Mapping China’s middle class ; Parts 1

Mapping China’s middle class ; Parts 1

The evolution of the middle class means that sophisticated and seasoned shoppers—those able and willing to pay a premium for quality and to consider discretionary goods and not just basic necessities—will soon emerge as the dominant force. To underscore this group’s growing importance, we have described it in past research as the “new mainstream.”⁵ For the sake of simplicity, we now call consumers with household incomes in the 106,000 to 229,000 renminbi range upper middle class. In 2012, this segment, accounting for just 14 percent of urban households, was dwarfed by the mass middle class, with household incomes from 60,000 to 106,000 renminbi. By 2022, we estimate, the upper middle class will account for 54 percent of urban households and 56 percent of urban private consumption. The mass middle will dwindle to 22 percent of urban households (Exhibit 1).

Resource from:

http://www.mckinsey.com/insights/consumer_and_retail/mapping_chinas_middle_class?cid=other-eml-nsl-mip-mck-oth-1307