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CONSUMERS IN ASIA START TO OPEN THEIR WALLETS

In a glamorous television advertisement made for the Chinese market, Lin Chi-ling, a Taiwanese supermodel, is shown delivering books to the rural poor in a swish Mercedes-Benz GLK.

The advert captures China’s stark mix of urban sophistication and widespread poverty. But it also illustrates the emergence of the world’s biggest exporter as a significant consumer.

Private consumption comprises only 37 per cent of gross domestic product in China, compared with 71 per cent in the US before the world financial crisis, according to McKinsey Global Institute. But with Ms Lin’s help, Mercedes more than doubled car sales in China in the first quarter, compared with a year ago.

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