Changing Consumption Patterns in China

Market sales in China entered a stable stage in early1990s. The total value of consumption products by the whole of Chinese society in 1991 was US$3739.7 billion; after taking price rises and inflation into account. This total consumption reflects an annual increase of 10%. The purchasing power in China is amazing. The low income and high consumption in China is a new trend. Chinese people have a long tradition of saving money for later use, but consumption also facilitates economic growth. Consumption by the population comprises 80% of the total consumption, becoming the dominant determinant of economic growth. In the past, China’s consumption went through several basic stages. Between 1978 and 1984, Chinese consumption was mainly on food, although consumption in urban areas was slightly more advanced. In 1992, production in China first went into surplus. The Chinese consumption market changed in 1996 from a demand market to a supply market. In the future, the pattern and trend of consumption will have new characteristics. For example consumption in restaurants and on traveling will increase.