The McKinsey Quarterly looks at the potential value of China’s emerging middle class. Some of their estimates:
- Today 77% of urban Chinese households live on less than 25,000 renminbi a year (about $3,000); by 2025 that figure will drop to 10%
- Every year about 20mn Chinese (aprox the population of Australia) turn 18
- In 2004 about 36mn urban Chinese households had a disposable income of at least 25,000 renminbi a year… by 2009 the number could triple to 105mn
- By 2025 China’s urban households will make up one of the largest consumer markets in the world, spending about 20 trillion renminbi annually - almost as much as all Japanese households spend today
- By 2011 the lower middle class will number some 290mn people, representing the largest segment in urban China. By 2025 this segment will comprise a staggering 520mn people
For more, see the special McKinsey Quarterly issue on serving the new Chinese consumer.
Join the Conversation