Writing.doc

10“The Butterfly Effect”-The Change of Consumerism of Chinese Youth Reach Out to Worldwide Economy By Shella, Rita, Ammy A Thesis Submitted to the Department of Business In Partial Fulfillment of the Requirements for The Degree of Bachelor of Arts Under the supervision of Writing Teacher Andy Paluch Wuyi UniversityJune 10, 2012 Shella, Rita, AmmyClass one “The Butterfly Effect”-The Change of Consumerism of Chinese Youth Reach Out to Worldwide EconomyAbstract: The increase of Chinese youths number and their consumption power create a great potential market. And the change of consumerism of Chinese youth triggers international companies to produce more products to meet their demand. Thus, Chinese youth plays an important role in international companies money earning.Chapter1: Introduction: An article in China Daily shows that “ Titanic 3D grossed an unprecedented $67 million in China in six days since its April 10 debut, according to statistics from the 20th Century Fox Film Corporation. The original Titanic raked in 57 million dollars in China, a significant figure at the time”. (China Daily) Another article in News Center called shows that on June 4, 2012 Titanic finally left theater after two times apply for postponing. So far China is the highest-grossing foreign market for the film. In the past, foreign movies only display in only about 180 theaters, but today there are 3,500 locations in our country. (Xinwen Zhongxin) China turns into the leading foreign market for foreign films. The movie of Titanic is the theme of love. It caters to Chinese young peoples interest, especially college students. The big consumer group of college students is making a great contribution to the highest-grossing. In this way contemporary Chinese college students consumerism somehow have an effect on worldwide economy. Moreover, with the development of economy and improvement of living standards, many Chinese college students like us have cell phones or personal computers and some students like purchasing products of famous brand. Students keen on purchasing fashion more or less have caused some effect on worldwide economy. The whole paper is divided into six Chapters; The first Chapter is introduction. The second Chapter is about the influence of Chinese economy on worldwide economy. The third Chapter is about international marketing in China. The fourth Chapter is about consumer habits of college students. The fifth Chapter is about Chinese youths consumerism have an effect on worldwide economy. Finally, conclusion is drawn. All these are given a careful discussion and a detailed study in this paper. To study this topic, we have done a lot of survey and interview. So in the following chapters of fourth and fifth of this paper, we will use some data which is analyzed by ourselves after we have done the survey to support our paper. Chapter2.The influence of Chinese economy on the world 2.1 The world factory in the past 30 yearsSince China put forward the policy of reforming and opening to outside in 1978, its overall economic development has increased rapidly. In the past 30 years, as the worlds factor, China exported a flood of goods to overseas which provided powerful material basis for its related activities with the rest of the world. In 2001, it joined WTO which provides an arena for the enterprises of China. At the same time, China is aimed as a big market for many international companies. After it joined the WTO，not only association between its market and that of foreign countries become more closer but also concepts of consumption from abroad influence China .2.2 Urbanization and the strong spending powerThe soaring development of industrialization of China not only renders it as the world factory but also save its people from the shortage in necessity. China has entered into the era of urbanization. Compared with past, people have much more money in their hands , their spending power become strong, more and more people moved into the city, they become open-minded ,they are gradually accepting the consuming concept from abroad ,that is ,excessive consumption. The big market with a huge population of 1.3 billion attracts investors from worldwide, and the strong spending power of 1.3 billion of Chinese people has influential effect on the economic developmental system of the whole world. Chapter3.The international marketing in China3.1 The strategy of international companies Seeing the obvious changes of China, multitudes of international companies cast their attentions to this market .Countless goods flowed to China. According to some surveys, international goods in China in general can be divided into three categories which are living goods, food, and entertainment. Through various marketing ways ,international companies launch a series of marketing activities like brand promotion, discounting and so on which intensify their “attack” on the target market.3.1.2 The big market share of international goods in ChinaWhen it comes to what the big market share are, it can be found from the surveys that living goods is one of the biggest share ,typically, mobile phones and cosmetics , some statistics suggest that the market share of cosmetic brands in china are dominated by foreign countries like America、France、Korea、Japan and so on. In addition, only 53.8% of people in china know domestic cell phones. Among abroad brands Nokia ranks the first among abroad brands which accounts for 96.9%.In the terms of food is the market of KFC and McDonald, the chief of McDonald in china said :“China is the first country in which McDonald subsidiary has outnumbered one thousand outside the America. In the terms of entertainment is the film, according to Gao Jun ,who is the assistant manager in one of the Beijing film companies , he said：“ film companies from abroad compare China as a goldfield, a large number of Chinese audience has got into the habit of seeing abroad films.” （ Journal of Xinxiang Teacher College , The market of abroad films in China , McDonald in China ）3.2 The major group of consuming International goods According to Mckinsey Quarterly, the consuming groups of China on these abroad goods largely are young men ,and the characteristics of this group are that those young men are more sensitive to novelty、fashion and individuality . While this group is segmented, the college students take a big proportion .Chinese college students in nowadays oppose much money than that of the previous years. They have been treated as a big consuming group and become the focus of international companies. (Mckinsey Quarterly, “the major consuming group in China, Vinary Dixit, )Chapter4 Consumer Habits of College Students4.1 Changes of consumerism between our parents generation and our generation 4.1.1 Why it happenedAccording to the theory of the Permanent Income and Consumption Theory, one of its basic viewpoints is that consumer expenditure depends on permanent income. (M Friedman)At that time, our nation is under the transition period of reforming and opening, so everything is a brand new. Peoples living standards are still in a low level. They didnt have extra money to buy more goods and their basic consumption is for food. 4.1.2 The consumerism of our parents generation On the basic of our survey result, college students of our parents generations living expenses are about $10 per month for a middle-level family at that time. And almost their living expenses were spent on meals. They occasionally spent some money in buying stamps and envelops. Writing letters is the only way for them to get in touch with their family members and friends. So their consumption is very simple. 4.1.3 The consumerism of our generation We are a new generation of the cross-century. Our nation is developing greatly in this period, so peoples living standards improve a lot. And under the influence of globalization, culture, economy, science and technology between country and country is infiltrating into each other, and this caused peoples consumption changed. College students of our generation have more living expenses than older generation. According to our survey, students spent money on meals takes up about 62.5%; they spent money on entertainment, like telephone, Internet fee, movie watching takes up about 15%; they also buy clothes, cosmetics, ornaments, and this takes up about 18% among girls. From our survey result, we discover about half of boys spend about 100 to 200 in entertaining their friends. So we can see that the contemporary Chinese youths consumption behaviors are various compared to that of parents generation.Chapter5: Chinese youths consumerism caused some effect on worldwide economy5.1. The consuming power of college students takes up a big proportion.5.11. The increasing number of college students means a potential market. As we all know, the spending power of college students is strong, as to businessmen, the campus market is likened as a gold mine which waiting for them to exploit. The report shows that the number of Chinese college students is increasing gradually. From 1998, the number of college students rises an average of 20% every year. Until 2007, the number has surpassed 23 million and exceeds the national population of the Australia.5.12. The spending power of college students is strong.College students are readily to experience new things, even new cola with improved taste or some high-tech products such as mp4, notebook computer, and digital camera and so on. To some extent, the spending power of them is stronger than some ordinary office workers. Except for necessity, computer consumption, telephone consumption and love expense are the main extra consumption of them, and the money they spend on them is more than eating and buying school supplies. From the report of 2006 on college students consumption, we can know that each college student of China spends 5500 Yuan average per year. Furthermore, more and more students find a part time job during school years which indicates their disposable money is increasing. In this way, the campus market is enlaring.5.2. Chinese youth is a potential consumer group for foreign products.5.21. The boom of network consumption gives college students more opportunities to buy foreign products.College students in nowadays are more familiar with computer than any early generations , they are influenced deeply by network. Chinese youth today stands in the line of being tempted by novelty, naturally, they become the potential consumer group to buy products online. Furthermore, consuming in network has some benefits for them. Firstly, they have more choices to buy some products launched by international companies that attractive in price and quality. Secondly, online shopping is very convenient for them; they can buy whatever they want in dormitory. Thirdly, the products on the internet not only come from domestic but also abroad. Just because of these, Chinese youth prefer online shopping and they have more opportunities to buy foreign products.5.22. Many college students prefer to buy foreign