Young, affluent, e-savvy consumers fuel growth
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.