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Tuesday, January 10, 2006

China's third wave of growth

China is already large, but when the government intents to entice consumers to losen their strings on their purses, expect further growth to come.

"Economists say China’s economy, which has grown at above 7% since 2000, is overly dependent on exports and foreign investments. Private consumption accounts for only 53% of China’s gross domestic product compared with the world average of 70%. In part because nearly 900 million poor, rural Chinese add little to total retail spending."

Now it is this gap that the government plans to tap into, even so retail sales already grow an astonishing 13% per year.

Who shall carry the growth wave? The youth of course. "BNP Paribas estimates this group numbers about 90 million now. And as those born in the ‘80s and ‘90s mature, the figure could well reach 320 million." A dream for any company that is able to position itself correctly and is able to connect with the potential customer.

(By Asia Business Consulting)