Article at a glance:

The Chinese consumer: To spend or to save?

• New research indicates that Chinese consumers lack confidence in their financial future and are saving a quarter of their income to cover health care and retirement.
• Nonetheless, shopping lists for the next 12 months include big-ticket items such as flat-screen TVs, automobiles, and new homes.
• Consumers in towns and smaller cities—now a key battlefield for multinationals and domestic companies alike—are intensely interested in big-ticket consumer goods.