Here are this week’s news and highlights for China:
No More Tiers: Chinese consumption is forecast to surge from $3.7 trillion in 2014 to $6.4 trillion in 2025, with 27% of the population accounting for 80% of the growth in spending. More than half of new spenders will come from the top-5 city segmentations.
Wal-Mart’s Asia CEO: China Will Drive Retail Growth: “We think online-to-offline is critical,” says Asia CEO and president Scott Price, as “customers look for convenience, and convenience is not just one mode.”
Are Chinese Tech Companies Innovative?: In 2014, China spent $200 billion on research and development and more than 1.2 million engineers graduated – more than any other country, meaning the country has “the potential to become a global innovation leader.”
Online vs. Offline: Where Do Chinese Consumers Really Win?: The average online prices for consumer goods in China are 8% lower than their offline prices when there are no sales promotions.
China Wine Imports Rebound in 2015: Bottled wine imports to China rose by 38.7% in volume and 34.7% in value to $1.4 billion for the first nine months of 2015, driven by French, Australian and Spanish wine according to Chinese customs data. Australian wines were the standout performer, growing 59% in volume and 16% in price per bottle, with total value now more than half of French wine.
Will Belvita Win at Breakfast in China?: Mondelez has taken its breakfast biscuit concept to China in a bid to capture growing demand for “modern eating habits” in the mornings. Biscuits for snacking are already one of the most popular foreign categories in Chinese supermarkets and online stores, with Britain’s digestives selling increasingly well in China.
Xi Pub Visit Prompts Newfound Interest in British IPA: Photos of China’s president enjoying a pint of British beer in an Oxfordshire pub have sparked a “frenzy” for British Ale, with one publican reporting patrons just asking for “what Xi Dada (President Xi) drank.”