Blog about China 2009 no. 5
What is really the difference between the Professor Chen Yu
invention: “Consumption Capital”, and what we in the Intellectual Capital world like to refer to as Customer Capital?
This is not all that easy to answer. After two conferences on the Consumption Capital
topic in Beijing, I am still confused.
One of multiple possible answers is that it is a matter of macro vs. micro; that consumption capital comes from the need to make the people of a whole nation become bigger consumers, no matter the supplier.
Peder Hofman-Bang speaking in Beijing on Consumption Capital Dec. 09
Whereas Customer Capital is more about creating mutual beneficial relationships between me as a supplier and my customers. Sure, I want them to consume more, but only from my company.
Maybe you can argue that it is push vs. pull; transaction vs. interaction and so on.
Anyway, I have a more positive view of the Consumption Capital idea after I have gained more knowledge about the Chinese economy – not only by reading papers from the west, but hearing about it first hand from Chinese government officials and economists. Stimulating consumption is key to sustainable growth. But the current stimulation package has to be altered from currently creating vast surpluses to increasing salaries, creating more efficient enterprises etc.
As one distinguished army General said in his talk: we all know how to spend money – once we have money.