China, the New Year boosts consumption

8 February 2013, 6:29 | di Mr Stanley | 0

Chinese merchants are preparing for the flood of shoppers over the Chinese New Year weekend, promoting flat-screen TVs and consumer electronics.

Chinese merchants are preparing for the flood of shoppers on Chinese New Year weekend, promoting flat-screen TVs and consumer electronics. The discounts, coupled with an improved outlook for the PRC economy, are expected to drive shopping during a time when traditionally the largest purchases are made in China. According to the forecasts of a benchmark of economists, interviewed by Bloomberg, this year sales between January and February could rise by 15,4%, the fastest rate in the last thirteen months.

“Business should be better than last year – comments Ken Grant, director of luxury consultancy FDKG Insight – As people get more affluent, so do mass sales.”

Among the sectors that should benefit most from the favorable season, there are cosmetics and jewellery. While awaiting the arrival of buyers, Chow Tai Fook Jewelery Group, the world's largest jeweler by market value, has prepared pendants in the shape of a snake (the dominant zodiac sign in 2013 for the Chinese horoscope), gold coins and ingots . Gome, the second largest consumer electronics retailer, is offering discounts on flat-screen TVs and luxury watches. Even the restaurants are getting ready: the exclusive Roosevelt Sky Restaurant has opened a new floor to host diners for dinner on February 9, the day before the Lunar New Year. The restaurant has prepared an 888 yuan per person menu that includes lobster and bird's nest soup.

So much opulence, in short, in a country that has just returned from a 7,9% GDP growth (in the last three months of 2012), halting a decline that had lasted for seven quarters.

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