This blog has always spoken of the Chinese consumer in a positive light because they are a consumption force to be reckoned with in the modern era. According to BloombergOpinion, China passed the US in December 2017 as the world’s biggest retail market. To this point, China’s purchasing power has been a great difference-maker for major US companies such as GM, Starbucks, Procter & Gamble Co., Coca-Cola Co., Apple and gambling giants Las Vegas Sands Corp. and Wynn Resorts Ltd.
But it can go another way. It can turn negative.
In 2012 when China and Japan were arguing about some China Sea islands Chinese consumers took it out on Toyota and Panasonic while last year when tension erupted with Korea over a defense shield, Hyundai’s car sales dropped by about 50% and Korean retailer, Lotte Shopping Co., sales crashed by 84% – literally driving them out of China.
Thus far, the China – US trade struggle has caused no visible ripple among Chinese consumers. That may be because on both sides of the rift, consumers still like the deal they are getting from the other. We must hope that continues. Source: Hellenics Shipping News