Fit: Braver ,Basketball OTHER-0078,, all of them Chinese, seem likely to end up controlling the data created by this digitally-enabled, mass-consumer market. This can bring great benefits to consumers. But it will also create immense monopoly power. Nike Free45-0305,Men's TEE LUV Chevrolet: An American Classic Short-Sleeve Tee (INDIGO BLK HTR),Nike Free44-0799,.
Finally, Basketball James-0372,Men's TIMBERLAND PRO Titan Power Fit Saftey Boots Wide (BROWN),Nike Free44-0744,, according to the World Bank. Urbanisation could rise to 70 per cent by 2027 and then to the over 80 per cent normal in the advanced economies, with most of the new inhabitants moving to Tier 2 and Tier 3 cities and inland, Kid free28-35-0078,Men's Under Armour Charged Cotton 6'' Boxerjock Boxer Briefs 3 Pack (Brilliant Blue/Royal/MDN),Nike Free45-0445,.
The development of the new mass consumer economy will demand important supporting policies. These will include upgrading of skills, spreading benefits of Kid free28-35-0034,Men's Under Armour Locker III Slides (Blk/Wht),Air Force LOW-0187,, tackling China’s vast environmental challenges and strengthening the trust that a history of fakes and tainted products has damaged.
The plausible assumption, however, is that over the next decade a mass consumer society will emerge in China. This will begin to approach that of the US in scale, even though the average living standard will remain well below that level. Moreover, Nike Flyknit-0073,Men's Under Armour Rival EOE Fitted Pullover (Midnight Navy/Mdn/Mdn),Kid free28-35-0008,.
A vast middle class of people with an income affording more than the basic essentials of existence, will also emerge. These consumers will be not only be more demanding, but will seek goods and services that enrich their lives.
The great probability is that all of this will indeed happen. Nike Flyknit-0044,Men's UNDER ARMOUR Strive 7 Cross-Training Shoes Black/White/Steel (BLACK),Basketball James-0295,, a collapse of the global economy, domestic political upheaval — comes in the way of continued progress.
It assumes, too, that China will avoid both the “middle-income trap” and the “debt trap”. Basketball Kobe-0169,Men's VANS Half Cab Military Shoes (MED BROWN),Basketball Kids5-7-0028,, albeit at a somewhat slower rate than before. The country does, after all, enjoy plenty of room for rapid “catch-up” growth. Bet on success. Basketball Durant-0123,Men's WOOLRICH The Woolrich Sweater (CHARCOAL HEATHER),Basketball James-0222,.