Consumer spending likely to ease in 2013
Updated: 2013-06-25 15:16
By Chen Ziyan (chinadaily.com.cn)
According to a survey released in Beijing by the Boston Consulting Group (BCG) on Monday, Chinese consumers are less optimistic about the economic outlook, and people who plan to spend more this year witness a double-digit drop from a year earlier , china.com.cn reported.
A survey conducted by BCG in April on consumers from China’s 12 cities shows that only 27 percent of Chinese consumers plan to spend more in 2013, which dropped an 11 percent from last year’s 38 percent, while 58 percent said they want to save more to support their children and elders.
Research conducted by BCG’s Center for Consumer and Customer Insight in China reveals that with the recent slowdown in China's previously high-speed economic growth, Chinese consumers are becoming more cautious about the economic outlook.
Statistics released by BCG last year show that 49 percent of consumers said the economy would improve within the next 12 months, while the percentage dropped to 38 percent this year.
BCG partner and managing director Jeff Walters said, “Due to the doubt and uncertainty about the economy, Chinese consumers want to save more, and this resulted in the downturn in spending.
“Chinese consumers’ willingness on consumption is still higher than consumers in Western countries, as well as in many BRICS countries.”
He remains optimistic about China’s economy.
“This short-term dip in optimism and increased levels of saving should not overshadow the much brighter future in which consumerism will still reign in China,” he said.
According to BCG, around 30 percent of high-income groups in China are considering increasing their expenditure this year, well above the US’ 10 percent, EU’s 9 percent and Japan’s 7 percent, as well as India’s 13 percent.
By 2020, the middle- and high-income groups in China’s lower-tier cities will account for 25 percent of the urban population and drive 40 percent of urban consumption. This attractive group will play a key role in China’s economy in the future, Walters said.