The new catalysts of China’s middle class
Chinese citizens born between 1985 and 1995 following the implementation of the family-planning policy will become the backbone of China’s rising middle class in five years, contributing 35 percent to the country’s total annual consumption, up from the 15 percent in 2015, according to analysis by global financial services provider Credit Suisse.
Research has also indicated that these individuals, who are highly Internet-dependent and watch little or no television, are naturally adaptive to the rapidly evolving virtual space. As most of them are well educated, they boast substantial earning and spending power and will very likely be more willing to pay for services more than goods.
These findings from Credit Suisse’s latest report on the young Chinese generation were revealed during the 6th China Investment Conference which was held in November in Shanghai. Themed “Young China”, this year’s three-day conference attracted nearly 170 corporations which represent a total market capitalization of over $2.4 trillion.
This is the first time the Zurich-headquartered company relocated its most important annual conference in Asia from Hong Kong to Shanghai. The merging Asian market generated about 40 percent of its net new assets from April to June this year, becoming its fastest growing region in the world.
“We believe this relatively affluent young group will replenish China’s future middle class as the lower-income elderly are phased out,” said Yin He, head of regional consumer
Delivery companies have had to cope with increasing number of online orders as the younger generation in China demonstrates a huge appetite for online shopping.