China Has $67 Trillion in Potential Consumer Spending Over the Next 10 Years (Nielsen)
The slowing pace of the China’s investment- and export-led growth, and recent economic turbulence, underscores an opportunity for the country’s 1.4 billion consumers to play a bigger role in the economy going forward. In fact, recent research from The Demand Institute pegs the Chinese consumer spending opportunity at about $67 trillion over the next 10 years. Louise Keely, President of The Demand Institute and an SVP for Nielsen, recently offered some insights into this potential along with the following four roles or key areas that businesses can play as China transitions to consumer-led growth:
- Helping to foster a Chinese consumer culture. Many Chinese consumers are not that familiar with new goods and services such as insurance (“not very sexy”) and health & wellness (a “growing concern” and a “big market opportunity”) – meaning there are opportunities for companies.
- Helping Chinese consumers to have access to good and services. This includes the physical distribution and logistics perspective as well as giving Chinese consumers access to information. Moreover, Internet penetration and eCommerce growth is expected to continue and offer exciting and growing opportunities.
- Understanding what Chinese consumers want. China has 1.4 billion people spread over a huge land area with very diverse income levels as well as levels of sophistication and experience with the consumer economy. Areas mentioned by Keely for potential opportunities ranged from cars to smartphones and even alcohol.
- Financial services. Many Chinese don’t have access to the same types of bank accounts, credit and credit cards that consumers in mature markets take for granted. The growth of financial services will give Chinese consumers the ability to access many of the same services that people in mature markets take for granted. This will further enable consumer spending and consumption.
To see the video, Nielsen TV: Sold in China, as well as read the report, Sold In China: Transitioning to a consumer-led economy, go to the website of Nielsen. In addition, check out our China Closed-End Funds list and China ETFs list pages.
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