Four Tiers of Consumers
The “average Chinese consumer” does not exist. China’s consumers can be divided into four tiers. Future growth will come from two key groups—the white-collar “Urban Middle”, and the blue-collar “Urban Mass”.
Movers & Shakers
China’s wealthiest citizens already make up a large part of global demand for high-end goods. Their spending patterns will continue to influence trends as the country grows.
Annual Income per CapitaUS $500,000
This is China’s narrow middle class. Nearly half of them are on the public payroll, so policies to increase income will have a strong effect here.
Annual Income per CapitaUS $11,733
This group—blue-collar workers and migrant workers who have moved to cities to find better-paying jobs—is expected to see the biggest rise in income. This will allow them to broaden their spending beyond consumer staples.
Annual Income per CapitaUS $5,858
Half of China’s workers still live in rural areas. With lower incomes and fewer available jobs, their spending is concentrated on essentials such as food and housing.
Annual Income per CapitaUS $2000
The Rise of China's new consumer class
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 US and Europe combined. As more Chinese consumers gain purchasing power, their needs and preferences will have a powerful effect on the global economy.