China's Consumer Growth To Soar

Despite reports that China's economy is slowing, its consumer market has been forecast to make $6.5 trillion by 2020, and e-commerce - especially through mobile platforms - has been credited as the main reason why.

The study, conducted by Boston Consulting Group - the company that has been tapped by Diane von Furstenberg and the CFDA to explore the possibility of shaking up New York Fashion Week - and AliResearch - the research department of the Chinese e-commerce platform Alibaba - specifically cites the rise of the upper and middle class that is driving consumer growth; the growing role of e-commerce in everyday life; and a new generation of consumers that are making more sophisticated and informed decisions about what they spend their money on as the key factors, reports WWD.

The latter echoes comments made by Vogue China editor Angelica Cheung at this year's Conde Nast International Conference, where she told the gathered delegates that the Chinese consumer is asking more questions and becoming more educated about their spending habits.

"It's like a man who has been starving for a long time, and when he sees food, he wants to stuff himself. But when he gets full he doesn't feel well and becomes bloated - so then he wants to have more of an informed healthy lifestyle," she said. "That's where we're at - the growth we have in China is real now."

Youchi Kuo, a principal at BCG and co-author of the study, concurred with Cheung, saying: "Because the nature of consumption is changing dramatically, the winning strategies of the past are becoming outdated. It will be more important than ever before for [companies] to target the right income segments and product categories and to be represented in fast-growing online retail channels."