China: Asia’s Most Attractive Consumer Market

China was the most promising consumer market in Asia in Y 2015, and will probably remain so in the next 4 years, according to a report released Thursday.

“Even as China’s economy slows and its population ages, it appears set to remain the most attractive Asian market for retailers in the years ahead,” said economists in “Insight: Asia retail forecasts show China market to stay # 1.”

The report said the Asia-Pacific region accounted for about 33% of Apple’s (NASDAQ:AAPL) revenue, and more than 50% of the revenue of Yum! Brands, (NYSE:YUM) operator of fast food chains including KFC and Pizza Hut, in Y 2015.

“Asian consumers have shifted from bit-part players in the drama of global demand to a leading role,” the report revealed..

In ranking of the most promising consumer markets in Y 2015 by Intelligence Economics; China, Japan and India came 1st, 2nd and 3rd.

“For China and India, that reflects their massive young populations and large economies,” the report said.

Following India were Australia, the Republic of Korea and Malaysia. Palistan and Bangladesh ranked at the bottom of the list.

Using GDP and GDP per capita forecasts from the International Monetary Fund (IMF), and demographic forecasts from the UN, it is possible to project the ranking scores forward to Y 2020, the report said.

China’s economy expanded 6.7% Y-Y in Q-1 of Y 2016, slowing further from the prior Quarter but better than many feared.

And FDI (foreign direct investment) in the Chinese Mainland continued to rise in the 1st 4 months of this year, official data showed earlier this week.

FDI, which excludes investment in the financial sector, rose 4.8% Y-Y to RMB 286.78-B (US$45.3-B) in the January-April frame.

China will encourage an overhaul of its consumer goods industry to meet the needs of increasingly picky buyers, according to a statement issued after a State Council executive meeting Wednesday.

The government will back enterprises to spend more on design and R&D, the statement said.

Stay tuned…

Paul Ebeling

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