Generally speaking, the paper "Chinese Consumer Dynamics in relation to Consumerism" is an outstanding example of a marketing case study. China has a population of 1.3 billion possible consumers with a rising buying power. The country has recently ranked the second-fastest growing economy in the globe. Therefore, this has attracted a lot of attention as most businesses are anticipating sharing in the advantage of the limitless market and many emerging consumers. This paper intends to explore the Chinese consumer dynamics in relation to consumerism. Chinese consumer spending power In China, there are 1.3 billion possible consumers.
As a result, the country’ s market offers a large buying power. Chinese consumers experience increased mobility and income, better education and jobs, fast economic growth, and urbanization. They are developing to become more mature and modern consumers that turned China into a significant market for products and have attracted interest from both international and domestic companies (Wright, 2006). During the worldwide economic recession, whereas US consumers cut their spending habits on food, clothing, groceries, entertainment, restaurants as well as any other luxurious expenses, the Chinese consumers faced a booming spending power.
The Chinese consumers increased their income and over 50% of them believed that their income would increase in 2012, hence an improved spending power (Walters, et al. 2013). China’ s economic environment China’ s economic conditions According to the BCG’ s Center for Consumer and customer insight, the percentage of Chinese consumers intending to spend more in the future has tripled as compared in Japan, US, and main European markets. Nevertheless, the recent economic slowdown in China has made the consumers cautious. In 2013, 27% of the Chinese consumers spent more as compared to those in 2012’ s 38% consumer spending behavior (Walters, et al.
2013). Since 2010, it is evident that the economic growth in China has dropped from a double-digit figure to barely 8%. Consequently, the previous optimism among Chinese consumers has dropped drastically. In 2012, most of the consumers expected the economic situation of the country would improve in the following year; 2013. However, in 2013, the percentage declined to 38% (Walters, et al. 2013). As per the same survey, a few consumers neither fear job loss nor fewer earnings in the future.
In fact, most of these consumers are trying to save by spending less. In 2012, the rate of household savings in the country rose to 38% of the expenditure compared to 23% a decade ago. However, consumers are still sceptic about the economic situation. 20% of these consumers believed that their savings met their needs (Orlik & Davis, 2012) Whereas the overall spending has declined, consumers are increasingly becoming sophisticated through budget optimization. In China, about 80% of the breadwinners only have their parents and grandparents to take care of because they have no siblings.
In fact, some at times are the financial responsibility of at least one set of grandparents. Still, in China, old parents usually move into their children’ s home, or that the children are expected to buy the homes. Besides, families may also expect their children to participate in supporting their extended families. They also expect their young children to be part of the responsibility, particularly in the big cities as it is the Chinese culture to supplement their children’ s education with expensive extra-curricular and tutoring in order to enhance their admission to prestigious universities (Chevalier & Lu 2011).
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