What are the developing trends among Chinese consumers?

Trends among Chinese consumers will largely follow those seen in the economic booms of Japan, Korea and Taiwan. Chinese consumers today are richer, more urbanized, better educated, more upwardly mobile, and more willing to postpone life stages than they were twenty, or even ten years ago, and these trends are only set to continue. In regards to household wealth, for example by 2020 the share of urban households earning $16,000 a year or more will have grown to 57 percent from 8 percent in 2012. 2020 also happens to be a benchmark in China’s massive urbanization campaign of moving 250 million rural residents into its cities over the coming decade.

The demographic dividend that helped usher in China’s rapid economic transformation will have spend itself by 2020, resulting in a much older Chinese population overall. Five percent more of the Chinese population will be above the age of 65 than at present – an additional 126.5 million people. However, this group will have spent their prime working years during China’s economic reform period, which should be expected to significantly inform their purchasing behavior. While the Chinese virtue of frugality will continue to play a role in consumption habits, growing trend of using consumption to fulfill one’s emotional needs and express individuality has been documented by McKinsey.