According to consultancy firm McKinsey & Co, the survey has shown that Chinese consumers are strongly confident with their economic potential after the slower growth of gross domestic product in the second quarter of the year.
The survey of nearly 15,000 consumers in 49 Chinese cities shown that this slowing down of GDP growth has very little impact on consumer confidence. As China’s GDP growth slowed from 11.9 percent in the first three months of the year to 10.3 percent in the second quarter.
Moreover, rich customers, which are 24 percent of the consumers, are more aware of their spending than the rest which made almost no change in their spending.
The survey also said that China’s domestic consumption is believed to increase by 11 percent every year and will counting for 42 percent of the GDP by 2020.
But due to more shopping malls and luxury outlets opening up, we will not see a quick jump of domestic consumption. As only one percent of the Chinese would buy luxury goods and new shops and facilities will only cater to them. Therefore the balance of demand would be a little by little process.
In my opinion, the economy of China is growing up more and more. So, people in China be confident with their product that made in their country. Therefore the demand will balance that make economy well.
Reference : http://www.chinadaily.com.cn/business/2010-08/21/content_11184423.htm
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