Income growth offers rich opportunities

%3CP%3E%3CFONT%20face%3DVerdana%3EChina%27s%20growing%20consumption%20will%20continue%20to%20bring%20opportunities%20to%20companies%20in%20many%20industries%20as%20the%20country%27s%20middle-income%20population%20grows%20rapidly%20in%20the%20next%2015%20years.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EAccording%20to%20a%20report%20released%20on%20Wednesday%20by%20The%20Economist%20Intelligence%20Unit%2C%20the%20portion%20of%20the%20population%20defined%20as%20middle-income%20will%20grow%20from%2011%20percent%20in%202015%20to%2036.9%20percent%20in%202030%20while%20the%20share%20of%20high-income%20consumers%2C%20with%20annual%20disposable%20income%20of%20more%20than%20200%2C000%20yuan%20%28%2432%2C100%29%2C%20will%20rise%20from%20just%202.6%20percent%20last%20year%20to%2014.5%20percent%20in%202030.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22Those%20people%20will%20bring%20huge%20consumption%20power%20in%20sectors%20including%20brand%20cars%2C%20luxuries%2C%20high-end%20tourist%20products%20and%20better%20financial%20services%2C%22%20said%20Wang%20Dan%2C%20China%20analyst%20with%20the%20EIU.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EWang%2C%20who%20wrote%20the%20report%2C%20said%20that%20the%20incremental%20gain%20in%20Chinese%20private%20consumption%20in%20the%20next%2015%20years%20will%20be%20bigger%20than%20the%20entire%20consumer%20economy%20of%20the%20European%20Union%20today.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22From%20this%20angle%2C%20consumption%20will%20definitely%20be%20the%20leading%20engine%20of%20China%27s%20economic%20growth%20and%20will%20play%20an%20increasingly%20important%20role%20in%20future%20as%20China%27s%20economy%20slows%2C%22%20she%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThis%20will%20bring%20both%20challenges%20and%20opportunities%20for%20businesses.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22Since%20China%27s%20market%20is%20big%20enough%2C%20a%20company%20which%20finds%20one%20place%20is%20full%20of%20competition%20and%20hard%20to%20make%20profit%20in%20may%20turn%20to%20another%20region%20to%20expand%20the%20market.%20However%2C%20in%20some%20industries%uFF0Dautomobile%20for%20instance%2C%20the%20competition%20is%20already%20extremely%20fierce%2C%20which%20might%20be%20challenging%20for%20new%20investors%2C%22%20she%20said.%20%22It%20seems%20that%20the%20time%20when%20a%20company%20can%20make%20a%20fortune%20from%20one%20single%20product%20has%20gone%20forever.%22%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20products%20need%20to%20be%20innovative%20to%20attract%20consumers.%20Chinese%20high-income%20consumers%20tend%20to%20buy%20healthier%20food%2C%20high-end%20cars%20and%20their%20tourist%20destinations%20are%20changing%20from%20neighboring%20countries%20to%20places%20such%20as%20Italy%20and%20France%20where%20there%20are%20rich%20cultures%20to%20experience%20or%20areas%20like%20Africa%20to%20explore%2C%20she%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22As%20a%20result%2C%20businesses%20related%20to%20those%20sectors%20will%20be%20prosperous%2C%22%20Wang%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EDing%20Zhe%2C%20an%20accountant%20at%20a%20construction%20company%20in%20Beijing%2C%20said%20he%20started%20to%20buy%20organic%20food%20and%20top%20brand%20outdoor%20equipment%20since%20his%20salary%20increased%20to%20a%20certain%20level.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EIn%20the%20past%20decade%2C%20Chinese%20consumption%20patterns%20have%20changed%20dramatically.%20The%20report%20said%20the%20most%20notable%20change%20has%20been%20a%20reduction%20in%20the%20proportion%20of%20spending%20on%20basic%20necessities.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EChinese%20expenditure%20spent%20on%20food%2C%20beverages%20and%20tobacco%20has%20fallen%20from%2037%20percent%20in%202005%20to%2030%20percent%20in%202015.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EAs%20incomes%20increase%2C%20consumers%20spend%20across%20a%20broader%20range%20of%20categories%20including%20automobiles%2C%20clothing%2C%20household%20electronics%20and%20jewelry.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EEven%20so%2C%20China%27s%20consumption%20level%20is%20still%20in%20its%20early%20stages%20at%20present%2C%20and%20is%20equal%20to%20the%20US%20level%2030%20years%20ago%2C%20Wang%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22The%20consumption%20structure%20and%20economy%20is%20stable%20in%20the%20US%2C%20which%20supported%20the%20country%27s%20consumption%2C%22%20she%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EHowever%2C%20the%20gap%20between%20China%20and%20the%20US%20will%20gradually%20narrow%20in%20the%20following%20years%2C%20she%20added.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%3CBR%3E%28China.org.cn%29%3CBR%3E%3C/FONT%3E%3C/P%3E