Pepsi, an American snack-food firm, opened its first Quaker Oats manufacturing plant on the mainland in October, and has launched oat-based dairy drinks to cater to local tastes. It even hopes to introduce Pepsi-branded smartphones. Keen to experience such wondrous novelties as Peking-duck-topped, Mickey-Mouse shaped pizza, Chinese families are now eagerly snapping up entry tickets online. Starbucks, an American coffee chain, plans to add outlets this year in China, including one at the entrance of the new Disney park.
Firms such as these are betting on the continued rise of the affluent middle class. They are also betting on the frivolity of the free-spending young. But above all, they are betting on the law of large numbers.
A joint study, by the Boston Consulting Group, another consultancy, and AliResearch, the research arm of Alibaba, predicts that even if economic growth falls to only 5. Despite the deficiencies in economic forecasts, that incremental gain would be bigger than the entire consumer economy in Britain or Germany today. Join them. Subscribe to The Economist today.
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