In what sense and to what degree are consumers in China distinctively Essay

In what sense and to what degree are consumers in China distinctively different from their counterparts in Western countries - Essay Example Thus, analysing the nature of consumer’s tastes and preferences is important for determining the long run growth of an economy. The essay enumerates the distinctive nature of the consumers demand in China from that of the western countries (Molano, 2009). Consumption in Modern China The framework of the society of China is primarily collectivistic in nature. The people in China give high value to tradition, conformity and benevolence. However, with the emergence of economic growth and modernization, the country has undergone dramatic changes in its cultural and social aspects (OECD Insights, 2013). Chinese society now resembles individualistic and materialistic principles apart from the ancient collectivistic attitude. The trace of modern consumption pattern in China is observed when some detailed analysis is made over the sales of several goods and services in the shopping malls of the country. It was empirically found that collectivism, individualism and materialism were all directly proportional to the consumption values of the consumers in China (EIA, 2013). These values include epistemic, functional, social and emotional principles in them. For the materialistic and individualistic consumers it can be found that they have greatest magnitude of consumption value (Alabama, 2005).The individualistic and materialistic consumers achieve high utility from consumption of goods and services. However, if the underlying disparities are ignored, then it can be analyzed that the overall living standard of the people in China has improved in the recent era. This is because the country has achieved a substantial growth in its Gross Domestic and National Products (USITC, 2011). China is now regarded as an emerging economy in the world. It is included in the group of BRICS, who are the nations showing higher growth rates in the world than the developed economies. It is believed by the analysts that by 2050 China’s growth will surely make it one of the global leaders in the world (World Bank, 2013). Since 1970 the country has undergone rapid development in its industrial sector. Consumer Value Analysis (Source: Alabama, 2005) The above diagram elaborates the idealistic values of the consumers in China in the modern world. Consumer behaviours can be estimated by observing the actual purchase decisions of the consumers in the economy. It can also be estimated by studying the amount of expenditures made by the consumers in China. It is found that the relation between the consumption value and socio cultural value is extremely high in modern China. Those consumers who have high social values are more attracted towards the expensive branded goods and services. These rich consumers invest high in conspicuous consumption. On the other hand, the consumers who have less social values and are not very rich and generally go for less speculative investments (Selden, 1993). On the other hand, most of the emerging economies in the world are enumerati ng high level of debt crisis in their economies. The sovereign debt crisis in the European economy has slowed the velocity of circulation of money in the European nations. Thus, the European Central bank is now implementing quantitative easing by which the commercial banks are able to get access to some fluid fund to lend the borrowers. Thus, the consumers in the western world are now having less purchasing power. Unlike the emerging affluent classes in China the consumers in