The world’s biggest shoppers are still in the US and Europe.
US household consumption expenditures totaled $US11.5 trillion in 2013, followed closely by the European Union at $US10.3 trillion. By comparison, China was at $US3.4 trillion, Brazil was at $US1.4 trillion, and India and Russia both saw around $US1.1 trillion.
In total, the combined consumption expenditure of the the BRICs was around $US7.1 trillion — less than both the US and the EU.
Consumers in emerging markets are “still nascent in their consumption patterns, including low appetite for credit in places like Mexico and a high propensity to save in places like China,” writes KKR’s
Member and Head of Global Marco and Asset Allocation, Henry H. McVey in a recent report.
“As such, EM consumers are not yet ready to assume the role of the world’s most important shoppers in the way that US and European consumers did in the past,” he adds.