Trends Impacting China Over Next 10 Years

Understanding trends that will shape China over the next 10 years will help companies prepare to get ahead. Those things pertaining to consumption will be shaped by a middle class that is booming, advances in technology and older consumers. Companies will need to use their talent to create data-driven offerings that are personalized. Here are some trends to take note of:

Booming Middle Class

The middle class will represent 65% of households, and household consumption will grow by an average of 6% each year. A great number of industrial jobs, along with more families moving to urban areas where incomes are higher will take approximately 180 million low to lower-middle income families to a higher income bracket. This will result in more spending in discretionary areas, not just necessities anymore.

Aging Population

It isn’t unusual for a country to have an aging population, however, the scale in China is different because it is estimated that 22% of the population will be over the age of 60 by 2027. While this will impact the number that is working, it will open up opportunities concerning products and services that are specifically for this demographic. These individuals will turn to products that support health and are priced well.

Technology & Digitalization

Those born in the 1990s and 2000s are different from earlier generations. They not only received a great amount of financial support from their parents and grandparents, but they also grew up during a time when there were swift improvements in quality of life empowered by technology and digitalization. This group is all about instant gratification and looking for convenience, along with variety and quality. They are more open to new things than their parents and grandparents are.

These are just a few things to consider. There is a lot of other information available when it comes to preparing in the area of china marketing. This next decade will allow companies to thrive, but in order to do so, they need to be preparing now to do things that will be required to succeed.

To get a better understanding of the road ahead, take some time to visit https://www.bain.com/insights and learn more. They work with clients who want to define the future, those with high potential and ambition.