WARC (August 1)
“Whether it’s $18 for a two-ounce ginseng drink or $75,000 for a luxury mattress, the story is the same: Chinese consumers are becoming more frugal and the days of carefree spending have gone.” For over a decade, upmarket western brands have relied on China’s “expanding middle class” to drive growth, “but now, with a slowing economy, growing unemployment and a disruptive zero-COVID policy, those same middle classes are as likely to be saving as spending.”
Tags: Carefree, China, Consumers, Frugal, Growth, Luxury, Middle class, Saving, Slowing Economy, Spending, Unemployment, Upmarket, Western brands, Zero COVID
The Economist (March 14)
China “is clinging on to low-cost manufacturing, even as it goes upmarket to exploit higher-value activities.” Developing countries shouldn’t expect to “manufacture their way to prosperity” on the back of higher manufacturing costs in China. “Just waiting for higher Chinese wages to push jobs their way is a recipe for failure.”
Tags: China, Developing countries, Higher value, Jobs, Low-cost manufacturing, Prosperity, Upmarket, Wages
