• Journal of International Area Studies (JIAS)
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• v.13 no.2
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• pp.315-338
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• 2009

The purpose of this paper is to analyze the situation of bi-polarized consumption in China before and after the global financial crisis, to find the factors causing bi-polarized consumption, and to suggest some policies for Korean enterprises. The findings are as follows. First, before the global financial crisis, in China, there were bi-polarized consumption among classes, and between urban and rural areas, and bi-polarization of individual consumption. The sales of both low price goods and high price goods increased more than that of middle price goods. Second, after the global financial crisis, the trend of bi-polarized consumption in China is stronger than those of other countries. The sales of both low price goods and high price goods in China increase more than in other countries. Third, the factors causing bi-polarized consumption are bi-polarized income, black and grey incomes, "Mianz" culture, the increase of unemployment, and the changing form of family. Especially, the level of formal income is not only high, but the level of black and grey income is also very high. And "Mianz" culture means the conspicuous consumption. The degree of the conspicuous consumption of China is very high in comparison with other countries because "Mianz" culture is strong. Finally, the paper suggests strategies appropriate for bi-polarized consumption with Chinese characteristics.