Return to our Home page Search
Click here for the hotel and hospitality news from around the globe Hotel, Travel and Hospitality Articles Videos and in-depth Interviews
Read more now
Read more now
Read more now
Boost in Chinese household consumption by 2020.
Thursday, 19th June 2014
Source : Nielsen

As China’s investment-driven economy continues to transform into one driven by personal consumption, the country could see a boost in household consumption from today’s 35 percent of GDP to between 45 and 50 percent by 2020 according to Mitch Barns, chief executive officer of Nielsen, a leading global provider of information and insights into what consumers watch and buy.

Barns spoke yesterday at the Boao Forum for Asia’s annual conference, taking place this week in Hainan Province.
"'The upper end of this range amounts to additional spending of approximately 26.9 trillion yuan over 2012 levels – over 18,500 yuan of additional consumption per capita, taking consumption per capita to well over twice 2012 levels,” said Barns at a panel discussion on key spending trends in China, one of the world’s most dynamic and fastest-growing markets.  (All numbers are in 2012 constant yuan.)
A tough road, but a promising future

Nielsen information, in agreement with that of the World Bank, puts Chinese household final consumption today at about 35 percent of GDP, compared to the worldwide average of 60 percent. Meanwhile, the household savings rate as a percentage of disposable income almost doubled in China from about 16 percent in 1990 to more than 30 percent two decades later.
“Chinese consumers often cite the lack of a social safety net as the main reason why they need to save as much as they do,” said Barns.
According to Nielsen’s latest survey on Chinese consumers’ attitudes on consumption and savings, consumers in Tier 1 cities save most, with the savings rate as high as 60 percent. Those consumers aged between 40 and 60 save more than 70 percent. Incentives for saving include feeling safe (63%) and preparing for old age (57%), a family emergency (55%) or the loss of a job (55%).
Chinese consumers are also reluctant to borrow: Nielsen’s survey shows that only 13 percent of Chinese have ever held a loan (home [46%] and car [33%] purchases were the top incentives for taking out a loan). Nearly half of the respondents “don’t like the feeling” of carrying debt (48%); another 48 percent believe interest rates are too high.

Further, over a quarter of all respondents (27%) say the actual process of borrowing money is a significant barrier – repayment or application procedures are too complex. About the same number (25%) don’t believe they would qualify for a loan in the first place.
“A Chinese population more confident in its ability to satisfy its education, healthcare and pension needs, and that can take out and repay loans more easily, will be a Chinese population ready to expand its consumption,” said Barns.

Read full story HERE

~ Important Notice ~
Articles appearing here contain copyright material. They are meant for your personal use and may not be reproduced or redistributed. While 4Hoteliers makes every effort to ensure accuracy, we can not be held responsible for the content nor the views expressed, which may not necessarily be those of either the original author or 4Hoteliers or its agents.

Learn more about DigiJames - in room technology
 Related News  (Click title to read article)
The Chinese Luxury Traveler - How destinations are decided and bookings made.
China Spiritual Investments White Paper 2014.
Uber's mantra for success in China - technology supremacy + local connect.
Tourism policy implementation hampered at local level in China.
 Latest News  (Click title to read article)
Approaching the top benefits the bottom
Wednesday, 27th August 2014

China's top tier two city wins planning prize
Wednesday, 27th August 2014

London leads EMEA hotel investment market
Wednesday, 27th August 2014

Patience, logistics and law in Yangon
Wednesday, 27th August 2014

News from around the Asia Pacific region, Aug 27
Wednesday, 27th August 2014
 Latest Articles  (Click title to read article)
Pictures Are Worth 1,000 Words (Especially on Social Media)
Wednesday, 27th August 2014

Understanding the 'Generations' of travel: The Generation Y / Millennials – Part 5
Wednesday, 27th August 2014

Of the Pitfalls of Checking References: Damned If You Do, Damned If You Don't
Tuesday, 26th August 2014

What Women Want (From a Hotel)
Tuesday, 26th August 2014

Where To Go For Breakfast in Venice
Tuesday, 26th August 2014
 Most Read News  (Click title to read article)
Thailand Situation Updated - June 27: Thailand tourism gets stronger than ever
NH Hotel presents new category of hotel: NH Collection
Singapore Airport T4: Ready for future growth
World's weirdest hotel requests and complaints
Mobile booking set to represent 25 percent of all online corporate bookings by 2017

© Copyright 4Hoteliers 2001-2014 ~ unless stated otherwise, all rights reserved.
You can read more about 4Hoteliers and our company here

Use of this web site is subject to our
terms & conditions of service and privacy policy