BCG: 20% of Chinese Affluent by 2020
Twenty per cent of the Chinese population will be wealthy enough to be considered “affluent” by 2020, according to research by the management-consulting company Boston Consulting Group.
By then, 280 million people are expected to form the country’s affluent class, wielding US$3.1 trillion a year of purchasing power, an amount equal to 5 per cent of global consumption, the company said. Boston Consulting defined people who have an annual household disposable income of US$20,000 to US$1 million as being affluent.
By 2020, their consumption will be nearly equal to Japan’s total consumption for the same year, 128 per cent of Germany’s and three times South Korea’s, the report said.
Adjusted to take differences in purchasing power into account, the US$20,000 starting point for the affluent class is equivalent to an annual household disposable income of US$38,000 in the most-developed markets and is near to the medium household income of many developed countries, the company said in its report.
– China Daily