Wed, 04 Jun 2014 12:39:40 GMT
The opportunity is clear: in less than a decade, more than three-fourths of China’s urban households will approach middle-class status on a purchasing-power-parity basis.
As China’s new upper middle class ($16,000 to $34,000) swells to include more than half of the country’s urban households by 2020—up from just 14 percent in 2012—it will strain many of today’s business models. China’s new middle class is becoming more important more quickly than most companies could have anticipated.
The American middle class was the world economy’s growth engine throughout the 20th century. Now, the engine is the Asia–Pacific region, which will account for two-thirds of the world’s middle class by 2030.
– Brookings Institution