China and India both have huge population. Both these countries also have a huge area and both are one of the most ancient civilizations on planet earth.
The combined population of these two countries would be say 2.7 billion. The global population of 7 billion has around 40% people from India and China. And to this number, if I was to add further the Chinese from Taiwan, Philippines, Thailand, Singapore, Malaysia etc, it would easily come to 50% of the global population to be Chinese or Indians. Which means 1 out of every 2 persons in the world is now either an Indian or a Chinese.
Interestingly, both these communities have seen new found wealth and both have almost the same middle class attitude towards spending wealth to get a taste of better life. The ever increasing middle class is creating markets for goods and services for almost anything and everything. Never before has the economy seen such an expansion like in the last decade.
But it is not the spending habits of the people, which is changing the economy of these countries, but the magnitude of the number of people. Spending in Europe or US or North America could be many times higher then Asia, but the total number of people are too small to be be aggregated to show an improvement of GDP more then 1%.
The American and European brands regularly see more growth in China and India, then the rest of the world. The markets for almost each and every product has zoomed in these Asian markets. Imagine, if only 1% of the total population in China or India was a multimillionaire then it already had more millionaires then the total population of the full country like Belgium, Switzerland, Holland etc.
For whatever it is worth the largest markets for almost everything will now remain as India and China for the next many decades. Both these countries also have typical behavioral pattern in purchasing. Either they buy the most expensive or they buy the least expensive. Markets are generally driven by perceptions and less by evaluation or value offerings.
Markets are, where People Are!
The combined population of these two countries would be say 2.7 billion. The global population of 7 billion has around 40% people from India and China. And to this number, if I was to add further the Chinese from Taiwan, Philippines, Thailand, Singapore, Malaysia etc, it would easily come to 50% of the global population to be Chinese or Indians. Which means 1 out of every 2 persons in the world is now either an Indian or a Chinese.
Interestingly, both these communities have seen new found wealth and both have almost the same middle class attitude towards spending wealth to get a taste of better life. The ever increasing middle class is creating markets for goods and services for almost anything and everything. Never before has the economy seen such an expansion like in the last decade.
But it is not the spending habits of the people, which is changing the economy of these countries, but the magnitude of the number of people. Spending in Europe or US or North America could be many times higher then Asia, but the total number of people are too small to be be aggregated to show an improvement of GDP more then 1%.
The American and European brands regularly see more growth in China and India, then the rest of the world. The markets for almost each and every product has zoomed in these Asian markets. Imagine, if only 1% of the total population in China or India was a multimillionaire then it already had more millionaires then the total population of the full country like Belgium, Switzerland, Holland etc.
For whatever it is worth the largest markets for almost everything will now remain as India and China for the next many decades. Both these countries also have typical behavioral pattern in purchasing. Either they buy the most expensive or they buy the least expensive. Markets are generally driven by perceptions and less by evaluation or value offerings.
Markets are, where People Are!
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