by president xi welcoming european leaders, including france s president emmanuel macron, to the country, and also rising tensions around its dispute with taiwan the chinese military staging a show of strength over the island beijing still claims as its own. but after three years of lockdowns, testing and a new ban on travel, economists are predicting a tide of cash could be released by china s consumers. in fact, the sums are so significant, the international monetary fund improved its outlook for the global economy. the potential revenge spending pot is huge, with chinese households racking up over $2.5 trillion in extra savings in 2022. that s an increase of around 80%. that increase in savings alone is about the same size as the entire economy of italy last year. but will the chinese consumer spend it? revenge spending has certainly been seen after lockdowns in other countries. in 2021, it was estimated
lacik, joins me now. alexander, you are about to relaunch your brand in china. what do you see as the potential there for pandora? pandora has been present in the market since 2010, had a kind of rebirth in 2015 which didn t go down that well, so we have been kind of waiting to relaunch the brand, and of course the last few years have been plagued by the restrictions around the pandemic. so traffic into the stores have been very minimal. we have been kind of sitting a bit on the sidelines waiting for the market to normalise. the perspective on why we are doing this, china is the largestjewellery market in the world, and we believe pandora has a very good chance to play well in china. we have stores in roughly 70 cities so i would say our penetration is rather basic at this stage in the game but we need to kind of plan the roots of the brand then we can expand this further. are you seeing signs of revenge spending in china right now? not really.
post the congress here in the fall they have changed their policy and they all have opened up now, but you still have this residual effect. revenge spending is completely under way in china as consumers come back to the market. of course spending on housing is down. there is a housing crisis a bit in china, but from a goods and services standpoint the consumer is back in china. and do american businesses, international businesses, think they are going to benefit from this chinese chapter of revenge spending? western multinational companies who have a business in china, in other words serving the domestic markets, will certainly benefit from this revenge spending, or the rebound spending happening in china. it s unclear whether that will translate to the export market. so mncs exporting to western
the past three years. trends, technology i particularly technology because chinese travellers are very tech savvy, - very ai, very virtual, i very metaverse savvy, so they re looking for - experiences that take them into the real world of course but in terms of marketing. they are very adept - at mobile technologies. you also have to get rid - of this view that there is such a thing as a chinese traveller. there is no typical chinese traveller. | it is a huge country, a huge market. - the chinese outbound market spans absolutely everything. i gary bowerman, thank you very much. we have been talking about revenge spending and how consumers have been spending savings built up during the pandemic, in particular in china, where more than a billion consumers have come out of three years of on and off lockdown. are they ready to spend of lot of their lockdown cash on jewellery? pandora is one of the biggest brands in the sector in the world and its chief executive, alexander
the government says it is a reasonable offer. the chief minister of the indian state of uttar pradesh appeals for calm after a former politician convicted of kidnapping is shot dead live on tv along with his brother. now on bbc news it s talking business. hello and welcome to talking business, with me, tadhg enright. let s have a look at what s on the show. can revenge spending save the world economy? after more than three years, lockdown is finally over for more than a billion people in china. they ve had time to stash trillions of dollars worth of savings. are they about to spend it travelling the world? and what s that going to mean for the rest of us? i ll be getting the lowdown on revenge spending with this top team steve odlan of the us conference board, tian lu from the economist intelligence unit in china, and gary barrowman, the man who literally wrote the book about