The Rising Influence of Rising Affluence

[DewDiligence]

China’s Middle Class Will Triple by 2020

http://www.bloomberg.com/news/2010-11-08/middle-class-affluent-consumers-in-china-may-almost-triple-in-next-decade.html

›By Bloomberg News - Nov 8, 2010

China’s middle-income and affluent consumers will probably almost triple in 10 years with the bulk of the increase coming from smaller cities, Boston Consulting Group Inc. said today.

There will be 270 million more consumers whose annual household incomes exceed 60,000 yuan ($9,000) in the world’s most populous country by 2020, said Carol Liao, a partner at the Boston-based consulting company. That would lift the total number of middle-class and affluent Chinese to 415 million from 148 million now, she said.

“China is no doubt the highlight of the global consumer sector, and second-tier and third-tier cities are the main driving force within the Chinese market,” Liao said at a briefing in Beijing today. Three-quarters of the growth will come from smaller cities as incomes rise, she said.

“Middle-income consumers in smaller cities are expected to become the new blood in China’s consumption,” Liao said. They also have a greater potential to save because their living costs are lower than in cities such as Beijing, Shanghai and Shenzhen, she said.

Boston Consulting surveyed more than 7,000 consumers in 28 Chinese cities in 2010.‹