Every time when you do not pay attention for a second, CMR president Shaun Rein is trying to kill one of the holy cows we have been cherishing in China. One of those standing assumptions is that most Chinese as we know them in the mainland save much of their money and shun the US-style of spending more than you earn.
That assumption might no longer be valid, as the young generation moves into (spending) power, according to an editorial in Forbes:
In interviews the China Market Research Group (CMR) has conducted with 500 young adults between the ages of 18 and 32 in six cities across China, nearly 80% of respondents said they had made an online purchase in the last six months. The vast majority expected to buy something again in the next quarter. Seventy percent said they weren’t putting aside any money in savings accounts and that they would use a credit card for online purchases if they had one.
Our findings suggest it is a lack of credit cards and other payment options, rather than a cultural aversion to buying online, that has curtailed the growth of e-commerce in China.
It tails nicely with the enthusiastic reports of tourism bureau’s in Europe, but also else in the world who notice that at least a part of the Chinese visitors belong to the big spenders. The picture is often mixed: they would still book the cheapest travel arrangements, the least expensive hotels and try not to eat in expensive restaurants. But when it comes to big ticket purchases, fashion, jewelry and especially diamonds, money is not problem.
Shaun Rein is also available as a speaker of the China Speakers Bureau. Do drop us a line, if you are interested in sharing his insights on site.