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Please help me in conducting my market research Mall Experiences.
China VS US GDP
This interactive chart is truly amazing. I never thought it would be as quick as this that China would catch up to be the world’s biggest economy in less than 10 years. Go ahead and play around with it. Everyone has different assumptions. The default growth variables created a result of 8 years… But based on some of the news I’ve heard recently about Kansas FED’s comment saying, “Growth in 2011 may be faster than most would think.” I'm going to give USA a little benefit of the doubt..
Source: Economist
China retail sales to pass US retail sales by mid 2011
Its amazing to see how once one of the most poorest nations in the world in terms of consumers are now able to surpass the richest in as little as 15 years. According to business week, Chinese department store, PCD attracted so much traffic customers that Beijing police had to step in to control traffic.
"The love affair of the Chinese consumer with luxury products is growing," says PCD Chairman Alfred Chan.
For this reason opportunities in terms of consumers goods are still plenty. On top of that, their growth is still astounding and have yet to implement many of the western countries’ techniques in term of how they sell their goods. For example, E-Commerce has yet to develop and brokerage firm CLSA estimates the Chinese retail market will expand by about 24% in 2010.
Retailers such as PCD have yet to benefit from the growing interest in luxury and high end goods.
"With the emergence of the middle class, people are going for better brands," says Yuval Atsmon, an associate principal for McKinsey in Shanghai.
Now high margin goods such as cosmetics, designer clothes and shoes account for more than 70% of sales at the top department stores. Plus, in contrast to U.S. custom, large Chinese retailers sign deals directly with brand owners, charging them rent and letting them manage their sales in the store.
Today, the top five department store operators together have just 8% of the market, vs. 70% in the U.S., BCG estimates. That will soon change, Cheng predicts.
"There will be only 10 to 15 groups remaining 10 years down the road." – Alfred Cheng (CEO of Parkson)
Source: Business Week
Consumer credit improves much better than expected
- Consumer credit fell at an annual rate of $3.51 billion in October. As opposed to the $9.3 billion by Economist.
- Demand for revolving credit, fell 9.3%, while borrowing in the category that include auto loans rose at an annual rate of 2.6%
- Americans are still borrowing less as they try to replenish depleted investments. Many are finding it hard to get credit as banks have tightened lending standards.
- The 1.7% fall in overall consumer borrowing left that total at an annual rate of $2.48 trillion in October. The $3.51 billion fall in October followed a decline of 48.77 billion in September.
- The 9.3% decline in the credit card category followed declines of 10.5% in September and 10.6% in August.
- All in all, credit card borrowing has fallen for a record 13 straight month.
Foreign direct investment in emerging economies overtaking developed economies.
Companies that has been growing throughout the recession
Company | Market Cap | Product Categories | 2007 Sales Growth | 2008 Sales Growth | TTM Sales Growth |
|---|---|---|---|---|---|
Green Mountain Coffee Roasters (Nasdaq: GMCR) | $3.2 billion | Specialty coffee and brewing systems | 51.6% | 46.4% | 56.1% |
Hansen Natural (Nasdaq:HANS) | $3.4 billion | Nonalcoholic specialty beverages | 49.3% | 14.3% | 9.7% |
TreeHouse Foods | $1.1 billion | Packaged foods and sauces | 23.3% | 29.6% | 9.5% |
Jarden (NYSE: JAH) | $2.4 billion | Home, recreation, and outdoor | 21.2% | 15.5% | (2.8%) |
Hasbro | $3.9 billion | Toys and games | 21.8% | 4.8% | (4.0%) |
Tupperware Brands (NYSE:TUP) | $2.9 billion | Food storage, beauty, and personal care | 13.6% | 9.1% | (8.7%) |
Data from Yahoo! Finance and Capital IQ as of Oct. 26. TTM = trailing 12 months.
