China’s New Consumer Class
Goldman Sachs Sponsored Content
May 18, 2016 - 2:43 PM EST
Across Asia, rising incomes are creating an enormous new class of consumers. Much of that growth is coming from China, whose working population is larger than those of the U.S. and Europe combined. Right now, only 11 percent of China’s population is considered middle class. As more people gain purchasing power, their needs and preferences will have a powerful effect on the global economy. As the ranks of the China consumer market swell, so too will its effect on the global economy, with huge opportunities for the entertainment, food service, technology, and other industries. But to take advantage of those opportunities, businesses will need to understand China’s urban middle class and align pricing, offerings, and other practices to the groups’ specific needs.
“In the coming years, we see that rising income will bring a couple hundred million people into the consumer class,” Lu says. “And that is what makes China extremely important in the coming decade.”
