by Fons1 via FlickrSpending by urban consumers is still on track, says Shaun Rein, director of the China Market Research Group, based on his own research in the International Herald Tribune. Seventy out of one hundred urban consumers had no plan to change their spending habits despite all the talk about an economic crisis.
“People over age 50 might stow away half their salaries, but those under 30 have an effective savings rate of zero.”A girl might make $500 a month but she will save three months to buy a $1,500 Gucci bag,” he said.
It is a major change from the past, when saving was considered to be one of the major virtues of Chinese, different from Americans who are having a tradition of living on credit.
“I call them China’s baby boomers because they’re similar to postwar Americans who have only known prosperity,” Rein said. “They want the best of everything and they want it now.”