China’s economy might be under pressure from the downturn in the US and Europe, but changing spending patterns might save its day, business analyst Ben Cavender told the Asian Gaming and Hospitality Congress.
The Asian Gaming and Hospitality Congress:
The focus of his presentation was on the perceived slowdown in the economic growth in China. Cavender warned that the recession in Europe and the USA’s partisan budget battles could affect the growth of the Chinese economy but with the growth of domestic spending from a growing middle class would prevent any major drop.
Cavender explained a shift in attitudes among the wealthy Chinese, suggesting they are switching from blindly buying luxury purchases to looking for value in their purchases. They are spending less on flashing items and taking time to purchase items that hold special value. As a result, aspirational brands are suffering a little. Cavender said the Chinese consumers are shifting towards experiential purchases; pointing out that in 2011 over 70m Chinese traveled out of the country compared to 47.5m in 2009.
This summer Ben Cavender gave an overview of efforts by foreign companies in localization on the China market. Including examples from IKEA, Gap, B&Q and Dunkin Donuts.
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