Chinese, one of the largest population in the world, is well known for its incredible demand for everything, in particular necessities. According to the latest study by think tank Demand Institute, there was a 70% increase of $3.7 trillion that Chinese consumers spent last year. By 2025, Chinese consumers are expected to spend more than $6.4 trillion a year, which is a startling amount.

In fact, China’s population accounts for almost 20% of the whole world population, according to Worldometers (2015). With China’s continuous and thriving economic growth since 2000, the purchasing power and willingness of the population in China are generally increasing. No wonder large enterprises such as Apple Inc. are regulating products and services to accommodate Chinese consumers’ needs. For instance, Apple Inc. produced iPhone5 in gold specially for Chinese market. The influence of Chinese does not only appears in local aspect, but also being beneficial to international and transnational aspects.

Being one-fifth of the world population (which keeps growing continuously), Chinese market is always expected to be focused by worldwide corporations. The development of Chinese local consumption online such as Alibaba is also worth to be noted. With no doubt, we should always keep a close eye on the future development of this large market, which is of great potential and influence to the world.

Reference:

China Population in 2015  http://www.worldometers.info/world-population/china-population/

China’s consumers to spend $6.4 trillion by 2025 http://money.cnn.com/2015/11/19/news/economy/china-consumer-spending/index.html?iid=SF_LN

On 19th November, Best Buy (BBY) delivered the latest news on retailing sales figure this year. Its stock has fallen down by nearly 6%. This news has disappointed investors and struggled companies particularly in the electronic market. It is expected that the coming holiday (shopping) seasons at Christmas and New Year will not boost retailing sales revenue in electronic market much – it may even reducing. Worse still, some other big box stores like Walmart (WMT), Nordstrom (JWN) and Macy’s (M) are not very optimistic about the holiday shopping season as well. Another apparent change of shopping pattern is discovered, that customers start purchasing more big-ticket items, such as vehicles and furnitures, instead of small-ticket ones, such as tablets and phones.

At this point, we still cannot decide whether this change of shopping pattern is temporary. However, this is an alert to remind developers and retailers that the thriving electronic market nowadays may not be permanent. They should always take a very close look at the social, economic and environmental trend apart from “creating” the trends, in order to secure profit level. Otherwise, overly aggressive investment may result in similar situation with Best Buy – although sales of big-ticket items go up, the company is offset by the declined sales of small-ticket items, eventually creating a loss more than a gain.

Reference: http://money.cnn.com/2015/11/19/investing/retailers-hurt-before-black-friday/index.html?iid=SF_LN

According to reports, Disneyland has decided to raise its price of annual pass and daytime ticket prices. One of the reasons is probably the busiest seasons – Christmas and New Year are coming. The price increase has apparently caused discontent from potential customers of Disney. However, in my opinion, the increase in price is somehow logical and efficient in balancing the demand and supply of Disneyland.

The demand for Disneyland has been insatiable in recent years. According to statistic.com, the revenue of Walt Disney Company has been increasing, even though the prices of Disney products and services, such as Disneyland tickets, toys, usage of hotel facilities etc. are increasing. The demand is seemed to be inelastic in the market – the percentage increase in the products and services are expected to create a smaller percentage change in quantity demanded. The price increase acts as an efficient tactic to balance demand and supply.

On top of that, it is meanwhile suggested Disney should increase the frequency of social services to accommodate the price increase, since the less well-off people in society may not afford the increased price of Disneyland tickets. In terms of business ethics, Disney can provide discount and benefits for relatively poor families, in order to improve company’s image even there is price increase and to fulfill social responsibility.

Reference:

Jean Byun’s Blogpost “Disney, Excessive pricing for the excessive demand” https://blogs.ubc.ca/jaeeunbyun/2015/11/19/disney-excessive-pricing-for-the-excessive-demand/

Walt Disney Quarter Revenue in 2015 http://www.statista.com/statistics/224397/quarterly-revenue-of-the-walt-disney-company/

On 13th November, Paris was reported to be attacked by terrorists, resulting in a death toll at 128 and numerous of casualties by now. Thousands of police and soldiers were drafted in to secure the city. Both Paris and the world citizens are horrified by the attack.

In 2014, France ranked the third in terms of total tourism revenue in the world. Tourism is an enormous part of revenue for France. However, the attack has made tourists shaken and horrified. In short run, tourists are expected not to travel France due to the potential threats from terrorists and sorrowful atmosphere. Gain from tourism activities such as shopping, which Paris is well known for, will reduce. Exports and imports will meanwhile be affected because TNCs may lose their confident towards local market due to the continuous political and social unrest in France.

Apart from external impacts, internal ones are expected to appear. For instance, French’s working incentive will decrease due to uneasy atmosphere in society and political unrest. Both the physical and mental state of the country will decline after the incident, and will not be able to fully recover in short term. The casualties of Paris attack are pathetic and innocent. It is hoped that they can get recovered physically and mentally to make a concerted effort to rebuild the stunning city.

Reference: http://www.economist.com/news/europe/21678508-least-forty-are-dead-others-are-held-hostage-french-security-services-had-warned-attack-might-be?spc=scode&spv=xm&ah=9d7f7ab945510a56fa6d37c30b6f1709