Retail in Asia

In Sectors

What slowdown? Chinese spending more on luxury items

China’s consumers are ignoring the bears.

Consultancy McKinsey & Co is tipping that China’s shoppers will increase their spending by 10 per cent per year until the end of the decade as incomes rise. Some 55 per cent of consumers expect a significant wage increase over the next five years.

It is not just staple goods that will be filling the shopping trolleys. Consumers are spending more on luxury items like spa visits, travel and entertainment.

The shift is just another sign of China’s economy changing from one that is fuelled by heavy industry and exports towards one where consumers and services drive growth.

Here is another sign of the burgeoning market: Chinese consumers are adopting new products, services and retail experiences at rates unseen in developed markets.

(Source: Straits Times )