Chinese people, long considered as savers instead of consumers, have shown a significant willingness to go on a spending spree, especially on entertainment. This willingness even surpassed some Asian neighbors, according to a survey by ACNielsen.
The online survey, which is designed to gauge consumer confidence in the economies and their expenditure patterns, received a response from 7,230 consumers in 13 Asian markets.
About 60 percent of respondents on China's mainland said they were willing to spend money in restaurants, karaoke lounges and pubs, the highest proportion among the markets surveyed. This figure is compared with only 22 percent of Japanese people and 30 percent of Koreans who said they would pay for such entertainment.
Although online surveys have a notorious reputation for being inaccurate, the survey at least indicated that Chinese people are changing habits of depositing money in banks or hiding it under the mattress as the older generation once did.
"Considering the traditional Chinese culture of saving money, the figure is encouraging for many industries," said Glen Murphy, managing director of ACNielsen China.
"The Chinese people's appetite to spend suggests they are ready to pay for a better life, which allows them to enjoy the latest technology, a more comfortable living environment and multiple forms of entertainment," Murphy said.
Half of the Chinese respondents want to buy the latest technological products such as digital cameras and trendy cell phones. Other hot spending choices include clothes, touring and home decoration.
Zhou Dunren, an economics professor at Fudan University, said the phenomenon is the result of a richer China emerging.
"People spend less proportion of their money on feeding themselves. It also indicates that a more developed service industry will emerge in the future, especially in entertainment, public health and decoration," he said.
In some major Chinese cities such as Beijing, Shanghai and Shenzhen, people spend less than 30 percent of their income on food, a notable decrease from 50 percent a few years ago.
Wu Chenhai and Luo Tiao, a young couple who earn roughly combined 10,000 yuan (US$1,206) a month and who have a 2,000-yuan monthly mortgage on their newly-bought home, still splurge on shopping every week and eat in restaurants from time to time.
"We are different from our parents who would like to put their money in banks. We feel safe to spend because we can earn it back," said Wu.
(Xinhua News Agency December 16, 2003)
