China, Socialism & Consumer Behavior: Chinese consumers reluctant to spend

According to a survey conducted by the Economist Intelligence Unit (EIU), while Western companies have been counting on China to deliver solid economic growth numbers, its country’s consumers have been reluctant to increase their domestic spending, the Financial Times reports:

“Chinese consumers, both urban and rural, although optimistic about the future, remain big savers and cautious spenders, despite their government’s concerted effort to stimulate domestic demand,” the EIU said on recently.

Two-thirds of Shanghai residents save a quarter or more of their household income (compared with under 15 per cent for the hardly profligate Swiss), and a third save 35 per cent or more. In less developed smaller cities, the figures are even higher.

Among the half of the rural respondents who do not own a refrigerator, only 40 per cent plan to buy one, and a third of those see it as a distant purchase. “This suggests that more needs to be done to address their broader concerns about the future before programmes aimed at stimulating consumer demand can be more effective,” the EIU said.

via FT.com / Companies / Retail – Chinese consumers reluctant to spend.

Itamar Medeiros

Originally from Brazil, Itamar Medeiros currently lives in Germany, where he works as Lead Product Design Strategist at SAP and promotes User Experience Design as visiting lecturer at Köln International School of Design. Working in the Information Technology industry since 1998, Itamar Medeiros has helped truly global companies in several countries (Argentina, Brazil, China, Germany, Hong Kong, India, Mexico, The Netherlands, Poland, United Arab Emirates, United States) create great user experience through advocating Design and Innovation principles. During his 7 years in China, he championed the User Experience Design discipline as User Experience Manager at Autodesk and Local Coordinator of the Interaction Design Association (IxDA) in Shanghai

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