MGI's approach involved the combination of a proprietary database, an econometric forecasting model and insights from on-the-ground research to determine how economic growth will impact Chinese consumers over the next 20 years.
An increase in Chinese urban incomes is expected to lead to the emergence of the world's largest middle class. We look at how incomes may break down by class, geography, and other demographic factors over time.
Chapter 3: Changing patterns of savings and consumption
The savings behavior of the Chinese will likely decrease in coming years, while consumption increases and spending patterns change. Implications for eight major product categories are discussed.
Analysis suggests that growth of the middle class and consumption shifts are a matter of "when" not "if." We analyze high- and low-growth scenarios, as well as sensitivities to changes in key input variables.
MGI concludes that excitement over China's future as a consumer market is justified, then summarizes the opportunities and challenges for companies and policy.
Interactive exhibit See how the demographics of the Chinese consumer are expected to change over the next 20 years. View Interactive graphic overview
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