10 affluent Chinese consumption trends
To exploit the huge growth in luxury consumption, brands should target the under-30s with goods that have a Chinese element, explains Alick Zhou of Ipsos Greater China
Currently, there are 52 million middle-class families in China. It is estimated that this figure will increase to 98 million by 2015. Moreover, while there were 1.6 million well-off families in China in 2008, the figure is estimated to reach four million by 2015. China will rank fourth in the world, after the US, Japan and the UK when it comes to the number of well-off families. More importantly, in the next few years, a large proportion of people in China will step into the affluent class, making their consumption potential unimaginable. Changes in lifestyle and upgrades of consumption will give rise to huge new demands in some industries, particularly luxury goods. As the market for luxury goods in the West stalls in the uncertain economic climate, many luxury brands have begun to shift their strategic focus to China, which will come to play a pivotal part in the global luxury market. It is of vital importance for industry-leading brands, pursuers or new competitors to seize this opportunity.