Changing Chinese Consumption: An Opportunity for Alibaba and TenCent

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The new era in Chinese domestic consumption offers a glimpse into the likely future of global retail patterns. More than $413 billion of goods are projected to be sold through social e-commerce in China by 2022, an almost five-fold increase from $90 billion in 2017, according to researcher Frost & Sullivan.

While the new era in China’s consumer spending presents a new opportunity for investors, perhaps an even bigger one is Asia’s growing consumer spending trends. Another thing to consider is that shopping and paying for merchandise is completely different in China/Asia versus the U.S. Knowing that can give you a leg-up on how to make money by investing in the “winners.” In this sector, there is expected to be a lot of investment opportunities, but two of the biggest presently are the Chinese internet giants Alibaba (BABA) and TenCent Holdings (TCEHY).

Here’s the link to a great article from Bloomberg on Chinese shopping patterns: “The Future of Shopping Is Already Happening in China,” on the spending that happens, how it’s done, and how it’s paid for…Hint, it’s all mobile and social!

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