Encouraging Consumer Spending in China

The average Chinese household is saving 40 percent of their income in 2011. This is mainly due to a lack of a social security system that forces the Chinese citizen to save for healthcare, education and pensions. An Hodgson, income and expenditure manager at Euromonitor, says that consumer goods companies wanting to reach reluctant Chinese consumers will have to focus on the four characteristics of Chinese consumers:

1. They are becoming more urban
2. They are getting richer faster
3. They are spending more on discretionary items
4. They are getting older

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