Cautious Consumers

Cautious Consumers The Chinese are on a outgo spree, right? Not really. In fact, theyre so tightfisted, Beijing is hard-pressed APRIL 30, 2007 NEWS & INSIGHTS http://www.businessweek.com/magazine/content/07_18/b4032044.htm accept the XUs. This typical Chinese middle-class family of three shares a two-bedroom flat tire in Beijing, purchased four years ago for $40,600. The father, 51-year-old Xu Zhibao, takes home $454 a month from his job as a teacher at Beijing Pharmaceutical College. His wife, Zhang Xiaoping, 50, earns $260 a month as a nurse at a local hospital. Their 25-year-old daughter, Xu Hong, is a schoolchild at Peoples University. A Whirlpool (WHR ) microwave oven and a Haier refrigerator command pride of place in the diminutive kitchen. Among the familys other prized possessions are two Sony (SNE ) televisions and a Mitsubishi air conditioner. further it isnt just the things the Xus have bought that make them representative of mainland Chinas middle class; its also what they choose not to buy. Like most mainlanders, the family members hump away tons of cash, close to 40% of their earnings each month. The Xus hardly ever go to restaurants, a movie junket is a rare treat, and they have no plans to trade in their bicycles for a motorcycle or car.

Only if a output is discounted heavily and I think its worth it will I consider buying it, says daughter Xu Hong. Isnt China in the clinch of a consumer frenzy? Well, sort of. Car sales guess up 30% last year, while retailers from Wal-Mart Stores Inc. (WMT ) to Carrefour are doing a brisk business as newly thriving mainlanders stock their larders and living rooms. And not a day goes by without some big-name American company announcing a new China push. On Apr. 16, for instance, Hewlett-Packard Co. (HPQ )unveiled an energy- efficient computer aimed at the China market. and look beyond the headlines and youll find that Chinas 1.3 billion volume are actually buying relatively little. Although the mainlands... If you want to pound a full essay, order it on our website: Orderessay

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