investment viewpoints

Prospects for Chinese consumers: 2023 and beyond

Prospects for Chinese consumers: 2023 and beyond
Juan Mendoza - Lead Portfolio Manager, World Brands

Juan Mendoza

Lead Portfolio Manager, World Brands
Andrew Gowen - Co-Portfolio Manager, World Brands

Andrew Gowen

Co-Portfolio Manager, World Brands
Henk Grootveld - Head of Trends Investing

Henk Grootveld

Head of Trends Investing

To ensure future prosperity, China’s economy needs to evolve into one driven by consumption. The country can no longer rely on the low-cost manufacturing that drove its phenomenal growth in recent decades. The Q1 issue of Futureturns, our quarterly report on thematics and trends in equity markets, explores the outlook for China’s consumer transition. Is it still on track?  


Need to know

  • In the short term, we see cause for optimism given the potential for pent-up demand to drive sales following the end of Covid restrictions
  • Longer term, there are challenges, but we expect China to remain an important market for our World Brands strategy, given the country’s growing number of consumers and their increasing affluence
  • The government appears to be focused on creating the necessary infrastructure and environment to bring more people out of poverty. The key to the creation of more middle-class jobs is technology and innovation


Capturing the opportunity

Our World Brands strategy captures the opportunity in China by investing in global brands with significant exposure to Chinese consumers. They demonstrate the same demand for established brands as their Western counterparts, especially at the higher end. Although the Chinese consumer has been increasingly favouring local names in recent years, we believe the market is vast enough to support both homegrown and foreign brands.


To read the Q1 issue of Futureturns, click on the download button provided.

important information.


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