Expat Expenses

By Rebecca Flood Source:Global Times Published: 2013-8-15 17:43:01

At the end of 2012 there was estimated to be over 173,000 expats living in Shanghai, a 6.7 percent rise since 2011. As Shanghai grows both in popularity and size, what effect does this have on the expat population? A recent study by Mercer, a human resources consulting firm, shows that Shanghai is now the second most expensive city in China for expats, after Hong Kong, and has a global ranking of 14th for expats, up two places from last year. Luanda, capital of Angola, is the most expensive.

People all over the world pine for home comforts, and Shanghai isn't short of places that cater to the expat lifestyle. City Shop is a supermarket chain which operates across Shanghai, specializing in imported Western goods. With 10 locations including Xujiahui, Nanjing Road West, Lujiazui and many more, it ensures expats are never too far away from familiar foods.

In comparison with the prices of goods in such Western cities as London, the living cost for expats in Shanghai can be quite expensive. Photos: CFP

In comparison with the prices of goods in such Western cities as London, the living cost for expats in Shanghai can be quite expensive. Photos: CFP

The Global Times investigated the prices of imported goods in Shanghai by comparing them with a Western city, London, to see how expensive expat living in Shanghai can be. Using prices taken from City Shop in Shanghai and Sainsbury's, the third-largest supermarket in England, we looked at a typical day in the life of an expat to see how the costs compare to back home.

A typical breakfast in London usually consists of a staple drink of either tea or coffee. Around the world the British are famed for their tea drinking, as are the Chinese, but each country opts for very different flavors. A box of Twinings Traditional Afternoon Tea costs 90 yuan ($14.71) for 50 teabags, compared with 2.73 pounds ($4.23) in London.

Photos: CFP

Photos: CFP



 

If coffee is more your preference, a 250g bag of Lavazza Crema e Gusto Ground Coffee will cost you 65 yuan ($10.62), but can be found in London for only 3.59 pounds ($5.57).

Many expats who come to Shanghai bring their family along too, but products that children love for breakfast also don't come cheap. Nutella, a favorite chocolate spread in England, costs 3.75 pounds ($5.81) for a 100g tub, but will set you back a whopping 92 yuan ($15.04) for the same product in Shanghai.

As many parents know, children need feeding around the clock, and a classic family dinner in England is pasta with tomato sauce. Typical ingredients needed for this simple dish are De Cecco Farfalle (500g), sold for 1 pound ($1.55) in Sainsbury's; Sacla Tomato & Garlic Stir-In sauce (190g), available for 2.20 pounds ($3.41); and Filippo Berio Extra Virgin Olive Oil (1L), costing 6.65 pounds ($10.31). The total amount adds up to 9.85 pounds ($15.28) for this dish in the UK. The price for exactly the same goods, brand, flavor and quantity in Shanghai comes to 32.60 yuan ($5.33) for the pasta, 35.80 yuan ($5.85) for the sauce and 108 yuan ($17.65) for the oil, totaling 176.40 yuan ($28.84), which is a price difference of $13.56.

Photos: CFP

Photos: CFP


However, having children doesn't just mean feeding them, it means clothing them too. Any parent will know that laundry doubles, or even triples, after having children. Persil, a staple laundry detergent brand in the UK is also available here in Shanghai, and while the product might be the same, the price certainly is not. Persil Small and Mighty (630ml) costs 105 yuan ($17.16), but only 3 pounds ($4.65) for the same volume in a London supermarket.

Photos: CFP

Photos: CFP


Last but not least, alcohol. The UK is famed for its beer gardens and beer drinkers. After a hard day at work, many Brits can be found relaxing with a frosty beer, especially in the summer. A single 500ml can of Stella Artois, a common beverage in the UK, will set you back 26.80 yuan ($4.38) in Shanghai, whereas in the UK you can purchase a 4-pack of 440 ml Stella Artois for a mere 4.45 pounds ($6.90).

While the exchange rate is still in Westerners' favor, with $1 equating to 6.11 yuan at the time of print, the cost of comfort, convenience and familiarity is steep. Many staple goods in the West cost far more here, even when calculated in their home currency. Moreover, many Western countries have cheap variety stores like Poundland in the UK or Dollar Tree in the US. These shops sell everything from household goods to food, all at a discounted rate. While the quality may not be that of a traditional supermarket, an abundance of goods can be picked up extremely cheaply.

Of course, expats in Shanghai can still conserve cash by forgoing pricey home comforts shipped from overseas, and instead opt for Chinese brands and food. It's go local or go home.



Posted in: Food, Metro Shanghai

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