Feng Guoguan: China Is Expected To Become The Largest Consumer Country By 2030.

According to reports, Feng Guoguan, chairman of the world's largest clothing and toy supplier Li & Fung Ltd. 0494.HK (LI) Co., Ltd., said recently that it is expected to be accompanied by

By 2030, China will be the biggest consumer.

Feng Guoguan said that China has been the world's factory before 2009, but with the rising labor costs, driven by domestic demand, and with a commitment to open the market, it is expected to become the world's largest consumer country by 2030.

He also pointed out that if China can maintain an average annual economic growth of 6%-7%, surpass 3% of the United States and move towards the largest economy, and the current consumption expenditure in China is low, there will still be room for growth, so it is optimistic about China's economy.

On the other hand, the public's demand for life gradually increases, such as food safety problems. It is expected that the Chinese government will continue to invest in this area and continue structural reform and innovation.

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Before the speech, there has been a large number of "2017 China become the largest consumer country", "2018 China become the largest consumer country" and "2020 China become the largest consumer country" argument. However, at present, both China's economy and consumer areas are not optimistic.

China's economic growth has been mainly supported by real estate and finance in recent years. Although the consumer market has maintained a growth rate of around 10%, there are obvious signs of slowing down. Recently, Bloomberg reported that the finance bureau is declaring the consumption tax reform to the State Council to stimulate consumption.

The latest data from the National Bureau of statistics showed that the total retail sales of Chinese consumer goods increased by 10.2% in July 2016, of which, the retail volume of consumer goods above the quota increased by 7.3%.

Over the past year, total retail sales of consumer goods in China have been slowing down, approaching single figures.

The Feng Guoguan group, which has been in charge for the past two years, has also been declining along with the downturn in China's economy and global consumer market.

By the end of the first half of June,

The core profit in the medium term plunged 14.2%, from 1.82 billion US dollars in the same period last year to 1.56 billion US dollars.

Li Feng said in the China Daily that 2016 was the most difficult year after the financial crisis.

Weak economy, weak consumer confidence and fierce sales promotion environment continue to bring severe challenges to the global retail industry.

The flagging consumer demand and inventories are pressing the group's brand and retail customers. In order to reduce inventories, group customers' new orders are obviously prudent, which has a negative impact on the group's turnover.

In the first half of June 30, 2016, Li Fung recorded a turnover of US $8 billion 71 million, down 6.4% from US $8 billion 626 million in the same period last year, of which US and Europe accounted for 61% and 17% respectively.

The US market revenue of US $4 billion 900 million decreased by 5.9% compared with the same period last year. The European market recorded a turnover of US $1 billion 300 million, down 2.7% compared to the same period last year, and the Asian market also recorded a turnover of US $1 billion 300 million, with a decrease of 6.9%.

At present, China, Vietnam and Bangladesh are still the top three buyers of Li Feng, with a total of 15000 suppliers, of which China buys more than 50%, and garments and groceries account for half of the total, while Vietnam and Bangladesh basically buy Garments, of which 99% are Bangladesh.

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