Young, af­flu­ent, e-savvy con­sumers fuel growth

China Daily (Canada) - - NEWS CAPSULE -

Three “great forces” are defin­ing China’s con­sumer story in the next five years, ac­cord­ing to a re­search by Bos­ton Con­sult­ing Group.

The three are: The rise of up­per-mid­dle-class and af­flu­ent house­holds as the driver of consumption growth; a new gen­er­a­tion of freer-spend­ing, so­phis­ti­cated con­sumers; and in­creas­ingly pow­er­ful role of e-commerce, ac­cord­ing to the re­search, which was jointly con­ducted by AliRe­search, the re­search arm of Alibaba Group Hold­ing Ltd.

The re­search es­ti­mated that by 2020, 81 per­cent of consumption growth will come from house­holds whose an­nual in­come will be more than $24,000. Con­sumer 35 or younger will ac­count for 35 per­cent of growth. E-commerce will be­come a far more im­por­tant re­tail chan­nel, driv­ing 42 per­cent of to­tal consumption growth, 90 per­cent of that growth will come from mo­bile e-commerce.

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