Washington: The total number of affluent consumers China is expected to hit 280 million by the year 2020, according to a new study by consultancy Boston Consulting Group.
The study said that the upper affluent, i.e. those earning between 40,000 to 1 million dollars per year, will account for 40 percent of the 280 million.
BCG describes affluent people as those with annual household disposable incomes of between 20,000 to 1 million dollars, the Wall Street Journal reports.
According to the paper, the study, based on interviews with 3,000 affluent individuals, says that the affluent in the country will propel 40 percent of China’s consumption growth and will comprise 35 percent of all consumer spending in 2020, up from 24 percent last year.
Their spending will grow fivefold to 3.1 trillion dollars in the next eight years, the study noted.
The country’s wealthy are also becoming more split, with the veterans no longer interested in flashy, logo-laden products and the newbies wanting all the glimmer, BCG said.
The study also said that wealth will be far more scattered around the country, with 75 percent of future affluent consumers coming from China’s smaller, lower-tier cities, the paper said.
Further complicating the picture is the growth of a new generation who inherited their wealth, rather than accumulating it on their own. The silver spoon set will comprise 30 percent of the affluent in five years, up from its current 10 percent, BCG said.
These consumers are fickle, rejecting the products their parents use, wanting exclusive but unique products, the study added.