Facts about China: CHINESE CONSUMER MARKET

China Mike’s 100% verified, no B.S. China facts (interesting & fun statistics):

CHINA CONSUMPTION & CHINESE CONSUMER MARKET


China will be the world’s second largest consumer market by 2015 (currently number three behind the U.S. and Japan).
[ BCG Consulting’s November 2010 Report: “Big Prizes in Small Places: China’s Rapidly Multiplying Pockets of Growth” ]


By 2020, China’s consumer consumption nation-wide will amount to 22 percent of the total global consumption, behind only the U.S. (35 percent).
[ BCG Consulting’s November 2010 Report: “Big Prizes in Small Places: China’s Rapidly Multiplying Pockets of Growth” ]


Between 2010 and 2020, the number of households in China with an annual disposable income above US$10,000 (in nominal terms) will almost quadruple— from 57.1 million households in 2010 to 222 million by 2020.
[ Euromonitor International “Top 10 largest economies in 2020” July 7, 2010 ]


China’s per-capita G.D.P. is about $7,000, with consumption making up only 35% of the economy, due to the high levels of savings and corporate profits. So China’s per-capita consumption — the amount of money the average person spends — is only about $2,500 a year. In the U.S., that figure is about $30,000.
[The New York Times “In China, Cultivating the Urge to Splurge” Nov. 24, 2010 ]


China launched the “world’s largest housing investment program”. As part of its new five-year plan (2011-2015), China will build 36 million affordable homes, which “assuming three people to an apartment, that is enough to house the combined populations of France, Australia and Canada.” Stephen Roach, chairman of Morgan Stanley Asia wrote that the five-year plan will “spark the greatest consumption story in modern history.”
[ The New York Times “China Creating a New Generation of Consumer” March 14, 2011 ]

Macau is the world’s top gambling destination, after overtaking Las Vegas in total gaming revenues in 2007. Gambling has been legal in Macau—known as the “Monte Carlo of the Orient”— since 1847 and generates over 40% of Macau’s GDP.
[ Wikipedia ]

Gambling inside a Venetian Macau Casino


China facts: THE CHINESE CONSUMER



From 2007 to 2009, retail sales in China grew by 25% annually, according to McKinsey & Co.
[ Newsweek “Chinese Women Go Shopping” Aug. 27, 2010 ]



Four of the world’s top 10 largest shopping malls are in China, including the world’s number one and two largest (South China Mall in Dongguan and Golden Resources Mall in Beijing).
[Wikipedia]

Click here to see “China’s Ghost Mall, the world’s largest (empty) mall” in China Facts: Weird & Oddball


73% of Chinese surveyed regarded shopping as a leisure activity. 45% identified it as one of their favorite pursuits, and just over half said it was among the best ways of spending time with the family. Chinese consumers “often shop without any intention of buying. Sometimes they are window-shopping or comparing prices. At other times, they may be shopping as a sport, competing with friends to find the best deals.”
[ McKinsey & Co. “China’s new pragmatic consumers” Oct. 2010 ]


The Chinese are “extremely brand conscious”. 45% of Chinese consumers surveyed believe that higher prices correspond to better quality (compared with just 16% in the U.S. and 8% in Japan). However, they are “extremely pragmatic” so “while quality remains a critical consideration, value is the most important one.”
[ McKinsey & Co. “China’s new pragmatic consumers” Oct. 2010 ]

Q: What % of Chinese women say they control the family’s purse strings? Find out in China facts: WOMEN, MARRIAGE, DIVORCE & BRIDE-NAPPING.

China facts: FOOD


China possesses about 6% of the world’s total land area…on which it must sustain 20% of the world’s population.
[ “China: Asia in Focus”, R. LaFleur 2010]


China is now the largest food producer in the world. China is the world’s top producer of agricultural products by value, with total production of about 4,078 billion RMB (US$536 billion). Japan is China’s largest food export market.
[World Trade Organization 2010 Report ]


With almost half a billion pigs, China is the world’s largest pork consumer and producer. China has more pigs than the next 43 largest pork producing countries combined (U.S. is #2 with 65.9 million pigs).
[ Wall Street Journal blog, April 20, 2010 ]


China is the world’s largest producer and consumer of rice.
[ Wikipedia, Reuters ]


China is the world’s largest apple producer (followed by the U.S. in second place) and the world’s leading exporter of apple juice.
[ USDA statistics]

CHINA’S GROWING FAST FOOD CULTURE


McDonald’s expects to double the number of locations in China in the span of three years. In 2010, it had about 1,100 outlets but expects to grow to a total of 2,000 stores by 2013. McDonald’s opened its first outlet in Shenzhen in 1990 and employs more than 60,000 people throughout the country.
[ Wall Street Journal blog, March 29, 2010 ]



KFC has over 3,200 outlets throughout China. In 1987, KFC was the first Western fast-food chain to gain entry to the Chinese market. Parent company Yum! also operates 520 Pizza Hut restaurants and 120 home delivery locations in China.
[Yum! Company website ]

Huge lines for China's first KFC (Beijing, 1987)

Q: How many million people are obese in China today? Find out in China facts: HEALTH, OBESITY EXPLOSION & SMOKING.

China facts: DRINK


China surpassed Europe as the world’s biggest beer market. According to Credit Suisse’s World Map of Beer: “In the space of a couple of decades the country has gone from barely touching a drop to become the world’s biggest beer market, a considerable distance ahead of America. And beer drinking in China is growing fast, by nearly 10% a year.”
[ The Economist online, “All Pints East” August 17, 2010 ]



China—the world’s sixth largest wine producer—will be the world’s top producer by 2058, according to Berry Bros & Rudd (BBR) “Future of Wine” report. The report also predicts that in 50 years, China will “rival the best of Bordeaux.”
[ BBR Future of Wine report, 2008 ]


An anonymous Chinese phone bidder paid US$232,000 each for three bottles of 1869 Château Lafite Rothschild at a Sotheby’s auction in Hong Kong —smashing the record of $156,450 paid in 1985.
[Time Mag. “A Bordeaux Bubble” March 5, 2011 ]


In China, coffee sales in stores more than tripled from 2004 to 2009, according to the Euromonitor International. In 2009, coffee sales hit 4.6 billion yuan ($694 million).
[ Wall Street Journal “Starbucks to Open China Coffee Farm, Securing Global Supply” Nov. 15, 2010; Businessweek “Starbucks Sets Up Coffee Facilities in China’s Yunnan” Nov. 2010 ]


Starbucks dominates the Chinese market with around 70% percent market share. China is “poised to become Starbucks’ second-largest market behind the U.S., overtaking Canada, Japan and the U.K.”
[ Wall Street Journal “Starbucks to Open China Coffee Farm, Securing Global Supply” Nov. 15, 2010; Businessweek “Starbucks Sets Up Coffee Facilities in China’s Yunnan” Nov. 2010 ]


In 2007, Starbucks closed their store inside the Forbidden City after a controversy brewed over “Chinese sensitivity about cultural symbols and unease over an influx of foreign popular culture.” An online protest was led by a news anchor for Chinese state television.
[ New York Times “Starbucks closes coffeehouse in Beijing’s Forbidden City” July 15, 2007 ]



Starbucks plans to grow the number of mainland China stores from about 400 to “thousands” of stores, according to CEO Howard Schultz. In 2010, the company signed a deal with the provincial government of Yunnan to set up its first-ever coffee-bean farm in the world to cater to the Chinese market.
[ Wall Street Journal “Starbucks to Open China Coffee Farm, Securing Global Supply” Nov. 15, 2010; Businessweek “Starbucks Sets Up Coffee Facilities in China’s Yunnan” Nov. 2010 ]

China facts: RAW MATERIALS


China is the world’s largest cotton producer and importer. Between 1949 and 2007, China’s annual cotton production has leaped from 440,000 tons to 35.3 million bales, representing almost 30% of the world’s total output.
[U.S. Department of Agriculture; University of Missouri: Project Cotton: Cotton and Wool Year Book, 2007 ]


China is the world’s largest steel producer. In 2009, China’s steel industry produced 567 million metric tons of crude steel, which represented 46.3% of the world’s total output.
[ Emerging Markets Direct (EMD) China Steel Industry Report 2H10, November 2010]



China produces 95% of the world’s rare earth metals, which are critical in the manufacture of many high-tech products ranging from smartphones to smart bombs.
[ New York Times “After China’s Rare Earth Embargo, a New Calculus” October 29, 2010 ]



China is also the world’s leading producer of aluminum, antimony, barite, coal, flourspar, graphite, iron and steel, lead, tin, tungsten, and zinc.
[US Geological Survey 2006; “China: Asia in Focus”, R. LaFleur 2010]


China produced almost 50% of the world’s flat glass and cement in 2006.
[ “China: Asia in Focus”, R. LaFleur 2010]


China is the world’s largest producer of gold, after taking the top spot in 2008 from South Africa, which was the world’s top producer since 1905. China produced 276 metric tons of gold in 2007, representing over 10% of the world’s total.
[ Report from London precious metals consultancy GFMS Ltd, China Gold Association]

Q: China accounts for xx% of Louis Vuitton’s global sales? Find out in China facts: RICH, POOR, INEQUALITY & LUXURY GOODS.

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