Abstract
This study examines differences among urban Chinese consumers and their consumption patterns in three major cities—Beijing, Shanghai and Tianjin—utilising data from a nationally representative sample survey conducted in 2005. Differences were found in these consumers’ age distribution, education level, household composition, birth and death rates, income, expenditure patterns and consumer durable ownership rates. Beijing and Shanghai, the two most affluent cities in China, exhibited the highest consumer durable ownership rates and the highest cost of living. While previous research has frequently segmented China in terms of a rural versus urban dichotomy or by geographic region, this study suggests that the urban Chinese do not constitute a homogeneous market. Further, it is suggested that both geographic region and income, which varies between rural and urban settings, are sound bases for segmenting this important market.
Similar content being viewed by others
References
Chen, J., Aung, M., Zhou, L., & Kanetkar, V. (2005). Chinese ethnic segmentation and conspicuous consumption: Are there moderators or mediators effect of acculturation dimensions? Journal of International Consumer Marketing, 17(2/3), 117–136.
China. (2005). Statistical yearbook of China. Beijing: Statistical Publishing House of China.
China. (2007). Statistical yearbook of China. Beijing: Statistical Publishing House of China.
Cui, G., & Liu, Q. (2000). Regional market segments of China: Opportunities and barriers in a big emerging market. Journal of Consumer Marketing, 17(1), 55–72.
Datamonitor. (2007a). PCs in China industry profile June 2007. Hong Kong: Datamonitor Asia-Pacific.
Datamonitor. (2007b). Consumer electronics in China industry profile July 2007. Hong Kong: Datamonitor Asia-Pacific.
Dickson, M., Lennon, S., Montalto, C., Dong, S., & Li, Z. (2004). Chinese consumer segments for foreign apparel products. Journal of Consumer Marketing, 21(5), 301–317.
Fang, C., Zhang, X., & Fan, S. (2002). Emergence of urban poverty and inequality in China: Evidence from household survey. China Economic Review, 13, 430–443.
Gould, B. W., & Villarreal, H. J. (2006). An assessment of the current structure of food demand in urban China. Agricultural Economics, 34(1), 1–16.
Khan, A. R., & Riskin, C. (2001). Inequality and poverty in China in the age of globalization. New York: Oxford University Press.
McEwan, W., Fang, X., Zhang, C., & Burkholder, R. (2006). Inside the mind of the Chinese consumer. Harvard Business Review, 84(3), 68–76.
Meng, X., Gregory, R., & Wang, Y. (2005). Poverty, inequality and growth in urban China, 1986–2000. Journal of Comparative Economics, 33(4), 710–729.
Min, I., Fang, C., & Li, Q. (2004). Investigation of patterns in food-away-from-home expenditure for China. China Economic Review, 15(4), 457–476.
Song, Z., & Zhao, P. (2003). Expanding consumption and building comprehensive well-off society in China: The first report on China’s economic development and policies. Beijing: Chinese Social Sciences Literature Press. (in Chinese).
Sun, T., & Wu, G. (2004). Consumption patterns of Chinese urban and rural consumers. Journal of Consumer Marketing, 21(4), 245–253.
Swanson, L. A. (1989). The twelve “nations” of China. Journal of Segmentation in Marketing, 2(1), 83–105.
Xu, Z. G., & Tang, P. H. (2000). Chinese consumer trends and structural changes in consumption, Business Economy Management, 44–48 (in Chinese).
Yusuf, F., Brooks, G., & Zhao, P. (2008). Household consumption in China: An examination of the utility of urban-rural segmentation, Chapter 17. In S. Murdock & D. A. Swanson (Eds.), Applied demography in the 21st Century. Dordrecht, The Netherlands: Springer.
Zhang, J. (2005). Analysis on the consumption structure in Beijing and Shanghai. Productivity study, 5, 125–126. (in Chinese).
Zhou, J. (2004). Beijing urban residents’ changes in the structure of consumption in the process to build comprehensive well-off society. Consumer Economy, 3, 6–10. (in Chinese).
Acknowledgements
The senior author wishes to acknowledge his gratitude to the Chinese Academy of Social Sciences (CASS), and in particular Professor Xu Jin, for their help and cooperation during his visit to China in April 2006. Although both CASS and Macquarie University have supported this research, any views expressed are the authors’ own and do not reflect the views of either organisation.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Yusuf, F., Brooks, G. Demographics and Consumption Patterns in Urban China. Popul Res Policy Rev 29, 5–17 (2010). https://doi.org/10.1007/s11113-009-9154-5
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11113-009-9154-5